Flux Power nets $64 million in energy storage solution orders
By Becky Schultz08 September 2022
Flux Power Holdings Inc., a developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, has received a record level of combined purchase orders from new and existing customers in its fiscal year 2022, ending June 30. The combined orders exceeded $64 million and were over 82% above the order volume achieved in fiscal year 2021.
Based on company estimates, purchase orders from new customers represented 26% of combined purchase orders, a number that bodes well for the company’s near-term objectives.
“We believe new purchase orders in our fiscal year 2022 are a strong indicator of our potential to reach $70 million in annual revenue run rate in the near term,” said Ron Dutt, Flux Power chief executive officer. “Our strategic initiatives to accelerate backlog conversion to shipments and increase inventory turns are also driving revenue results and gross margins that will lead toward profitability.”
Additional order momentum is being driven by the accelerating renewable energy transition. “The recently passed Inflation Reduction Act includes tax and other incentives that are aimed at significantly accelerating the adoption of zero-emission technologies for commercial vehicles. We believe our products will benefit as electrification extends to material handling and other equipment supported by Flux as customers transition their entire fleets to clean energy solutions,” Dutt stated.
With the combination of repeat customer orders and continued acquisition of new customer business, the company believes it can achieve revenue growth of $100 million and beyond within the next several years. This assertion is based in part on strong growth in both the material handling equipment sector and the airport ground support equipment sector, as well as additional interest from the emerging robotic material handling equipment vertical.
“With record new order growth, an expanding customer base and accelerating clean energy demand, we believe our growth trajectory in fiscal year 2022 is on track for another record revenue year,” Dutt added.