Electrovaya Inc Q4 2024 Earnings Call Transcript

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

Question: Eric Stine - Craig-Hallum Capital Group - Analyst : Hey. So, I guess, first for me is you mentioned the two customers who have reordered. I'm just curious, when you look at fiscal '25, what the level of visibility is into that? And I know primarily it's material handling. And maybe how that compares to years past?

Question: Eric Stine - Craig-Hallum Capital Group - Analyst : Got it. Okay. That's helpful. And then, I know that part of fiscal '24, and you called this out early in the year, you had, I think, it was $20 million of potential projects or shipments that would ship. And it sounds like you've taken that same approach to fiscal '25. Just curious, kind of your thought process there. It would seem, given the details you just gave with the Fortune 100 customer reordering and likely returning to more historical levels, that, that $60 million is a number that you very much anticipate achieving at a minimum.

Question: Eric Stine - Craig-Hallum Capital Group - Analyst : Got it. All right. And then, maybe last one for me and this is more longer term. I mean, obviously, you mentioned '25 will be a very good year, but this is -- you're looking at significant growth in '26, '27 and beyond. When you think about non-material handling end markets, I mean, how do you think those will play out? How would you rank those between, and I'm sure I'll miss some, but defense, aerospace, rail, construction, et cetera?

Question: Amit Dayal - HC Wainwright & Co. - Analyst : Thank you. Good evening everyone. So, Raj with respect to these Tiff related headlines. Can you talk a little bit about how you are planning to navigate some of those issues and then, the Jamestown facility when it's up and running how that would play a role in, supporting any, I guess avoiding these are potential tariffs that are being talked about right now.

Question: Amit Dayal - HC Wainwright & Co. - Analyst : Interesting. Thank you for that. And then, you said once the Jamestown facility is up and running, you could potentially see gross margin improvements. How much more from these levels? You've done a good job on that front already, but with that facility ramping, how much more margin improvements potentially could you see?

Question: Amit Dayal - HC Wainwright & Co. - Analyst : Understood. The retrofit opportunity that's opening up for you on the material handling side, are these -- are you replacing the legacy propane-type forklifts or something else? Can you clarify 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. DECEMBER 12, 2024 / 10:00PM, ELVA.TO - Q4 2024 Electrovaya Inc Earnings Call

Question: Amit Dayal - HC Wainwright & Co. - Analyst : Okay. Thank you. The $60 million -- Raj, last question for me. The $60 million for fiscal '25 is, majority of it, material handling, basically?

Question: Amit Dayal - HC Wainwright & Co. - Analyst : Okay. Understood.

Question: Amit Dayal - HC Wainwright & Co. - Analyst : Yeah, I got it. Thank you. That's all I have. Thank you.

Question: Jeff Grampp - Alliance Global Partners LLC - Analyst : Good evening, guys. Thanks for the time. Raj, I'm curious. I know it's only been a month or two since you guys announced the EXIM loan, but curious, early days here, if you can touch on any change in customer conversations in terms of, I would just think, for you guys having the assurances, being able to get that production online, having a little bit more definitive financing plan and timing, does that kind of give customers, you think, a little more conviction to pursue things with you guys a little more aggressively, or is it a little early to call that definitively? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2024 / 10:00PM, ELVA.TO - Q4 2024 Electrovaya Inc Earnings Call

Question: Jeff Grampp - Alliance Global Partners LLC - Analyst : Great. Thanks for that. Appreciate it. And with respect to the guidance number for the upcoming fiscal year, any early expectations you guys can think about in terms of kind of the shape or distribution of that growth? Should we just kind of think of a historical kind of seasonal ordering delivery schedules, or any kind of commentary that you guys can provide as we think about kind of building the distribution of that revenue in the year?

Question: Jeff Grampp - Alliance Global Partners LLC - Analyst : Got it. Okay. Appreciate those details. If I can sneak one more in, just on the margin side, understanding that we expect things to have a nice move up once Jamestown is online. Any thoughts for fiscal '25? I noticed Q4 gross margins kind of took a step back sequentially, but is year-over-year margin improvement still in the cards you think for fiscal '25? Or just, I guess, a, looking for a little color on any dynamics that happened in Q4? And then, how to think about things prospectively? Thanks.

Question: Jeff Grampp - Alliance Global Partners LLC - Analyst : Yeah, definitely. A testament to the (inaudible). So, appreciate the time. I'll turn it back. Thank you, guys.

Question: Daniel Magder - Raymond James Ltd - Analyst : Specifically, in regards to margins -- adjusted EBITDA margins, understanding that the gross margins are expected to come up once Jamestown is live, should we -- how should we be thinking about adjusted EBITDA margins moving forward once Jamestown is up and running? Are most of the improvements going to come from the gross margin line or from OpEx as well?

Question: Orin Hirschman - AIGH Investment Partners LP - Analyst : Hi, how are you? Just a few mixed questions, random questions. You mentioned that you're going to be producing cells eventually in '26 in Jamestown. Clearly, that's going to put you in a sense in competition from your cell providers right now. Is there enough out there where you can do a smooth transition as you -- or will it continue to be a mix between your own made cells versus buying from the outside? How should we view that?

Question: Orin Hirschman - AIGH Investment Partners LP - Analyst : You mentioned autonomous vehicle. Is that a military vehicle or a commercial vehicle?

Question: Orin Hirschman - AIGH Investment Partners LP - Analyst : Okay. And last question, just any update on the solid R&D project?

Question: Orin Hirschman - AIGH Investment Partners LP - Analyst : Progress measure, let's say, in terms of performance, in terms of number of charges and discharges, the life of the battery?

Question: Orin Hirschman - AIGH Investment Partners LP - Analyst : One question on the charge/discharge. That would be a tremendous leap from where you were a year or two ago in terms of the number of charge/discharge where you were 200-ish, a 150-ish, or something like that, if I remember correctly. You can correct me. Did that come from your own separator, from your own ceramic material, a combination of both? What was the -- what were the factors that really made the difference? If there -- if you can quantify that at all or even qualitatively say?

Question: Orin Hirschman - AIGH Investment Partners LP - Analyst : Okay. Great. And just one final question, if you have a feel for this at this point, just I'm nitpicking you, but just in terms of -- you're normally down -- Q1s, you're low. You are coming off an unusually low Q4. Are you hoping that Q1 looks like Q4 or is up slightly from Q4? I know it's not critical because the ramp really starts more in January, but what's the best guess of the way we should look at it right now?