Thursday, September 18, 2025

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Eguana Posts $21 Million Order Book In Q3 2020

This morning Eguana Technologies (TSXV: EGT) released their third quarter earnings for the period ended June 30, 2020. The company, which offers a home battery system similar to Tesla and SonnenBatterie, is beginning to show signs of scaling with a 181% increase in revenue versus last year’s third quarter and a record $21 million order book. More importantly, the company has experienced a major breakthrough in supply chain procurement that will lead to even faster revenue growth

Trailing Revenue Keep Scaling

Year over year revenue has almost tripled since Q3 of 2019 and is the fourth straight quarter of trailing twelve month revenue ramp. We believe this is an important chart to keep an eye on moving forward and wouldn’t be surprised to see it steepen.

A Record Order Book of $21M

A record order book of $21 million, inclusive of purchase orders and supply agreements, is potentially enough to get Eguana to profitability and would make it one of the highest growth ESG stocks in Canada. The company expects to deliver this order book within 12-18 months.

Eguana’s focus markets, California, Hawaii, Germany and Australia, are all seeing substantial market growth and higher attachment rates of storage being added.

Certifications In Key Markets; A Moat

We believe that Eguana’s engineers are able to receive certifications for grid hookup at a speed that creates a moat for investors, not unlike an early cannabis license. For example, in the last quarter Eguana completed California grid compliance and was awarded Rule 21 UL Certification for the Evolve. They are one of three companies to complete testing and receive certification. Of course if you missed it, California has seen rolling blackouts all summer due to the heat; making the Evolve’s certification an important clearance within the state.

Supply Chain is the Key to Scale

Getting terms from a more diverse group of suppliers removes the final obstacle from scaling to much higher revenue and profitability. The $5 million investment from Itochu, along with their supply chain support, also helped to reduce their working capital requirements by over 50%; reducing the cash flow cycle from approximately 120 to 45 days. As operations continue to improve we will see more balance sheet improvements and working capital leverage.

Overall Thoughts On the Quarter

Eguana is one of our favourite stories. We believe it has a chance of being a Canadian darling stock within then next 1-2 years and will appeal to high growth ESG investors especially.

This quarter was important because the company continues to show revenue growth while operating expenses remain flat. Assuming the company is able to reach at least 20% gross margins, in a vacuum, they would need around $6M in quarterly revenue to turn profitable. At US$10k per system, that would equate to around 500 systems per quarter which could be covered by North American markets alone. Given the dealer network, certifications, and new supply chain terms, Eguana’s time to scale is now.


FULL DISCLOSURE: Eguana Technologies is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Eguana Technologies on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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