Dragonfly Energy experienced highs and lows in the battery supplier’s 2024 second quarter.
The company’s net sales decreased from $19.3 million in the 2023 second quarter to $13.2 million this quarter. Dragonfly attributed the decrease to lower battery and accessory sales as average sales prices rose.
One of Dragonfly’s largest RV OEM customers changed its Dragonfly offerings from a standard to an optional offering. The change affected the supplier’s OEM revenue. The revenue totaled $6.7 million in the second quarter compared with $9.3 million in the same period in 2023.
The company said a weather event greatly affected a customer’s production facility during the quarter, which also contributed to lower RV market sales.
Lower unit volume sales shifted the quarter’s gross profit to $3.2 million compared with $3.9 million in the 2023 second quarter.
Dragonfly said RV’s “price-sensitive market continues to challenge sales of higher-priced items, particularly in the less expensive towable segment. However, this presents opportunities for aftermarket sales.”
Despite economic challenges, Dragonfly celebrated new milestones, including a Fraserway RV partnership a Stryten Energy collaboration and its new Wakespeed products.
Dragonfly CEO Denis Phares said, “We believe we are laying a solid foundation for future growth of Dragonfly Energy and are excited about the opportunities ahead.”
The company anticipates the RV market will begin to recover. In the third quarter, Dragonfly expects net sales to range between $13.5 million and $15 million and gross margin between 24% and 26%.
