WKHS

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Workhorse is transitioning from a pure-play electric vehicle manufacturer to an industrial technology company, leveraging core engineering expertise for broader applications like mobile infrastructure. The company is executing a 'BOM cost down' strategy aimed at reaching price parity with internal combustion engine (ICE) vehicles, which management believes is the catalyst for mass fleet adoption. Operational integration following the Motiv merger is on track to achieve a $20 million annualized cost synergy run rate by the end of 2026 through facility consolidation and headcount reduction. Strategic focus has shifted toward a modular chassis architecture that allows for flexible wheelbase configurations and the use of a single design across multiple truck classes to reduce assembly complexity. Management attributes increased market interest to a refreshed enterprise sales approach and 2026 promotional pricing, which has more than doubled the sales pipeline since the start of the year. The company is prioritizing the development of a 'Smart Hub' to consolidate high-voltage modules, reducing vehicle weight and cost while improving thermal management and power electronics. Production is expected to ramp significantly in the second half of 2026 to fulfill firm backlogs from major customers like Purolator and Gateway. Initial development prototypes for the next-generation W56 modular chassis are scheduled for Q4 2026, with a planned start of production in late 2027. The company targets 2027 for the commencement of commercial deliveries for its new mobile AI data center product line. Management anticipates that the mobile data center market will reach $41 billion by 2031, driven by the need for localized compute power near energy sources and remote locations. Future growth assumes a partnership-based go-to-market model where Workhorse acts as a Tier 1 engineering partner while strategic partners manage end-customer relationships. The company amended its cash flow credit agreement in August 2026 to borrow an additional $10 million, leaving $1.7 million in remaining availability to fund operations. A new CFO, Jody Davis, was appointed in July 2026 to lead financial execution and capital structure optimization as the company moves toward commercial scale. Management highlighted that broader commercial electric truck adoption remains dependent on delivering a superior economic value proposition compared to traditional ICE equivalents. The mobile data center initiative is intended to increase utilization of existing manufacturing assets in Union City, Indiana, to improve overall operating leverage. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is currently in 'Phase Zero,' finishing initial designs for a modular containerized system compatible with various applications. The company expects the prototyping and manufacturing preparation phase to take approximately 10 to 12 months. Workhorse will act as a Tier 1 supplier, providing the ruggedized containerized system while partners handle compute software and global market development. The cost-down strategy involves scouring global markets for new suppliers, particularly for high-value components like batteries, e-axles, and braking systems. Management views this as a 12-to-18-month effort to reach positive gross margins and eventually free cash flow positive status. The modular chassis approach is designed to allow the company to 'swap in' new, lower-cost components as technology advancements (like 800-volt systems) mature.

This article first appeared on GuruFocus. Revenue: $3.6 million in Q2 2026, compared to $0.8 million in Q2 2025 on a GAAP basis; pro forma combined revenue for the prior year quarter was $6.4 million. Vehicle Deliveries: 26 vehicles delivered in Q2 2026, compared to four vehicles in the prior year period; pro forma combined deliveries were 39 vehicles. Cost of Sales: $11 million in Q2 2026, resulting in a gross loss of $7.5 million. SG&A Expenses: $7.8 million in Q2 2026, compared to $4.5 million in the prior year period. R&D Expenses: $4.1 million in Q2 2026, compared to $3.2 million in the prior year period. Loss from Operations: $19.4 million in Q2 2026, compared to $9 million in the prior year period. Interest Expense (Net): $0.8 million in Q2 2026, compared to $3.8 million in the prior year period. Net Loss: $20.2 million, or $1.86 per basic and diluted share, in Q2 2026, compared to a net loss of $12.8 million, or $1.38 per share, in the prior year period. Cash Position: $9.6 million in cash and cash equivalents plus $0.7 million in restricted cash as of June 30, 2026. Debt: Outstanding balance of $30 million under the cash flow credit agreement and $18.3 million under the customer order credit agreement as of June 30, 2026; an additional $10 million was borrowed in August 2026. Warning! GuruFocus has detected 8 Warning Signs with WKHS. Is WKHS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Workhorse Group Inc (NASDAQ:WKHS) is on track to achieve its $20 million annualized cost synergy run rate by the end of 2026, with operating expenses declining sequentially in Q2 2026 even as production increased. The company is making significant progress on its bill of materials (BOM) cost reduction program, including consolidating systems and engaging with new suppliers, which is expected to substantially lower costs and improve competitiveness. Workhorse Group Inc (NASDAQ:WKHS) has a growing backlog and sales pipeline, with plans to produce more Class 5 and 6 electric trucks in the next five months than in any prior five-month period, supported by orders from Purolator and Gateway. The company is entering the high-growth mobile AI data center market, targeting 2027 for production, leveraging its existing engineering and manufacturing capabilities to serve as a Tier 1 supplier to strategic partners. Workhorse Group Inc (NASDAQ:WKHS) has strengthened its leadership team with the appointment of Jody Davis as CFO, who brings extensive financial experience in capital-intensive industries and a track record of scaling development-stage businesses. Workhorse Group Inc (NASDAQ:WKHS) reported a net loss of $20.2 million in Q2 2026, wider than the prior year period, with a gross loss of $7.5 million as costs continue to outpace revenue. The company's cash position is tight, with only $9.6 million in cash and cash equivalents as of June 30, 2026, and it had to draw additional $10 million from its credit agreement in August to fund operations. Revenue in Q2 2026 was $3.6 million, a significant decline from the pro forma combined revenue of $6.4 million in the prior year quarter, indicating a slowdown in deliveries. The company is still in the early stages of market adoption for its electric trucks, and broader adoption depends on achieving price parity with internal combustion engines, which remains a challenge. The mobile AI data center initiative is in its early development phase, with no confirmed customers or revenue yet, and the company faces execution risks in a new market. Q: Can you provide more details on the steps needed to commercialize the mobile AI data center by 2027 and any preliminary feedback since the announcement?A: Scott Griffith (CEO): We are in a "Phase 0" of developing the platform and finishing the initial design, targeting a modular system that fits various applications. The next 10-12 months will involve finalizing the design, prototyping, and preparing for manufacturing. We are also developing an expanded list of supply chain partners and, most importantly, forming key front-end partnerships. Under our "Tier 1 supplier" model, partners will lead market development and manage end customers globally, while we supply the containerized system. These conversations are well underway and were a significant part of our due diligence before entering this market. Q: How much control does Workhorse have over reducing the bill of materials (BOM) cost on vehicles versus relying on market-driven component price declines?A: Jody Davis (CFO): Our cost-down strategy is proactive, not passive. We are rethinking the overall BOM cost by working with existing suppliers and actively seeking new partners to drive costs down and achieve positive gross margins. This is a 12-18 month effort to establish a pathway to free cash flow positivity. Scott Griffith (CEO) added that the strategy involves co-developing high-value components like batteries, e-axles, and braking systems with key suppliers. We are scouring the global supply chain, including Canada, Europe, and China, to incorporate the latest technologies (e.g., 800-volt systems) into our designs, making this a multi-year, ongoing effort. Q: What is the company's strategy to ramp production and fulfill the existing backlog of orders?A: Scott Griffith (CEO): We are optimizing for a rapid production ramp through year-end and into 2027. To fulfill existing firm orders, we expect to produce more fully electrified Class 5 and 6 chassis and trucks over the next five months than in any prior five-month period in the company's history. We expect to deliver a substantial share of the previously announced orders from Purolator and Gateway over the next few quarters, kicking off growing momentum in truck deliveries into 2027. Q: Can you elaborate on the progress of the BOM cost reduction program and the next-generation commercial vehicle platform?A: Scott Griffith (CEO): We are making continued progress on reducing BOM costs through supply chain discussions with new suppliers and design changes. We are consolidating systems like thermal management and power electronics into an integrated "Smart Hub" to reduce cost, weight, and assembly complexity. These efforts are expected to result in a substantial reduction in overall BOM costs, which we believe is key to driving broader EV adoption as prices trend toward parity with ICE trucks. We are also developing a new modular chassis and a Class 