Q1 2025 EVgo Inc Earnings Call
[music]
Andres Shevorenkova, Paul Dobson, Ed Shevorenkova, Paul Dobson
Andres Sheppard, Paul Dobson, Ed Sheppard, Paul Dobson, Ed Sheppard, Paul
Thank you.
Speaker Change: Hello, and welcome to the EVgo Inc. Q1 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session, and if you would like to ask a question during this time, please press star one on your telephone keypad.
Speaker Change: I would now like to turn the conference over to Heather Davis, Vice President of Investor Relations. You may begin.
Chris McNally, Paul Dobson,
Speaker Change: Good morning, this is EVGO's first quarter, 2025, her name's Paul. My name is Heather Davis, and I'm the Vice President of Investory Relations at EVGO.
Badar Khan: Joining me on today's call are Badar Khan, Gigi Dobs, Chief Executive Officer, and Stephanie Lee, Executive Vice President, Accounting and Finance.
Badar Khan: Our CFO , Paul Dobson, is out this week due to a loss in the family a few days ago. Today, we will be discussing EVGO's first quarter, 2025 Financial Results, followed by a Q&A session.
Badar Khan: The call will be archived and available there, along with the company's earnings release and investor presentation, after the conclusion of this call.
Badar Khan: During the call, management will be making foreign-looking statements that are subject to risks and uncertainties, including expectations about future performance.
Badar Khan: Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filing, including the risk factors section of our most recent annual report on Form 10K, and quarterly reports on Form 10K.
Badar Khan: The company's SEC filings are available on the investor's section of our website.
Badar Khan: These four-looking statements apply as of today, and we undertake no obligation to update these statements after the call.
Badar Khan: Also, please note that we will be referring to certain non-GAAP financial measures on this call. Information about these non-GAAP measures , including a reconciliation to the course by the GAAP measures can be found in the Ernie's material available on the Investor section of our website.
Badar Khan: With that, I'll turn the call over to Badar Khan, QDCO CEO .
Badar Khan: EVgo had yet another record quarter of strong results. Customer consumption on our network continues to rise when average daily throughput per public stall rising by 36% versus the same quarter last year and up more than five folds in three years.
Badar Khan: The combination of higher throughput per stall and more stalls resulted in an overall public network throughput growth of 60% versus last year, with Q1 representing the 13th consecutive quarter of double digit year over year growth in charging refuse.
which is every single quarter since we've been public company.
Badar Khan: Total revenue grew 36% year-over-year, at a near 10-fold growth in three years.
Badar Khan: We had an over 180 new operational stalls this quarter, including extended stalls, and now have over 4,200 operational stalls.
Badar Khan: And finally, we began the year with a strong cash balance and prospects. We ended the quarter with 171 million cash, cash equivalence and restricted cash. And at the start of April , we received the next quarter of the advance from the Tioi loan, as expected.
Badar Khan: As you all know, in December 2024, after an 18-month process, we close at a $1.25 billion loan guarantee with the Department of Energy loan programs office.
Badar Khan: That's the Cures financing for our trajectory, past and just the need to operate even this year, leverage free cash flow breaking in the next year, and more than triples are installed based over the next five years throughout the United States.
Badar Khan: This puts us in a particularly strong competitive position within the EV fast charging math
Badar Khan: Looking at the macro-environment, the impact of Tarasonidigo, posed directly and indirectly, is expected to be relatively minimal.
Badar Khan: That's because only approximately 25% of the total CapEx cost per stall is subject to tariff. So the remainder being domestically-sourced equipment and raw materials and construction costs.
Badar Khan: Our fiscal 2025 net cap-backs estimate includes the cap-backs for 2025 vintage stalls as well as a standard incurred in 2025 for 2026 vintage stalls.
Badar Khan: And fiscal 25, we expected to incur around 45 to $50 million on imported chargers.
Badar Khan: However, we already have either inventory or on shipping containers just under half of that spend for important equipment.
Badar Khan: Therefore, we expect an impact of around $45 million, depending on what the final tariff rate might be for these imports, what we negotiate with our suppliers, and whether we're able to expand our existing US source production.
Badar Khan: In addition, we expect to deliver $10 million in CAPEX efficiencies this year that more than offset the estimated impact of tariffs in 2025.
Badar Khan: Because we are an older operator and not an equipment seller, none of this is expected to impact the justice of EVga Daoud for our charging business.
Badar Khan: His past borders were particularly strong growth in non-Testla EV sales, which grew over 35% compared to Q1 last year.
Badar Khan: Chevy Equinox EV, Honda Prologue, and Hyundai Ionic 5 are among some of the best selling non-testar models. It's especially encouraging to see this at the MSRP for the Equinox starts at around $35,000.
Badar Khan: Importantly, our business is increasingly not reliant on new EV sales in any one year, and is instead reliant on the overall number of EV things on the road.
