EJQ6 - Fall 2025 - Journal - Page 33
Economic Downturn Risks: Prolonged and reciprocal tari昀昀s could
lead to broader economic slowdowns, impacting business and consumer
sentiment, which in turn could a昀昀ect investment in energy infrastructure.
Tantalus acknowledges the potential impact of tari昀昀s:
Direct Cost Increases: Tantalus has already indicated that potential
tari昀昀 impacts could a昀昀ect their 2025 Adjusted EBITDA by $700,000 to
$800,000. This suggests they anticipate higher costs for components or
raw materials.
Potential for Domestic Sourcing Alternatives: The discussion around
tari昀昀s also highlights the push for domestic alternatives and di昀昀erent
transformer designs that bypass tari昀昀-vulnerable components. As a
North American company, Tantalus might be able to leverage this shift if
they can integrate with or bene昀椀t from these domestic solutions.
While tari昀昀s present a headwind for the clean energy market generally,
Tantalus, as an enabler of grid modernization, might experience some
direct cost impacts. However, their focus on data analytics and optimizing
existing infrastructure could become even more valuable to utilities
facing higher equipment costs and supply chain constraints.
Transformer Sourcing Challenges: Tantalus notes that tari昀昀s,
particularly on components like grain-oriented electrical steel (GOES)
used in transformers, will make it more challenging and expensive for
utilities to source, purchase, and install new transformers.
With these data points in mind, we are adding Tantalus to the Stocks to
Watch index.
Increased Value of Analytics Solutions: Interestingly, Tantalus
sees an increased value for tools that help utilities optimize existing
infrastructure and prioritize investments, which becomes even more
critical when new equipment is scarce and expensive.
James Sbrolla is a veteran of the 昀椀nancial and environmental industries.
Connie Vitello is editor of Environment Journal. To pitch an idea for an
upcoming Market Watch column, or to suggest a stock, please contact
connie@actualmedia.ca.
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