5-6 cab chassis to expand our addressable market beyond step vans into a larger percentage of the $23 billion medium-duty truck market. Q: What is the company's financial position and outlook for the second half of 2026?A: Jody Davis (CFO): We ended Q2 with $9.6 million in cash and cash equivalents plus $0.7 million in restricted cash. We drew $20 million under our cash flow credit agreement and $18.3 million under our customer order credit agreement in the first half. After quarter end, we amended the credit agreement to increase capacity and borrowed an additional $10 million. We are not providing specific financial guidance, but we expect deliveries to increase meaningfully in the second half of 2026 as we ramp production at Union City, supporting the previously announced orders from Purolator and Gateway. Q: What is the strategic rationale for entering the mobile AI data center market?A: Scott Griffith (CEO): We believe this is a substantial long-term growth opportunity for three key reasons. First, it's a projected high-growth market (estimated to reach $41 billion by 2031) that is still in early development. Second, we have a head start with capabilities and assets that provide competitive advantages, including our expertise in power electronics, thermal management, ruggedized structures, and systems integration. Third, our partnership-based go-to-market strategy reduces execution risk, as our partners lead end-market development and sales while we serve as the design, engineering, and manufacturing partner. Q: How is the integration of Workhorse and Motiv progressing, and what are the cost synergies?A: Scott Griffith (CEO): We continue to deliver on our stated integration plan, integrating enterprise technology systems and reducing redundancies across facilities and personnel. We remain on track to achieve our previously communicated $20 million annualized cost synergy run rate by the end of 2026. Jody Davis (CFO) noted that operating expenses declined sequentially in the quarter even as production increased, which is consistent with the operating leverage we expected to realize as we continue the integration. Q: What is the company's go-to-market strategy for the mobile data center, and how does it reduce execution risk?A: Scott Griffith (CEO): Our go-to-market approach is partnership-based. Workhorse serves as the design, engineering, and manufacturing partner, while our customers lead market development and manage the end customer relationship. This pairs two companies doing what each does best: our partners know the end user, workload, and deployment environment, while Workhorse knows how to design, test, validate, and manufacture ruggedized mobile platforms at commercial scale. This approach offers a capital-efficient path to commercialization and keeps our team focused on existing sources of operating leverage. Q: What were the key financial results for Q2 2026?A: Jody Davis (CFO): Revenue for Q2 2026 was $3.6 million, compared to $0.8 million in Q2 2025 on a GAAP basis, with 26 vehicles delivered versus four in the prior year. On a pro forma combined basis, prior year revenue was $6.4 million with 39 vehicles delivered. Cost of sales was $11 million, resulting in a gross loss of $7.5 million. SG&A expenses were $7.8 million, and R&D expenses were $4.1 million. Net loss for the quarter was $20.2 million, or $1.86 per share. Q: What is the timeline for the development of the next-generation chassis and cab chassis vehicle?A: Scott Griffith (CEO): We are expecting to build initial development prototypes of the modular chassis for the W56 in Q4 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, August 13, 2026 at 4:30 p.m. ET Chief Communications Officer-John Williams Chief Executive Officer-Scott W. Griffith Chief Financial Officer-Jody Davis Operator: Good afternoon. And thank you for joining today's call. Welcome to Workhorse Group Q2 26 Earnings Call. Currently, all participants are in listen only mode. A Q&A session will follow the formal presentation. Please be advised that today's conference is being recorded. I will now turn the call over to John Williams, chief communications officer. Mister Williams? Please go ahead. John Williams: Thank you, operator, and good afternoon, everyone. I would like to welcome all of you to Workhorse's second quarter 26 earnings call. Please note that we have posted our results for the second quarter ended June 30, 26 via press release and 8 and filed our associated quarterly report on Form 10 Q with the SEC. You can find the release and an accompanying presentation in the Investor Relations section of our website. We will be tracking along with the presentation during this call. Before we get to the quarter, 1 framing point. While Workhorse and Motiv came together in December 2025, what came out of the merger is, in practice, a different company than the 1 that many of you have followed for years. A new management team, new operating platform, and a new strategy. We look forward to sharing more about the new Workhorse today as well as reporting on our progress each quarter. Joining me on today's call are Scott W. Griffith, our Chief Executive Officer; Jody Davis, our Chief Financial Officer, who joined Workhorse in July. For today's agenda, please turn to Slide 3. Following my opening remarks, I will hand it over to Scott who will provide an update on our operational and commercial progress and the strategic priorities we are focused on. Including our recently announced planned entry into the mobile AI data center category. Jody will then walk us through our financial results for the quarter and our capital position. Scott will then make closing remarks before we open the call for questions. Our cautionary language can be found on Slide 4. The comments that will be made today include forward looking statements which are based on current expectations and projections about future events. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Additional information regarding these risks and uncertainties can be found in today's press release and in our filings with the SEC. Including our Form 10 ks and Form 10 Q. Now I will turn it over to Scott. Scott W. Griffith: Thanks, John. Good afternoon, everyone, and thank you for joining us. As we complete the final stages of merger integration, Workhorse is transforming from a pure play manufacturer of electric commercial vehicles into a new American industrial technology company built to serve critical commercial, government, defense, and infrastructure markets. At the heart of this transformation is our foundational expertise in the design, engineering, testing, validation, and manufacturing of industrial products. While traditionally this expertise has been applied to the commercial vehicle market, we believe we are positioned to leverage it for broader industrial applications. Opening up access to additional large high growth markets. We continue to innovate and deliver leading software defined medium duty commercial electric trucks that outperform incumbents on total cost of ownership. However, we are still in the early stages of market adoption. And broader commercial electric truck adoption will ultimately depend on delivering a clearly superior economic value proposition. That is the key to capture a meaningful share of the $23 billion annual medium duty truck market and realize our full potential. In a few minutes, I will provide you with an update and details about our overall progress to reduce costs broaden our product portfolio, and build the backlog into 2027. In July, we announced an important step in advancing our new industrial technology vision, with our planned entry into the emerging mobile data center market. We announced plans to develop a turnkey compute ready, containerized mobile AI data center designed to meet the localized mobile AI infrastructure needs of distributed deployment applications worldwide. This new market is still in its early stages, and we believe our engineering and manufacturing expertise position us well to compete as it develops. I will provide more detail on this development during our call today. All of our products are designed, engineered, tested, and validated by our technology development team and will be manufactured at the Workhorse Manufacturing Center in Union City, Indiana. We believe our ability to compete and win in these markets will be driven by the complementary capabilities brought together by the Workhorse-Motiv merger our software, hardware, engineering, and product design capabilities, our commercial scale facility and its lean manufacturing processes, our established customer based comprised of many blue chip companies, the technology and manufacturing foundation built on approximately $800 million of historical investment across Workhorse and Motiv, and an experienced management team with strategic vision, agility, and a track record of execution. I could not be more excited by where we stand at Workhorse today. Let me explain why. First, we continue to deliver on our stated integration plan. We have continued the process of integrating various enterprise technology systems and reducing redundancies across facilities and personnel. This is a complex process, I am pleased with the progress we have made Based on our progress, we continue to believe we are on track to achieve our previously communicated $20 million of annualized cost synergy run rate by the end of 26. Jody will walk you through the numbers in more detail, but I will note that our operating expenses declined sequentially in the quarter even as production increased. We believe this trend is consistent with the operating leverage we expected to realize as we continue the integration. it is also important to recognize these integration efforts extend beyond cost reduction. These efforts are also about optimizing the organization for growth. By reducing redundancies across our teams, integrating various facilities into a