11/17/2025

speaker
Operator
Conference Call Operator

Welcome to the next NRG third quarter 2025 earnings results conference call. At this time, all participants are in a listen-only mode. After today's session, we will conduct a question and answer session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I would now like to turn the conference over to Sharon Cohen, Investor Relations. Thank you. You may begin.

speaker
Sharon Cohen
Investor Relations

Thank you, and good morning, everyone. Joining us today are Michael Farkas, our Chief Executive Officer and Executive Chairman, and Joel Kleiner, our Chief Financial Officer. Before we begin, I would like to remind you that certain statements on this call are forward-looking in nature and subject to risks and uncertainties. These statements are based on current expectations and assumptions and involve risks that could cause actual results to differ materially. Please refer to our filings with the SEC, including our most recent form, 10-K, and our form 10-Q for the quarter ended September 30th, 2025 for discussion of these risks. With that, I'll now turn the call over to Michael.

speaker
Michael Farkas
Chief Executive Officer and Executive Chairman

Thank you, Sharon, and welcome everyone to our third quarter earnings call. This quarter represents a significant step in Next Energy's journey as we continue advancing towards our vision. Our results clearly demonstrate that our strategy is working. Revenue is growing, margins are expanding, and our mobile fueling and energy infrastructure initiatives are driving strong, measurable results across the business, making this our strongest financial performance to date. The results speak for themselves, and they set the stage for continued growth and operational excellence. I want to thank all of you for your confidence and take this opportunity to provide an overview of Next Energy. We're more than an energy company. We're a full-spectrum energy partner. From generation and storage to optimization and fueling, we give businesses the tools to be efficient, independent, and future-ready. Our ecosystem combines power generation, advanced batteries, wireless EV charging, and on-demand mobile fueling to deliver energy wherever it's needed, smarter and faster than ever. We're not just following the energy transition, we're leading it. The momentum we've built continues, and as you'll hear today, the investments in our past initiatives are now delivering tangible results. Last quarter, I discussed our investments in expanding the fleet by 99 trucks and entering 10 new markets. You'll recall it was anchored in a strategic thesis that building operational density around our strongest customers will allow us to, one, optimize routes, two, enhance driving efficiency, three, expand margins, and four, expand market presence off the heels of our largest customers. I'm proud to share that we are delivering on that vision, achieving our highest revenues and strongest margins to date, marking the best performance in the company's history. In addition to the above, we have added an 11th new market, Fort Myers, Florida, As we've grown and our increasing gallons delivered, we've been able to unlock volume-based supplier discounts, increasing profit margins from 8% to 11%, and driving a 232% year-over-year revenue increase. Moving on to our emerging technologies, particularly our smart microgrid and battery storage solutions. We previously reported that we were working on various projects, including the California healthcare facilities, and I'm happy to report that we have just signed two power purchase agreements, also known as PPAs, whereby we effectively replace the traditional utility provider, supplying these locations with their full energy needs. Our systems are addressing a vital need, ensuring facilities remain efficient, compliant, and operational around the clock. Most notably, these PPAs provide for 28 years of contractual profitable revenue to the company via energy sales, creating long-term revenue visibility. We continue to advance our energy divisions pipeline, driving meaningful progress across multiple fronts. As Next Energy evolves, our strategy is to be increasingly focused on high-demand sectors where reliability and resilience are non-negotiable. particularly healthcare, assisted living, and large-scale commercial facilities that require continuous mission-critical power. This approach has unified the company around a more focused sales approach within a massive TAM. Our active pipeline currently stands at over a dozen projects with several more qualified leads progressing through the pipeline. As time progresses and the market learns about Next Energy, we're watching our integrated energy ecosystem come to life. As an example, we've been approached by solar installers who have deployed solar power generation solutions, but whose clients now require battery storage and or charging solutions, and the technology to optimize their energy generation, storage, and usage. NextEnergy is being asked to complete the energy ecosystem into a single intelligent platform. This growing interest validates our approach and reinforces the competitive advantage of our integrated energy model. As interest in our platform grows, we're strengthening relationships across the value chain, expanding partnerships in solar hardware and battery storage to deliver cutting edge technology at highly competitive pricing. These collaborations enhance our offering and position Next Energy as a trusted full service energy partner. Next, our much anticipated bi-directional wireless EV charging initiative continues to advance. This quarter, we continue to make meaningful progress in the development framework and are moving closer to the launch of our first demonstration of this new, changing technology. While still in the planning and design phase, the groundwork is being laid now, positions us to move efficiently into the execution as we refine partnerships and tech integration. We hope to provide a material update in the coming weeks. Looking ahead into 2026 and beyond, we find ourselves excited for the future, a time when global and domestic energy demands are reaching unprecedented levels. You know, I recently attended a conference where business and political leaders convened, including President Trump and Eric Schmidt, the former Google CEO. They underscored the urgent need to expand our nation's capacity and energy the growing trend for developers and data centers and other energy intensive sites to develop on-site fully integrated smart grids to ensure power reliability. The message was clear. Our current infrastructure cannot keep pace with the accelerating demand. In fact, following the conference, I was invited to an intimate dinner at Eric Schmidt's home with a group of leading business executives in America. And as I discussed what Next Energy was building, The focus quickly became our nation's need for power generation, storage, and distribution. To quote Eric, we will run out of power before we run out of capital to invest in AI infrastructure, underscoring the urgency to generate power. NextEnergy is uniquely positioned to help address that challenge. Our integrated approach spanning generation, storage, distribution, and fueling places us at the forefront of dividing the critical energy solutions needed to power the next era of growth. Our strategy remains focused on expanding, scaling, and optimizing. We are deepening our presence in key markets with mobile fuel delivery, advancing opportunities in renewable distributed infrastructure, and strengthening partnerships that accelerate technology deployment while improving operating efficiency and margin performance. While our near-term focus is on disciplined execution, our long-term vision remains steadfast to create a fully connected energy ecosystem that bridges today's fueling needs with tomorrow's clean, intelligent infrastructure. As CEO, my goal is consistently to transparently articulate our current performance while also painting a clear picture of our commitment to discipline growth and to deliver on our commitments. I am proud that all the things we laid out in last quarter's call, we have delivered. I hope to do the same next quarter, consistent and reliable leadership. With that, I'll turn it over to our CFO, Joel Kleiner, for the financial review.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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