PowerBank Q3 2026 Earnings Report

PowerBank EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.02
• Beat/Miss: Missed by -$0.07
• One Year Ago EPS: N/A

PowerBank Revenue Results

• Actual Revenue: ($0.03) million
• Expected Revenue: $5.43 million
• Beat/Miss: Missed by -$5.46 million
• YoY Revenue Growth: N/A

PowerBank Announcement Details

• Quarter: Q3 2026
• Date: 5/21/2026
• Time: After Market Closes
• Conference Call Date: Tuesday, May 19, 2026
• Conference Call Time: 4:30PM ET

PowerBank (NASDAQ:SUUN), formerly known as SolarBank Corporation, operates as an independent renewable and clean energy project developer and asset operator in Canada and the United States. The company engages in the site origination, development, financing, engineering, procurement, construction, operation, maintenance, and asset management of solar photovoltaic power generation projects. It offers solar energy solutions in the areas of behind-the-meter solar power plants, electricity grid connected community solar gardens, and utility scale solar farms. The company was formerly known as Abundant Solar Energy Inc. and changed its name to SolarBank Corporation in October 2022. SolarBank Corporation was incorporated in 2013 and is headquartered in Toronto, Canada.

PowerBank Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: PowerBank said it is executing on both development and EPC growth while expanding its long-lived IPP asset base, and it highlighted a large pipeline of roughly 1 GWh of solar and 1 GWh of battery storage.
• Positive Sentiment: The company reported meaningful project momentum, including spring mobilization on nine New York projects and the commercial operation of its SFF-06 battery storage project in Ontario, which adds a new recurring revenue stream under a long-term IESO contract.
• Positive Sentiment: PowerBank said it secured ITC safe harbor eligibility for 15 late-stage New York projects, with an estimated $65 million of ITC value and about $168 million of estimated construction value tied to the portfolio.
• Neutral Sentiment: Financial results improved in some areas but were mixed overall: 9-month gross profit expanded to 35% of revenue, operating expenses fell sharply year over year, and net loss narrowed to CAD 12.2 million from CAD 34.7 million, while quarterly revenue was impacted by a project repurchase adjustment.
• Positive Sentiment: Management emphasized stronger liquidity and balance sheet health, citing CAD 11.3 million in cash, positive working capital of CAD 10.7 million, and continued use of project-level non-recourse financing.

Presentation

[Megan Haley, Marketing Analyst and Head of Investor Relations at PowerBank]

Hello, everyone. Thank you for standing by. Good afternoon, and welcome to the PowerBank fiscal third quarter 2026 financial results and corporate update conference call. My name is Megan Haley. At this time, all participants are in a listen-only mode. After today's presentation, there will be a question and answer session which will feature previously received questions. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call and accessible on the investor relations portion of our website for access for 30 days. On Friday, the company issued a press release for its financial results for the fiscal third quarter ended March 31st, 2026.

[Megan Haley, Marketing Analyst and Head of Investor Relations at PowerBank]

A copy of that press release can be found on the company's website at powerbankcorp.com under the Investors tab. Joining me on today's earnings call from PowerBank's management team are Dr. Richard Lu, Chief Executive Officer, and Sam Sun, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address PowerBank's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

[Megan Haley, Marketing Analyst and Head of Investor Relations at PowerBank]

For more information about these risks, please refer to the risk factors described in PowerBank's annual information form, most recently filed annual report on Form 40-F, and subsequent periodic reports filed with the SEC, SEDAR+, and PowerBank's press release that accompanies this call, particularly the cautionary statements in it. The content of this call contains time-sensitive information that is accurate only as of today. Except as required by law, PowerBank disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to CEO, Dr. Richard Lu.

[Richard Lu, CEO at PowerBank]

Thank you, Megan. Good afternoon to everyone on the call. It's very happy to be here. Really appreciate everyone's attention to the company. PowerBank continues to execute on a clear strategy, scaling up development and the EPC platform, while steadily expanding our portfolio of long-lived cash-generating IPP assets. We are also actively adapting to a fast-evolving regulatory and market environment in North America, particularly in the U.S., where policy and the tariff dynamics are influencing project economics and the timing. Operationally, during the quarter and subsequent to quarter end, we made progress across several key areas. First is the construction momentum. In March, we announced the spring mobilization of nine projects in New York State, including Jordan One, Jordan Two, Elmira, Newark, and Camp Smith, among others.

[Richard Lu, CEO at PowerBank]

These projects represent a combined generation capacity of 42 MW of solar and 21 MW power of battery energy storage. Spring mobilization marks the initial stage of construction, including site preparation, we are pleased to have these activities underway. Second, Safe Harboring of ITC eligibility. Our procurement team have secured 15 late-stage distributed solar and energy storage project in New York State, executed in December 2025, has positioned those projects to remain eligible for U.S. federal investment tax credit under the One Big Beautiful Bill Act. Nine of those projects broken ground this spring, having met the IRS physical work test ahead of the July the 4th, 2026 deadline. The estimated ITC value associated with the Safe Harbor project is approximately $65 million, with an estimated portfolio construction value of approximately $168 million. Third, new partnerships and growth initiatives.