smaller footprint, standardizing our enterprise planning, and reporting tools around a clear set of priorities and having the workforce team focused on the highest and best uses of their time we believe we set ourselves up to win in both the commercial trucking space and the mobile data center space. Second, we are making continued progress on our bill of materials or BOM cost reduction program. As well as our next generation commercial vehicle platform. Together, we believe these efforts will enable us to not only capture greater market share in our existing step band business, but also unlock a substantially larger slice of the $23 billion medium duty truck market. First, let's talk about how our engineering and design teams are working to take cost out of the platform itself. Supply chain. We have begun discussions with new suppliers for key components that we expect will reduce the cost of our vehicles. And we are working with our existing suppliers to identify opportunities to reduce costs as well. Design and systems architecture. We are consolidating various systems, including thermal management and power electronics into comprehensive all in 1 systems. For example, we are consolidating previously distributed high voltage modules into a new smart power electronics hub aptly named Smart Hub. Reducing cost, weight, and assembly complexity while also enabling us to utilize a single design across multiple truck classes. We believe these efforts, alongside several others, are expected to result in a substantial reduction in the overall BOM costs. This work matters because we believe the tipping point for fleet electrification arrives when the purchase price of an electric truck is more closely comparable with its ICE equivalent. And the total cost of ownership case, which we have already demonstrated as superior to ICE, does the rest. We believe these efforts will result in substantial reduction in the overall BOM costs. Which we believe will be important in driving broader adoption as China's recent history in commercial electric trucks shows. In China, a few years ago, as prices for commercial electric trucks trended toward parity with internal combustion trucks, EV sales volumes grew from less than 5% of units sold to greater than 50% of new truck sales in a few short years. We believe The US truck market is poised to reach a similar break point in our BOM cost down strategy and accompanying price strategy can be a catalyst to bend the EV truck adoption curve similar to the adoption spike in China that began a few years ago. While we are working diligently to reduce BOM cost to compete with ICE vehicles in the step van category, our announced modular chassis and cab chassis efforts position us to move beyond the step band segment and into a wider range of Class 5/6 truck types. Including box trucks, enabling Workhorse to compete in a much larger percentage of the $23 billion medium duty truck market. We are also making exciting progress on our product development initiatives. Our first 2 programs are focused on the development of the next generation chassis and powertrain platform as well as the launch of our first Class 5/6 cab chassis vehicle. Our new chassis is being designed around a scalable shared modular architecture that will fundamentally transform how our commercial electric trucks are engineered manufactured, and deployed. The chassis will build upon proven foundation and operational learnings of the Motiv Gen6 and Workhorse W56 platforms and be guided by our strategic cost reduction engineering process. This next generation architecture will incorporate highly flexible wheelbase configurations advanced battery and axle technologies, next generation software capabilities, and an integrated smart power electronics hub. We will also be introducing a new braking system that will be compatible with the latest ADAS features and prepare us for an autonomous vehicle future. Our new modular chassis will be integrated with our step band products and we will also be pairing it with a technically advanced low cost Class 5/6 cab to create a lightweight high performance cab chassis platform optimized for efficient upfitting by bodybuilders. We believe our entry into the cab chassis segment will allow Workhorse to compete for a much larger percentage of the $23 billion medium duty truck market. The resulting products are expected to deliver increased payload capacity accelerated time to market for vocational applications, and perhaps most important, a more competitive price point compared to gas and diesel alternatives for fleet customers across a wide range of use cases. We are expecting to build initial development prototypes of the modular chassis for the W56 in Q4 26 enabling testing and validation activities to begin shortly thereafter for a planned start of production for the new chassis platform in late 27. Third, we are optimizing for a rapid production ramp. Through year end and into 2027. We continue to build efficiencies across our supply chain and manufacturing processes in preparation for significantly higher volumes in the third and fourth quarters. To put that in perspective, to fulfill existing firm orders in our backlog, we expect to produce more fully electrified Class 5 and 6 chassis and trucks over the next 5 months than in any prior 5 month period in the company's history. While we are not yet providing specific revenue guidance we expect over the next few quarters to deliver a substantial share of the previously announced orders placed by Purolator and Gateway. This kicks off what we believe will be a growing momentum in truck deliveries into 2027 something we will elaborate on in future calls. You may be wondering what is happening behind the scenes, to build our order book and what gives me the confidence to anticipate an increase in our bookings and deliveries. Among other things, we are experiencing strong benefits from our refresh sales approach. Including a new enterprise sales team We are seeing increased demand for deliveries in late 26 and 2027 from both existing and new customers. This new sales approach which leverages the strong TCO and on road performance of our W56 step band product line combined with our 2026 promotional pricing, is continuing to drive product enthusiasm and market interest which is turning into a growing backlog of firm orders, and a sales pipeline that has more than doubled since the start of 2026. We believe the combination of our new pricing the BOM cost down efforts and changes in our sales organization, are contributing to increased interest among electric fleet customers while positioning us well to continue to build momentum as we progress through the 2 remaining quarters of this year and into 2027. Fourth, in July, we added a new chief financial officer. Jody Davis. he is an excellent addition to our senior leadership group Jody brings many years of financial leadership across manufacturing, energy storage, aerospace, technology companies. With a track record of closing large capital rounds and guiding development stage businesses into full production. He has built the finance infrastructure that capital intensive companies need as they move from development into commercial scale which is precisely where Workhorse is in this journey. We are glad to have Jody on the team and you will be hearing more from him directly. I also wanna thank our former CFO, Robert Ginnan, for his years of leadership and tireless work. Including his efforts to finalize and close the Workhorse and Motiv merger, and to lead key aspects of our integration, We all wish Bob and his family well, in his retirement. Fifth, we recently announced our intent to enter the mobile data center category with a turnkey compute ready mobile AI data center designed for the localized infrastructure needs of distributed AI deployments. We believe this is a substantial long term growth opportunity for Workhorse for 3 key reasons. it is projected to be a high growth market that is still in the early stages of development. Secondly, we have a head start. We believe the capabilities we have built and assets we already own provide us with important competitive advantages. And third, our go to market strategy is designed to reduce execution risk. We intend to serve as an engineering and manufacturing partner to our strategic partners who are experts in high speed computing, AI software, and applications Under this model, our partners would lead all end market development, sales, support with the ultimate end customer. Let's go a little deeper into this new strategy for Workhorse. Starting with the market. Third party research estimates the mobile data center market could reach $41 billion by 2031. This growth is being driven by demand for what is called edge or mobile computing. Simply put, we are seeing a new growth driver in AI infrastructure, the need for highly capable AI operations in close proximity to where the data, power, and mission are located. Here are a few reasons why. First, speed to deployment. By their very nature, mobile data centers can be deployed more quickly than traditional data centers, First, because of their size, they can be manufactured and deployed in the field, in significantly less time than it takes to build a large centralized data center. Second, they can be colocated directly at energy sources like solar, wind, nuclear, and natural gas thus avoiding the long waits for interconnection to the existing electric grid you have likely read about. Mission critical connectivity. Remote exploration for natural resources, rural agriculture, military, and disaster response operation, ships at sea, and even parts of the developing world do not have reliable high bandwidth connections, to a distant data center. Localized compute makes AI available in places the centralized model cannot reach. And keeps critical systems running even when the network connection drops entirely. Ironclad data privacy, healthcare