Badar Khan: We estimate less than 10% of 2025 revenue to come from new EVs purchased this year. Not percentage will shrink, going forward at the EV car park roads.
Badar Khan: In addition, EVs sold in the US appear to have more domestic content on average versus ICE vehicles. Therefore, tariffs may have a bigger impact on ICE vehicles than EVs in the US.
Badar Khan: According to DOE, the nationwide growth of DC fast charging stations has in fact been slapped for the past seven quarters.
Badar Khan: with Q1 actually showing a 16% decline from the prior quarter.
Badar Khan: In a higher tire of environment, we expect a supply of new fast charging will continue to fall. That is because, wrongly, half of new fast charging deployed are sold to site hosts by companies like ChargePoint.
Badar Khan: which will likely see slower growth as sight hosts, poles, or reconsider what they may view as discretionary investments outside of their core business.
Badar Khan: Especially if these companies were relying on federal incentives that may also be on hold.
Badar Khan: 7% of new fast charters that are funded by automotive OEMs, other than Tesla, are also likely to see slower growth, as OEMs allocate capital to other priorities.
Badar Khan: Tesla's share of new fast charging has declined from around 70% in 2022 to less than 20% in the most recent quarter. And like other OEMs, it's unclear whether Tesla remains committed to the growth of fast charging given their other priorities.
Badar Khan: oil and gas companies funding DCFC chargers made up only 1% of new chargers this past quarter according to DOE and have already announced changes to the capital allocation priorities.
Badar Khan: That leaves 14% of new chargers funded by a large number of small, private companies that we expect will struggle to attract financing in this environment, especially because of their small scale.
Speaker Change: Unlike almost every other fast charging owner and operator, EVgo is singularly focused on fast charging and has the financing in place allowing us to continue to grow.
Speaker Change: As a result, demand for fast charging, represented by the growth in EVVIO, far exceeds the supply of fast charging stations nationwide.
Speaker Change: This supply-demand imbalance has been one of the factors driving the five-fold growth in EVgo's throughput per public stall over the past three years, and will continue to drive growth in throughput per stall for the foreseeable future.
Speaker Change: Anthony Global's most recent base case forecast from March this year that takes into account the new administration's policies and electric vehicles, suggests 31% of new car sales being fully electric by 2030.
Slavery above, which China already is today.
Speaker Change: The downside forecast is 21% of e-car sales, the low where China is today translating to between 19 and 26 million EVs on the road by 2030.
Speaker Change: This in half of the target established by the Biden administration was 50% of new car sales by 2030.
Speaker Change: from around 50,000 at the end of 2024, in order to maintain the current ratio of EV to DCFC.
Speaker Change: 40,000 fast chargers a year, which is over three times what was built in 2024.
Speaker Change: Given that we've now had seven flat to declining quarters of growth in DCSC supply, a flat growth scenario of no faster growth than today may even be too optimistic in a higher
Speaker Change: The result is a growing ratio of EVVIO to DCSC, which has driven the growth of EVGO throughput historically, and a significantly higher ratio in both S&P space and downside forecasts.
Speaker Change: which we expect will drive ongoing growth and need to go through put in utilization per stall, in addition to growth due to network expansion for the foreseeable future.
Speaker Change: In a higher tariff environment, we make the impact to both the numerator and to the laminator in this ratio, leaving the overall supply demand picture potentially even more attractive for EVgo than without the impact of tariffs.
It's time to turn to progress on our four key priorities.
Speaker Change: Improving our customer experience, operating in CAPEX efficiencies, capturing and retaining high value customers, and securing additional complimentary non-deluded financing to accelerate growth.
Speaker Change: As always, improving our customer experience remains our number one priority, and our strong momentum from last year has continued this quarter.
Speaker Change: Customers want a charter to be available when they pull up to an EVgo station, and we are deploying larger sites where our standard configuration is now 6 to 8 stalls per site. At the end of the first quarter, 21% of our sites had 6 stalls or more.
Speaker Change: We continue to deploy ultra-fast, high-powered chargers. The number of tools served by a 350 kilowatt charger is now 52 percent up from 38 percent a year ago.
Speaker Change: Oto Charge Plus, our seamless plug-and-charge capability continued to gain significant traction in Q1 with Oto enrollments from OEM partners. Oto Charge Plus accounted for 27% of sessions
Speaker Change: And finally, our key customer's success metric, or what I've done, increased 4 percentage points this quarter versus last year, with 95% of sessions resulting in a successful charge on the first try.
Speaker Change: To summary, another great quarter of achievement in improving our customer experience.
Speaker Change: We've also made excellent progress on our efficiency priorities. Most notably, we took the MOU with Delta Electronics, signed last October , and converted it into a signed joint development agreement to co-develop the next generation of charge in architecture.
