Workhorse Group (WKHS) Q2 2024 earnings summary

Executive summary

• Advanced EV product roadmap with new W56 208-inch wheelbase vehicle, production set for Q4 2024, and initial orders received; focus remains on last-mile delivery and commercial presence.

• Divested the Aero/drone business to focus on core EV trucks, expected to save $0.4 million monthly and sharpen strategic focus.

• Expanded dealer network to 13–17 locations across 10 states and secured major purchase orders, including a 141-unit W4 CC order from Kingsburg Truck Sales.

• Regained NASDAQ compliance after a 1-for-20 reverse stock split in June 2024.

• Management implemented cost-saving measures, including workforce reductions, executive salary deferrals, and employee furloughs.

Financial highlights

• Q2 2024 net sales were $0.8 million, down from $4.0 million year-over-year, mainly due to lower W4 CC sales.

• Net loss widened to $26.3 million from $23.0 million in Q2 2023.

• Gross loss for Q2 2024 was $6.5 million, compared to $4.5 million in Q2 2023.

• SG&A expenses fell to $12.1 million from $14.0 million, and R&D dropped to $2.0 million from $5.1 million.

• Cash and cash equivalents as of June 30, 2024, were $5.3 million, down from $25.8 million at year-end 2023.

Outlook and guidance

• Expects to recognize $2.2–$2.3 million in deferred revenue from W4 CC sales in the remainder of 2024.

• Anticipates EV adoption rates to accelerate in 2025, with optimism for additional purchase orders and revenue growth.

• Plans to launch a 140kWh version of the W56 in early 2025 and expand dealer network to 15–20 by year-end 2024.

• Ongoing liquidity concerns persist, with continued operating losses expected unless additional funding is secured.

• Focus on securing new orders, delivering products, and advancing the product roadmap while extending financial runway.