data, financial transactions, biometric information, military applications, and proprietary industrial data increasingly come with regulatory requirements that restrict where the data can travel, and be stored. Processing sensitive data at the edge close to its source helps organizations keep raw data in region or on prem while still benefiting from AI, rather than routing everything through a centralized facility that may sit in another jurisdiction entirely. The industries where this kind of computing is most valuable include energy and utilities, defense and government, telecommunications, agriculture, and transportation, among many others. Given the nature of edge computing, the systems being built to serve this market must be mobile secure, and durable. Workhorse has extensive experience designing, engineering, testing, validating, and manufacturing vehicles with these exact attributes. And we believe these capabilities are readily transferable to our new product line. Let's take a closer look. We believe our engineering capabilities in power electronics, thermal management, ruggedized structures, mobile connectivity, vibration isolation, controls, and systems integration are well suited to the development, of deployable AI infrastructure capable of operating reliably and demanding field environments. Our approach is to combine those core workhorse capabilities with proven commercial technologies and engineer them into a fully integrated purpose built system. Where additional or specialized expertise is required, we intend to work with experienced development partners and technology suppliers to accelerate development. Importantly, we see Workhorse's role extending well beyond simply packaging these components into a containerized structure. We intend to own the overall system architecture integration controls, validation, and product evolution. Translating customer mission requirements into a rugged scalable platform that can support multiple configurations and future applications. Our Union City facility is well suited for this type of high mix, low volume manufacturing. Where close interaction between engineering and production enables rapid design iteration, prototype builds, validation, and continuous product improvement. We believe this combination of internal engineering capability specialized development partners, proven technologies, and flexible manufacturing can allow us to move from customer requirements to deployable products at the pace this emerging market demands. Our go to market approach will be partnership based. Under this model, Workhorse serves as the design engineering, and manufacturing partner. While our customers lead market development and manage the end customer relationship. We believe this partnership approach will work because it pairs 2 companies doing what each does best. Our customers will know the end user, the workload, and the deployment environment. Workhorse knows how to design, test, validate, and manufacture ruggedized mobile platforms at commercial scale. Think of us as a tier 1 supplier to the final mobile data center platform integrator. We will leverage the demand generation customer relationships, and market development activity of our clients, rather than requiring us to build a sales and market development organization from scratch. We believe this approach will offer us a capital efficient path to commercialization and keeps our team focused on existing sources of operating leverage like our engineering and development capabilities and our plant in Union City. We are targeting 2027 for the commencement of production, and commercial deliveries and we expect to provide updates on development milestones and the production ramp in the quarters ahead. Financially, the strategic logic is straightforward. We believe this product line can provide new, potentially significant sources of revenue and cash flow increase the utilization of operating leverage of our existing manufacturing, test, and validation assets, and help fund continued progress on vehicle cost reduction and new model development. With that, let me hand it over to Jody for the Q2 financials. Jody Davis: Thanks, Scott. Good afternoon, everyone. This is my first earnings call as Workhorse's chief financial officer. So let me briefly share why I joined. Workhorse has a combination that is still rare in the vehicle electrification. A product that already delivers strong operator economics, a manufacturing facility that is built and running, and a blue chip customer base of the largest medium duty fleets in North America. Bringing an electric commercial vehicle to usually means years spent proving the product works while simultaneously trying to fund the plant to build it. We have cleared both of those hurdles. A critical part of the work ahead is financial execution. Putting the right capital structure in place, while managing costs with discipline and building the systems and reporting this company needs to operate at scale. That is the work I know how to do, and that is why I joined Workhorse. I am only a few weeks into the role, but it is what is ahead of us that truly excites me. And I am highly confident in our strategy and the path in front of us. Before walking through the numbers, I want to provide some context on comparability. Our consolidated results for the second quarter of 26 reflect the fully combined Workhorse and Motiv operation. Comparative information for the second quarter of 25 reflects only Motiv, the accounting acquirer, and the reverse merger. As a result, certain year over year comparisons are not on a like for like basis. Where helpful, I will reference the unaudited pro forma combined figures included in today's press release so you have the right reference point. Revenue for the second quarter of 26 was $3.6 million compared to $800 thousand in the second quarter of 25 on a GAAP basis. We delivered 26 vehicles in the quarter compared to 4 vehicles in the prior year period. On a pro forma combined basis, revenue for the prior year quarter was $6.4 million reflecting delivery of 39 vehicles. For the first half of 26, revenue was $7.9 million roughly in line with the pro forma combined revenue of $8.2 million in the first half of 25. Cost of sales for the second quarter was $11 million resulting in a gross loss of $7.5 million consistent with the first quarter. We continue to expect gross margin to improve as we scale production volumes at Union City and realize the cost benefits of the combined platform. Selling, general, and administrative expenses were $7.8 million in the second quarter compared to $4.5 million in the prior year period. With the increase driven by the inclusion of the full combined company cost base in 2026. for accounting, As a publicly traded company, we now have higher cost legal, investor relations, and other costs that Motiv did not incur as a privately held company. While costs are higher than last year, we are realizing synergies from the redundant headcount and other operating costs. As we remain on track to exit 2026 at our previously communicated $20 million in annualized cost synergy run rate. Research and development expenses were $4.1 million in the second quarter compared to $3.2 million in the prior year period. The increase reflects continued strategic investment in our initiative to lower the total bill of materials cost on our vehicles toward ICE comparable levels. Loss from operations was $19.4 million in second quarter compared to $9 million in the prior year period. Interest expense net was $800 thousand compared to $3.8 million in the prior year period. The lower interest expense is due to re restructuring our debt as part of the merger, which resulted in lower debt levels in the current quarter at lower interest rates than the prior year. Net loss for the quarter was $20.2 million or $1.86 per basic and diluted share, compared to a net loss of $12.8 million or $1.38 per share in the prior year period. Turning to the balance sheet. As June 30, we had $9.6 million in cash and cash equivalents, plus $700 thousand in restricted cash. During the first half, we drew $20 million under our cash flow credit agreement, bringing outstanding balance to $30 million and $18.3 million under our customer order credit agreement. After quarter end in August, we amended our cash flow credit agreement to increase its capacity and borrow an additional $10 million to fund our operations. As of the filing of our 10 Q, we had $1.7 million available to borrow under our current credit agreement. We are not providing specific financial guidance at this time, but with that said, we expect deliveries to increase meaningfully in the second half of 26 as we ramp production at Union City. That ramp supports our previously announced orders of 100 vehicles each from Purolator and Gateway as well as purchase orders from other customers. We continue to work to convert our pipeline of orders and revenue in the second half of 26. With that, let me turn it back to Scott for closing remarks. Scott W. Griffith: Thanks, Jody. In summary, Workhorse has made tremendous strides in our plan to establish the leading position the medium duty commercial trucking segment. Our integration efforts are succeeding in reducing costs and optimizing the company for growth. Our engineering and design teams are finding ways to reduce costs today while unlocking future growth through low cost and more flexible platforms that can also expand our addressable target market in the commercial truck segment. We are developing an exciting new line of business in the mobile data center category where we can leverage current capabilities and assets to offer a compelling value proposition to a high growth market. And we strengthen the executive team set clear goals, and structured the overall organization to deliver our promises to customers and most importantly, to our shareholders. I am looking forward to a strong finish to 2026 and an