Speaker Change: and Delta are making meaningful progress in this initiative. That's expected to lower our gross cat-backs per stall by 30%. We anticipate production of these stalls to begin in the second half of 2026. And we plan to have a prototype for the second quarter of this year.
Speaker Change: The call center costs for a call declining 37% in Q1 versus last year.
Speaker Change: Our 2025 vintage capital is expected to be roughly $135,000, which is an 8% reduction from 2024 or vintage stalls, including the impact tariffs.
Speaker Change: He goes operations team, has been diligently working to lower CAPEX, and we're delivering savings from lower contractor construction pricing, material sourcing, and increased use of pre-fabricated skills.
Speaker Change: We expect further improvements in GNA as a percentage of revenue for 2025 while investing in the growth of our business.
Speaker Change: We also continue to make great progress on our growth priority of capturing and retaining high value customers.
Speaker Change: 55% of EVGO's throughput came from right share, but we are in charge of credit and subscription accounts in Q1.
Speaker Change: This provides EVgo with a relatively predictable, baseload level of demand on our network.
Speaker Change: in order to drive overall utilization up while mitigating the effect of congestion.
Speaker Change: Thanks to the investments we have made in our customer marketing platform and dynamic pricing, we are now averaging double digit utilization in the overnight hours, effectively opening up capacity for more drivers touring the peak hours.
Speaker Change: We've sent the next major update to our dynamic pricing algorithms in the fourth quarter of this year.
Speaker Change: We launched native max connectors at our first site in February . In the pilot, the technology validation is going well. We anticipate adding more max connectors to sites over the course of 2025.
Speaker Change: Layland this year, we plan to launch the first of 400 new flagship stalls in partnership with GM with the goal of delivering an elevated customer experience.
Speaker Change: As a reminder, these sites will feature up to 20 stalls.
Speaker Change: He come with ultra fast 350 kilowatt chargers, canopy, ample lighting, pull-through stations and security cameras, and like all EVgo sites, we'll be located near a diverse set of amenities that customers can take to find control while charging.
Speaker Change: Finally, we expect to expand the number of dedicated stalls serving autonomous vehicle partners, which could represent a very attractive source of potential growth for EVGO given we estimate we have a 20% share of operational sites serving the segment today.
Speaker Change: As for financing the growth of the business, we have now received both the first and second quarter of the advances on our 1.25 billion-dollar loan guarantee with the D.O.E.L.P.O.
Speaker Change: Sloan and Schwartz, we got fully funded to add at least seven and a half thousand stalls, more than tripling our installed base over the next five years.
Speaker Change: Looking ahead to the rest of the year, we expect a complete transfer of our 2024 vintage 30-seat income tax credits.
Speaker Change: Over the course of this year, we expect around 30% of our 2025 vintage capex to be all set from state, local and federal grants, utility incentives, OEM payments and 30 C.
Speaker Change: Federal Incentives in the form of the Technology Mutual 30C, Alternative Fules Credit, and NAMI represent approximately 10% of our 2025 vintage cafes.
Speaker Change: As we said before, we are not particularly relying on federal incentives, and our next generation architecture program is targeting at least a 30% reduction in gross tax per stall, significantly more than the value of the federal incentives.
Speaker Change: Finally, given the very strong cash flows from our operating assets, we continue to receive inbound interest and evaluate additional complimentary non-delutive finance and opportunities.
Thank you very much.
Speaker Change: Stephanie Lee will not cover our financial performance for Q1, together with our Outlook for 2025.
Thank you, Barra.
Stephanie Lee: Over the last three years, we have grown our operational stall base by two and a half times while our revenues have grown over 12 times.
Speaker Change: Increasing our scale and maintaining our focus on cost allows us to deliver improving bottom-line performance. We continue to expect to achieve our target of adjusted even the outbreak even in 2025.
Speaker Change: The accelerated performance is driven by multiple factors we previously discussed, namely EDD
Speaker Change: Significant growth in rideshare, increased multi-family dwellers among EV drivers, increasing vehicle charge rates, and larger, less-efficient EVs coming to market.
Speaker Change: Through web per public stall, with 266 kilowatt hours per stall per day, Q1, compared to 196 a year ago, and roughly flat sequentially, which reflects the seasonal shifts from Q4 to Q1 as we saw last year.
Speaker Change: In the first quarter, total public network utilization increased to 24%, us from 19% a year ago.
Speaker Change: 67% of our public assault and utilization greater than 15%
Speaker Change: 54% of our public schools had dualization greater than 20%.
Speaker Change: And 32% of our public stalls had utilization greater than 30%. Each of these utilization categories have grown significantly over the last two years, as the entire utilization curve is shifting to the right.
Speaker Change: Total throughput on the public network during the first quarter was 83 gigawatt hour, a 60% increase compared to last year.
Speaker Change: Revenue for Q1 was $75 million, which represents a 36% year-over-year increase.
