Electrovaya Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Danielle Magner - Raymond and James - Analyst : Hi guys, thanks for taking my call today. Just a few questions from my end. Sounds like, existing facilities rather than new bills are becoming more of an opportunity for at least one customer. Do you expect other customers to follow Suit?

Question: Danielle Magner - Raymond and James - Analyst : Got it. And I got some discussions with customers. Any indication that the current US administration's policies will potentially lead to delays in orders?

Question: Danielle Magner - Raymond and James - Analyst : Got it. Alright well thanks I'll jump back and thank you.

Question: Eric Stine - Craig-Hallum - Analyst : Hey, so just on the EXIM, bank loan, can you talk about steps left to finalize it and maybe it's simply, you're almost there and you just got last few things to tie up, so that would be first and then just curious, there's obviously a lot of noise around the new administration and funding, and I know that's primarily the infrastructure bill and the IRA, but just wondering, level of confidence in closing this loan against the current political backdrop.

Question: Eric Stine - Craig-Hallum - Analyst : Okay, it's a good colour. Maybe just turning to, Sumatoma, you mentioned, I think you're quote a flurry of interest, in that, I mean, I'm just curious, is that interest in a like product, so in construction equipment, or is that for other applications, and if so, what are those applications? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2025 / 10:00PM, ELVA.TO - Q1 2025 Electrovaya Inc Earnings Call

Question: Eric Stine - Craig-Hallum - Analyst : Got it. That's right. Okay, perfect and then last one for me, I know you reiterated the guide in Q1 that was, I think, pretty aligned with what your expectation was. Can you just remind us of kind of linearity of revenues or expectations throughout the remainder of fiscal '25?

Question: Eric Stine - Craig-Hallum - Analyst : Okay, pretty gradual. I mean, kind of spread nicely, or is there a corner where you based on where backlog is today, you think there could be a step up.

Question: Eric Stine - Craig-Hallum - Analyst : Okay. All right, thank you.

Question: Craig Irwin - Ross Capital - Analyst : Hi, good evening. Thanks for taking my questions, Raj, can you maybe give us an update on the new markets where you're going to see, important deliveries this year that kind of lay the foundation for growth over the next couple of years. I mean, you've talked about mining, robotics, rail, military, and other opportunities, what's changed or maybe what's the update that you could share with us at this point?

Question: Craig Irwin - Ross Capital - Analyst : Understood. So then, you've had some new products that you've been talking about for a while, and I know you've been testing those with different customers, and they're sort of at the early stages of roll out. Can you maybe talk about how these high-powered products are expanding your opportunity for this year? Do you expect them to make a material contribution to mix. And are they important for, serving these customers, that historically use another supplier?

Question: Craig Irwin - Ross Capital - Analyst : Great and then last question if I may. Can you maybe describe for us the process you went through, with EXIM to bring the supply chain to North America, can you maybe talk about, your selection of anode and cathode suppliers, other materials used in the battery manufacturing, other equipment used in the battery manufacturing, and how, sort of North American centric this is. And then has the financing for Jamestown from EXIM and the improved visibility on that facility, has that changed customer conversations in North America and maybe led to a different character or volume of discussions with these important US and Canadian customers.

Question: Craig Irwin - Ross Capital - Analyst : Excellent. Well, congratulations on the progress there. I'll hop back in the queue.

Question: Jeffrey Campbell - Seaport Research Partners - Analyst : Thank you, and congratulations on a good quarter. [Roger], guiding 2025 revenues to exceed $60 million just high level. What part of parts of the business might represent upside of that estimate and maybe what aspects might put that estimate at risk.

Question: Jeffrey Campbell - Seaport Research Partners - Analyst : Okay, well, good, we'll stay tuned to that. The press release noted growing rental fraction through an OEM. So two questions there. One, is it reasonable to assume that some of this new traction includes a new customer mix that's more sensitive to upfront capital costs. And the other in contrast, why is one of your largest customers choosing rentals for existing warehouses instead of just buying new batteries as they would for a greenfield unit.

Question: Jeffrey Campbell - Seaport Research Partners - Analyst : So, if I understand it, what we might say here is that this particular customer left to their own devices might have just leased equipment from the get-go, but they tried your equipment out in the Greenfield space and presumably had to pay for it because it wasn't leasing package, and they liked it. And in the meantime, Toyota, Raymond and Electrovaya have put together a package for leasing that they really like, and this might be what they would have preferred to begin with and you're seeing the result with a strong response is that kind of--

Question: Jeffrey Campbell - Seaport Research Partners - Analyst : Okay, that's really helpful. My last question is, kind of turning the tariff question around, is there any fear that retaliatory tariffs, say, in Japan or elsewhere in Asia, might slow down Electrovaya's ability to export into that region?

Question: Jeffrey Campbell - Seaport Research Partners - Analyst : Okay, alright, thanks very much I appreciate it.

Question: Jeff Grampp - Alliance Global Partners - Analyst : Curious on the EXIM loan, does the timing of closing that understanding it's, hopefully in the next 45 days to 60 days, but does the timing of that closing have any effect positively or negatively with respect to the timelines to operationalize the system or sell manufacturing operations at Jamestown, or are those largely independent events in a sense? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2025 / 10:00PM, ELVA.TO - Q1 2025 Electrovaya Inc Earnings Call

Question: Jeff Grampp - Alliance Global Partners - Analyst : Okay, great, and my follow up on the acceleration of the timeline to do the systems in Jamestown, pretty clear the benefits to the extent there's any tariffs or trade related kind of macro issues to deal with but are there any business specific reasons outside of trade, that it makes sense to accelerate into Jamestown. Can you hit on kind of a business specific operational benefits synergies, things of that nature, that would be helpful. Thanks.

Question: Jeff Grampp - Alliance Global Partners - Analyst : Understood, and just a related one to sneak in, is the main accelerant, human capital solution, I mean, is it basically hiring and training is the main, bottleneck, if you will, and in terms of how fast you can accelerate start up there or what other factors are at play?

Question: Jeff Grampp - Alliance Global Partners - Analyst : Got it perfect, thank you guys for the time. I appreciate it.

Question: Amit Dayal - H.C. Wainwright & Co. - Analyst : Thank you, so with respect to the solid state batteries, is any of this in the hands of customers who may be testing it or is it still in the lab?

Question: Amit Dayal - H.C. Wainwright & Co. - Analyst : Understood, with respect to, storage related opportunities, it seemed like an entire call you had mentioned. There were some promising opportunities that were being cultivated, has any of that materialized, or can we expect any of that to materialize, in this, fiscal year?

Question: Amit Dayal - H.C. Wainwright & Co. - Analyst : Okay, and this is part of--

Question: Amit Dayal - H.C. Wainwright & Co. - Analyst : Okay, understood. Jamestown capacity, [ask] can you remind us, what the capacity is and how you're planning to ramp, operations there.

Question: Amit Dayal - H.C. Wainwright & Co. - Analyst : Okay. So that's all I [had]. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2025 / 10:00PM, ELVA.TO - Q1 2025 Electrovaya Inc Earnings Call