Sign in

You're signed outSign in or to get full access.

PM

PHOENIX MOTOR INC. (PEV)·Q3 2023 Earnings Summary

Executive Summary

  • Q3 2023 revenue was $0.29M, down 75% QoQ and 30% YoY; gross loss was $0.01M and net loss narrowed to $2.71M as SG&A fell to $2.53M from $3.85M YoY .
  • The company announced it is the winning bidder for Proterra Transit assets, adding full-size transit buses and a large backlog, contingent on bankruptcy court approval; this is a potential stock reaction catalyst and strategic expansion into heavy transit .
  • Management continues to emphasize an “asset-light” model and Gen 4/Gen 5 roadmap; Q3 highlighted growth in electric school buses (10-bus DC order), Retrofit Solutions launch, and V2G capability partnerships .
  • Wall Street consensus (S&P Global) for Q3 2023 EPS and revenue was unavailable for PEV; estimate comparisons are omitted due to data access limitations (consensus not mapped for PEV in SPGI CIQ) [SpgiEstimatesError].

What Went Well and What Went Wrong

What Went Well

  • SG&A decreased to $2.53M in Q3, down from $3.85M in Q3 2022, reflecting cost-cutting initiatives; net loss narrowed to $2.71M vs. $3.93M YoY .
  • Strategic expansion: PEV emerged as successful bidder for Proterra Transit, gaining world-class bus technology, backlog, and a scaled operations team; “Proterra accounts for over 40% of all electric transit buses delivered in North America” .
  • Commercial momentum in adjacent offerings: initial 10-bus electric school bus order (District of Columbia), Retrofit Solutions launch, V2G-enabled fleets via Fermata Energy partnership, and Gen 4 product showcase .

What Went Wrong

  • Revenue declined to $0.29M (vs. $1.16M in Q2 and $0.41M in Q3 2022) as EV lease and maintenance revenues rolled off and forklift sales softened; gross margin turned slightly negative (gross loss $0.01M) .
  • Sequential deterioration in scale: small revenue base drove very high negative operating and net margins; operating loss was $2.54M on $0.29M revenue, underscoring the need to ramp Gen 4 and broaden product scope .
  • No explicit numerical revenue/margin guidance provided; production ramp expectations for Gen 4 were pushed from “before year-end 2023” to “1H 2024,” indicating timing risk in scaling operations .

Financial Results

Income Statement Comparison (oldest → newest)

MetricQ1 2023Q2 2023Q3 2023
Revenue ($USD Millions)$1.781 $1.158 $0.288
Gross Profit ($USD Millions)$0.173 -$0.061 -$0.005
Gross Margin %9.7% (0.173/1.781) -5.3% (-0.061/1.158) -1.7% (-0.005/0.288)
Operating Income (EBIT) ($USD Millions)-$3.673 -$3.161 -$2.536
EBIT Margin %-206.3% (-3.673/1.781) -272.9% (-3.161/1.158) -881.9% (-2.536/0.288)
Net Income ($USD Millions)-$2.778 -$3.177 -$2.711
Net Income Margin %-156.0% (-2.778/1.781) -274.5% (-3.177/1.158) -941.0% (-2.711/0.288)
Diluted EPS ($USD)-$0.13 -$0.15 -$0.13

Notes: Margins are computed from reported figures; all inputs cited above.

Revenue Composition (limited disclosure)

MetricQ1 2023Q2 2023Q3 2023
Revenues – Third Parties ($USD Millions)——$0.177
Revenues – Related Parties ($USD Millions)——$0.111

Note: Q1/Q2 releases present total revenue only; Q3 provides breakdown between third-party and related party revenue .

Operating Expense and Balance Sheet KPIs

MetricQ1 2023Q2 2023Q3 2023
SG&A ($USD Millions)$3.846 $3.100 $2.531
Cash and Equivalents ($USD Millions)$0.133 $0.382 $0.186
Restricted Cash ($USD Millions)$0.250 $0.250 $0.250
Accounts Receivable ($USD Millions)$1.525 $1.771 $1.058
Inventories ($USD Millions)$3.522 $1.041 $2.038
Total Assets ($USD Millions)$18.984 $17.997 $15.728
Stockholders’ Equity ($USD Millions)$10.767 $7.700 $5.045

