Pioneer Power Solutions — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the quarter ended June 30, 2026, was $5.0 million, a 40.0% decrease from $8.4 million in the same quarter of 2025, driven by lower sales and rentals of e-Boost mobile EV charging solutions.
• Gross profit was $984,000 (19.6% margin), compared to $1.3 million (15.7% margin) in Q2 2025, with the margin increase attributed to improved operating efficiencies in e-Boost sales.
• Operating loss from continuing operations was $2.0 million, an increase from $1.7 million in Q2 2025, primarily due to decreased equipment and service sales.
• Net loss was $2.1 million, compared to $1.3 million in Q2 2025 (which included a $100,000 loss from discontinued operations).
• Non-GAAP operating income from continuing operations was $44,000, down from $218,000 in Q2 2025; this measure excludes corporate overhead, R&D, depreciation, amortization, and non-recurring costs.
• Cash on hand was $10.7 million as of June 30, 2026, down from $15.0 million as of December 31, 2025.
• Working capital was $17.1 million as of June 30, 2026, compared to $20.7 million at year-end 2025.
• The company reported no bank debt as of June 30, 2026.
• Deferred revenue increased to $1.5 million at June 30, 2026, from $791,000 at December 31, 2025.

Guidance and Future Outlook

• Management projects revenue of approximately $15.0 million for the second half of 2026, representing more than 60% growth over the first half of 2026.
• The company expects benefits from organizational streamlining and cost structure alignment actions taken in April 2026 to become increasingly evident in the second half of the year.
• The outlook assumes backlog orders will translate into revenue, orders will be completed and delivered satisfactorily, and customers will pay billings on time.

Business Segments and Product Lines

• PRYMUS: The on-site power system, launched in December 2025, has gained traction with active quotes totaling approximately $200 million, roughly 80% of which relate to data center projects.
• PRYMUS Awards: In May, the company announced an award of up to $6 million from a major package delivery company for two PRYMUS systems to be delivered in the second half of 2026; the customer has expressed interest in potential additional orders for the first half of 2027.
• e-Boost: The mobile charging platform achieved an annual revenue baseline of approximately $10 million with more consistent gross margin levels, despite broader market challenges.
• PowerCore: The residential power product, introduced in December 2025, is on track to begin shipments in the second half of 2026, starting with a 45 kW system and expanding to 150 kW and 250 kW versions for larger estates.
• Backlog: Backlog grew 32% sequentially to $18.4 million at June 30, 2026, up from $13.9 million at March 31, 2026.

Market and Competitive Landscape

• The company identifies a broader market shift driven by exponential power demand growth, particularly from data centers and energy-intensive infrastructure, alongside grid capacity constraints.
• Customers are increasingly seeking reliable, scalable power solutions deployable in months rather than years, favoring distributed generation.
• The PRYMUS platform is positioned to address this demand for modular, pre-engineered power blocks ranging from 1 MW to 10 MW.
• The e-Boost platform is described as the market leader in mobile, off-grid EV charging solutions.

Risks and Challenges

• Forward-looking statements note risks including the ability to reduce operating costs, generate future revenue and profit, and maintain market acceptance of new products.
• Risks include general economic conditions, competition from better-established companies with greater resources, and potential loss of key personnel.
• Operational risks include supply chain disruptions, raw material price increases, and the ability to realize revenue from the backlog.
• The company faces risks related to material weaknesses in internal control over financial reporting and the potential impact on investor confidence and Nasdaq listing compliance.
• External risks include government regulation changes, labor disputes, global events (war, pandemics, trade disputes), and litigation.

Management Commentary and Tone

• CEO Nathan Mazurek stated that the early response to the PRYMUS platform has been strong, citing the significant award from a major delivery company.
• Management expressed confidence that the level of engaged interest in PRYMUS, particularly in data centers, indicates strong market potential and expects additional significant orders in the second half of 2026.
• Regarding e-Boost, management views the current revenue and profitability levels as a sustainable foundation for the business with opportunities to improve margins as the EV market develops.
• Management believes the PowerCore product will create a meaningful new growth opportunity in the premium residential market over the next several years.

Other Key Points

• The company took steps in April 2026 to streamline its organization and align its cost structure with the scale of the business.
• The PRYMUS system combines mobile prime power generation, battery energy storage, and advanced controls in modular blocks.
• The PowerCore product provides 24/7 whole-home energy resiliency and energy independence with integrated high-speed EV charging.
• The company reported a net decrease in cash of $4.3 million for the six months ended June 30, 2026, primarily due to operating activities.
• No dividends were paid in the six months ended June 30, 2026, compared to $16.7 million paid in the same period of 2025.
• The company has no bank debt as of the reporting date.