Twin Vee PowerCats Q3 2025 Earnings Report

Twin Vee PowerCats EPS Results

• Actual EPS: -$45.51
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Twin Vee PowerCats Revenue Results

• Actual Revenue: $3.43 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Twin Vee PowerCats Announcement Details

• Quarter: Q3 2025
• Date: 11/6/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, November 6, 2025
• Conference Call Time: 12:00PM ET

Twin Vee PowerCats (NASDAQ:VEEE) Co. (NASDAQ: VEEE) designs, manufactures and sells recreational powerboats, with a focus on fiberglass catamaran-style boats. Its products are intended for offshore fishing, cruising, watersports and general recreational use, and are marketed under the Twin Vee brand.

The company offers a range of center-console, dual-console and other recreational boat models in multiple sizes and configurations. Twin Vee sells its boats through a network of independent marine dealers and serves customers in the United States and select international markets.

Founded in 1994, Twin Vee is headquartered in Fort Pierce, Florida, a location that supports its boat manufacturing and product-development operations. The company has also expanded its brand portfolio through AquaSport, a manufacturer of fiberglass recreational boats.

Twin Vee PowerCats Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Twin Vee reported Q3 net sales of $3.43 million, up 18% year-over-year, and nine-month sales of $11.8 million with gross margin improving to 9.6%, indicating better production efficiency and cost control.
• Negative Sentiment: The company remains affected by industry headwinds—high interest rates, inflation, cautious consumer spending, and elevated industry inventory—which coincide with a Q3 net loss of $2.76 million despite improvements versus prior year.
• Positive Sentiment: Twin Vee completed the sale of its North Carolina property for $4.25 million (including a $3.75M promissory note), immediately reducing overhead and strengthening liquidity and the balance sheet.
• Positive Sentiment: Operational upgrades are now live—completion of the four-tier facility expansion and installation of a 46-foot five-axis CNC router enable in-house precision tooling, lower vendor costs, shorten lead times, and increase production flexibility.
• Positive Sentiment: Management is expanding market reach and customer engagement, adding 10 new dealer locations (including a stocking dealer in Australia) and launching a 3D Configurator to let customers build, price, and customize boats online to help rebuild backlog and shorten sales cycles.

Presentation

[Operator]

Welcome to the Twin Vee PowerCats Company third quarter 2025 investor call. As a reminder, this call is being recorded, and all participants are in a listen-only mode. Your speakers for today's program are President and CEO Joseph Visconti and Chief Financial Officer Scott Searls. Before I turn the call over to Joseph, please remember that certain statements made during this investor call are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements on this call, other than statements of historical facts, including statements regarding the company's future operations and financial position, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as believes, may, estimates, continue, anticipates, intends, should, plan, expects, predict, potential, or the negative of these terms, or other similar expressions.

[Operator]

The company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties and assumptions described, including those set forth in its filings with the Securities and Exchange Commission, which are available on the company's investor relations website at IRtwinvee.com. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur. Finally, this conference call is being webcast. The webcast will be available at IRtwinvee.com for at least 90 days. Audio cast quality is subject to your equipment, available bandwidth, and internet traffic. If you experience unsatisfactory audio quality, please use the telephone dial-in option.

[Operator]

A question-and-answer session will follow the formal presentation. Please note that only those that have dialed in via telephone may ask a question. Those listening via webcast will be unable to submit questions. If you'd like to ask a question, you may signal by pressing star one on your telephone keypad. I will now turn the call over to Joseph Visconti.

[Joseph Visconti, President and CEO at Twin Vee PowerCats]

Good afternoon, everyone, and thank you for joining Twin Vee PowerCats quarterly investor call. Today, we'll outline how we're navigating current conditions with a clear focus on sales, dealer expansion, and customer engagement. As we know, high interest rates, inflation, and cautionary consumer spending have slowed new boat sales across the sector. Pressure on new unit demand and higher-than-normal inventory levels across the industry are still a challenge. As a builder of premium Twin Vee and Bahama boats, these headwinds create a complex environment for manufacturers and dealers alike. At Twin Vee, we're addressing these challenges head-on by controlling what we can—our costs, our inventory, our relationships with dealers and customers. Our primary focus is driving sales and rebuilding our backlog. We're channeling all resources into sales, marketing, and strengthening customer demand.

[Joseph Visconti, President and CEO at Twin Vee PowerCats]

In Q2 and Q3, we added 10 new dealer locations, expanding our reach into regions like the Southeastern Seaboard, the Gulf Coast, and a brand-new stocking dealer in Australia. We're working closely with all dealers, offering hands-on support through personalized customer consultation, demo events, and any guidance required to shorten the sales cycle for customers. Operationally, we've made strategic moves to improve efficiencies. Our four-tier headquarter expansion is complete. This gives us the capacity to produce new models, expand our production, and integrate additional brands. We have also completed the installation of our 46-foot five-axis CNC router, which allows us to handle precision in-house tooling. This reduces our reliance on external vendors, cuts lead times, and lowers costs on product development. These upgrades are now operational, enabling us to respond to demand without significant further capital investment.

[Joseph Visconti, President and CEO at Twin Vee PowerCats]

On the product front, we're seeing steady progress with our 22-foot BayCat, which continues to resonate with customers for its versatility and value. Production remains efficient, with manufacturing output aligned with dealer orders to avoid overstocking. You can explore this BayCat and other Twin Vee models on twinvee.com using our new 3D Configurator, which lets customers build and price their boats and also customize options like upholstery, colors, and engines in real time. We also completed integrating the recently acquired Bahama Boat Works, known for its premium offshore fishing vessels. We've completed the relocation of all Bahama molds and the tooling into our recently expanded four-tier facility. We are carefully pacing the Bahama rollout to match market demand, ensuring we don't overextend inventory while building excitement for these amazing products. As a public company, our priorities are clear. We're going to drive revenues through sales.

