Exro Technologies (EXRO) Q2 2024 earnings summary

Executive summary

• Completed transformational merger with SEA Electric, accelerating growth and technology integration.

• Achieved record Q2 2024 revenue of CAD 5.3 million, up from nil in Q2 2023, with 36 propulsion system units delivered and C$6.7 million in completed units at quarter end.

• Realized cumulative annual business cost-savings of US$7.5 million, on track for US$10 million in 2024.

• Awarded ETL/UL certification for the Cell Driver stationary battery energy storage system, advancing commercialization.

• Restructured $53 million convertible debenture into a promissory note, expanded to $60 million, reducing dilution risk and providing up to $7 million in additional funding.

Financial highlights

• Q2 2024 revenue reached CAD 5.3 million from technology sales, compared to nil in Q2 2023.

• Delivered 36 electric propulsion systems in Q2, with 40 additional units completed and awaiting invoice.

• C$6.7 million in completed units at quarter end, with 40 more units to be delivered in early Q3.

• Cost of goods sold was CAD 8.0 million, higher due to supply chain inefficiencies and expedited logistics.

• Exceeded targeted bill of material cost savings, achieving over 10% savings versus a 5% target.

Outlook and guidance

• Targeting continued ramp-up in deliveries, though some risk remains in meeting aggressive short-term targets.

• Integration of Coil Driver into SEA-Drive system and major OEM programs expected in production by second half of 2025.

• Additional 20% cost savings identified, targeted for realization by end of Q2 2025.

• Focused on achieving profitability in the second half of 2025.

• On track to achieve US$10 million in annualized cost savings for 2024 through operational efficiencies.