Speaker Change: This gross was primarily driven by charging network and extend revenue.
Speaker Change: Total charging network revenues, the $47.1 million, grew from $31.6 million, exhibiting a 49% to
Speaker Change: Extend revenue of $23.5 million, increased from $19.2 million in the prior year, delivering growth of 23%.
Speaker Change: Charging network growth margin at the first quarter was 37.1%, down 370 basis points from the
Speaker Change: The prior year quarter included $2.5 million of breakage revenue from one of our OEM charging credit programs, which is winding down and similar levels of breakage were therefore not expected to be cut.
Speaker Change: Exploding the impact of breakage revenue, our charging network growth margin would have grown 130 basis points zero over year.
Speaker Change: Compared to the fourth quarter of 2024, charging network growth margins declined primarily due to higher maintenance costs, incurred to improve reliability of our charging experience, and higher property taxes, which typically increased Sunday January 1st of each year.
Speaker Change: Our extend revenue for the first quarter was us from the prior year due to more construction projects and process or completed, and the recognition of certain construction change order costs that were incurred in the prior year.
Speaker Change: Adjust the gross profit was $25.4 million the first quarter of 2025, plus from $17.3 million in the first quarter of 2024. Adjust the gross margin was 33.7% into 1, an increase of 240 basis points compared to last year.
Speaker Change: A dose of GNA, as a percentage of revenue, also improved from 44.4% in the first quarter of 2024 to 41.6% into one of this year, demonstrating the operating leverage effect.
Speaker Change: Adjusted EBITDA was negative $5.9 million in first quarter of 2025, a $1.3 million improvement for a negative $7.2 million in first quarter of 2024.
Now, turning to our 2025 guidance.
Speaker Change: EDGO continues their top line growth and past profitability in 2025.
Speaker Change: Our install download for the year remains the same, with 1200 to over 1400 new install comprised of 750 to 815 public network installs, 450 to 85 dedicated network installs, and 450 to 550 EVgo extension installs.
Speaker Change: We continue to expect total revenues in a range of $340 million to $380 million. As a reminder, we estimate only 10% of our total 2025 revenue are tied to an EV sale.
Speaker Change: We continue to expect charging network revenue to be two-thirds of full-year revenue.
Speaker Change: We anticipate sequential quarterly growth in our charging network revenues as we continue to expect quarter over quarter and year over year through foot growth.
Speaker Change: Similar to last year, we expect to see higher summer electricity costs impacting 2-3 charging network growth margins. We continue to expect full-year extend revenue to be broadly flat to last year, with slightly lower revenues in the second half of 2025.
Speaker Change: We expect growth in full your ancillary revenue, with most of that growth in Q4 driven by the dedicated
Speaker Change: We expected just the GNA to increase modestly throughout 2025 as we continue to make investments in areas such as our next-generation charging infrastructure.
Speaker Change: We continue to expect improvements in charging network growth margin and adjusted GNA as a percentage of revenue, driving bottom line adjusted EBITDA improvements. We therefore continue to target adjusted EBITDA breaks even in 2025 with a range of negative $5 million to positive $10 million.
Speaker Change: We continue to expect fiscal cat-backed net-a-ball theft to be in the range of $160 million to $180 million.
Speaker Change: We are ramping up our mobilization with approximately 75% of our 2025 vintage public network cells expected to operationalize in the second half of 2025.
Speaker Change: Q4 is expected to account for approximately 50% of total of 2025 public network sales.
Operator, we can now open the call for Q&A.
Speaker Change: Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again.
Speaker Change: Please ensure you are not on speakerphone and that your phone is not on mute when called upon. Thank you. Your first question comes from Andrea Sheppard with Cantor Fitzgerald. Your line is open.
Thank you.
Andreas Shepard: Good morning, Andres. Hi, everyone. Good morning. Congratulations for another great quarter and thank you so much for taking our questions.
Andreas Shepard: Maybe just to start, you touched on this briefly in your prepare remarks.
hoping for maybe a bit more color.
Andreas Shepard: I'm wondering if you could maybe just give us a bit more cadence in terms of guidance for the rest of the year, particularly around cost of energy, ASP, you mentioned Q3, I think will be the weakest.
Andreas Shepard: But basically, you know, ASP, Scross Margin, and how we should think about the ramp up of the DOE lone stalls throughout the rest of the year. Thank you.
Andreas Shepard: Andres, yeah, yeah, we keep fighting guidance. It hasn't changed since the last quarter on the ramp up of the loan. We provided a stall built schedule on the last quarter to call and that remains the same.
So that's 750 to 850 stalls, public network stalls.
Andreas Shepard: for the full year together with about 50 to 85 dedicated stalls.
Andreas Shepard: 450 to 550 stores to our extend program, so that hasn't changed. Also hasn't changed, so we expect about 75% of the public stores to be in the second half of the year, about 50% in Q4, so you can...
