Release Date: May 15, 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) has successfully booked purchase orders for 27 W56 step vans, indicating growing demand for their products.
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The company has established a new partnership with Gateway Fleets, which is expected to grow into a long-term relationship.
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Workhorse Group Inc (NASDAQ:WKHS) has expanded its dealer and service networks, adding new partners in key metro markets to ensure reliable service.
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The company has received CMVFS certification for importing and selling W56 and W-750 vehicles in Canada, broadening its international footprint.
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Workhorse Group Inc (NASDAQ:WKHS) has reduced operating expenses by $9.3 million year-over-year, demonstrating strong financial discipline.
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Sales for the first quarter of 2025 decreased to $600,000 from $1.3 million in the previous year, primarily due to decreased truck sales.
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The company is facing challenges with fleet adoption delays, shifting government incentives, and gaps in charging infrastructure.
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Interest expense increased significantly to $5.3 million in Q1 2025, driven by higher outstanding convertible note balances.
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Workhorse Group Inc (NASDAQ:WKHS) had only $2.9 million in cash and cash equivalents as of March 31, 2025, indicating limited liquidity.
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The company did not provide specific annual revenue guidance due to uncertainty in the EV landscape, which may concern investors.
Q: Can you provide an update on the current demand and customer feedback for the W56 step van? A: Richard Dauch, CEO, stated that customer demand in the commercial EV market is shifting, but Workhorse remains focused on designing and building dependable electric trucks. The W56 is earning a strong reputation among early adopters as the best commercial EV step van on the market, with positive feedback from customers who are actively using the trucks.
Q: What are the recent developments in Workhorse’s partnerships and dealer network? A: Richard Dauch, CEO, highlighted that Workhorse has expanded its dealer and service networks, adding new partners in key metro markets. They have also secured a contract with the California Department of General Services, streamlining procurement for state agencies. Additionally, Workhorse received certification for importing and selling vehicles in Canada, broadening their international footprint.
Q: How is Workhorse managing its financial position and cost structure? A: Bob Ginnan, CFO, reported that Workhorse reduced operating expenses by $9.3 million year-over-year. They are focused on cash preservation and capital discipline, reducing monthly operating cash to below $3 million. The company is not providing specific annual revenue guidance due to uncertainty in the EV landscape but is seeing increased sales momentum.
Q: What are the strategic priorities for Workhorse moving forward? A: Richard Dauch, CEO, emphasized that Workhorse’s focus remains on disciplined execution and real-world impact. This includes building and shipping key customer orders, securing purchase orders, supporting their dealer network, and ramping production in line with demand. They are also finalizing testing of a new W56 variant and assessing new battery suppliers.
Q: How is Workhorse differentiating itself from competitors in the commercial EV market? A: Richard Dauch, CEO, stated that Workhorse is the only North American OEM producing complete electric step vans in-house, which gives them greater control over quality and lead times. They are building a full-scale product portfolio for last-mile delivery and have a significant competitive advantage with shorter lead times from purchase order to delivery compared to competitors.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.