Workhorse Group Inc. Q3 FY2025 earnings call

• Made progress executing product roadmap, sold 15 trucks (Class 4 and 5/6 versions).
• W56 step van performing well in the field, with 97%+ uptime availability in service with FedEx.
• Maintained financial discipline, reduced operating expenses by $1.2 million year-over-year.
• Announced proposed transaction with Motiv Electric Trucks, completed sale-leaseback of Union City facility and secured convertible note financing.
• Showcased W56 step van at FedEx Forward Service Provider Summit, expanded product portfolio with Utilimaster Aeromaster body on W56 chassis.

For the three months ended September 30, 2025, net sales were $2.4 million, down from $2.5 million in the same period of 2024. Cost of sales was $10.1 million in 2025 compared to $6.6 million in 2024. Selling, general and administrative expenses were $7.8 million in 2025 vs. $7.7 million in 2024. Research and development expenses were $1.1 million in 2025 vs. $2.3 million in 2024. Net loss was $7.8 million in 2025 compared to $25.1 million in 2024. As of September 30, 2025, the company had $38.2 million in cash and cash equivalents as well as restricted cash compared to $4.6 million in the same period last year.

• Focused on executing product roadmap and completing transaction with Motiv.
• Confident in ability to deliver value to shareholders.
• Combined company expected to access up to $20 million in additional debt financing post-close to fund strategic execution.
• Planning for W56 140-kilowatt production launch in 2026 with lower acquisition price and expected cost reductions in bill of material and labor costs.

• Forward-looking statements subject to various provisions, risks, and uncertainties.
• Transaction with Motiv subject to shareholder approval and other customary closing conditions, including debt financing commitment.

Q: Kind of on the W56 step van and broader market outlook, how are state-level incentives across the U.S. panning out and opportunities beyond California?

A: Workhorse worked with CAR group and others to make HVIP vouchers competitive. Saw immediate pickup in California orders, good movement in Washington and New York. Has trucks in hands of FedEx ground operators with repeat orders due to 97%+ uptime.

Q: Curious on costs as we ramp closer to production of the 2026 W56 launch, how to think about trending?

A: Focus on bringing down bill of material cost through engineering and supply chain. As production increases, labor costs will improve. Starting to get manufacturing right, built 3-4 trucks perfectly with no post-production touch-ups. Have de-escalators in purchase contracts for lower bill of material costs as volumes increase. Also, seeing 55%-65% total cost of operation reduction compared to ICE vehicles.