Andreas Shepard: You could kind of work out Q-2, given it was off Q-1. In terms of the rest of the year, Q-2.
Andreas Shepard: Three is typically the quarter. As we saw last year, we've got higher energy costs. That'll already be the same shape for this year. In terms of average selling price, I'd expect us to see, you know.
Price is where they are today, maybe slightly expanding.
Stephanie Lee: I mean, Heather, I mean, step any of the comments in terms of guidance. No, I think that covers it.
Thank you. Thank you.
Thank you.
Speaker Change: Got it. Okay. That's super helpful. Appreciate all that color. And maybe just a bit of an odd question, but as we are seeing an acceleration in autonomous vehicles and self-driving technology.
Stephanie Lee: Can you maybe remind us, what are EVgo's strategy to try to capture some of this market and how you might address autonomous vehicles charging in the future? Thank you.
Stephanie Lee: And yeah, look, as we said last quarter, we broke out the number of stalls.
that are dedicated souls, serving...
Stephanie Lee: The kind of autonomous vehicle segment. And so that separated out in our stall count from last quarter. And we more than doubled in 2024, the number of stalls that we currently already have in place serving that segment.
Stephanie Lee: You know, we estimate, there's not great data on this, but we estimate we've got about a 20% share, so a pretty good share of dedicated stalls serving the segment. And so we're quite excited by it, these stalls have a different cash flow profile, they're contracted cash flows.
Stephanie Lee: versus our public stalls, which rely on charging revenue of course.
Stephanie Lee: And so we're quite excited by it. We do think it could be a source of interesting upside for the business given the regulations around the space seems to be a little bit easier than where we had them in the past.
Thank you.
Speaker Change: Wonderful. Thank you so much, really appreciate it. And congratulations on the quarter again. Well, Patagonal. Yep.
Thank you.
Speaker Change: The next question comes from Chris Dendrinos with RBC Capital Market. Your line is open.
Yeah, good morning, and thanks for taking the question. [inaudible] and thank you very much
Speaker Change: I guess maybe on the financing side of things, and it was good to see that you all got that second advance from the DOE. I guess maybe on the private side.
Speaker Change: You mentioned your exploring some funding options. Can you provide an update on timing around that and maybe, you know, what specifically are you all kind of looking at as far as options go? Thanks.
Speaker Change: Yeah, I mean, just on the first point, we are obviously very happy with where we are in financing, we expect quarterly advances in line with agreement that we signed with the DOE in December . And this second quarter advance was in line with how we're asking our plans.
Speaker Change: And so that's where any of the conversation is, are there souls that are not eligible to be funded by DOE, for instance, the EV space, but potentially others.
Speaker Change: But also just the time until it makes good business sense to diversify your sources of funding. In terms of timing, we don't we're in the dialogue today with folks if we find something that is attractive for ourselves and kind of parties.
Speaker Change: Then Woodlops, you look to execute, and I expect that that might take place some point during the course of this year.
For more information, visit www.fema.gov
Speaker Change: I guess, are you indicating that you would look to potentially accelerate activity if you find an attractive, I guess, arm of financing, is that correct? Thanks.
Speaker Change: Yeah, I've been over the course of the five years, the schedule that we've laid out in the last two calls.
Speaker Change: Showed us, showed what the store schedule, Bill's schedule would look like under DLE.
Speaker Change: Loan Financing, and so what we're looking at is both from a balance sheet and operational perspective, what would it take to increase that level of stall dulled out? You know, what we've got today gets us to about 11,000 stalls.
Speaker Change: In about five years time, we provided those economics from the last two calls, quite we know what we're asking ourselves is what would it take to accelerate that schedule, build that over the next five years.
Got it. Thank you. Go.
Thank you for watching!
Speaker Change: The next question comes from Chris McNally with Evercore ISI. Your line is open.
Thank you.
Chris Mcnally: Thank so much, Stephen, thank you for taking up the call. I appreciate all of the 2030 comments that we all see the huge growth in the car parts that will eventually come.
Chris Mcnally: I think, you know, our question is around, maybe your views and the potential changes of-
in revoking IRA and the EV EPA mandates which become...
Chris Mcnally: Our thought is, what if we get to that worst-case scenario, the upcoming tax bill, in the second half, where incentives are removed, in 2030, targets are removed.
Chris Mcnally: My question is how does EVgo potentially change their rollout strategy geographically within U.S.?
Chris Mcnally: You know, even more valuable given EV density, whereas maybe expansion state, you know, there's a change in the map as a result of regulation changes. So big picture question, but I would appreciate you as well.
Chris Mcnally: Yeah, Chris, I mean, I think taking a step back as a reminder, our business is not.
We're not selling cars
We're selling killer one hours.
And so what drives our business is both.