[Joseph Visconti, President and CEO at Twin Vee PowerCats]

Marketing, rebuild our backlog, and maintain financial disciplines. We're positioning Twin Vee to capitalize as conditions improve. We will continue to expand our dealer network and drive efficient operations. We've taken additional steps to ensure success in this challenging market. One significant decision was the sale of our North Carolina property. This move has further reduced overhead, particularly the insurance and carrying expenses associated with the facility, and more importantly, the proceeds from the sale will bolster our balance sheet. Looking ahead, our strategy is straightforward. Stay lean, focus on sales, and deepen customer and dealer relationships. We are confident that our disciplined approach positions us to outperform competitors. The sale of the North Carolina property has strengthened our financial foundation, our expanded product portfolio enhances manufacturing capabilities, and our growing digital presence are all aligned to drive revenue and rebuild our backlog.

[Joseph Visconti, President and CEO at Twin Vee PowerCats]

We remain committed to delivering value to our shareholders by focusing on what we do best: building high-quality boats, supporting dealers, and engaging directly with customers. The marine industry may be navigating rough waters, but Twin Vee, we are focused on emerging stronger than ever. In closing, our operation upgrades and strategic acquisitions position us to compete effectively while protecting our financial health. I want to thank you for your support, and I will now hand it over to our Interim CFO, Scott Searls.

[Scott Searls, Interim CFO at Twin Vee PowerCats]

Thanks, Joseph. Good afternoon, everyone. My name is Scott Searls. I'm the Interim CFO for Twin Vee. This is my first earnings call with Twin Vee, and I want to begin by thanking all the shareholders, employees, and dealer partnerships for their warm welcome and for your continued support. It's been great getting to know the business, and I'm excited to be part of Twin Vee's story moving forward. As Joseph mentioned earlier, the boating industry continues to face a challenging environment. High interest rates, inflation, and cautious consumer spending have slowed new boat sales across the sector. Inventory levels across the industry remain elevated, creating a complex environment both for manufacturers and dealers. At Twin Vee, we're tackling these headwinds head-on by focusing on what we can control: our costs, our inventory, and our dealer relationships.

[Scott Searls, Interim CFO at Twin Vee PowerCats]

Our approach is simple: stay lean, stay disciplined, and keep supporting our dealers to rebuild momentum. For the third quarter, net sales were $3.43 million, up 18% year-over-year from $2.9 million last year. Results showed a small gross loss of about $45,000, a meaningful improvement over last year's $146,000 loss, reflecting better production efficiency and cost control. Selling and general administration expenses were down roughly 16% from the prior year. Our net loss for the quarter was $2.76 million, an improvement from last year's $3 million loss, and consistent with our expectations given the industry backdrop. For the first nine months of 2025, we generated $11.8 million in sales with a gross margin of 9.6%, up significantly from 2.7% a year ago. These results demonstrate the early benefits of our operational discipline and focus on aligning production with dealer demand.

[Scott Searls, Interim CFO at Twin Vee PowerCats]

Turning to the balance sheet, we ended the quarter with $2.7 million in cash and equivalents and continue to maintain very low leverage. Our only long-term debt remains the SBA Economic Injury Disaster Loan, which carries a fixed 3.75% rate and is fully current. After the quarter end, we completed the sale of our North Carolina property for $4.25 million. That included $500,000 in cash at closing and a $3.75 million secured promissory note earning 5% interest payable in installments between 2026 and 2027. This transaction immediately reduces overhead and strengthens our balance sheet. We are managing working capital carefully. Producing to order rather than to stock to preserve liquidity and to protect dealer profitability. Operationally, our four-tier expansion is now complete, and our Five-Axis CNC Router is fully operational. This capability allows us to handle precision tooling in-house, reducing outside vendor costs and shortening development times.

[Scott Searls, Interim CFO at Twin Vee PowerCats]

It's a good example of what we're doing more with what we have, not spending more to grow. Investing smarter. I wanted to thank all of the operations and finance teams for their hard work in achieving this balance. Looking ahead to the fourth quarter, our priorities are clear: protecting liquidity, support dealers, sell through, and remain ready for the growth when demand improves. We're entering Q4 from a position of stability with a leaner cost base, stronger dealer coverage, and healthier balance sheet. Our focus is on rebuilding the backlog and strengthening our relationships with our dealers and customers. The sale of the North Carolina property gives us flexibilities to invest in marketing and dealer support without taking on debt. We'll continue to expand our presence in high-potential coastal regions and ensure our dealers have the training and tools and support to succeed.

[Scott Searls, Interim CFO at Twin Vee PowerCats]

Before we open the call to questions, I want to thank you all for—and the shareholders and employees and our partners. Your confidence truly motivates our team every day. We're focused on what Twin Vee does best: building high-quality boats, supporting our dealers, and engaging directly with customers. The marine industry may face rough waters, but we are steering through them with focus and discipline. Our mission is clear: to weather the storm, emerge stronger, and create a lasting value for our shareholders. Thank you for your continued support. With that, I'll turn it over to the operator for questions.

[Operator]

Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment, please, while we poll for questions. There are no questions at this time, and this concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Participants

Executives

• Joseph Visconti, President and CEO
• Scott Searls, Interim CFO