Electrovaya Inc.

Good day and welcome to the Electra Vaya Q3 2026 Financial Results Conference call. At this time, all participants are on a listen-only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And please note, this conference is being recorded. I will now turn the conference over to your host, John Gibson, Vice President of Corporate Development and Investor Relations. Sir, the floor is yours.

Thank you. Good morning, everyone, and thank you for joining today's call to discuss ElectroVaya's Q3 2026 financial results. Today's call has been hosted by Dr. Raj Das Gupta, CEO of ElectroVaya, and myself, John Gibson, CFO. Yesterday, after market close, ElectroVaya issued a press release concerning its business highlights and financial results for the quarter and nine months ended June 30th. If you would like a copy of the release, you can access it on our website. If you want to view our financial statements, management discussion and analysis, and annual information form, you can access those documents on the CEDARplus website at www.cedarplus.ca, the SEC Edgar website at sec.gov forward slash Edgar, or at our website at www.electrovia.com. As with previous calls, our comments today are subject to the normal provisions relating to forward-looking information. We will provide information relating to our current views regarding market trends, including their size and potential for growth, and our competitive position within our target markets. Although we believe that the expectations reflected in such forward-looking statements are reasonable, they do obviously involve risk and uncertainties, and actual results may differ materially from those expressed or implied in such statements. Additional information about factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the company's press release announcing the Q3 fiscal 2026 results and the most recent annual information forum and management discussion and analysis under risks and uncertainties, as well as in other public disclosures documents filed with the Canadian and U.S. security regulatory authorities. Also, please note that all numbers discussed on the call are in U.S. dollars unless otherwise noted. and now I'd like to turn the call over to Raj.

Thank you, John, and good morning, everyone. Before I get into the quarter itself, I want to start with two developments that I believe matter most to the long-term value of this company because both of them happened in the last few weeks and both of them will be instrumental to our future success. More broadly, I would describe this as a strategic inflection quarter for Electrovia. In the near term, what moved on us was timing. and I will address that head on. But the developments that changed the trajectory of this company are structural and lasting. Our agreement with Amazon, the launch of the Elva Pulse energy storage systems, Jamestown nearing operation and the strongest margins in our history. First, our agreement with Amazon. On July 14th, we announced a new commercial agreement with Amazon, together with an associated warrant transaction Designed to support the long-term relationship. Amazon is one of the world's most sophisticated technology companies and one of the most demanding operators of material handling and logistics automation systems. Its decision to formalize and expand its relationship with ElectraVaya represents, in my view, the strongest external validation our technology has received to date. The agreement also establishes a framework for broader collaboration, including potential applications in robotics and stationary energy storage, where advanced discussions are already underway. The most important aspect of this agreement is the strategic alignment it creates between the two companies. It provides a long-term framework through which Electrovia can support Amazon's evolving requirements across multiple applications while giving both organizations a shared interest in expanding the relationship over time. Future orders will continue to be placed through the normal commercial process, but the structure reflects a mutual commitment to pursuing a significantly broader and deeper commercial relationship. For context, Amazon was already Electrify's largest end customer in fiscal 2025. This agreement formalizes and expands a relationship that is already material to our business which is why we regard the purchase levels underlying the warning structure as a realistic path rather than an aspirational one, particularly as the relationship broadens beyond material handling into robotics and stationary energy storage. We believe that this relationship has the potential to accelerate the adoption of electrified technology across a wider range of advanced applications than we could otherwise pursue on our own. It also provides an important avenue for expanding our existing material handling business while accelerating opportunities in newer markets such as robotics and stationary energy storage. The second major development was the launch of the Elva Pulse energy storage solution. Very recently we launched the Elva Pulse 1500 The first product in a new stationary energy storage portfolio and the culmination of energy storage development program I have discussed over the last several calls. The Elvo Pulse 1500 is built around a modular 20 foot container and a 1500 volt DC architecture. It provides up to 2.88 megawatt hours of nominal energy and can be configured to deliver up to approximately 9 megawatts of power. That power to energy ratio allows it to discharge its full rated capacity in under 30 minutes compared with roughly two to four hour duration profiles of most utility scale lithium ion storage systems on the market today. We believe this makes the Elva Pulse one of the highest power density containerized stationary battery systems commercially available. That power density can translate to a The reason we designed the system this way is very specific AI data centers can experience large and rapidly changing power demands creating a growing requirement for storage systems capable of responding quickly and repeatedly Much of the storage available today was optimized primarily for energy duration The Elvo Pulse 1500 was purpose-built for high-power applications. It also incorporates the same ceramic separator technology that underpins