Pioneer Power Solutions Q2 2025 Earnings Call Transcript

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Provided by Quartr
August 14, 2025

Key Takeaways

  • Positive Sentiment: Revenue increased 150% year-over-year to $8.4 million in Q2 2025, with non-GAAP operating income turning positive at $218,000, marking continued progress toward profitability.
  • Positive Sentiment: Successful delivery of 25 eBoost units for a large U.S. school district drove productivity gains that more than doubled gross profit, and the district plans to add another 600 electric buses over the next two years.
  • Neutral Sentiment: Q2 backlog declined 23% quarter-over-quarter to $18 million following strong order fulfillment, but management reports a robust sales pipeline of government agencies, transit authorities, autonomous fleet, and package delivery customers.
  • Positive Sentiment: Pioneer plans to launch its new HomeBoost residential and light commercial power system in late 2025, opening a new market segment and expected to drive significant growth in 2026 and beyond.
  • Negative Sentiment: Cash on hand fell to $18 million from $41.6 million in H1 2025 due to a special dividend and tax payments, though full-year 2025 revenue guidance of $27–29 million was reaffirmed.
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Earnings Conference Call
Pioneer Power Solutions Q2 2025
00:00 / 00:00

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Operator

Greetings and welcome to the Pioneer Power Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Myles of Hayden Investor Relations. Please go ahead.

Brett Maas
Managing Partner at Hayden IR

Thank you, operator. The call today will be hosted by Nathan Masaryk, Chairman and Chief Executive Officer Walter McCallick, Chief Financial Officer and Gio Morikin, President of Pioneer eMobility. Following this discussion, there'll be a Q and A session open to participants on the call. We appreciate the opportunity to review the second quarter financial results and recent business highlights. Before we get started, me remind you this call is being recorded and webcast.

Brett Maas
Managing Partner at Hayden IR

During this call, management may make forward looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary text regarding forward looking statements contained in the earnings release issued earlier today, Thursday, August 14, which applies to the content of the call. I would now like to turn the call over to Nathan Masaryk, Chairman and CEO. Nathan, please go ahead.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Thank you, Brett. Good afternoon, and thank you all for joining us today. I am pleased to report that we delivered strong financial results for the 2025, continuing a trend that really began midyear last year 2024. Specifically, revenue increased 150% year over year to $8,400,000 and our non GAAP operating income from continuing operations was a positive $218,000 A significant driver of the second quarter revenue growth and profitability improvement was continued execution on the 25 unit e Boost order for one of the largest public school districts in The United States. This landmark project, to date, the largest RFP ever awarded for a mobile charging system, which directly supports charging the school district's initial fleet of 200 electric school buses.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

After delivering the initial 10 units in the first quarter, we delivered the majority of the balance during the second quarter. While the early units carried higher costs due to the complexity of ramping up a project of this scale, our operations team achieved meaningful gains in productivity and cost optimization as the build out progressed. As a result, gross profit on these units more than doubled in the second quarter. Additionally, this particular school district is scheduled to receive another 600 electric school buses over the next two years, and we expect to provide additional e Boost units to support this ongoing program. In the second quarter, we also delivered initial units under our agreement with our channel partner, SparkCharge. The

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

SparkCharge deal potentially worth up to $10,000,000 is a direct result of Pioneer's collaborative relationship with this customer and more importantly reflects the increasing demand for mobile, clean, and rapidly deployable EV charging solutions. Strategically, we continue to be highly encouraged by the breadth and quality of the opportunities ahead. We are actively quoting and designing solutions for a host of government type agencies, transit authorities, robo taxi enterprises, shipping ports, and several major national package delivery providers, as they all advance their commitment to electrifying their own fleet operations. The electric school bus market in particular continues to show strong momentum and remains a key focus area for us. These end customers are fully committed to a zero emission future and typically have already ordered and received a significant number of either buses, vans and other fleet vehicles, making a return to traditional vehicles highly unlikely.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

