Twin Vee results (Q1 2025) see stock surge as improvements noted

Twin Vee PowerCats has reported a 92 per cent increase in its first quarter 2025 revenues (from the previous quarter).

Highlights included revenues of $3.6 million (a 91.7 per cent sequential increase from the fourth quarter of 2024, a gross margin of 14.9 per cent (an improvement of 961 basis points from the first quarter of 2024) and adjusted net loss averaging $333,000 per month during the quarter, an improvement of 17 per cent over the previously guided adjusted net loss of $400,000 per month.

Stock surge for Twin Vee

Although the company announced a decrease in the average sale price of its units, its stock has surged in 24 hours, by 169.76 per cent, according to investment specialists. The significant increase in revenue for Q1 2025, alongside a notable improvement in gross margins, meant the market reacted positively to the company’s operational efficiencies and strategic initiatives, despite ongoing challenges in the recreational sector.

“2024 was rough,” says Joseph Visconti, CEO and President of Twin Vee PowerCats Co. “But in 2025, our dealer network is rebuilding.

“Despite industry challenges and market volatility throughout the past year, we continue to make this disciplined decision to strengthen our foundation and reposition our company for sustainable growth.”

He describes the recent and current climate as whack-a-mole, citing challenges such as costs of goods, covid supply chain challenges, labor, and now potential tariff increases.

“But we are laser focused on the bottom line.

“2024 was a tough year for the recreational sector, especially for OEMs. But 2024 gave us the opportunity to reset, refocus, and rebuild. And that’s exactly what we’ve done.”

Twin Vee results highlight field inventory decrease

Among other achievements, including six new dealer locations, Visconti says it’s ‘super important’ to note that the company’s field inventory – the inventory of unsold boats that’s been delivered to dealers – has significantly improved . . . . meaning it’s decreased. That’s a reflection of increased efforts with production planning and sales strategies.

Visconti explains: “Last year, we had approximately 180 boats in the field and 180 boats in dealer inventory. That number is now reduced to under 60 boats in our entire dealer network. This is a super important metric that highlights the success of our strategy through 2024 where we’ve pulled in the range and we reduced supply to dealers and we’ve pushed hard on sales and marketing to increase the demand. This was not easy due to the downsizing which took, unfortunately, a human and financial toll on employees and the company.

“If you take the total reduction of the field inventory from 180 boats to the current 60 and add in the 120 boats that we built and delivered last year, we now know that even in a tough market, the demand for Twin Vee boats is approximately 220 annual units.”

“It’s an ideal entry point into the Twin Vee experience and it’s already generating some strong interest.”

New website to transform customer interactions

Visconti is also excited about the upcoming launch of a new interactive website that the company’s been working on for over a year. “This isn’t just a website facelift,” he says, claiming instead that it’s a total transformation of customer first interaction.

“Customers will be able to do a build and price on their own Twin Vee online, with real time updates to interior upholstery, gelcoat colours, engine options and more. The platform includes a 3D boat configurator so you can spin and interact with the boat or whatever model you’re looking at. The platform also offers a virtual reality option where you can open a link and you’ll be inside the boat. You’re able to walk around and kind of look at all the fine details of our products.”

Challenges with Trump’s tariffs

But, with all the positivity, Trump tariffs still cast a long – if exceedingly shaky – shadow over supply chain implications.

“The US has recently enacted or expanded tariffs on various categories of goods, including materials and components relevant to the marine manufacturing industry,” says CFO, Mike Dickerson. “While the impact of Twin Vee to date has been manageable, we are actively monitoring this rapidly evolving policy landscape.

“It’s worth noting that we continue to benefit from strong relationships with key US suppliers for compounds, components, and services. In fact, Twin Vee has always led with an America First posture and supported the small and medium sized businesses in our local community.

“While tariffs could present incremental headwinds in the quarters ahead, particularly in areas such as motors and electronics, we believe our proactive supply chain strategy and commitment to cost control will enable us to navigate any near term volatility. We anticipate continued sequential revenue growth in the second quarter of 2025 as the market slowly recovers and our dealer base expands. We remain focused on operational efficiency, margin expansion and developing high impact digital platforms to complement our core business.”

Visconti concludes: “Our inventory has rightsized. Our product line continues to expand. Our factory is completed and evolving, and our digital strategy is entering a new phase. Through it all, we remain committed to operational discipline, American craftsmanship and delivering real value to our customers and most importantly to our shareholders . . .