our Infinity platform, which has now been validated across more than 35,000 battery systems, operating in demanding industrial environments. In a data center environment, safety, reliability, and rapid power response are not simply desirable attributes. They are fundamental requirements. The commercial interest we are seeing has been very encouraging. We are already in active discussions with hyperscale customers, data center developers, and major power and energy developers regarding a range of potential projects. Based on the scale of the opportunities currently under discussion, successful conversion of even a portion of this pipeline could require substantial utilization of the planned production capacity at Jamestown. Importantly, this energy storage pipeline is broad-based across multiple hyperscalers and developers and end markets, and it is not dependent on any single customer relationship. Together with defense, robotics, and high-voltage demand, it gives us confidence that Jamestown capacity will be drawn from several sources as it comes online rather than from any one customer. We have initiated UL 1973 and UL 9540 certification activities with completion currently targeted for the first quarter of calendar 2027. We are accepting production reservations now with initial deliveries targeted to begin in the second quarter of calendar 2027 from Jamestown. The platform has been designed to support eligibility for the Section 48E investment tax credit, including the domestic content bonus and foreign entity of concern, material assistance requirements, subject of course to project-specific structuring and each customer's individual tax position. We believe ElvaPulse can become an important new growth platform for Electrovia. It takes the safety and durability advantages We have demonstrated in material handling and applies them to a very large, rapidly developing market where power density, reliability, and domestic supply are becoming increasingly important. We will be presenting the Elva Pulse to customers and industry participants at ACP Recharge and Yoda in September, followed by RE Plus in November. Now for the quarter itself. Revenue for the third quarter was $17.7 million compared with $17.1 million in the same period last year. We exceeded our targets across several key profitability metrics, achieving gross margins of 34.9% compared to 30.8% a year ago, an adjusted EBITDA margin of approximately 20% for the first time, and record quarterly adjusted EBITDA. Our revenue performance during the quarter as well as our revised expectations for the full year primarily reflects the timing of several customer programs. Approximately $5 million of high voltage battery system deliveries originally anticipated during fiscal 2026 have shifted into the first quarter of fiscal 2027 due to supply chain constraints affecting the completion and delivery schedule of these new products. We have also experienced delays in the implementation of certain material handling projects which affected order and delivery timing during the third quarter and are expected to have some impact on the fourth quarter. Importantly, these are timing shifts, not lost business. The high voltage systems are first in the 800 volt class, remain committed for delivery, and the delayed material handling projects remain active. Based on our current visibility, we expect order and delivery activity to normalize as the supply chain constraints are resolved and customer implementation schedules progress. Accordingly, the change in our fiscal year outlook reflects the timing of revenue recognition rather than a change in the underlying demand environment. Based on the order and delivery timing we currently see through the fourth quarter, we now expect full year normalized revenue of approximately $70 to $73 million. We expect approximately $5 million of deferred high voltage system revenue together with a portion of delayed material handling activity to be recognized early in fiscal 2027, with high voltage battery systems becoming an increasingly significant part of our product mix. While quarterly timing can vary, we remain confident in the strength of our underlying order pipeline and the long-term demand across our principal markets. We also believe our expanded relationship with Amazon has the potential to support increased demand for existing material handling products during fiscal 2027 and beyond. What did not change during the quarter was the quality and profitability of the underlining business. We remain profitable as we have every quarter of the fiscal year, and we believe that the combination of record gross margins and record adjusted EBITDA demonstrates the increasing earnings power of the business, which is still at its relative infancy. Turning to diversification beyond material handling, while material handling remains the foundation of our business and continues to represent significant growth opportunities, at the same time, We've accelerated the application of our Infinity technology across additional markets. Importantly, several of these initiatives are now progressing beyond development and qualification into a recurring commercial activity. In defense, we continued shipments to a major defense contractor and specialty defense platforms are becoming an increasingly recurring part of our order book. We recently developed our first 800 volt, 100 kilowatt hour hybrid drive battery for our major defense contractor. Overall, we believe these types of products have significant long-term potential and also provide validation of Electrify's latest generation of battery systems technology. In robotics and autonomous vehicles, commercial deliveries that began earlier in the fiscal year continued through the quarter. We also see potential to expand our participation in this market through the broader Amazon relationship. In stationary energy storage for data centers and other forms of critical infrastructure, we are participating in a U.S. Department of Energy-funded project led by Binghamton University and supported by a $5 million DOE award. This project provides an important applied research and demonstration platform that complements the commercial developments of the Elbow Pulse. We also completed UL2580 safety certification for six models of our next generation high voltage