SES AI (SES) 28th Annual Needham Growth Conference Virtual summary

Strategic focus and business evolution

• Pivoted from EV to focus on ESS, drones, and materials, establishing three dedicated business units for 2026.

• Core technology is the Molecular Universe AI platform, enabling material discovery and battery health management.

• Commercialization strategy leverages both hardware and software integration, with recurring revenue from software updates and subscriptions.

• Acquired UZ to enhance hardware capabilities and data collection, improving AI model accuracy.

• Joint venture with Hisun enables commercial-scale production of newly discovered materials.

Market opportunities and growth outlook

• ESS and drones identified as the most promising markets, with ESS market size projected to be over 10x that of EV.

• Drones market benefits from high energy and power density NDAA-compliant cells, with capacity scalable by adding stacking machines.

• About half of drone customers require NDAA-compliant cells, focusing on large accounts for conversion.

• UZ’s ESS deployments span Middle East, Europe, and are targeting US expansion, with the US as the largest growth market.

• Data center applications are a key ESS focus, aiming to provide integrated energy solutions and predictive battery management.

Financial performance and projections

• Booked $16.4M revenue in the first three quarters of 2025, with full-year guidance of $22.5M.

• Expects to double revenue in 2026 compared to 2025, with break-even possible within one to two years.

• Gross margins for drone cells are in the 10%-20% range, with NDAA-compliant cells priced 2-3x higher than non-compliant ones.

• Materials business supported by Hisun’s 150,000-ton annual capacity, with six new materials being qualified by 40+ customers.

• SaaS and development service models for Molecular Universe generate subscription, service, and royalty revenues.