We also see immediate and long term growth potential in autonomous mobility, particularly the burgeoning robotaxi segment, which is essentially an all electric market. As the adoption of robotaxis accelerates, the demand for flexible, scalable charging infrastructure is growing in parallel. We believe Pioneer's mobile charging platform is uniquely suited to meet the needs of this market, offering an ideal solution for decentralized on demand EV charging. Simply put, the growth of robotaxis aligns directly with Pioneer's growth. At the end of the second quarter, our total backlog was approximately $18,000,000 representing a decline of 23% compared to the prior quarter, primarily due to the fulfillment of several larger orders that contributed to our strong revenue growth year to date.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Beyond the current backlog, we are seeing continued momentum in our growing sales pipeline. We are actively engaged in discussions with dozens of municipalities, transit authorities, shipping ports, autonomous driving enterprises, and several major national package delivery providers. In addition to our core eBoost platform, we are preparing to launch our residential and light commercial power system, HomeBoost, in the 2025. HomeBoost integrates a prime rated natural gas engine with optional DC fast charging, giving homeowners and small facility owners the ability to generate 100% of their energy and charging needs 20 fourseven if desired or needed. HomeBoost essentially functions as a private power plant, operating independently or alongside the grid and is ideally suited for both residential and critical commercial loads, such as medical facilities and small scale manufacturers.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Early feedback from prospective customers and partners has been overwhelmingly positive, and we believe this innovative product will be a key growth driver for 2026 and beyond. The introduction of HomeBoost is a significant expansion of our addressable market and product scope. In contrast to eBoost, where eBoost charging features lead the value proposition to the customer, HomeBoost's delivery of pure resilient power leads HomeBoost's value proposition. Fast DC charging is an additional feature of the unit. In summary, the second quarter marked another meaningful step forward in our growth trajectory and path to profitability.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Our performance reflects not only strong execution and increasing operational efficiency, but also the accelerating demand for innovative off grid power solutions across multiple sectors. Looking ahead, we remain focused on scaling our core business, delivering on our backlog and planning the launch of HomeBoost. Our strong performance in the first half of the year, combined with increasing visibility into the second half, reinforces our confidence in both the strength of our business and the demand environment. With that, I will turn the call over to Walter.

Walter Michalec
Walter Michalec
CFO at Pioneer Power Solutions

Thank you, Nathan, and good afternoon, everyone. Please be advised that we have included a non GAAP financial measure of operating income from continuing operations, which excludes corporate overhead expenses, research and development costs, depreciation and amortization expense and non recurring professional fees. Please refer to our press release issued earlier today, 08/14/2025, for further information, including a reconciliation between GAAP and non GAAP financial measures. The press release can be found on our website at www.pioneerpowersolutions.com/investors/newsroom. Such non GAAP measures should not be used as a substitute or alternative to any measure of financial performance calculated and presented in accordance with U.

Walter Michalec
Walter Michalec
CFO at Pioneer Power Solutions

S. GAAP. Instead, we believe this non GAAP measure should be used to supplement our financial measures derived in accordance with U. S. GAAP in order to provide a more complete understanding of the trends affecting the business.

Walter Michalec
Walter Michalec
CFO at Pioneer Power Solutions

Second quarter revenue was $8,400,000 compared to $3,400,000 in the year ago quarter, an increase of approximately 150%. The increase was primarily due to a significant increase in sales and rentals of our mobile EV charging platform, eBoost. Second quarter gross profit was 1,300,000.0 or a gross margin of approximately 16% compared to a gross profit of $641,000 or a gross margin of approximately 19% in the second quarter of last year. The increase in gross profit was primarily due to the significant increase in sales and rentals of the company's eBoost equipment, along with improved profitability from the delivery of most of the remaining units in the 25 unit e Boost order for one of the largest public school districts in The United States. These gains were supported by enhanced productivity and cost optimizations achieved by our operations team as the build out advanced.