even stronger 2027. We appreciate your continued support and we look forward to updating you on our progress in the months ahead. Operator, you may now open the lines for questions. Operator: Thank you. We will now be conducting a Q&A session. We ask that you limit we ask that you please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press 1 on your telephone keypad. You may press 2 if you would like to remove your question from the queue. Before pressing the star keys. 1 moment, please, while we poll for questions. Our first question is from Benjamin Sommers with BTIG. Please proceed with your question. Ben Summers: Hey, good afternoon, guys, and thank you for taking my questions, and welcome to the team, Jody. So first, wanted to ask on the pivot to, you know, the AI data centers. And if you could just talk a little bit more about the steps you need to get to commercialization by 2027 and just you know, any preliminary feedback you guys have kinda had since the announcement, you know, a little while ago? Thank you. Scott W. Griffith: Hey, Ben. Nice to hear from you. it is Scott, and I will I will ask Jody to tap in here. I think the key steps right now are know, what I would call a phase zero, developing the platform itself. And finishing the initial design. What we are targeting Ben is something that is I do not I would not say it is universal, but something that is will fit a number of different applications. We have some initial thinking on that. We are out pulling the market right now. So finishing that and then getting into prototyping and being prepared for manufacturing, those steps you know, probably take in the next 10 to 12 months for us to finish. So those are all internal based on market feedback we have had so far. We are also developing an expanded list of supply chain partners who are going to be suppliers to that business as well. that is well underway now. there is some hiring, although a lot of crossover right now as we noted in the comments earlier. The most of the hiring will come as we really dive into specific customer applications that we build. What we are trying to do is build a much like our chassis, think of it as sort of a modular containerized system that can be compatible with different applications I would say the other most important part is developing these key, you know, sort of front-end partnerships. We use the term tier 1 supplier to these key partners. They are the folks that will be, you know, globally around the world looking for applications customers, and specific needs that are combined, our combined offering will come together. We will supply the containerized system They will put all the compute software any of the communications systems that are associated with those in any of the in country or in region areas that are outside jurisdictions we typically deal with, that will all be our partners. So and those conversations are well underway. Frankly, that was a big part of our due diligence on whether to even enter this market. This was not a market we entered lightly by any means. it is 1 we did a lot of research in We talked about a $40+ billion market out in a few years. And we really did quite a bit of research and digging in to where we think we could really apply applications to do that. So those are sort of the initial things developing that platform that is modular much like our chassis. And developing these initial partnership relationships that are gonna be market development. Partners for us. We are well on our way in on both of those fronts now. I do not know, Jody, if you wanna add to that. Jody Davis: Yeah. The only thing I would add to that is really our factory footprint and really leveraging the fact in Union City. You know, we have a lot of the talent in house already that we can we can utilize. And so, you know, I feel it you know, our capabilities internally are really well suited to be able to capture early adoption and development over the next year, year and a half. Ben Summers: Super helpful. Then for my follow-up, know, just want to ask a bit more on the supplier discussions that you guys spoke about and reducing cost You know, how much of this is under your guys' control versus how much of it is just market driven and just you know, relying on cost components just coming down. Just curious how much control you guys have over reducing you know, the cost of goods sold here. Scott W. Griffith: You are specifically referring to the BOM cost on the vehicle? Ben Summers: Exactly. Yep. Jody Davis: Yeah. Good question. And so, yeah, we have a cost down strategy, and not it is not just working with the current suppliers. it is really, you know, rethinking how we think about the overall BOM cost. And so with that strategy, we are looking at, you know, new potential suppliers as well. That really can help drive our cost down from where we are today. And really drive a positive gross margin. So we are we are working with those partners, and we are looking for new partners. And, you know, we really think that this is a 12 to 18 month time frame for us. And so that way, we can, you know, have our pathway to get free cash flow positive and really drive, you know, financial discipline within our within our within our within the company. Scott W. Griffith: Yeah. The thing I would add, Benson, it is Scott. I think in addition to Jody's comments, definitely looking at new suppliers in addition to current suppliers, And also looking at some of the, you know, the most high value components that we have used historically, things like batteries, e axles, and braking systems, steering systems, all those really high value components Can we codevelop together with some of our really key suppliers The--this supply chain is really global now. And, frankly, a lot of the best suppliers are coming from outside the US, even Canada, Europe, obviously, China is a part of that now. So we are really scouring globally. And expanding the reach of what our supply chain experts are looking for. And we are talking directly to some of those highest value suppliers, you know, what is in their product pipeline that we need to incorporate And it is 1 of the benefits of that modular chassis approach we talked about. We wanna be able to swap in new components as they come along. From our suppliers. So we are working with them directly to understand what is their 3 or 4 year road map too. And how do we build that into our engineering structure as we as we expand. So when we say, you know, our BOM cost down program, that is a multiyear ongoing effort. I we will never finish that, Ben. So that is that is really how we are thinking about it And it is exciting to see what is happening particularly as passenger cars expand globally the commercialization of larger components for commercial trucks have also started to catch up now. To some of those technologies. Things like 800 volt systems that historically were more 400 volt systems that are everyone seems to be converting to. So it is it is following their sort of technology advancement curve. And incorporating that into our designs as they incorporate too. Ben Summers: Super helpful. Thank you guys for taking my questions. Operator: We have reached the end of the Q&A session. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Workhorse Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Workhorse Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Workhorse (WKHS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

DETROIT, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (NASDAQ: WKHS) ("Workhorse" or the "Company"), an American Industrial Technology company today reported financial results for the second quarter ended June 30, 2026 and provided an update on its recent announcement about a new product line. “As we complete the final stages of merger integration, Workhorse is transforming from a pure-play manufacturer of electric commercial vehicles into a new, American industrial technology company built to serve critical commercial, government, defense, and infrastructure markets,” said Scott Griffith, CEO of Workhorse. “At the heart of this transformation is our foundational expertise in the design, engineering, testing, validation and manufacturing of industrial products. While traditionally this expertise has been applied to the commercial vehicle market, we believe we are positioned to leverage it for broader industrial applications, opening up access to additional large, high-growth markets.” The Company has spent the first half of 2026 reducing costs to manufacture its flagship commercial electric vehicles through smart engineering, strategic supply chain use and the elimination of redundant operations and facilities. In addition, it has continued work on its lower-cost and more flexible next-generation platforms which the Company believes will enable the production of a wider variety of models that can meet the needs of a larger share of the medium-duty commercial truck segment. “We believe the combination of our new enterprise sales strategy, the 2026 promotional pricing, and the strong TCO and on-road performance of our W56 step van product line is continuing to drive product enthusiasm and market interest,” said Griffith. “We have a growing backlog of firm orders and our sales pipeline has more than doubled since the start of 2026.” In addition to the strategic efforts designed to grow market share in the commercial trucking market, the Company has announced its intent to leverage its expertise and manufacturing capabilities to enter a new market. In July, Workhorse announced its intent to manufacture a turnkey, compute-ready, mobile AI data center designed for the localized infrastructure needs of distributed AI deployments. The Company believes that this new line of business can leverage current capabilities and assets to offer a compelling value proposition to a high-growth market. Second Quarter and Recent Strategic Highlights Merger Integration