CALGARY,
AB, March 31, 2025 /CNW/ - Exro
Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company"
or "Exro"), a leading clean-technology company that provides
proprietary motor-control and complete electric propulsion system
technology for e-mobility, announced today its financial results or
the fourth quarter and full year ended December 31, 2024.
In 2024, Exro experienced a transformative year, delivering its
innovative e-propulsion system technologies to major OEMs,
implementing strategic cost reductions, advancing key programs, and
strengthening partnerships. The company completed and integrated
its merger with SEA Electric Inc. ("SEA"), resulting in record
annual revenue of $23.1 million.
Significant cost reductions, including facility closures, bill of
material cost optimizations, and workforce restructuring,
contributed to substantial savings, which are expected to be
realized in 2025.
"2024 was a defining year for Exro, highlighted by record
revenue, the merger and integration with SEA, and critical
cost-saving initiatives,," said Exro CEO Sue Ozdemir. "Despite industry-wide
macroeconomic challenges, we have demonstrated resilience and
adaptability. The first half of the year was focused on merger
integration, while the latter half established a strong foundation
for future growth. As we enter 2025, we remain dedicated to scaling
operations and driving commercialization in a dynamic market."
Over the nine months following the SEA merger, Exro delivered
153 electric propulsion systems to OEM partners and made
significant advancements in its Coil Driver™ and Cell Driver™
programs. Key highlights include the launch of an innovation
program with Stellantis N.V. for Coil Driver™ in passenger
vehicles, the initiation of a new powertrain pilot program with a
major commercial vehicle OEM, and the achievement of ETL
Certification to UL standards for the Cell Driver™ battery energy
storage system, reflecting Exro's commitment to innovation and
commercial progress.
2024 Financial Highlights
For the twelve months ended December 31,
2024
- Record Revenue: $23,074,027, driven by the delivery of 153
e-propulsion systems.
- Cost Optimization: Exro exceeded its cost-saving target,
achieving over US$15 million in
annualized savings against an initial goal of US$10 million.
- Workforce optimization reduced payroll expenses by more than
50%, from 266 employees in April 2024
to approximately 130 by March 31,
2025.
Operations Update
- Commercial Vehicle OEM Programs: Series production
deliveries of e-propulsion systems continue into 2025 for Exro's
two blue-chip OEM partners. A pilot program with a third top-five
OEM, launched in December 2024, is
progressing as planned, with Exro's Coil Driver™ integrated with a
Nidec motor in a Class-6 vehicle. On-road trials are expected to
begin by Q3 2025.
- Coil Driver™ Integration: Exro has further optimized its
Coil Driver™ technology, leading to cost reductions while
maintaining performance. By H2 2025, Coil Driver™ is expected to
become the core component of all propulsion system deliveries.
- Passenger Vehicle OEMs: Exro is making continued
progress with key passenger vehicle partners, positioning itself
for expansion in the battery-electric and hybrid markets. The
company's innovation program with Stellantis is on track,
transitioning from design and simulation to prototype motor-Coil
Driver™ testing in Calgary,
AB. Additionally, in Q1 2025, Exro was awarded innovation
pilots with two additional major automotive OEMs, funded by the
OEMs to evaluate the integration of Exro's Coil Driver™
into their electric and hybrid platforms. These pilots have moved
past the initial design and simulation phase and are anticipated to
begin OEM motor-Exro Coil Driver™ prototype testing in
Q2 2025. As with the Stellantis program, the details of these new
partnerships will remain under NDA until officially released by the
OEMs.
- Energy Storage: The ongoing pilot on our Calgary facility continues to demonstrate the
benefits of cell level control and progress our commercialization
efforts. The Cell Driver™ installation completed at Red
Deer Polytechnic in Q4 2024 is performing well and gathering
valuable run-time data. Commercial discussions continue to advance
in early 2025 for additional units in both Canada and the USA.
2025 Outlook
While Exro's technology continues to perform well, market
uncertainty related to incentives under the new U.S. administration
has introduced volatility. Changes in regulations, tariffs, and
supply chain factors have led to temporary hesitancy among dealers
and fleet operators.
Despite these near-term challenges, several OEMs are investing
in new U.S. manufacturing facilities to support commercial EV
adoption. Emerging markets such as Texas and Florida are experiencing strong growth, driven
by corporate electrification investments, even in the absence of
state-level incentives. Companies are taking a long-term approach,
positioning themselves for expansion over the next two years, with
significant acceleration expected by 2027.
Given these fluctuating market conditions, Exro is withdrawing
its previously issued annual revenue guidance for 2025. This
decision reflects the company's commitment to accurate disclosure
amid ongoing market uncertainty. The company will reassess guidance
as conditions stabilize.
While short-term market conditions are challenging, Exro remains
focused on executing its strategy, improving margins, and adapting
to evolving industry dynamics. The long-term outlook remains
favorable, with ongoing investments in electrification and
regulatory support.
Funding Update
Exro is actively exploring financing alternatives to support its
business plan. As of March 31 2025,
the company has received financial support from an existing
investor and is continuing to evaluate other potential funding
options with the assistance of third-party financial advisors.
There is no guarantee that support from the existing shareholder
will continue, nor that the company will secure an alternative
source of funding. Exro will keep stakeholders informed of any
developments as they arise.
ABOUT EXRO TECHNOLOGIES INC.
Exro Technologies Inc., now expanded through the strategic
acquisition of SEA Electric, is a leading clean technology company
that has developed new-generation power control electronics. Its
innovative suite of solutions, including Coil Driver™, Cell
Driver™, and SEA-Drive®, expand the capabilities of
electric motors and batteries and offer OEMs a comprehensive
e-propulsion solution with unmatched performance and efficiency.
Exro is reshaping global energy consumption, accelerating adoption
towards a circular electrified economy by delivering more with less
– minimum energy for maximum results.
For more information visit our website at www.exro.com.
To view our Corporate Presentation visit us at
www.exro.com/investors
Visit us on social media @exrotech.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
STATEMENTS
This news release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified using terminology such as "plans", "expects",
"estimates", "intends", "anticipates", "believes" or variations of
such words, or statements that certain actions, events or results
"may", "could", "would", "might", "will be taken", "occur" or "be
achieved". Forward looking statements involve risks, uncertainties
and other factors disclosed under the heading "Risk Factors" and
elsewhere in the Company's filings with Canadian securities
regulators, that could cause actual results, performance,
prospects, and opportunities to differ materially from those
expressed or implied by such forward-looking statements. Although
the Company believes that the assumptions and factors used in
preparing these forward-looking statements are reasonable based
upon the information currently available to management as of the
date hereof, actual results and developments may differ materially
from those contemplated by these statements. Readers are therefore
cautioned not to place undue reliance on these statements, which
only apply as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed times
frames or at all. Except where required by applicable law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
This information is qualified in its entirety by cautionary
statements and risk factor disclosure contained in filings made by
the Company with the Canadian securities regulators, including the
Company's annual information form for the financial year ended
December 31, 2024, and financial
statements and related MD&A for the financial year ended
December 31, 2024, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedarplus.ca. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although the Company
has attempted to identify important risks, uncertainties, and
factors that could cause actual results to differ materially, there
may be others that cause results not to be as anticipated,
estimated, or intended. The Company does not intend, and does not
assume any obligation, to update this forward-looking information
except as otherwise required by applicable law.
Neither the Toronto Stock Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this press
release.
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SOURCE Exro Technologies Inc.