Walter Michalec
Walter Michalec
CFO at Pioneer Power Solutions

During the 2025, Pioneer incurred an operating loss from continuing operations of 1,700,000.0 unchanged from the $1,700,000 operating loss from continuing operations recorded during the second quarter of last year. During the 2025, Pioneer generated non GAAP operating income from continuing operations of $218,000 which again excludes corporate overhead expenses, R and D expense, depreciation and amortization and non recurring professional fees. As compared to a non GAAP operating loss from continuing operations of $137,000 for the same quarter in 2024, a year over year improvement of 355,000 Net loss from continuing operations for the 2025 was $1,200,000 compared to a net loss from continuing operations of $1,700,000 during the 2024, an improvement of approximately $500,000 Taking a look at our balance sheet. As of 06/30/2025, we had cash on hand of 18,000,000 bank debt and working capital of approximately $24,000,000 compared to $41,600,000 of cash on hand, zero bank debt and working capital of $26,700,000 as of 12/31/2024. The cash on hand as of 06/30/2025, represents cash per share of approximately $1.62 The decrease in our cash on hand during the first half of the year is primarily due to the payment of the one time special cash dividend of an aggregate of $16,700,000 in January and the payment of federal and state income taxes totaling approximately $4,000,000 during the second quarter.

Walter Michalec
Walter Michalec
CFO at Pioneer Power Solutions

Today, we are reaffirming our guidance for revenue of $27,000,000 to $29,000,000 for the full year of 2025. This concludes my remarks. I will now turn the call back over to Nathan.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Thank you, Walter. Operator, you can open the lines for questions.

Operator

Thank you. Ladies and gentlemen, we will now be conducting the question and answer session. You may key in star and then two to leave the question queue. For participants making use of speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from Rob Brown of Lake Street Capital. Please go ahead.

Rob Brown
Founding Partner, Senior Equity Research Analyst at Lake Street Capital Markets

Good afternoon and congratulations on all the progress.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yes. Thank you, Rob.

Rob Brown
Founding Partner, Senior Equity Research Analyst at Lake Street Capital Markets

First question is on the e Boost order with the charging services company. I think you said it could be up to $10,000,000 Just a little color on kind of how that rolls out and what are the variables on the sizing?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

The real variables are what sizes they want when they want them. It covers, there's a certain opening that they have. There's a window where we fixed pricing for buying, we fixed pricing for leasing. And we're holding certain inventory for them. So without disclosing too much, that's kind of how that works.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Together, we try to get a fix on what they think they'll be using over, call it, a twenty four month period, and locking everybody into certain parameters.

Rob Brown
Founding Partner, Senior Equity Research Analyst at Lake Street Capital Markets

Okay, perfect. Thank you. And then on the pipeline, I think there were several markets that were quite active. And and you said you said dozens of of dozens of potential, you know, municipalities. But just a sense of how that pipeline matures, the timing on it, and and how does that sort of build for orders that give you some visibility into next year?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah, I mean, we'll be making announcements as things happen of significance so that that will help guide, let's say in the next couple of months. Government agencies or government themselves, whether it be state or local, work at different paces. Everybody's different. They're almost like people. So that's kind of a slower pace.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Usually, the good is that they've made a commitment or they're halfway through a deep seated commitment to going all electric and are trying now to come up with the best solutions or mixture of solutions to support their charging. That's a wide market, a very slow moving market. Private business, however they're traded, whether they're privately held or they're publicly traded businesses, are motivated differently. Some of that helps us, some of it doesn't. But the speed of those markets are much quicker.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

So it's kind of, it's like what we're doing every day, it's a blend. The large school district is obviously, that's part of a large metro city on the West Coast Of The United States. SparkCharge is a privately held business that is mostly serving private businesses, nongovernment type businesses. The robotaxi market, which if you would have asked me three months ago, I would have said it's all talk, talk, talk, talk and we don't see anything. But they're way down the road in spending money and providing solutions and rolling out in a competitive way with each other, which makes it a much more significant market for us going forward.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

And frankly, probably the fastest as far as response time now to POs, it will be the fastest market for us.