on Track: The Company continued integrating enterprise technology systems and reducing redundancies across facilities and personnel during the quarter. The Company continues to expect to exit 2026 at a $20 million annualized cost synergy run rate. Bill of Materials Cost Reduction Advancing: Engineering and design work on the Company's modular chassis program is progressing on schedule. Workhorse has begun discussions with new suppliers for key components expected to reduce vehicle costs and continues to work with existing suppliers on further cost reductions. These efforts, together with the Company's planned entry into the Class 5/6 cab-chassis segment, are designed to expand Workhorse's addressable market beyond its step van business and into a broader range of Class 5-6 truck types, including box trucks, representing a larger share of the $23 billion medium-duty truck market1. The modular chassis is the first step in a broader strategy to commonize hardware and software across all product lines, with production for the new chassis platform expected to begin in late 2027. Optimizing for Rapid Production Ramp: Workhorse increased production in the second quarter and continued building efficiencies across its supply chain and manufacturing processes. The Company expects to produce more fully electrified Class 5/6 chassis over the next five months than in any prior five-month period in its history. Driven by a new strategic enterprise sales approach, the total cost of ownership and performance advantages of with W56, and the Company's promotional pricing on the W56 step van, demand is building from both existing and new customers for deliveries in late 2026 and early 2027. Leadership Team Strengthened: In July, Workhorse announced the appointment of Jody Davis as Chief Financial Officer. Davis brings approximately 15 years of finance leadership across manufacturing, energy storage, aerospace, and technology companies, with a track record of closing large capital rounds and guiding development-stage businesses into full production. He has built the financial infrastructure that capital-intensive companies require as they move from development into commercialization -- precisely where Workhorse is in its journey. Entry into Mobile AI Data Center Market: In July, Workhorse announced its planned entry into the containerized mobile AI data center category, targeting an estimated $41 billion market by 20312. The Company believes its engineering competencies in power electronics, thermal management, ruggedized enclosures, mobile connectivity, vibration isolation, and embedded systems can translate directly to containerized platforms that must meet the operating demands of AI hardware in the field. The Company's go-to-market approach for this new product line is partnership-based, with Workhorse intending to serve as the design, engineering and manufacturing partner while strategic partners lead end-market development and manage customer relationships, an approach intended to reduce execution risk. The Company is targeting 2027 for commencement of initial production and commercial deliveries. ____________________1 Represents annual forecast of vehicle registrations as of Q1 2026 Forecast per S&P Global Mobility for NTEA US Commercial Vehicle Market Report, multiplied by an assumed $100,000 value per ICE truck and $250,000 for electric truck. 2 Grand View Research, “Global Containerized Data Center Market Size & Outlook” https://www.grandviewresearch.com/horizon/outlook/containerized-data-center-market-size/global Second Quarter 2026 Financial Highlights Revenue: Sales, net of returns and allowances, for the second quarter of 2026 were $3.6 million, compared to $0.8 million in the second quarter of 2025 on a GAAP basis. On a pro forma combined basis, revenue for the second quarter of 2025 was $6.4 million. For the first half of 2026, revenue was $7.9 million, roughly in line with pro forma combined revenue of $8.2 million in the first half of 2025. Vehicles Delivered: The Company delivered 26 vehicles during the second quarter of 2026, compared to 4 vehicles in the second quarter of 2025. Cost of Sales: Cost of sales for the second quarter of 2026 was $11.0 million, resulting in a gross loss of $7.5 million, consistent with the first quarter. The Company continues to expect gross margin to improve as production volumes at Union City scale and the cost benefits of the combined platform are realized. Operating Expenses: Total operating expenses for the second quarter of 2026 were $11.9 million. Selling, general and administrative expenses were $7.8 million, reflecting the costs of running the combined company, partly offset by merger-related synergies, including reductions in redundant headcount and other operating costs. Research and development expenses were $4.1 million, reflecting continued strategic investment in the Company's bill of materials cost reduction program and early-stage engineering work supporting the mobile AI data center product line. Operating Loss: Operating loss was $19.4 million in the second quarter of 2026, compared to $9.0 million in the second quarter of 2025. Net Loss: Net loss for the second quarter of 2026 was $20.2 million, or $1.86 per basic and diluted share, compared to a net loss of $12.8 million, or $1.38 per share, in the same period last year. Capital Position: As of June 30, 2026, the Company had $9.6 million in cash and cash equivalents, plus $0.7 million of restricted cash. During the first half of 2026, the Company drew $20.0 million under its Cash Flow Credit Agreement, bringing the outstanding balance to $30.0 million, and drew $18.3 million under its Customer Order Credit Agreement. Subsequent to quarter end, the Company amended its Cash Flow Credit Agreement to increase capacity and borrowed an additional $10 million to fund its operations. Conference Call Workhorse management will hold a conference call on Thursday, August 13, 2026, at 4:30 p.m. Eastern time to discuss these results and answer related questions. A link to listen to the conference call webcast will be available on the Investor Relations section of Workhorse’s website. The phone numbers to listen via telephone are (877)-407-0789 (U.S.) or (201)-689-8562 (international). A telephonic replay of the conference call will be available after 7 p.m. Eastern time on the same day through August 27, 2026. Toll-free replay number: (844)-512-2921 International replay number: (412)-317-6671 Replay ID: 13761353 About Workhorse Group Inc. Headquartered in the Detroit area with a commercial-scale manufacturing plant in Union City, Indiana, Workhorse (Nasdaq: WKHS) is an American engineering and manufacturing company specializing in electrification, high-voltage systems integration, mobility platforms, ruggedized mobile platform manufacturing, distributed energy systems, and deployable industrial infrastructure. We manufacture durable, reliable and high-performing vehicles and infrastructure for mission-critical applications deployed in the world’s most demanding operating environments. More information is available at www.workhorse.com. Media Relations Contacts: Workhorse John Williams, Communications +1-206-660-5503, [email protected] ICR, Inc. [email protected] Investor Relations Contact: [email protected] Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that are not historical facts, including statements regarding future events, plans and anticipated results of operations, business strategies, the anticipated benefits of the Motiv/Workhorse merger, the anticipated impact of the Workhorse/Motiv merger on the combined company’s business and future financial and operating results, the expected amount and timing of synergies from the Workhorse/Motiv merger, Workhorse’s ability to achieve profitability, Workhorse’s sales integration and pipeline, Workhorse’s access to capital to fund operations and fulfill orders, Workhorse’s expected delivery of contracted vehicle orders, Workhorse’s product development plans, including chassis development, access to capital or operating results; Workhorse’s new product line, the market for containerized data centers and edge computing, the Company’s go-to-market approach, the expected date for initial production and delivery of the new mobile AI data center product line, the Company’s ability to leverage existing capabilities in developing the new product line, the potential for revenue from the new product line to enable the Company to continue its cost reduction efforts for its electric trucks and other statements regarding the Company's achievement of its priorities and its other plans, objectives, expectations, business strategies, future operations, financial performance, prospects, and other future events or developments and other statements regarding the company’s anticipated or planned operations, are forward-looking statements. Some of these statements may be identified by the use of the words “plans”, “expects” or “does not expect”, “estimated”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “targets”, “projects”, “contemplates”, “predicts”, “potential”, “continue”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, “will” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on management's current expectations, assumptions, and estimates as of the date of this press release and are subject to numerous known and unknown risks, uncertainties, and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ include, among others, Workhorse’s ability to design and develop the new product line; additional costs that may be incurred in connection with the development of the product line; Workhorse’s ability to reach a commercial partnership for the development and sale of the new product line; the potential for distraction resulting from Workhorse’s efforts to develop the new product line; risks related to the development of the mobile AI computing market; our ability to raise capital to fund our operations and to maintain access to our current debt facilities; our ability to achieve the expected synergies and/or efficiencies from our operations and as a result of the Motiv/Workhorse merger; our ability to reduce the cost to build our vehicles; our ability to deliver vehicles as contracted; our ability to further develop and bring to market new products as planned, including the mobile AI data center platform, chassis and cab development; the risk that the price of our securities may be volatile due to a variety of factors; changes in laws, regulations, technologies, the global supply chain, and macro-economic and social environments affecting our business, including demand for electric trucks and our cost of production; our status as a controlled company; and our ability to maintain compliance with Nasdaq rules and otherwise maintain our listing of securities on Nasdaq. Additional information on these and other factors that may cause actual results and Workhorse’s performance to differ materially is included in Workhorse’s periodic reports filed with the SEC, including, but not limited to, Workhorse’s Annual Report on Form 10-K for the year ended December 31, 2025, including those factors described under the heading “Risk Factors” therein, and Workhorse’s subsequent periodic reports. Copies of Workhorse’s filings with the SEC are available publicly on the SEC’s website at www.sec.gov or may be obtained by contacting Workhorse. