Overview of EXRO’s Analyst Day
EXRO Technologies hosted its inaugural Analyst Day on November 14, 2024, offering insights into its technology, financials, and future outlook. The company’s leadership emphasized resilience in navigating the challenges of the electrification market while positioning EXRO for long-term growth. Investors gained some clarity on EXRO’s three revenue streams: propulsion systems, traction inverters, and energy storage solutions.
For a deeper dive, we have provided the video, transcript, and presentation materials here.
Technology and Market Positioning
CEO Sue Ozdemir described EXRO as a “resilient” company, highlighting strategic financing moves and partnerships aimed at accelerating its market position.
“You guys are a giant leap and the industry takes baby steps.” – Sue Ozdemir quoting a Global Partner
The company integrates its Coil Driver™ traction inverter into electric vehicle drivetrains, positioning it as an innovative solution compared to traditional powertrain technologies. The Cell Driver™ energy storage system also remains a core focus, with EXRO overcoming regulatory hurdles to secure UL certification after nearly two years of development.
A standout moment was the demonstration of EXRO’s integrated charging feature, which eliminates the need for an onboard charger, reducing infrastructure costs and enabling bi-directional power flow—a potential game-changer for fleet electrification. The Coil Driver allows fast AC charging at a fraction of the cost of DC fast chargers, leveraging existing grid infrastructure to reduce capital and operational expenses.
Now you’re competing with a DC fast charger at the end of the day. DC fast charger and I’m going to use some cowboy math my rule of thumb is $1000 per kWh. And so you want a 25 kilowatt DC fast charge on the wall, that’s 25,000. And now that the 3480 standard that we’re talking about that’s $1000 charger that I can put on the wall and be able to charge the vehicle with the EXRO coil driver.
Strategic Partnerships and Industry Validation
EXRO’s partnerships with major OEMs and suppliers were central to the discussion. The company highlighted its ongoing collaboration with Nidec in Brazil via Giaffone, where its drivetrain technology is proving capable of handling steep inclines under full load—an important milestone for commercial electrification. EXRO’s system allows fully loaded trucks to maintain continuous operation even on 18% grade hills, a feat that traditional drivetrains struggle to achieve.
EXRO confirmed that it is actively working on Class 8 drivelines, alongside its current Class 4–8 capabilities. The presence of Nidec at Analyst Day emphasized their ongoing involvement in EXRO’s driveline development.
So with our driveline, we have our partner Nidec here today and that is what is in our Class 4 and uh 4 to 8 is actually what we have right now. So that’s what we’d know as our core technology. – Sue Ozdemir
The company also reaffirmed its involvement in passenger vehicle programs, particularly its collaboration with Stellantis. While EXRO has not publicly disclosed specific commercialization timelines, it stated that its goal is to win a volume production platform and transition to a licensing model. Additionally, EXRO mentioned two other passenger vehicle programs: one in a mid-stage development phase, where commercial terms are being negotiated, and another in a late-stage phase, waiting for a final agreement.
Our other two mid stage and late stage; There’s two other passenger vehicle programs, continue as we intended. That means mid stage means we’re through all of the simulated work. We know that we’re going to be able to bring benefit that they can’t find in the market today and we’re into commercial terms and seeing what that looks like. Late stage means we’re through those commercial terms, we’re kind of waiting for them to come back and put that piece on paper. – Sue Ozdemir
Notably, the Passenger Vehicle Platform slide at Analyst Day featured an image of a Landrover Defender, though EXRO did not explicitly confirm any partnership with their parent company, Jaguar.
Financial Performance and Path to Profitability
EXRO reported strong revenue growth in 2024, driven by the integration of SEA Electric, which closed in April.
- Q2 2024: $CA5.3M in revenue from 36 units
- Q3 2024: $CA11.0M in revenue from 74 units
- Year-to-date revenue: $CA16.3M, reflecting a 195% compound growth rate
However, cost challenges remain. Direct costs per unit peaked at $223.2K in Q2, though EXRO successfully reduced this by 24% in Q3. The company aims to cut an additional 20% in costs by mid-2025 through supply chain efficiencies and manufacturing optimizations. Key efforts include eliminating costly air freight shipments, improving inventory control, and leveraging contract manufacturing to scale efficiently.
The financial presentation highlighted a 7% reduction in payroll costs and a 35% decrease in SG&A expenses in Q3 2024, reflecting EXRO’s cost-cutting measures. The company also noted that since April, it has implemented headcount reductions and over $10M in operational cost savings, reinforcing its commitment to achieving profitability.
2025 Revenue Guidance and Profitability Targets
EXRO is forecasting $CA85M–$CA110M in revenue for 2025, driven by:
- The steady ramp-up of 600 propulsion system deliveries
- The full integration of Coil Driver™ into series production by Q3 2025
- Expansion into motor-drive-only applications and Cell Driver™ solutions
The company expects to achieve EBITDA and free cash flow positivity in the second half of 2025, marking a critical milestone for investors tracking EXRO’s path to profitability. The presumed integration of its Coil Driver into all SEA Electric powertrains could rightfully be expected to boost gross margins and improve unit economics further.
Market Trends and Competitive Landscape
EXRO’s growth strategy is aligned with broader market trends in electrification. According to data presented at Analyst Day:
- $168 billion has been invested in EV/battery-related projects in North America from 2009 to Q3 2024.
- The EV transition remains strong despite a slowing growth rate—BEV growth peaked at 51.4% in 2023 but dropped to 1.6% by late 2024.
- Zero-emission truck (ZET) adoption is accelerating, with over 30,000 deployments in the U.S. by 2023 but still representing a small fraction of the total market.
Despite these promising trends, the presentation also acknowledged challenges:
- ICE vehicle sales continue to decline (-15.9% in 2024), but BEV growth has slowed as well.
- ZETs represent only 0.23% of the U.S. truck market—well below the 25% target for net-zero goals.
These data points underscore the long-term opportunity in electrification but also highlight the competitive pressures and adoption hurdles in the industry.
Investor Considerations
EXRO is positioning itself as a disruptive force in the electrification market, but challenges remain:
✅ Strong revenue growth and clear path to profitability
✅ Validated technology with increasing industry adoption
✅ Strategic partnerships providing commercial traction
⚠ High unit costs, though cost reductions are underway
⚠ Uncertain passenger vehicle program timelines
⚠ Execution risk in scaling production and meeting profitability targets
Investors will be watching closely in 2025 to see if EXRO can meet its aggressive revenue and cost-cutting targets while scaling production effectively.
For full details and direct access to the Analyst Day materials, visit our page here.
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