Pioneer Achieves 51% Year-Over-Year Increase in Revenue, Reaching $40.8 Million

Pioneer Power Solutions, Inc. (Nasdaq: PPSI) (“Pioneer” or the “Company”), a leader in the design, manufacture, service and integration of electrical power systems, distributed energy resources, power generation equipment and mobile electric vehicle (“EV”) charging solutions, today announced unaudited preliminary financial results for the fourth quarter and 12 months ended December 31, 2023 and provided a business update.

Preliminary Financial Highlights for the Full Year 2023 (Unaudited):

• Revenue was $40.8 million, as compared to $27.0 million during 2022, an increase of 51.1%.
• Gross profit was $10.4 million, or a gross margin of 25.5%, as compared to $4.6 million, or a gross margin of 17.1%, for 2022. Gross profit increased 125% and gross margin increased 840 basis points.
• Loss from operations was $617,000, compared to a loss of $4.0 million during 2022, a $3.4 million improvement year-over-year. The Company recognized $1.5 million of non-cash, stock-based compensation expense during 2023, as compared to $1.0 million during 2022.
• Net income was $138,000, or $0.01 per share, compared to a net loss of $3.6 million, or $(0.37) per share last year, a tremendous improvement of $3.7 million.
• The Company had $14.6 million of federal net operating loss carryforwards as of December 31, 2023.
• Total backlog surged to $45.9 million as of December 31, 2023, up 36% as compared to $33.6 million as of September 30, 2023, and up 23% as compared to $37.2 million as of December 31, 2022.

Business Highlights for the Full Year 2023

• Delivered a significant increase in mobile charging power via its suite of e-Boost charging products during 2023; 7,500 charging sessions/220mwh of mobile charging power compared to 350 charging sessions/7.5mwh during 2022.
• Delivered $9 million of E-Bloc product and related equipment to one of the world’s largest automakers for their new EV design and manufacturing campus.
• Delivered $6 million of E-Bloc products and related equipment to three water districts located in California as part of their efforts to decrease their grid reliance.
• Introduced and immediately booked orders for a new and innovative E-Bloc solar microgrid series of equipment.
• Awarded a three-year service agreement from a large U.S. cellular carrier valued at approximately $5 million over three years.
• Completed a turnkey distributed generation project at Miami International Airport valued at approximately $700,000.
• Delivered six new e-Boost units to customers, doubling deliveries compared to 2022.

Nathan Mazurek, Pioneer’s Chairman and Chief Executive Officer, said, “We delivered a record $40.8 million in revenue during 2023, representing rapid growth of more than 50% over last year, primarily due to increased sales of our E-Bloc power systems and related equipment, despite a shift in the timing from the fourth quarter of 2023 to throughout 2024 of certain orders valued at approximately $4.5 million. Momentum continues to strengthen with our E-Bloc product as governments, utilities and commercial enterprises seek solutions that address the rapidly increasing need for more power. In tandem with our revenue growth, gross margins expanded to 25.5% during 2023.”