[Richard Lu, CEO at PowerBank]

In April, we announced a letter of intent with Nodiac Corporation to leverage PowerBank's portfolio of solar and BESS sites across North American for the deployment of distributed AI computer infrastructure, i.e. edge data centers. We also executed a lease agreement on the New York Cocklan Hill Road project. That's a 5 MW hybrid solar plus battery energy storage project in Upstate New York, eligible for incentives under the NYSERDA New York Sun Program and the Retail Energy Storage Incentive Program. Fourth, the Ontario BESS milestone. Our SFF-06 battery energy storage project in Ontario achieved the commercial operation on April 20, 2026.

[Richard Lu, CEO at PowerBank]

This is a very significant milestone and adds a new recurring IPP revenue stream to our portfolio and a long-term contract with the Ontario IESO. For the additional two projects, Nile 3 and OZ 1, the Ontario E-LT1 BESS contracts, the timeline remain dependent on permitting process, and we are actively managing those proceedings. Fifth, strategic partnerships and incentives. On March the 3rd, we announced an agreement with GrandBridge Corporation, a local distribution company in Ontario, to jointly develop and invest in solar energy and battery storage projects within the LDC's territory in Ontario, creating a collaborative framework for projects with nameplate capacity of 2 MW or greater. In addition, NYSERDA approved incentives totaling approximately $3.4 million across Elmira, Jordan 1, and Jordan 2 projects, further strengthen the economics of our New York pipeline.

[Richard Lu, CEO at PowerBank]

Stepping back, we continue to see a large addressable opportunity set. As disclosed, our total development pipeline is approximately 1 GWh of solar and 1 GWh of battery at this moment, including 58 MW under construction and 164 megawatts in advanced development across solar PV and battery storage, with the balance in early stage development. With those significant areas that I will turn it over to Sam, our CFO, to review our financial results in more detail, and we'll come back with some commentaries at the end. Thank you. Sam, if you could take it further.

[Sam Sun, CFO at PowerBank]

Sure. Thank you, Richard, good afternoon, everyone. Unless otherwise stated, all figures are in Canadian dollars and are presented in thousands in our filings, I will refer to them in millions. Third quarter fiscal 2026 revenue was -CAD 34,000 compared to CAD 4.7 million in the prior year quarter. The result reflects a revenue adjustment of approximately CAD 2.5 million in connection with the contractual repurchase of certain project entities, the Grantsville and Highway twenty-eight projects, following the exercise by Qcells of the conditional sale back right subsequent to the quarter end. Management determined this represent an adjusting subsequent event as of March 31st, 2026. Excluding this adjustment, EPC services revenue was CAD 949,000, IPP production revenue was CAD 938,000 in this quarter.

[Sam Sun, CFO at PowerBank]

For the nine months ending March 31st, 2026, total revenue was CAD 22 million, compared to CAD 23.9 million in the prior-year period. EPC services revenue was CAD 14.7 million. Development fee revenue was CAD 882,000. IPP production revenue was CAD 6 million, up from CAD 5.8 million in the prior year, reflecting improved production levels across our operating solar facilities. The other services contributed CAD 570,000, up from CAD 38,000 in the prior-year period. Turning to profitability, the nine-month gross profit was CAD 7.8 million or 35% of revenue, compared to CAD 6.2 million or 26% of the revenue in the prior-year period. This meaningful margin expansion reflects a more favorable revenue mix and improved operating discipline.

[Sam Sun, CFO at PowerBank]

Operating expenses for the nine months ending March 31st, 2026 were CAD 20.1 million, compared to CAD 30.7 million in the prior year period. The prior year period included CAD 7.8 million impairment charge and did not recur this year. The current year period included CAD 2.1 million of inventory write-offs related to the project cancellations, CAD 933,000 accounts receivable write-offs, and CAD 578,000 in the contract cancellation fees. Net loss for the nine months ending March 31st, 2026 was CAD 12.2 million or CAD 0.31 per basic share, compared to a net loss of CAD 34.7 million or CAD 1.10 per basic share.

[Sam Sun, CFO at PowerBank]

In the prior-year period, for the third quarter alone, net loss was CAD 5.5 million or CAD 0.12 per share, compared to a net loss of CAD 6.5 million or CAD 0.21 per share in the prior-year quarter. Adjusted EBITDA, a non-IFRS measure, was a loss of approximately CAD 3.8 million in this quarter, compared to a loss of approximately CAD 3.6 million in the prior-year quarter. For nine-month year-to-date, adjusted EBITDA was a loss of approximately CAD 1.3 million, compared to a loss of CAD 1.3 million in the prior-year period too. Please refer to our MD&A for the reconciliation and additional detail. Turning to liquidity and the balance sheet. As of March 31st, 2026, we have cash of CAD 11.3 million compared to CAD 7.6 billion at June 30, 2025.