Rob Brown
Founding Partner, Senior Equity Research Analyst at Lake Street Capital Markets

Okay, thank you. And then I guess in the HomeBoost product, you're talking about a launch here in the second half. Could you give us a sense of some of the milestones you expect with the rollout and how you see that launch at this point?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah, the launch has been a little bit delayed. We wanted to kind of roll out in July. All the delay is on me. We've been experimenting, or me primarily experimenting with it mechanically and electrically to both make sure its fit and form is super functional, attractive, and not too big and easily transportable, and made some electrical changes to make things a little bit easier and more cost effective for everybody. But we're not factoring in any revenue for '25.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

That would be a big bonus. I really don't expect that at all to happen. We do expect orders to happen in 2025, accelerating in the 2026. And then hope it's a meaningful part of our revenue for 2026.

Rob Brown
Founding Partner, Senior Equity Research Analyst at Lake Street Capital Markets

Okay, great. Thank you. I'll turn it over.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Thank you, Rob.

Operator

Our next question comes from Amit Dayal of H. C. Wainwright. Please go ahead.

Amit Dayal
MD & Senior Technology Analyst at H.C. Wainwright & Co.

Thank you. Good afternoon, everyone. Nathan, congrats on another strong quarter. Good to see the margins bounce back. That front, should we expect margins to stay at these levels and maybe move higher, given that initial buildup costs are now out of the way?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah. I think that we're always trying to improve the margins. So I think that the the Brute margins themselves should do no less than where they are and hopefully improve in the third quarter, of which we're halfway through, call it, and improve, continuing to improve in the fourth quarter. How much is really on us, but there should be no more margin erosion.

Amit Dayal
MD & Senior Technology Analyst at H.C. Wainwright & Co.

Okay, understood. Thank you for that. And then it looks like your pipeline is really solid, Nathan. Mean, lots of opportunities from new avenues that you probably were not anticipating earlier, like you said, the robotaxi stuff. You know, on the other side of it, you know, how are we gonna manage, you know, this level of interest with the capacity we have?

Amit Dayal
MD & Senior Technology Analyst at H.C. Wainwright & Co.

I'm just trying to get a sense of, you know, with the setup now or today, how much revenues can the company support with the available capacity, etcetera? And how are you thinking of managing that part of the business going forward?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah. So that's a discussion that we're having all the time in response to what we believe we can do. And then of course, we have to respond in real time. So, for the large order out West, the 25 unit order, for twenty twenty two two out of 25 units, we used a contract manufacturer right there in Los Angeles. We would not have been able to deliver, definitely not on time or not that amount in our current facility in Minneapolis.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

For the balance of the year, we believe that we can deliver the balance of the orders in the year. The mix helps. It's larger units with higher ticket prices. And we're able to do that in a, I guess, a balanced and deliberate fashion. Manufacturing this.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

We decided a while ago, we won't be manufacturing the home boost unit ourselves. We're dealing 100% with one contract manufacturer in Minnesota. So really, I think that would be the majority of the growth in 2026. Hopefully, it's going to come from the Home Boost product. We kind of have that covered.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

What you're addressing is kind of the middle. If we get another 25 unit type order, is it all the same, not all the same? And how we handle that, we'll probably do the same. We'll handle with a mix of doing it internally and or using contract manufacturers. There's no plan to expand the capacity in Minneapolis.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

And there's no reason to fix from a regional point of view on somebody yet.

Amit Dayal
MD & Senior Technology Analyst at H.C. Wainwright & Co.

Okay. That's understandable. From a revenue concentration perspective, is majority of the revenues right now coming from states like California? And how do you expect this to evolve as Homeboost comes to the market and maybe other solutions you bring to the market?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah, thank you. That's a great year. Right now, California definitely is number one. I don't see that really changing. Market is just too big, too strong, and there's too much incentive for the users to go electric and therefore helps with our solutions.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Listen, success of home boost would be the greatest avenue for us. Diversifies the market. It's really, as I said in the prepared remarks, it's leading with the power solution. Charging is an important, but a feature. It's not necessary for the user to actually need the charging.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

And you really touched on something because, again, we don't trumpet it yet because we haven't done enough, but we're doing more and more or guiding to expanding the business to address more pure power type applications. Bespoke distributed generation, where we can help with our expertise in the generator part of the business, so that we're less relying on incentives to fuel the business. No pun intended.

Amit Dayal
MD & Senior Technology Analyst at H.C. Wainwright & Co.

