Workhorse Group (WKHS) Q4 2024 earnings summary

Executive summary

• Navigated a challenging 2024 with regulatory delays and market uncertainty impacting commercial EV adoption, but maintained focus on product innovation and operational discipline.

• Expanded EV portfolio with the launch of the W56 208-inch wheelbase model, targeting high-volume delivery and Canadian market entry.

• Secured key orders from national uniform provider, City of Tacoma, California state agencies, and expanded relationships with FedEx and government sectors.

• Achieved regulatory approval for W750 and W56 step vans in Canada, expanding market reach.

• Maintained strong team commitment and low attrition despite industry headwinds, with significant cost reductions including headcount cuts and benefit suspensions.

Financial highlights

• Net sales for 2024 were $6.6 million, down from $13.1 million in 2023, mainly due to lower W4 CC truck sales, partially offset by higher W56 sales and service revenue.

• Cost of sales decreased to $28.2 million from $38.4 million, driven by lower sales and cost-saving initiatives.

• SG&A expenses fell to $42.5 million from $55.6 million, and R&D expenses dropped to $9.1 million from $24.5 million, both due to lower headcount and reduced development costs.

• Net loss for 2024 was $101.8 million, an improvement from $123.9 million in 2023.

• Gross loss improved to $22.2 million from $25.3 million year-over-year.

Outlook and guidance

• No specific annual revenue or guidance provided due to ongoing market uncertainty.

• Focus remains on extending financial runway, advancing product roadmap, and ramping up production with new orders.

• Targeting new FedEx CL5/6 award, additional fleet P.O.s, and Canadian market entry in 2025.

• Continued disciplined cost management and pursuit of high-volume fleet orders.