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. These forward-looking statements are made only as of the date hereof, and Workhorse undertakes no obligations to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. * Note on Financial Statement Presentation On December 15, 2025, we completed our merger with Motiv. While the legal acquirer in the merger was Workhorse, for financial accounting and reporting purposes under U.S. GAAP, Motiv was the accounting acquirer, and the Merger was accounted for as a reverse acquisition. Accordingly, the consolidated assets, liabilities and results of operations of Motiv became the historical consolidated financial statements of the consolidated company, and Workhorse's assets, liabilities and results of operations were consolidated with those of Motiv beginning on December 15, 2025. As a result, comparative second quarter 2025 financial information reflects only Motiv and is not directly comparable to the combined company results for the second quarter of 2026. Workhorse Group, Inc.Unaudited Pro Forma Revenue The table below reflects the combined revenue of Workhorse and Motiv for the three months and six months ended June 30, 2025 as if the merger had occurred at the beginning of the period presented. The unaudited pro forma revenue presented is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the merger was completed at the beginning of the period presented or of the future operating results of the combined company. A reconciliation of pro forma revenue is provided below.

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Workhorse Group Inc (NASDAQ:WKHS) successfully integrated the Motive production line into their Union City, Indiana plant, with three production lines now operational. The company announced two major purchase orders in Q1 2026, including a 100-unit order from Gateway Fleets and another from Purolator, indicating strong demand for their vehicles. Workhorse Group Inc (NASDAQ:WKHS) has developed a plan for a new proprietary modular chassis design, expected to reduce costs and improve competitiveness with ICE vehicles. The company resolved two previously disclosed legal matters, reducing distractions and potential financial overhangs. Workhorse Group Inc (NASDAQ:WKHS) strengthened its liquidity position with incremental borrowing to support production for existing orders. The company reported a gross loss of $7.5 million for Q1 2026, driven by higher sales volume and increased costs associated with operating their own manufacturing facility. A $1.5 million warranty charge was recorded due to higher-than-expected costs related to a retrofit campaign for certain trucks sold in Canada. Selling, general, and administrative expenses increased to $9.5 million in Q1 2026, up from $4.3 million in the same period of 2025. Net loss for the quarter was $19.9 million, compared to a net loss of $12.7 million in the prior year, reflecting ongoing financial challenges. The company is not providing specific financial guidance at this time, indicating uncertainty in future financial performance. Warning! GuruFocus has detected 10 Warning Signs with WKHS. Is WKHS fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the preliminary demand response to the promotional pricing and how it fits into your long-term strategy? A: Scott Griffith, CEO: The promotional pricing is not just a test; it's indicative of our strategy to reduce prices as our cost structure improves. The Gateway order likely wouldn't have happened without this pricing, highlighting its importance for price-sensitive customers like small businesses and FedEx ISPs. We plan to continue these pricing actions as we achieve further cost reductions. Q: How have rising fuel costs impacted customer conversations and demand for Workhorse's products? A: Scott Griffith, CEO: While we haven't received hard orders due to rising fuel costs yet, there's been a significant increase in inquiries and interest. Customers are now more actively calculating the cost benefits of electric vehicles, which we expect will eventually translate into orders. Q: What are the key factors driving the tipping point for electric vehicle adoption in the medium-duty truck market? A: Scott Griffith, CEO: The total cost of ownership (TCO) advantages of electric vehicles are clear, with significant savings on fuel and maintenance. The challenge is to make the entry price more competitive with internal combustion engines (ICE), which we are addressing through cost reductions and new product developments like our modular chassis. Q: Can you provide more details on the new modular chassis and its expected impact? A: Scott Griffith, CEO: The new modular chassis will be produced at our Union City plant and is designed to support flexible configurations and advanced technologies. It aims to significantly reduce costs and improve competitiveness with ICE vehicles, with testing and validation planned for later in 2026 and production in early 2027. Q: How is Workhorse planning to support its customers as fleet electrification progresses? A: Scott Griffith, CEO: We are enhancing customer support through partnerships like the one with InCharge, which will provide comprehensive service for vehicles, charging infrastructure, and related systems. This approach aims to ensure high uptime and meet the expectations of major fleet operators for OEM-grade service. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management asserts that the medium-duty sector has moved beyond 'product-market fit' questions into a phase of scale deployment for predictable route applications. The integration of Motiv is largely complete, with three production lines (W56, F59, and EPIC4) now consolidated at the Union City, Indiana facility to drive operational efficiency. A strategic shift toward closing the price gap with internal combustion engine (ICE) vehicles is being prioritized to trigger a market tipping point. Internal data from the company's 'Stables' operation shows EV operating costs at $0.10 per mile versus $0.53 per mile for ICE, a gap that widened to $0.73 following recent fuel price spikes. The company is transitioning from external integration support to internal management to capture a projected $20 million in annualized cost synergies by year-end 2026. Strategic focus has shifted toward 'software-defined' trucks, utilizing a global supply chain to achieve fundamental structural cost reductions. Development is underway for a new proprietary modular chassis and a Class 5/6 cab chassis, with testing slated for late 2026 and production in early 2027. Management expects delivery volumes to increase sequentially throughout 2026 as the Union City facility ramps and the order pipeline converts to revenue. The company plans to launch a scalable customer support program later this year in partnership with InCharge Energy to provide 'one accountable entity' for vehicle and charging issues. Future pricing strategy involves 'laddering down' sticker prices as bill-of-materials (BOM) costs are reduced through new hardware and battery initiatives. Financial stability is predicated on evaluating further financing alternatives to support the growth plan beyond current credit facilities. A $1.5 million warranty charge was recorded in Q1, primarily due to higher-than-estimated costs for a retrofit campaign on Motiv trucks in Canada. The company resolved two major legal overhangs, including a $4.3 million settlement with Coulomb Solutions, Inc. reached in April. Liquidity was bolstered post-quarter through $17.3 million in incremental borrowing under amended cash flow and customer order credit agreements. Gross loss of $7.5 million reflects temporary costs from winding down legacy contract manufacturing and the higher fixed-cost base of the new manufacturing footprint. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that promotional pricing was a decisive factor in securing the 100-unit Gateway Fleets order. The strategy targets price-sensitive small business operators, specifically the approximately 90,000 independent service providers in the FedEx Ground network. Pricing actions are intended to be permanent 'steps' downward as the company achieves structural cost improvements. While no 'hard orders' were directly attributed to recent gas price spikes yet, management reported a significant increase in inbound queries and TCO 'penciling' by fleets in the last 30 to 60 days. The widening cost-per-mile gap is viewed as a primary catalyst for accelerating the transition of price-sensitive fleets.