Understood. Also along those lines, Nathan, so you're not going to be constrained by these federal budget cuts, etcetera, because most of your customers are local, municipal, state level from folks in that segment, and the rest of them are private or public companies. Is that how we should look at it?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

I would look at it with yes, with a caveat that federal budget cuts or whatever you want to call it, abandoning certain incentives, that doesn't help. Even states as rich as or as strong as California and other states, everybody likes when the federal government helps them out. Now that they've got to do all these incentives on their own and they are committed, yes, that's true. But in any market, you take your foot off the pedal a little bit, it's not a positive for that particular market. So that's the caveat to what you're saying.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah, California is committed. Washington is committed. Oregon is committed. Arizona is committed in deep seated ways. It's them on their own.

Amit Dayal
MD & Senior Technology Analyst at H.C. Wainwright & Co.

Okay. That's all I have, Nathan. I'll take my other questions offline. Thank you.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

You're very welcome.

Operator

Ladies and gentlemen, just a reminder, if you'd like to ask a question, please key in one apologies. Please key in star Our next question comes from Howard Root, who's a private investor. Please go ahead.

Analyst

Good afternoon. Thanks for taking my question and congratulations on the great growth in the quarter. That's very impressive.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Thank you. Thank you, Howard.

Analyst

Great. A couple of little questions first for me. On the gross margin, impressive going from 2% to 16% in one quarter. But as you look forward, I see that you answered the prior question that should tick up hopefully. But when you bring HomeBoost on, will that be a temporary drag on gross margins as you or is that going to improve it longer term? How do you see the two products matching?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah, HomeBoost, because we're not, I mean, we have obviously engineering and design and one time sunken costs and very little maintenance costs, but we're not going to be manufacturing the products. So we're pretty other than the SG and A associated with it, we have a very fixed idea of what it's going to cost us. We're going to be pricing at a level that is going to be a consistent should move, especially with more volume, should move the gross margins up.

Analyst

Okay, great. Is there a target gross margin you see with your overall business? Are you shooting for 20% or 25%? Or is that 25% too much to ask in your product line?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah. So if you take the full mix of the business, it really would depend on the success of Home Boost. 25% is not too much. Internally, longer term, we're asking for more. We're asking for 30 plus because as e Boost continues to grow, for the most part, when we want to, we're taking on service for those units as well, and the service business is right there and it's becoming a more significant piece of what we're doing.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

So plus 30 is really the more medium term goals for us.

Analyst

Great, great. And then I noticed a $1,400,000 cash usage kind of listed as a sales type lease up origination. Could you explain what that was? Is that a one time item or is that ongoing?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

That was with the customer. We did a capital lease with them. So that's the use for it. That's how we booked it.

Analyst

Okay. Is that a customary thing going forward or is that just a one off?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

We're taking leasing opportunities kind of on a step by step basis. Now that you mentioned, I mean, I'll say, we have X, and I don't even remember off the top of my head what we're expecting to do in lease or rental revenue for this year. But it is something that we would like to grow with the right customers under the right circumstances. If you have a good counterparty, leasing is a much more profitable business for us. It's a much higher return on assets for us.

Analyst

Okay. And then in terms of guidance, now in the first half, you've done a little over $15,000,000 and you're guiding to $27,000,000 to $29,000,000 for the year, which would mean a little bit less in the second half. I can kind of guess at that based on that large order, and lumpiness as you're ramping up. But could you just give a little bit more color on how you get to the second half guidance being down from the first half?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yes. The real flip was that there were some units that we were able to get out really in June that I didn't expect that we'd be able to. Thing we don't there are many things that we don't do, but one of those is we don't sandbag it. If we could invoice it, we did Did it make the revenue a little higher this quarter? It would be nice if it was a perfect form up through '25.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah. But I mean, if we can do it, then we're applying the labor and material to it and the customer is ready to take it, we invoice it. So it's just, I mean, we're so small that $2,000,000 makes a big difference.

Analyst

Yep, okay. That's what I thought. And then in terms of the backlog at $18,000,000 is all of that $10,000,000 order in your backlog? How do you define it? No, No one defines backlog differently.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yes, we define it the same way for at least ten years. It's actually non cancelable purchase orders that we expect to deliver in less than twelve months. So it's still the same.