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Gen 4 SOP2023“Start of production…during the summer of 2023” “Launch production and commercial sales during 2023” Maintained (timing framed within 2023)
Gen 4 Production RampLate 2023 vs 1H 2024“Ramp quickly to 20–25 units/month…before year end” “Ramp fairly quickly to 20–25 units/month in the first half of next year” Lowered/Delayed (push-out to 1H 2024)
Proterra Transit AcquisitionQ4 2023+N/A“Successful bidder” for Proterra Transit assets; adds full-size buses and backlog, pending court approval New Initiative
Retrofit SolutionsQ4 2023+N/ANew Electric Retrofit Solutions business launched for fleet electrification New
V2G CapabilityQ4 2023+N/AV2G enabled via Fermata Energy for bus/truck customers New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2023)Previous Mentions (Q2 2023)Current Period (Q3 2023)Trend
Asset-light modelCentral strategy; upstream/downstream partnerships; Gen 4 as bridge to Gen 5 Reinforced; standardized processes; reduced parts from 450→70 Reiterated; flexible and scalable operations Consistent emphasis
Battery supplyCATL long-term K-Packs supply secured Benefits to Gen 4 reiterated Continued reliance on CATL for Gen 4 Stable
Chassis independence (Gen 5)Ground-up chassis in 2024; independence, lower cost Gen 5 2024 plan reiterated Gen 5 benefits restated On track (timing unchanged)
Production rampSOP summer 2023; 20–25 units/mo before YE 20–25 units/mo in 1H 2024 No new numeric ramp; focus on Proterra integration Timing pushed out
School bus market—LAWA shuttle fleet expansion; deliveries 10 Type-A buses DC order; CA DGS contract Expanding
Retrofit Solutions——New business launched (Oct) New growth path
V2G / InfrastructureV2X testing agreement with Fermata —V2G capability enabled for customers Progressing
Regulatory/ProgramsIRA commercial clean vehicle credit HVIP program funding noted Continued focus on public-sector markets (school buses) Supportive backdrop
Heavy transit expansion——Proterra Transit acquisition (pending) Step-change expansion

Management Commentary

  • “The Proterra Transit acquisition will be an important milestone…we will gain ownership of world-class technology…a large order backlog…become the largest electric transit bus manufacturer in North America.”
  • “Proterra accounts for over 40% of all electric transit buses delivered in North America…ZX5 transit buses…offering the longest driving range on a single charge.”
  • “Net revenues were $0.3 million…decrease of 30%…lower EV lease and maintenance revenues as certain customer leases rolled off…forklift sales saw a modest decline.”
  • “Phoenix is delighted with the opportunity to acquire the Proterra Transit business…we are excited about the attractive business synergy and growth opportunities…”

Q&A Highlights

  • The published transcript included prepared remarks and indicated a Q&A would follow, but the Q&A content was not included in the filed materials; no additional guidance clarifications were available in the document set .

Estimates Context

  • Wall Street consensus estimates for Q3 2023 EPS and revenue via S&P Global were unavailable for PEV at the time of retrieval due to missing CIQ mapping; therefore, estimate comparisons are omitted [SpgiEstimatesError].

Key Takeaways for Investors

  • Near-term revenue volatility persists as legacy leases roll off and forklift sales soften; scale from Gen 4 and new segments is needed to improve fixed-cost absorption and margins .
  • Cost discipline is evident (SG&A down YoY) and net loss narrowed YoY despite revenue pressure; continued operating efficiency is a lever while volumes ramp .
  • The Proterra Transit acquisition (pending approvals) is a potential catalyst: adds full-size bus capability, backlog, manufacturing footprint (Greenville, SC), and a scaled team—expanding TAM materially beyond medium-duty .
  • School bus wins (DC order, CA DGS Type-A contract), Retrofit Solutions launch, and V2G capability strengthen diversified revenue pillars aligned with public-sector electrification funding .
  • Production ramp timing has shifted from late-2023 to 1H 2024 for 20–25 units/month; this delay should be monitored for implications on cash needs and margin trajectory .
  • Balance sheet capacity is limited (cash ~$0.19M; equity down to ~$5.05M); acquisition and ramp likely require additional capital—watch financing pathways and terms .
  • With estimates unavailable, focus on operational milestones (court approval for Proterra, Gen 4 SOP progress, quarterly delivery cadence) as primary drivers of sentiment and stock reaction .