Dragonfly Energy (NASDAQ:DFLI) reported first-quarter results that exceeded its guidance for both net sales and adjusted EBITDA, while management pointed to continued pressure in the recreational vehicle market and rising momentum in heavy-duty trucking.
Chairman, President and Chief Executive Officer Dr. Denis Phares said the quarter reflected “a softer RV environment as expected,” with industry shipments and recent retail sales data down year over year. However, he said the company continues to see “healthy adoption trends” within OEM partnerships, including expanded integration across additional model lineups and increased energy storage content within existing platforms.
Trucking Business Gains Momentum
Management highlighted the heavy-duty trucking market as a key growth area, citing a purchase order from Stevens Transport after the end of the quarter. Phares said Stevens, one of the largest temperature-controlled freight carriers in North America, placed Dragonfly Energy’s largest trucking purchase order to date, valued at more than $3 million and covering nearly 500 trucks.
Deliveries are expected to begin in the second quarter and continue ramping through 2026. Phares said Stevens began deploying Dragonfly Energy’s All-Electric APU across part of its fleet in 2024 for validation testing, and that the pilot program helped support Stevens’ decision to begin transitioning its 2,500-truck fleet to Dragonfly’s platform.
Chief Commercial Officer Wade Seaburg said the Stevens order spans the company’s full heavy-duty trucking product portfolio, including the DualFlow Power Pack, the All-Electric APU and inverter. He said the deployment is expected to cover four different OEM chassis, including trucks equipped with Dragonfly’s 24-volt DualFlow Power Pack.
Seaburg said the products address a truck’s needs during rest periods. The DualFlow supports starter battery health and reduces idle-related strain, while the All-Electric APU powers in-cab hotel loads, HVAC, climate control and onboard appliances without running the engine. The inverter provides AC power for onboard electronics and appliances.
“Our ability to deliver fully integrated solutions differentiates our platform, reinforces our position as a complete energy solutions provider in this market, and increases our revenue opportunity per truck,” Seaburg said.
Fuel Prices and Fleet Replacement Cycle Support ROI Case
Seaburg said rising diesel prices and an accelerating fleet replacement cycle are improving the return-on-investment case for Dragonfly Energy’s trucking products. Based on the company’s internal fleet modeling, he said the DualFlow Power Pack previously delivered a payback period of just over one year, while the payback period is now under 10 months in the current diesel price environment. He said similar improvements are being seen across the All-Electric APU.
He also pointed to the 2027 engine transition as a factor supporting demand. Seaburg said many carriers are pre-buying 2026 trucks ahead of expected higher prices for new NOx-compliant engines. He said next-generation engines are showing higher idle rates because they need to operate at elevated temperatures to process emissions effectively, increasing fuel consumption and engine wear during rest periods.
During the question-and-answer portion of the call, Seaburg said the company’s trucking pipeline is “really strong.” He said Dragonfly has spent the past three years iterating product solutions, working with OEMs and conducting fleet trials. He added that as fleets begin ordering trucks again, they are incorporating technologies they have tested during the downturn.
Seaburg said roughly 250,000 trucks are built annually, and about half have sleeper cabs that need some form of driver comfort feature.
RV Market Remains Soft, but OEM Discussions Continue
Dragonfly Energy’s RV business remained under pressure in the first quarter. Seaburg said recent industry data showed March new RV retail sales down more than 20% year over year, while wholesale shipments also declined.
Despite that backdrop, he said Dragonfly Energy remains well positioned within RV OEM partnerships. The company is seeing growth from broader inclusion across additional model lineups and increased battery capacity within selected existing platforms as OEMs seek to provide more capable power systems.
Seaburg said the company is in active discussions with existing OEM partners about expanding energy storage solutions into additional model lineups and increasing battery capacity within current platforms.
Cost Cuts Expected to Improve Adjusted EBITDA
Phares said Dragonfly Energy implemented several actions in March to align its cost structure with its growth priorities. These included reductions in marketing spending, primarily in direct-to-consumer channels, targeted workforce reductions and compensation adjustments for leadership.
Members of the executive team and board agreed to reduce cash compensation by approximately 20%, with that amount converted to equity-based incentives. Phares said the goal was to align leadership with long-term shareholder value.
The company has realized approximately $4.5 million in annualized expense reductions on an adjusted basis since implementing the actions. It also expects an additional $4 million in annualized expense reductions from the consolidation of rental space, which is expected to be finalized in the second quarter. Altogether, management expects the actions to drive about $9 million in annualized adjusted EBITDA improvement.
Second-Quarter Guidance and Technology Updates
For the second quarter, Dragonfly Energy expects net sales of approximately $13.2 million, representing sequential growth of 36%, as it begins to realize trucking revenue. The company expects adjusted EBITDA to be a loss of approximately $1.9 million, a sequential improvement of $2.7 million.
Phares said Dragonfly continues to target positive adjusted EBITDA at an annualized net sales run rate of approximately $70 million.
On the technology side, Phares said the company received its first patent allowance from the Japan Patent Office for its powderized solid-state electrolyte and electroactive materials application. He said Dragonfly’s global intellectual property portfolio includes nearly 90 issued or pending patents across battery technology, system integration capabilities and proprietary software.
The company also received a second round of Nevada Tech Hub funding, a $527,000 non-dilutive award to support expansion of in-house cylindrical cell prototyping and testing capabilities. The project is expected to run through the second quarter of 2027.
In response to a question from Chip Moore of ROTH, Phares said Dragonfly’s top priority remains revenue, cost structure and returning to profitability, while it continues limited spending on dry electrode and solid-state development. He said the company is working on partnerships and supply chain development in the background and hopes to announce something meaningful in the future.
Phares said Dragonfly Energy has improved its capital structure, reduced its cost base and is beginning to see benefits from its investment in trucking through material commercial orders.
About Dragonfly Energy (NASDAQ:DFLI)
Dragonfly Energy Corp. is a designer and manufacturer of lithium iron phosphate (LiFePO4) battery systems geared toward mobile, residential and commercial energy storage applications. The company develops modular battery packs and integrated power management solutions that focus on safety, long cycle life and compact form factors. Dragonfly’s core product lineup includes 12-volt and 24-volt battery modules, as well as multi-unit rack systems tailored for backup power, solar energy storage and off-grid installations.
Serving a broad range of end markets, Dragonfly Energy’s batteries are commonly deployed in recreational vehicles, marine vessels, overland expedition setups and residential solar arrays.
