Electrovaya ELVA reported calendar Q3 earnings on December 10 (fiscal Q4 2025). The company has previous preannounced revenue of “at least” 20M, but without giving any profitability metrics.
- Revenue landed at 20.5M vs 11.6M last year which was +77% yoy
- Net income landed at 2.0M vs -0.1M last year
- Gross margin 31%, +530 bps yoy
- Adj EBITDA 3.4M +126% yoy (3M last quarter)
I was pleased to see revenue slightly higher than they pre-announced, and the bottom line growth in net income was impressive. On the previous calendar Q2 report, they had 0.9M of net income, so it’s a good sized step up sequentially.
Some other highlights from the press release and earnings call,
- “Strong ongoing demand from company’s largest end users with increased demand in 2026”
- Secured and expanded programs with 3 robotics OEM partners across US + Japan
- Anticipate revenue growth > 30% in FY2026
- “This guidance also takes into consideration a percentage of anticipated revenue that may be deferred to FY 2027” (Implying the 30% growth target is a minimum)
- Inflection point for the company, strong profitable growth, major balance sheet improvements
- First full year of profitability in Electrovaya’s history
- Structural improvements driven by operational scale, product mix and disciplined execution, “not a onetime event”
- 25M facility from Bank of Montreal replacing high cost private lender, 51M direct loan from EXIM bank under the Make More in America program, have begun drawing funds from it to build out Jamestown facility, 40M in gross proceeds from two equity issuances over the last 12 months
- “Now entering a sustained period of profitable growth”
- Earlier systems deployed at Walmart in 2018 have already outlasted the vehicles they power and continue operating
- Ceramic separator technology continues to maintain a perfect safety record
- Road map includes rapid charging cell development project, targeting sub 5-minute charging capabilities for select applications in robotics and autonomous systems
- Investing is Electrovaya lab site to enable production of larger cells
- Core material handling vertical continues to be a strong and durable foundation
- Largest drivers of demand being a few Fortune 500 and Fortune 100 companies, especially in the retail sector
- Demand indications from our largest end customers point to continued growth is fiscal 2026
- “We are scaling into multiple additional mission-critical verticals”
- Bullish on vertical of airport ground equipment
- Several units are now on trail at major US airline, expect meaningful revenue contributions in revenue beginning in 2026
- Expects stationary energy storage systems ESS to become a key element of business
- Infinity ESS launched in September, receiving strong early interest for applications such as data centers, backup power and rapid charging infrastructure, pilots in 2026, commercial scale beginning in 2027
- Expect deeper collaboration with two global defense firms in the coming year who already have initial work in progress
- Targeting recurring revenue opportunities, Energy as a Service model, software and telemetry platforms with aftermarket and maintenance contracts
- “We expect recurring revenue to become a more meaningful contributor to the long term profitability and cash flow stability of the company”
- Jamestown construction is progressing well, major infrastructure scheduled over the coming months, central to strategy
- CFO on quarter, we kept costs under control and drove efficiency through increased production
- Increasing production volumes, allows to push for better pricing from key suppliers
- Operating profit 2.4M vs 0.7M last year
- Very healthy cash balance and lowest debt balance in recent company history, available liquidity over 40M
- New verticals continue to advanced and expect to make up 10-15% of revenue, 5% from recurring revenue, ~80% from core material handling
- On robotics, two key customers with fairly reliable forecasting, robotics will be second biggest revenue contributor after material handling
- On guidance, “We’re being pretty conservative here”, “The surprises would likely be on the upside”
- “Energy storage could be a huge, huge place for the company”, “2027, we think it can be a home run product”
- 30 minute backup seems to be the sweet spot for targeting on storage
- Tried to avoid Chinese supply chains
- Electrovaya chemistry is agnostic to chemistry
- “Backlog is healthy, frontlog is looking really good, and the conversations with the customers are, we’re getting new customers coming in, speaking to us every single day”
- Targeting non-commoditized part of energy storage, really filling a specific demand in the market for what we provide
Overall I was impressed with the report and thought everything was on track. Prior to the report the market did not like the capital raises, but I think it makes sense for their business to have more capital on hand. Since they’ve been GAAP profitable consistently I don’t expect them to need additional capital in the near term.
The 30% revenue growth projection for 2026 is admittedly conservative from management. Additionally, the 10-15% contribution from newer verticals seemed on the lower side as I thought some of the these verticals were ramping up faster. However, they did not mention how much they expect material handling to grow besides the overall guidance, so larger growth in material handling could keep that newer vertical revenue contribution lower.