Alexander Blanton

Alexander Blanton questioned the impact of tariffs on Titan's imported raw material costs, asking for quantification. He also drew a comparison to Caterpillar and Deere, who publish tariff estimates, and asked if Titan had a similar number.

Answer

Paul Reitz, President and CEO, explained that the chaotic implementation of tariffs in 2025 created discrepancies in raw material costs globally, making it difficult to quantify precisely due to various ways to circumvent tariffs. He asserted Titan's strong pricing power and ability to manage through the volatility with a diverse strategy. He differentiated Titan from Caterpillar and Deere, stating that they are assemblers of components, whereas Titan is a manufacturer that converts thousands of different raw materials into finished goods globally, making a direct comparison of tariff impact quantification not feasible for Titan's business model.

Alexander Blanton asked about the impact of tariffs on Titan's imported raw material input costs, seeking a quantification similar to what some customers (Caterpillar and Deere) provide.

Answer

Paul Reitz, President and CEO, explained that quantifying the impact of tariffs on raw material input costs is complex and chaotic for Titan, unlike assemblers like Caterpillar and Deere. He highlighted that Titan converts thousands of different raw materials (synthetic/natural rubber, chemicals, carbon black, various forms of steel) globally, making it difficult to provide a single number due to inconsistent pricing and ways to avoid tariffs. He emphasized Titan's focus on pricing power and a diverse, fluid strategy to manage these challenges.

Alexander Blanton of Blanton & Company inquired about several key operational areas, including the focus of recent hiring, strategies for managing large projects, the specifics of the Vertiv partnership timeline and collaboration, and progress updates on the Connecticut and Las Vegas projects.

Answer

CEO Abinand Rangesh provided a detailed update. He explained that hiring is focused on manufacturing, supply chain, service, and R&D to support the data center ramp-up. To manage large projects, Tecogen is seeking letters of intent and leveraging Vertiv's supply chain support. Rangesh expects public marketing from Vertiv within a couple of months and confirmed Tecogen's active role in joint sales efforts. He also noted the Connecticut project serves as a key proof point, while shipments for the Las Vegas project are on track for Q2 and Q3 delivery.

Alexander Blanton inquired about the strategic details of the new partnership with Vertiv, including the go-to-market plan, the potential for using Vertiv's global manufacturing capacity, and whether Tecogen's technology offers Vertiv a competitive advantage in the data center market.

Answer

Abinand Rangesh, CEO, explained that while many details are confidential, Vertiv will leverage its existing channels and relationships with major data center owners. He confirmed the partnership is seen as a precursor to a larger supply agreement that could involve supply chain assistance and potential licensing. Rangesh affirmed that Tecogen's Tecochill technology provides Vertiv a distinct competitive advantage by freeing up electrical power for computing, a key constraint for AI data centers.