Analyst

Okay, all right. And then finally on the competitive side, just general terms, is there anything new in the competition on either the e Boost or the Home Boost product lines that you see out there? Or how do you see you're stacking up against the competition now?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah. EBoost, if anything, there's less. Charging has been tough. Some of the people who've started or tried to imitate, whether it's us or somebody else or use a battery solution or even diesel type solution, whatever it was, it doesn't really make a difference. There's not enough air in the tank for everybody to keep going.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

So that's been actually unfortunate for those people, the employees and investors in some of those businesses. But that's been a benefit to us. On the home boost, we don't see anything yet. We're trying to be a little bit stealthy with it and not come out full force until we are actually ready to be full on it because we want to get the advantage of a first mover. But not really.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Any competition to eBoost is, I don't want to say all the time, but 99% of the time is around the battery type product, which we don't really compete with that. That's low power density, much more expensive. I don't wanna say in a dismissive way. We can do that too and are contemplating even offering those solutions for those customers who really, really want that as part of their solution, just to keep people out of this business.

Analyst

Okay. Well, great, great. Congrats on the excellent quarter and Thank you, Howard. Great Thanks.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Thank you Howard.

Operator

Thank you. Our next question comes from Bruce Geller of Geller Ventures. Please go ahead.

Bruce Galloway
Chief Investment Officer at Galloway Capital Partners

Hi. Good afternoon.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Hey. Good afternoon, Bruce.

Bruce Galloway
Chief Investment Officer at Galloway Capital Partners

Oh, hi. Do you see any potential application for your product to provide backup power to the data center market?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Yeah, so that's a big question. And I don't want to launch into a soliloquy on data centers today and power and so forth. But right now, pure backup power for a data center, these units are too small. Even the largest unit that we do is that would be data centers nineteen ninety two. That's the level you're talking.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Seriously, Through the Volteris business, the switchgear business that we sold, we're intimately involved in that business. Were and continue to monitor that business because we have an equity stake in it. The amount of power that they're sucking and the amount per node of what backup is, the bottom is one megawatt already. And it's 99% at a time still diesel sets, monster diesel reciprocating engines.

Bruce Galloway
Chief Investment Officer at Galloway Capital Partners

Gotcha. To the point you just made, what's the company's remaining equity stake in that business?

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

It's about 6% in that platform. And the business is doing extremely well. And we hope to benefit one day from a value there.

Bruce Galloway
Chief Investment Officer at Galloway Capital Partners

Great. Thank you.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

You're welcome.

Operator

Our next question comes from Chris Vujowski, who's a private investor. Please go ahead.

Analyst

Hello. Congratulations on the great results from me as well. My question was already asked and answered. I also kept the data center question. So thank you for addressing that.

Analyst

So I would just like to say good luck to us all.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Thank you, Chris. Thank you for calling in.

Analyst

No problem.

Operator

Thank you. Ladies and gentlemen, there's no further questions in the question queue. I will now hand over for closing remarks.

Nathan Mazurek
President, CEO & Chairman at Pioneer Power Solutions

Thank you, operator. With the robust sales pipeline, expanding market opportunities and a clear path towards profitability, we believe Pioneer is exceptionally well positioned to lead in the rapidly evolving power and electric mobility landscape. Thank you all for joining. Thank you all for your continued support. And we look forward to updating you all on our next earnings call.

Operator

Thank you. Ladies and gentlemen, that concludes this event. Thank you for attending and you may now disconnect your lines.

Executives
    • Walter Michalec
      Walter Michalec
      CFO
Analysts
    • Brett Maas
      Managing Partner at Hayden IR
    • Nathan Mazurek
      President, CEO & Chairman at Pioneer Power Solutions
    • Rob Brown
      Founding Partner, Senior Equity Research Analyst at Lake Street Capital Markets
    • Amit Dayal
      MD & Senior Technology Analyst at H.C. Wainwright & Co.
    • Analyst
    • Bruce Galloway
      Chief Investment Officer at Galloway Capital Partners
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