Electrovaya Inc Q3 2025 Earnings Call Transcript

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

Question: Daniel Magder - Raymond James - Analyst : Congrats on the quarter. Just obviously, a lot of success in the quarter, expanding into new verticals with a number of announcements. How do you think about the change or a potential change in the revenue makeup in '26 as a result? Or are these longer-term?

Question: Daniel Magder - Raymond James - Analyst : Yes. Yes. And I guess, in terms of customer types with these new verticals, obviously, on the material handling side, discussions with Fortune 100 companies. Is it a similar makeup of the type of new customers that you're having these discussions with?

Question: Eric Stine - Craig Hallum - Analyst : So maybe just sticking with energy storage. I noticed that you did not call that out just in your written release, but clearly a huge opportunity, especially since it is with many of your material handling customers. I mean, the fact that you did not include it, should we view that one as a little bit further out? Maybe remind us of the timing of the contribution there. And I mean, I would think it's safe to say that, that vertical might be the largest of any of your emerging verticals.

Question: Eric Stine - Craig Hallum - Analyst : I would think that your customers have given you some indications about demand levels or deployments at some of the same locations where you are deploying your material handling solutions.

Question: Eric Stine - Craig Hallum - Analyst : Maybe just on the capacity addition in Mississauga. And then you combine that with Jamestown, maybe with those two steps, where your capacity stands? And then just thinking longer term, I mean, is the eventual goal to just move everything on the manufacturing side to Jamestown, Mississauga, more of an engineering facility? Or how should we think about that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2025 / 9:00PM, ELVA.TO - Q3 2025 Electrovaya Inc Earnings Call

Question: Eric Stine - Craig Hallum - Analyst : Last one for me. Just curious, I mean, obviously, great order momentum here throughout the fiscal year. I mean, I would assume that that has continued in Q4.

Question: Craig Irwin - Roth Capital Partners - Analyst : So, Raj, a lot of investors are asking us about your participation in the robotics market. And we've been pointing them to your very early work with the e-commerce guys, I guess, one in particular that's a little bit of a pioneer here. Can you maybe help us understand the breadth of applications that you're looking at in robotics? There is some enthusiasm out there for certain applications that could really explode and see tremendous adoption over the next couple of years. For example, the Tesla humanoid, the supply chain is talking about 30 million units, which would be incredible. Can you maybe give us color on whether or not you're touching some of these applications that could see some very rapid growth over the next 5 to 10 years? And the customers you're working with, I know many of them are iterative, and they work from lower risk to higher risk opportunities. Can you maybe talk about how you would see this evolve?

Question: Craig Irwin - Roth Capital Partners - Analyst : The other market, the other end of the spectrum, Eric asked the question about energy storage, but rail, electric locomotives take huge batteries if they're going to be battery-powered for a couple of miles. And you did have some projects that were in development. Can you maybe update us on where those stand? I know there's often shifting customer priorities, but do you still expect to maybe make some deliveries there? And is there an opportunity for customer projects to commercialize?

Question: Craig Irwin - Roth Capital Partners - Analyst : That's a beautiful segue to my last question. Over the last many years, you've been generally cautious about electric vehicles, electric trucks, and conservative in the amount of R&D dollars that you specifically applied to developing products for this market. This call, you're really calling that out just now and multiple times in the prepared remarks and other answers to other questions. What do you think about the approach of the OEMs that are now doing electric trucks? It seems that if they're coming to Electrovaya, they're willing to pay for performance and that they understand they need that performance. Has something fundamentally changed in this market that makes it more attractive for you, while I guess, equity investors often look at this as maybe out of focus right now, given the challenges of many of the companies that raised money as SPAC mergers. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2025 / 9:00PM, ELVA.TO - Q3 2025 Electrovaya Inc Earnings Call

Question: Craig Irwin - Roth Capital Partners - Analyst : Well, congratulations on another positive, profitable quarter. So great progress.

Question: Amit Dayal - HC Wainwright - Analyst : Congrats on another solid quarter. With regards to the guidance, Raj, you're maintaining it at $60 million in revenues for this fiscal year. That's implying roughly a flat quarter in Q4. But the color on the call seems to be more optimistic. Just wondering, is there a reason for you to be a little conservative?

Question: Amit Dayal - HC Wainwright - Analyst : And then just on the same lines, now that you are potentially going to see contributions from many new verticals next year. And as long as this material handling business stays at this year's level and even grows a little bit from here, I mean, what kind of growth should we be looking for? You have the balance sheet now, and you have the production facility. You can really step on the gas. So I'm just trying to see if there is any color you can provide for how growth next year could look for you guys?

Question: Amit Dayal - HC Wainwright - Analyst : On recurring revenues, Raj, is this potentially beginning in the next fiscal year or a little bit later? Just trying to understand how these products are going to be sold? Are these attached to the battery systems you're selling to customers or separately? Just trying to get a sense of what the profile of this recurring revenue segment will look like.

