Ideal Power Inc ((IPWR)) has held its Q4 earnings call. Read on for the main highlights of the call.
Ideal Power Inc’s recent earnings call reflects a positive sentiment, highlighting significant achievements and expanding market opportunities, particularly in the automotive sector. Despite past operational challenges and financial losses, the company’s strong progress and future potential were emphasized, suggesting a promising outlook.
First Design Win for Solid-State Circuit Breakers
Ideal Power Inc has secured its first design win for solid-state circuit breakers with one of Asia’s largest circuit protection equipment manufacturers. This milestone was achieved ahead of schedule, with prototype completion and commercial sales anticipated later in 2025.
Order for SimCool IQ Intelligent Power Modules
The company received an order for SimCool IQ modules, targeting sectors such as renewable energy, energy storage, EV charging, and data centers. This order opens up a $1.4 billion serviceable addressable market, marking a significant expansion opportunity.
New Program with Stellantis for EV Contactors
Ideal Power is set to receive an additional program from Stellantis for B-TRAN-enabled EV contactors. This development is expected to accelerate the revenue timeline and complement the existing inverter program.
Positive Automotive Qualification Testing
The company has commenced third-party automotive qualification and reliability testing, with zero die failures reported to date. This testing is expected to conclude later this year, reinforcing the reliability of Ideal Power’s technology.
Expanding Technology Pipeline and Partnerships
Ideal Power is actively engaging with several tier-one auto suppliers and global automakers, expanding its distribution network with new orders from China. This expansion is crucial for the company’s growth strategy.
Challenges with Stellantis’ Traditional Vehicle Business
Stellantis is facing challenges with high vehicle pricing, high inventory levels, and production outpacing demand in 2024. These issues have impacted progress on next-generation vehicle programs.
Increased Cash Burn and Net Loss
The fourth quarter of 2024 saw a cash burn of $2.6 million, up from $2.1 million the previous year, with a full-year net loss of $10.4 million. This increase in cash burn reflects the company’s ongoing development efforts.
Forward-Looking Guidance
Looking ahead, Ideal Power provided significant guidance for 2025, focusing on key milestones and financial expectations. The company is optimistic about securing additional design wins and custom development agreements, leveraging its B-TRAN technology. The first design win is projected to generate substantial revenue, with a sales ramp expected in the second half of 2025. Despite a projected increase in cash burn, the company remains debt-free with substantial cash reserves.
In conclusion, Ideal Power Inc’s earnings call highlighted a positive sentiment with strong achievements and future potential. While challenges remain, particularly in the automotive sector, the company’s strategic initiatives and expanding market opportunities suggest a promising outlook for investors.