Chris Mcnally: The demand for kilowatt hours, which is represented by the growth in CIO.
Chris Mcnally: Electric Vehicle VIO, as well as the supply of industry-wide DC fast chargers, and that's the sort of sub-demand supply that, in fact, impacts the sale of kilowatt hours.
Chris Mcnally: And so what we see as we play out on that slide is, even in the most conservative forecasts which takes into account a shift in federal policies with respect to, you know,
Chris Mcnally: Sale of electric vehicles. We would expect to see the ratio of cars to nationwide industry
Chris Mcnally: And so that supply-demand picture remains very attractive for us, given that it's only grown by about a third in the last three years and yet in that same time period our throughput per stole has grown fivefold.
Chris Mcnally: And so I think that that is how we think about the...
Speaker Change: The Civil Situation, this is a pretty resilient, the owner-operator of fast-charging business model is actually quite a resilient business model. With respect to your specific questions.
Speaker Change: Sure, if we find that states continue to offer incentives for electric vehicles and other states aren't offering such a tract of incentives, then we would of course expect to see.
Speaker Change: More EV sales and individual stakes. Our network plan that we update continuously takes into account all of these sorts of forecasts, and we adjust.
Speaker Change: At any one point in time, we are looking at a network plan that goes out two or three years. It gives us quite a lot of optionality. We've got about 30,000 stalls that we've already identified across the United States.
Speaker Change: that meet our return and expectations and the kind of returns that we're demonstrating today. So we feel we've got tons of flexibility and optionality to be able to shift to wherever demand is.
Andres Sheppard,
Thank you. Thank you.
Speaker Change: Do you have a sense in those medium-term geographic plans? I mean, if we're talking about EV, the I.O. to your point, the range of 20 to 26 in your forecast, it'll sort of 7 to 10% penetration of the clockwork. You know?
Speaker Change: Where do you see sort of the most attractive markets, meaning where the return is the highest, I want to think about California, but where it's sort of approaching. [inaudible]
You're up like...
Speaker Change: Penetration Ratios, just any rules of thumb that help us when we think about where a market becomes the most attractive, once it hits a penetration level of the car park of X.
Chris McNally, Paul Dobson,
Speaker Change: Yeah, I mean, look, for us when we think about return, we're obviously thinking about the productivity of the stalls, so the kilowatt hours, the throughput per stall per day, but we're also taking into account the cost of the stalls, so the cat bags.
Speaker Change: The cost of construction might vary across the United States, the development of incentives. I will tell you that overall utilization, as we showed today, is 24%. We actually have higher utilization outside California.
We've got more throughput in aggregate outside California.
Speaker Change: Some of our fastest and top states today are places like Texas, Florida, Arizona, Michigan. And none of these states are in the clean cars to a program that California has adopted.
Speaker Change: I expect to see the growth in those states continue if they have done in the last couple of years.
Speaker Change: That's really great, that helpful info on the sort of the micro market, for example, to Kate. Thank you so much, Kate. Absolutely.
Thank you.
Bill Peterson: The next question comes from Bill Peterson with JP Morgan. Your line is open.
Thank you. Thank you. Thank you.
Bill Peterson: Good morning, Bill. Yeah, hi. Good morning. Thanks for taking the questions and a nice job on the court of the institution and it's nice to see the reiteration of the financial and other factors.
Bill Peterson: He'd sound them alone, it seems like all systems are go, but just to remove any doubt, are there if any remaining items that you and the team are working through, I guess just want to try to understand how the current engagements are, are they constructive, are they still provying on the edges, or doing further investigations, and...
Speaker Change: You know, we understand that a lot of people at the LPO left are being forced out or, you know, they're leaving out their own will, whatever, just what's your current level of negations with the LPO?
Speaker Change: Yeah, I mean, those are very productive engagements for the LPO team.
Speaker Change: I really can't comment on their overall staffing levels so that they decided that the folks that we're working with are the same folks that we're working with.
Speaker Change: over the last several months. Our quarterly advance, both the first and second, and the monthly we have monthly trolls and reimbursements in line with our agreements. They're all progressing in the way that we expected. And so, you know, I know I'm...
Speaker Change: You could call this sort of business as usual activity. We're several months into this at this point, and we're pleased with how it's going.
William Peterson, Paul Dobson, Paul Dobson, Paul Dobson,
Chris McNally,
Speaker Change: That's great. Just wanted to make sure. And then I had some clarifying questions on the terrace. And thanks for the color on that. So, you know, what are the assumptions around the tariff rate to get to this for four to five million, you know, I guess I think that's 32% on Taiwan as an example. Is that the right way? And I guess. Yeah.
Speaker Change: Ms. 10 million in efficiencies. Can you provide any additional color on that? It sounds like you're giving that anyway regardless of where the caravan fire, but still stands and then maybe looking in the next year. Thank you very much.
