Capstone Green Energy (CGRN) 16th Annual LD Micro Invitational Conference summary

Strategic Vision and Industry Context

• Emphasizes a major shift toward distributed generation, echoing historical debates between DC and AC power, with distributed energy now gaining prominence.

• Highlights readiness for the energy transition, leveraging proven, efficient, and low-emission microturbine technology.

• Notes the massive and growing distributed energy market, projected to reach $1.4 trillion by 2033, driven by shrinking generation supply, rising demand from data centers, clean tech, automation, and increased weather-related outages.

• Identifies a significant gap between energy supply and demand, with renewables unable to fully bridge the kilowatt-hour deficit, creating opportunities for distributed solutions.

• Grid reliability is under pressure from retiring baseload plants, extreme weather, and surging power demand from AI and clean tech manufacturing.

Operational and Financial Transformation

• Achieved a rapid financial turnaround post-restructuring by focusing on financial health, sustainable excellence, and revitalized culture.

• Implemented OKR processes, DFMA programs, and rigorous root cause analysis to drive cost optimization, transparency, and margin expansion.

• Attracts and retains top talent aligned with core values such as courage, attention to detail, integration, mutual trust, and high performance.

• Q3 FY26 revenue reached $26.8M, up 33% year-over-year, with seven consecutive quarters of positive adjusted EBITDA.

• Gross margin improved to 39% in Q3 FY26 from 25% in Q3 FY25, driven by improved pricing, product mix, and cost reductions.

Product Capabilities and Market Applications

• Offers scalable microturbine solutions for diverse applications, including commercial, industrial, and mission-critical sectors like hospitals and data centers.

• Technology features high uptime, low maintenance, plug-and-play installation, and the ability to run on multiple fuel types, including renewables and hydrogen blends.

• Provides redundancy and high power density, supporting 99.999% reliability for critical infrastructure.

• Delivers competitive total cost of ownership, typically achieving payback within three to four years, with lower maintenance and superior thermal recovery compared to reciprocating engines.

• Product portfolio ranges from 65 kW to 1,250 kW, serving diverse applications from commercial sites to mission-critical power.