Dragonfly Energy Holdings Corp. has entered a multi‑year distribution partnership with National Railway Supply LLC, a leading rail‑industry supplier of signaling and communications equipment. Under the agreement, NRS will distribute Dragonfly’s Battle Born lithium batteries to its nationwide customer base, marking the company’s first formal entry into rail applications.
The partnership coincides with the American Railway Engineering and Maintenance‑of‑Way Association’s approval of its first lithium battery manual part, “Recommended Instructions for Lithium Batteries in Railroad Applications (09.06.02).” Dragonfly played a key role in the multi‑year development of the standard, which now provides engineering guidance for deploying lithium batteries in railroad signaling and communication systems. The standard will be showcased at the AREMA Communication Signals and Information Technology Symposium in March 2026, where Dragonfly CEO Dr. Denis Phares will present the technology’s safety and performance advantages.
Dragonfly’s move into the rail sector expands its OEM footprint beyond marine and RV markets and taps into a growing electrification market projected to grow at an 8% compound annual growth rate over the next decade. The company’s Battle Born batteries offer a low‑maintenance, high‑safety solution that aligns with rail operators’ push for reliable, long‑life power supplies. The distribution channel with NRS provides immediate access to a national network of rail customers, accelerating market penetration and revenue generation.
Financially, Dragonfly reported Q3 2025 net sales of $1.2 billion and a gross margin of 35%, a modest improvement over the prior quarter. The company continues to post net losses—$200 million in Q3 2025—due to ongoing capital expenditures and debt servicing, but its margin expansion and debt‑restructuring efforts signal a path toward profitability. The rail partnership is expected to add a new, higher‑margin revenue stream that could help offset the company’s current losses and support its long‑term financial goals.
The rail battery market is competitive, with established players such as Eaton, Siemens, and ABB. Dragonfly’s U.S. manufacturing base and patented dry‑electrode process give it a differentiation advantage in safety and supply chain resilience. The AREMA standard further lowers the barrier to entry for rail operators, positioning Dragonfly as a preferred supplier in a market that is increasingly focused on safety and reliability.
CEO Dr. Denis Phares emphasized that the partnership “positions us to capture a growing rail electrification market and demonstrates the versatility of our Battle Born batteries.” He reiterated the company’s commitment to U.S. manufacturing, product development for industrial markets, and a clear path to profitability, underscoring the strategic importance of the rail expansion for Dragonfly’s long‑term growth.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.