Speaker Change: Sounds like you're reiterated this sort of 30% capex reduction with the program you have with Delta, but is that reduction still assuming the same terror environment we have today? And if so, how do you get there?
Yes, so built.
Bill Peterson: The impact on the calendar year capital spend that we incur in 2025. And that's based off about $45-50 million of imports of, you know, imported equipment.
Bill Peterson: We've already got about half of that, either already here in the States or on Shipping Detainer, so there's no tariff like that.
Bill Peterson: We expect about a 10% tariff on a quarter of what we is not already here, and about a 32% tariff on the other quarter. And that's really how you get to the 4 to 5 million.
Bill Peterson: In terms of the efficiencies, at least efficiencies, we had a, as we said last quarter, and we reported a 9 percent.
Bill Peterson: Improvement Reduction in our vintage 2024 cat-packs per stool, versus what we were expecting, we were expecting about 160.
Bill Peterson: We took about 9% off that in 2024. This year, we're expecting about 8%
Bill Peterson: on Versus, where we ended in 2024. And that's just our operations team just going about business, you know, construction pricing, material sourcing, prefab skids.
Bill Peterson: We expect to do it when we have 40% of our mix this year. It's going to be a little higher, the cost for skin is going to be a little lower, so it's just business as usual activity.
Bill Peterson: For FY26, we haven't provided guidance specifically for vintage FY26 cat-backs.
the development with Delta Electronics.
Bill Peterson: That's a 30% improvement on that 160 that we began, that we were expecting until again 2024, so...
Um...
Bill Peterson: You know, this is just business as usual. We think that this is a real source of competitive advantage for EVgo versus the dozens of other...
Bill Peterson: Fast Charging Companies that you're all aware of, where we've got scale, we're able to partner with the Global Leader, and really drive down, you know, efficiencies in the CapEx. So we're pretty pleased with where we are.
Chris McNally, Chris McNally,
Speaker Change: Thanks for all the details, Barrett. It's terrific to hear that. And Gengaro, that's on the corner. Thanks so much.
Thank you.
Speaker Change: The next question comes from Chris Pierce with Needham & Company. Your line is open.
Thank you.
Hey, my friend's morning, everyone.
Morning.
Speaker Change: Can you just walk me through, you know, when I think about dynamic pricing and you hit on on the call about driving utilization in the overnight hours, I think about, you know, cost savings to the driver.
Speaker Change: But you guys blew ASP per watt, you know, mid-tingle digits year over year. I just want to get a sense of pricing power on the network you have or how you're able to, like, how those two sort of bounce out.
Yeah, look at me with dynamic pricing, what we're doing is...
Speaker Change: We're looking to maximize margin, and so in some places we're looking to...
Speaker Change: that we may see ourselves increase price and other places we may see ourselves reduce price.
Speaker Change: But with the goal of maximizing margin, I would say that, again, this is another one of our sources of real competitive advantage versus these dozens of others smaller.
Speaker Change: companies in the fast charging space, or companies that just aren't focused on utilization for whatever reason.
Um...
Speaker Change: You know, we are through both the investments we've made in our marketing, our understanding of customers, our reach out to customers, the dynamic pricing, which is effectively pricing signals, we are shifting.
Who is charging at what time of the day?
Speaker Change: Where we are trying to open up, hours of the day that might be peak hours of the day, where we may have a price, you know, sort of in elastic customers, and that really is serving us very well. We expect the next round of...
Speaker Change: The Algorithms in this dynamic pricing to go live in the fourth quarter where I'm looking for, you know, the next level of sophistication here. And this is not, you know, we're not talking about something being reinvented here where we're taking kind of concepts that have been...
Speaker Change: Very successfully executed in other parts of the economy into the space.
Speaker Change: Okay, and it is a tip to say you haven't seen anything, any demands, if there's anything that would cause you to back off, the love of a person's already thinking you have them at work.
Speaker Change: You know, Chris, I didn't fully capture the question, but I think the answer isn't we've seen anything that would close the tobacco off the answer snow.
Speaker Change: Okay, and then just lastly, housekeeping, can you remind me, like on the typical seasonality? I know this is sort of a young business and you've had the growth you've had, so it's sort of hard to pick out the seasonality, but, you know, networks to put down modestly sequentially, but how should we think about seasonality the rest of the year, and then when you layer on saw growth too, like how should we think about the cadence of network to put? [inaudible]
Speaker Change: Yeah, I mean, look, so, so network throughput is, it was actually kind of flat to be honest, we had some rounding, so...
Speaker Change: Last quarter, we rounded up, this quarter rounding down, so network throughput is kind of broadly flat.
Speaker Change: which is pretty much where it was almost exactly last year.
Speaker Change: Between Q4 and Q1, and so we expected that, certainly, we'd expect to see network throughput that obviously growing Q2.