battery systems. These products are designed for integrated material handling vehicles operating in demanding all season outdoor environments. We continue to expect high voltage platforms to become a meaningful revenue contributor beginning in fiscal 2027 and completion of the certification removes an important prerequisite to commercialization. In Japan, our partnership with Sumitomo Corporation is helping us develop opportunities in construction equipment and other heavy-duty industrial applications. We are seeing increasing demand from a large Japan-based OEM partner, and based on the current program trajectory, we believe this opportunity could begin contributing material deliveries from fiscal 2027 onwards. Turning to technology and product development, we have made renewed progress in solid-state battery development following additional investment in our facilities and research capabilities. We are currently producing approximately one amp hour solid-state cells and are working towards increasing cell capacity to approximately five amp hours. Early results have been encouraging with strong performance and energy density. Based on our current development work, we believe that this technology has potential to achieve volumetric energy density of approximately 700 watt hours per liter, which would represent a highly competitive level of performance. Considerable development and scale-up work remains, but we are pleased with the progress to date. Our work with the next generation of electrified ceramic separator technology is also advancing well. At the lab scale, we're currently producing separator material that demonstrates performance and many more. Over time, a thinner separator could enable improvements in cell-level energy density and potentially reduce material manufacturing costs. The next phase of the program will focus on further testing and scale-up. With respect to new product applications, we recently shipped prototype battery systems to a leading North American fuel cell manufacturer. frequently require batteries capable of delivering high power while maintaining long cycle life. These requirements align well with the core performance characteristics of our Infinity technology. The prototype will now proceed through the customer's normal testing and evaluation process. We are also beginning initial shipments of our 800-volt battery systems for specialized trucking and defense applications. Although these early deliveries are modest in quantities, they provide important validation of our high voltage system design and manufacturing capabilities. The 800 volt architecture will also be an important component of our stationary energy storage portfolio. To support these opportunities, we are equipping both our Jamestown and Mississauga facilities to manufacture this class of high voltage battery system. Finally, we are continuing to make brisk progress with the initial feasibility of our niobium oxide battery development program. We are now commissioning a 24-volt module designed to support charge and discharge rates of up to 20 C, and that would be under three minutes charge and discharge rates. At those rates, the technology has potential to support charging in rapid rates subject to final system configuration and operating conditions. The next stage will involve module-level performance, cycle life, and safety testing as we evaluate the most suitable commercial applications for the technology. On the Jamestown expansion, we've seen significant steady progress in the Jamestown manufacturing build-out. Dry room construction is fully completed. Site electrical and HVAC infrastructure upgrades are ongoing. and construction of the major manufacturing equipment, most importantly, has been completed. The most significant milestone and the one I'd like to draw your attention to is that in approximately seven to ten days, we will begin an extended eight-week factory acceptance test program at our equipment supplier in Korea. This is not a component level check. The full cell assembly line will be connected and set up to replicate the planned operation in Jamestown and run at the supplier's facility so that we can validate and complete process before anything is shipped. We are sending approximately 10 people from our Jamestown operations teams to Korea to participate in that testing directly, which means that people who will run this line in New York will have run it already at speed before it arrives. In parallel, logistics and shipping planning for the equipment is underway now. Overall, I'm very pleased with the progress at the site. As I mentioned previously, the startup of this facility will represent a step change for the company and will not only provide us the expanded capacity to execute our plans for energy storage, robotics, and other segments, but more importantly, will position us as one of very few advanced lithium ion battery manufacturers with domestic manufacturing capabilities. Electrovise technology, I believe, serves the trajectory of high utilization and sensitive applications that data centers, physical AI, and other industrial applications require better than any other available battery technology, a fact that I don't think is well understood. On closing, let me end where I started. I would characterize this as a strategic inflection quarter. The third quarter revenue was not what we wanted, and we are not going to dress that up. But what moved on us was timing, not lost business. And that revenue remains committed. Meanwhile, in the span of a few weeks, the developments that define this company's trajectory are all advanced. We signed a long-term commercial agreement with Amazon, already our largest customer. We launched the Elva Pulse into the fastest growing power market in the world. We moved Jamestown to the cusp of production and we posted the best gross margin in our history while staying profitable. From here, four pillars frame the story. Amazon, Elva Pulse, Jamestown and margins. Fiscal 2027 is when they converge as Jamestown capacity comes online and our newer verticals begin to scale. Our job over the next four quarters is to convert that position into profitable revenue growth. And that is exactly how we are measuring ourselves. With that, I will turn the call over to John for a detailed review of the financial results.