[Sam Sun, CFO at PowerBank]

Total current assets were CAD 36.7 million, and the current liability were CAD 26 million, resulting in positive working capital of CAD 10.7 million, improved from a working capital deficit of CAD 2 million at fiscal year end June 30, 2025. Total assets were CAD 135 million at quarter end. Total liability were CAD 106 million, and total equity was CAD 29 million. Long-term debt, including current portion, remains primarily project level, non-recourse financing associated with our operating asset and projects under construction. For cash flow perspective, for nine months ending March 31st, 2026, cash used in operating activities were CAD 11.4 million.

[Sam Sun, CFO at PowerBank]

Cash used in investing activities were CAD 5.8 million. Cash provided by financing activity was CAD 21.1 million, resulting in a net increase in cash of approximately CAD 3.9 million during the period. We remain focused on disciplined capital allocation as we execute our near-term construction milestones, advance the late-stage development, and selectively monetize asset while pursuing growth in our IPP base. That concludes my remarks. I will turn the call back to Richard. Thank you.

[Richard Lu, CEO at PowerBank]

Thank you, Sam. Before we opening up the call to question and answers, I'd like to make some remarks on the PowerBank's current condition and the market. I want to illustrate three takeaways in relation to PowerBank. The first one is that PowerBank demonstrated a very strong resilience in such a volatile working environment against strong headwinds, and we continue to operate. While many companies are in financial difficulties, are in the state of liquidating their assets, and we remained relatively flat and did not deteriorate, even marginally improved compared to the same time 12 months ago, same period. The second takeaway when you're looking at a PowerBank, I would say that we further demonstrated that PowerBank has a very solid bench strength.

[Richard Lu, CEO at PowerBank]

It is the team that in the last 14 years have consistently delivered and continue to execute with our experienced professionals in both Canada and the U.S. If you look at the numbers, revenue same period time was CAD 22 million compared to CAD 24 million, marginally flat, but the gross profit was CAD 7.8 million compared to CAD 6.2 million. We were able to improve our profitability. In the meantime, if you look at the operating expense, the same period time was CAD 20 million, versus the same time last year, it was CAD 30 million. We'll also be able to, at the difficult times, significantly reduce our operating expense. The net loss was CAD 12 million compared to a net loss of CAD 34 million last same period time, and due to a series of management initiatives.

[Richard Lu, CEO at PowerBank]

Also our adjusted EBITDA, the loss is CAD 3.8 million compared to the same year of CAD 3.6 million. Marginally remain the same. Right? Our liquidity certainly improved. You know, we have cash of CAD 11.3 million. In the same time last year was CAD 7.6 million. Right? From a cash flow perspective, that we were able to have a net increase of cash about CAD 4 million. Right? That demonstrate the company's very strong bench strength to prepare this company continue to operate in a difficult headwind environment, ready for the next opportunities that coming in the coming years. The third takeaway is the great potentials that the company is building, that our traditional business in building solar farms and battery storage projects in both Canada and the U.S.A., remain strong.

[Richard Lu, CEO at PowerBank]

The new demand of electricity is from the data center market, specifically for us, giving our network of assets, giving our experience with property owners, with local permitting authorities, with the utility interconnection distribution systems, that we are well-positioned to do well in the edge data center area, where speed to power is the name of the game today.

[Richard Lu, CEO at PowerBank]

As you know, we have about 100 operating sites that we have dealt with more than 50 municipalities, permitting authorities. We are in material discussions that how do we leverage our experience, our network, and our assets to further advance that the business in the power supply to the data centers in the coming years. Those are the three takeaways I would like to share with everyone. Now I'd like to turn the call over to the operator so that we can begin the questions and answer session. Megan.

[Megan Haley, Marketing Analyst and Head of Investor Relations at PowerBank]

Thank you, Richard. We'll just take a moment to pause and see if there are any questions from the audience. Okay. It seems there are no questions for management at this time. We are always available for any questions over email or phone, so please do feel free to reach out to us at any time. I'll pass it back over to Dr. Lu.

[Richard Lu, CEO at PowerBank]

Thank you so much for everyone participating. One thing that from management, the board, that can assure our shareholders and our investors that we are very resilient, and we have a very strong bench strength, and we continue to execute our existing pipelines, meanwhile developing potential opportunities. We look forward to seeing you the next time at our year-end, earnings call. Thank you

Participants

Executives

• Megan Haley, Marketing Analyst and Head of Investor Relations
• Richard Lu, CEO
• Sam Sun, CFO