Speaker Change: Q3 and Q4, as we same shape we saw last year, it's a quantity from Q4 and Q1. That really aligns with sort of VMT, field commons traveled for EVs and across that state, so that means that's really how we think about the profile.
Okay, thank you. Yeah.
Thank you.
Speaker Change: Again, ladies and gentlemen, if you have a question, it is Star One on your telephone keypad.
Craig Irwin: Your next question comes from Craig Irwin with Ross Capital Partners. Your line is open.
Good morning, everyone. Thanks for taking my questions.
Craig Irwin: So I wanted to ask about the progress with the Tesla connectors, the next connectors you mentioned earlier in the prepared remarks.
Craig Irwin: Can you maybe frame out for us where you're at with this? Are you really just in testing? Or will we potentially see?
Craig Irwin: Dozens or more stations retrofit over the course of the year.
Craig Irwin: And, you know, if it's fair for us to start asking about the new customers added that are Tesla customers, I know you had another strong quarter with 119,000 new customers.
Craig Irwin: But, you know, is the Tesla fleet starting to layer in and help you on the demand side? Yeah, Craig, something clearly with such a high percentage of...
overall.
Craig Irwin: EV, VIO, being Tesla drivers, and the fact that our charging stations are faster at 350 kilowatt, and they tend to be closer to where all drivers, including Tesla drivers, live, work, and run errands, versus...
Highway stations. We are very infracted to capturing this segment.
Craig Irwin: Well, we need to do two things. We need to make sure that the system, they work. And so what we've been doing this past quarter is going through that technology validation, that's both in terms of the connection, but also the speed.
Craig Irwin: You know what, 350 kilowatt, we need to have, we don't have to make sure we've got the right cables that can accommodate a higher speed.
and then a task for supercharger.
Craig Irwin: And the second thing that we need to make sure that we're paying very close attention to is, if we take out a CCS connector, we don't end up killing demand for some period of time, before the next cable catches up to where the demand falls, the CCS cable.
And so...
Craig Irwin: You know, that's really what we're talking like everything at EVgo, which is very data driven.
So we are looking at...
Sides across the country.
Craig Irwin: That perhaps have opportunities for us to swap out a lower performing CCS cable.
Craig Irwin: We're the next cable that is also located close to where test drivers are based, which is, you know, frankly everywhere, so it's quite data intensive, we do expect to start rolling out these cables, but it's probably going to be on a retrofit basis maybe in the 100 to 150, you know.
Craig Irwin: Hepatizedi, Givertake, around those sorts of numbers over the course of this year. Ix for our next generation charging architecture, which will be a second half of next year. We expect there'll be all max cables from the outset, if not before that, with the current generation of chargers.
Andres Sheppard.
Thank you.
Speaker Change: Thank you for that update. So my next question is on the extent revenue. So again, this quarter was pretty strong and it's nice to see you building a network out there with partners and, you know. So.
Incremental, Incremental Profits, Incremental...
Driver, Service, always a good thing.
Speaker Change: Do you have potential for other extent customers that could come in over the course of the next year? And how should we think about the shape of extent growth, the revenue contribution?
Speaker Change: in this here. Is it going to be as backhand loaded as the stall buildout or is it something that's going to be a little bit more linear as we look at the year?
Speaker Change: Yeah, so just two things there on the, on the extended business, we are not looking at, we're not actively pursuing.
More extend partners. Craig, we've got a great relationship with you.
Speaker Change: P.F.J., the product company, and we're deploying, you know, throughout the course of this relationship, two thousand stalls. The bill's schedule there, we gave an illustrative view on the last quarter. So if you look at the last quarter slides, there's a little bar that's...
Speaker Change: So, semi-shaded, that gives a sense of what that schedule could look like through 2028, in terms of...
Speaker Change: This year the extend business is broadly flat in terms of revenue versus last year, slightly lower in the second half, first half, remember the revenues from extend are both.
Speaker Change: Equipment Sale, as well as construction revenues. So sometimes I feel a little lumpy, but it's, we've expected to grow only in several last year, be a little less in a second half versus the first half.
and many more. Thank you.
Speaker Change: Thank you for that. I'll take the rest of my questions off-line. Absolutely.
Thank you.
Thanks, Ray. This concludes.
Speaker Change: This concludes the question and answer session. I'll turn the call to Badar Khan for closing remarks.
Well, thank you everyone. We had yet another strong quarter.
Speaker Change: With strong balance sheet, we are in a particularly strong competitive position.
Speaker Change: Together with the business model that's minimally impacted by tariffs, and a supply-demand picture that should underpin continued growth, we are well on our way to delivering just a deeper outbreak even this year, and I look forward to providing updates throughout the course of this year. Thanks very much, everyone.
Thank you.
Speaker Change: This concludes today's conference call. Thank you for joining. You may now disconnect.
Thank you.