Xos, Inc. (NASDAQ:XOS) Q3 2023 Earnings Call Transcript

While we can’t provide specific color or haven’t guided to that market yet, I think you will continue to see more growth in that segment, as well as other on-highway segments from the powertrain business that will show really fruitfully for us in 2024 and add strong gross margin unit sales, as well as more infrastructure sales. One anecdotal point that I’ll share is as we’ve launched the hub product into the market, we’ve had a whole array of new customers, both in the ports and airports, but also in other industrial sectors that need charging infrastructure that’s rapidly deployable, including smaller, lighter-duty class one and class two vehicle fleets that are looking for rapidly deployable charging infrastructure. So we anticipate that products like our hub will continue to see growth in other ancillary markets that are facing similar regulations to the ones our customer fleets are facing.

Donovan Schafer: Okay, that’s very interesting. And then just as a clarifying question, because Loomis [Ph] has been a big and kind of repeat customer, consistent customer for you guys, when you get orders, or when we’re talking about Loomis armored trucks, and when you’re talking about powered by Xos, do the armored trucks fall under, do you treat that as a powered by Xos, or is it more of like the 2003 Stock Van type chassis with the armored car body, and so you treat it, just thinking about when you give color and commentary about this is doing well, we expect growth here, we expect growth there. When you’re talking about, what bucket do you put the armored trucks into?

Dakota Semler: Yes, the armored vehicles are still on the 2023 step van chassis, so it’s still our conventional vehicle business. When we think about powered by Xos, we’re not building the overall chassis. We provide powertrain components, things like battery systems, motors, high voltage distribution, all the software, and other auxiliary components, but generally not the driveline, the chassis, the vehicle frame of those vehicles.

Donovan Schafer: Okay, that’s helpful. Okay, great, thanks guys. I’ll take the rest of my questions offline.

Dakota Semler: Thanks, Donovan.

Operator: This concludes the conference call and the Q&A. Ladies and gentlemen, thank you for your participation. This concludes today’s teleconference. You may disconnect your lines and have a wonderful day.