Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you comment on the linearity of the LADWP contract and any potential startup issues? A: Michael Bieber, President and CEO, explained that there are no major startup concerns as it is a recompete of a contract they have operated for many years. However, activity stopped in December, so they will need to ramp it back up in the spring. They expect the program to be linear, with roughly $65 million a year, and it will include more complex measures than before.
Q: Can you explain the funding and administration of the Regional Energy Networks (RENs) contracts? A: Michael Bieber stated that the funding comes from a surcharge on electricity bills, similar to other energy efficiency programs in California. The RENs are made up of public entities and sometimes include investor-owned utilities (IOUs). These contracts are simpler and involve a wider range of services, including regulatory support and technical consulting.
Q: How do you see the change in administration impacting your business activity? A: Michael Bieber noted that the change in administration has not significantly impacted their business. Their work is primarily driven by state and local governments, and federal funding cuts have had minimal impact. They have also implemented contract language to pass on supply chain escalations, mitigating potential tariff impacts.
Q: Are there any government programs gaining more frequency or implementation recently? A: Michael Bieber highlighted increased demand for programs in California due to higher electricity consumption and similar trends in New York. Additionally, there is a rise in upfront study work to help customers navigate new load growth and data center demands.
Q: Has artificial intelligence been integrated into your software, and what are the opportunities for expansion into Europe? A: Michael Bieber mentioned they are working on integrating AI into a new version of LoadSEER, expected in the first half of the year. This version will be more user-friendly for smaller utilities. Currently, they have no presence in Europe and are focused on opportunities within the United States.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.