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Revenue: $6.6 million for the full year 2024, down from $13.1 million in 2023.
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Cost of Sales: $28.2 million for 2024, a decrease from $38.4 million in 2023.
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SG&A Expenses: $42.5 million for 2024, down from $55.6 million in 2023.
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R&D Expenses: $9.1 million for 2024, a decrease from $24.5 million in 2023.
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Net Loss: $101.8 million for 2024, compared to a net loss of $123.9 million in 2023.
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Interest Expense: $22.2 million for 2024, up from $8.7 million in 2023.
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Cash and Cash Equivalents: $4.6 million as of December 31, 2024.
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Inventory: $41.8 million as of December 31, 2024.
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Working Capital: $8.2 million as of December 31, 2024.
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Capital Expenditures: $4.1 million in 2024, with similar spending expected in 2025.
Release Date: March 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Workhorse Group Inc (NASDAQ:WKHS) launched the new W56 208-inch wheel-based truck, receiving positive customer feedback and a purchase order for 13 units.
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The company received approval for the sale of W750 and W56 step van models in Canada, expanding its market reach.
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Workhorse Group Inc (NASDAQ:WKHS) achieved significant cost reductions, including headcount and spending cuts, to extend its financial runway.
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The W56 model demonstrated strong performance in real-world tests, achieving high fuel efficiency and reliability.
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Workhorse Group Inc (NASDAQ:WKHS) established a national dealer network and service infrastructure, supporting long-term business growth.
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Sales for 2024 decreased to $6.6 million from $13.1 million in 2023, primarily due to lower W4 CC truck sales.
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The company reported a net loss of $101.8 million for 2024, although this was an improvement from the previous year’s loss.
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Interest expenses increased significantly due to losses on convertible notes and higher interest rates.
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Workhorse Group Inc (NASDAQ:WKHS) executed a reverse stock split to regain compliance with NASDAQ listing requirements.
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The commercial EV market faced regulatory delays and uncertainty, impacting the pace of EV adoption and sales.
Q: How has the regulatory environment affected Workhorse’s operations and market strategy? A: Richard Dauch, CEO, explained that recent regulatory pauses, such as California withdrawing its waiver request to the EPA and a temporary freeze on federal fleet procurement, have created uncertainty in the market. Despite these challenges, Workhorse remains focused on designing, building, and selling quality trucks, particularly the W56 family, which has proven its value in last-mile delivery operations.
Q: What steps has Workhorse taken to extend its financial runway? A: CFO Bob Ginnan highlighted significant cost reductions, including lowering monthly operating cash to below $3 million. The company has also reduced headcount and other spending activities, and it continues to explore effective financing options. Workhorse has minimal debt and valuable assets, including a 420,000-square-foot plant and over $40 million in inventory.
Q: Can you provide an update on Workhorse’s product development and market presence? A: CEO Richard Dauch noted that Workhorse has established itself as a leader in the medium-duty EV space, with in-house manufacturing capabilities for complete step vans. The company has achieved full market coverage in the Class 4 to 6 commercial step van segment and has met certification requirements. Workhorse has also secured fleet orders for its W56 model and is working on a reduced range version for Q3 production.
Q: How has Workhorse’s relationship with FedEx impacted its business? A: Richard Dauch shared that Workhorse has a 3-year master framework agreement with FedEx and delivered its first 15 trucks last year. The W56 model has received positive feedback from FedEx contractors, and Workhorse expects increased demand from FedEx Ground contractors across the U.S.
Q: What are Workhorse’s priorities moving forward? A: CEO Richard Dauch emphasized the company’s focus on extending its financial runway, advancing its product roadmap, and ramping up production. Workhorse aims to secure more orders for its commercial electric vehicles and is targeting high-volume orders with national fleets, particularly in states with effective incentive programs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.