Question: Amit Dayal - HC Wainwright - Analyst : So, for this battery as a Service model, will those batteries be on your balance sheet then for the duration of those contracts?

Question: Jeffrey Campbell - Seaport Research - Analyst : First of all, congratulations on a very strong quarter, and we appreciate the encouraging guidance for the fourth quarter as well. I wanted to start with the Janus partnership. This appears to be a swappable battery approach, if I read it correctly, and that was first pioneered in Israel years ago, REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2025 / 9:00PM, ELVA.TO - Q3 2025 Electrovaya Inc Earnings Call and then it seems to be really gaining steam in China. So if I'm correct, do you see this swappable approach working in Australia? And you also mentioned in your remarks that there's an eye to the US market with this as well. I was wondering, would that be a similar effort, maybe geared towards long-haul trucking? Or could this be something that would take advantage of distribution with any of your material handling relationship customers in the US?

Question: Jeffrey Campbell - Seaport Research - Analyst : Well, then just let me ask again, then. What did you mean when you said that you're working with them, but you're also in Australia and the US market?

Question: Jeffrey Campbell - Seaport Research - Analyst : Can you provide an update on your leasing business? That seems to be the one that was most poised to participate in the long-term trend of lead-acid battery replacement with Infinity batteries, the last time we discussed.

Question: Jeffrey Campbell - Seaport Research - Analyst : And one of the reasons I wanted to ask about that is because it sounded like in your last remarks to Amit that you're looking toward some kind of similar leasing program of your own. And I'm wondering if the leasing that you were talking about there at the end, would that be towards new customers with some sort of a new model? Or would that even start to revert to OEMs, established OEMs that you have in material handling? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2025 / 9:00PM, ELVA.TO - Q3 2025 Electrovaya Inc Earnings Call

Question: Orin Hirschman - AIGH - Analyst : Congratulations again on the progress. Just a couple of random questions. Just in terms of the, I know you've been asked this question a few different times, but I'll put a different spin on it. In terms of selling into the energy storage market in terms of actual sales, you mentioned a customer who's already material handling. Have you actually sold anything to them? Or do you have a first site? That's part A. And part B would be, it's going to be a premium product like you said. Does that mean it would not reside, let's say, in a lithium battery farm for an energy application, but it would be more likely to be where there are more humans, closer to a warehouse or something like that?

Question: Orin Hirschman - AIGH - Analyst : The data center would be a target, or one of those first three, is the data center related?

Question: Orin Hirschman - AIGH - Analyst : Meaning they realize the fire aspect of it in terms of the safety, that's why you can command a premium? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2025 / 9:00PM, ELVA.TO - Q3 2025 Electrovaya Inc Earnings Call

Question: Orin Hirschman - AIGH - Analyst : Skipping back to the ceramic separator technology, is that to get a better gross margin? Is it going to improve the actual performance? What's the purpose of doing all of that?

Question: Orin Hirschman - AIGH - Analyst : Is it something that's notable where it might make a 1% or 2% type of difference on your COGS, or it's not that big?

Question: Orin Hirschman - AIGH - Analyst : And just skipping to the robotics that people have asked about, is that a business that's even $1 million or $2 million today? And do you think it could be bigger than that next year? Do you have any line of sight?

Question: Orin Hirschman - AIGH - Analyst : Do you actually have a line of sight into actual robotic ramps? And again, I assume these are not humanoids, right? We're talking about advanced warehouse-type robots.

Question: Orin Hirschman - AIGH - Analyst : And is this coming from -- are they captives, meaning is a big company that they own the warehouses, or are they in the warehouses that's actually also building the robots? Or is the robot builder totally separate from the ultimate end customer?

Question: Orin Hirschman - AIGH - Analyst : Are they big OEMs? Some of them are start-ups?

Question: Orin Hirschman - AIGH - Analyst : And last question, I can't resist on the solid state. You've got a lot on your plate right now. Any comments on the solid-state R&D?

Question: Orin Hirschman - AIGH - Analyst : I think it's been a while since you updated on charge and discharges and those metrics. Going back a year or two ago, it wasn't anywhere close to being ready commercially, although it was still a large number of charge-discharge discharge. Have you made significant progress on that?

Question: Orin Hirschman - AIGH - Analyst : If I can just follow up and then on this question, I was going to ask you about the drone business in general. Obviously, time and flight, and power consumption are critical for drones, and it's a big problem. They got to come back, refuel, people are trying to do refueling and air, so to speak, recharging in air. So, do you have any drone business today? And is this solid-state battery really the key to the drone business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2025 / 9:00PM, ELVA.TO - Q3 2025 Electrovaya Inc Earnings Call

Question: Orin Hirschman - AIGH - Analyst : But there is no drone business today that would be your entry into that business.