Revenue of $4.3 million in Q1 2026, compared to $1.1 million in Q1 2025 on a comparable GAAP basis Delivered 21 vehicles in Q1 2026, compared to 5 vehicles in Q1 2025 Announced 100-vehicle W56 purchase order from Gateway Fleets, with deliveries expected to begin in July 2026; combined with Purolator 100 vehicle order and other unannounced orders, drives total contracted backlog of 200+ vehicles since merger close Launched 140 kWh W56 battery configuration and limited-time promotional pricing on 210 kWh W56, driving new commercial activity On track to exit 2026 at $20 million annualized cost synergy run rate; facility consolidation to Union City, Indiana complete DETROIT, May 14, 2026 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (NASDAQ: WKHS) ("Workhorse" or the "Company"), a North American OEM and provider of all-electric trucks, step vans, shuttles and buses, today reported financial results for the first quarter ended March 31, 2026. Today’s results represent the Company’s first full quarter as a combined company following the completion of its merger with Motiv Electric Trucks in December 2025. “Reflecting back on the first quarter, I am pleased to report we are continuing to deliver on our commitments, controlling what is controllable, and positioning Workhorse for sustained growth,” said Scott Griffith, CEO of Workhorse. “We believe a strong product-market fit exists in the medium duty segment, with numerous large fleets already deploying electric vehicles at scale, making this $23 billion commercial vehicle market near a tipping point of an electric transition. Our efforts this year have been focused on reducing the time to that tipping point.” Running an electric fleet reduces operating costs to 20 percent of the cost compared to gas and diesel vehicles, according to data from the Stables by Workhorse program1, our subsidiary that operates as an Independent Service Provider contracted with FedEx using a mix of gas and electric delivery trucks. While such operating cost savings make a compelling case to electrify, the higher upfront cost of an electric vehicle is still an obstacle for many. “We took decisive steps in the first quarter to address the issue of upfront cost by introducing a lower cost version (140 kWh) of our W56 step van, while also launching promotional pricing on our 210 kWh,” said Griffith. “Both efforts have generated strong interest and sales, including our announced 100-unit order from Gateway Fleets.” Workhorse also believes that fundamental, structural changes in hardware and software, as well as strategic use of the global supply chain, are required to create further cost reductions needed to effectively compete with ICE vehicles. Toward that end, Workhorse has developed a plan for a new, proprietary “modular” chassis design that will be produced exclusively at its Union City manufacturing plant. The new chassis design will be based on the foundational learnings gathered from proven W56 components but with a scalable architecture that supports flexible wheelbase configurations, advanced battery and axle technologies, and next-generation software and power electronics. In addition, Workhorse has developed a plan for its first Class 5/6 cab chassis, which will pair the new modular chassis with a lightweight, low-cost cab designed for efficient upfitting, spanning applications across all classes of medium duty trucks. Workhorse’s engineering team is planning to begin test and validation of both products in 2026, supporting a planned start of production for the cab chassis platform in early 2027. Last, the Company took actionable steps to further provide a high level of support demanded by large fleets by announcing a new at-scale customer support program across its North American network of trucks through a combination of national dealer relationships, internal capabilities and a partnership with InCharge Energy. This industry-first partnership is a key aspect of plans to deliver scalable ‘first-call’ service operations and provide large fleets with what they value most – high uptime. “Ultimately, we believe we’re very well positioned in the category to deliver on both of the key drivers of the tipping point to the electrification of the medium duty segment: ICE-comparable economics and professional, scalable post-sale support,” said Griffith. “We believe our revised product priorities and new product development roadmap will address the need to deliver on the first, while our new partnership with InCharge, combined with the ongoing learnings from our existing customers and data from our own operations at our FedEx ISP, put us in a great position to solve the second.” ____________________1 Q1 Actual operating data (fuel and electricity costs) from Stables by Workhorse First Quarter and Recent Strategic Highlights Merger Integration on Track: Facility aggregation is complete, including the relocation of the EPIC 4 and F59 production lines to Union City, Indiana. Platform commonization and supply chain optimization efforts are underway. Targeting $20 Million in Annualized Cost Synergies: The Company continues to expect to exit 2026 at a $20 million annualized cost synergy run rate, with early savings already being realized through the elimination of duplicative administrative functions. Gateway Fleets 100-Vehicle Order: In late April, the Company announced a 100-vehicle W56 purchase order from Gateway Fleets through partner Kingsburg Truck Center in California, with deliveries expected to begin in July 2026. The order was influenced by the Company's promotional pricing, demonstrating how the flexibility afforded by the Company’s cost reduction efforts is translating to commercial success. Purolator 100-Vehicle Order: Purolator, a leading Canadian integrated freight and logistics provider, placed a 100-vehicle purchase order for fully-electric step vans — Purolator’s fourth order with the company over a multi-year period and one that will double the number of Workhorse vehicles in its fleet. Deliveries are expected to be completed by the end of 2026. First Quarter 2026 Financial Highlights * Revenue: Sales, net of returns and allowances, for the first quarter of 2026 were $4.3 million, compared to $1.1 million in the first quarter of 2025. Vehicles Delivered: The Company delivered 21 vehicles during the first quarter of 2026, compared to 5 vehicles in the first quarter of 2025. Cost of Sales: Cost of sales for the first quarter of 2026 was $11.8 million, compared to $2.2 million in the prior year quarter. Cost of sales increased on higher sales volume and also reflects the higher fixed cost base of the pre-facility consolidation combined manufacturing footprint, including the costs for the Workhorse manufacturing facility as well as contract manufacturing under the legacy Motiv operational structure during the quarter. Gross loss for the quarter was $7.5 million. Operating Expenses: Total operating expenses for the first quarter of 2026 were $13.6 million, compared to $8.0 million in the first quarter of 2025. Selling, general and administrative expenses were $9.5 million and research and development expenses were $4.1 million. Operating Loss: Operating loss was $21.1 million in the first quarter of 2026, compared to $9.1 million in the first quarter of 2025. Net Loss: Net loss for the first quarter of 2026 was $19.9 million, or $1.99 per basic and diluted share, compared to a net loss of $12.7 million, or $1.36 per share, in the same period last year. Conference Call Workhorse management will hold a conference call on Thursday, May 14, 2026, at 4:30 p.m. Eastern time to discuss these results and answer related questions. To listen to the conference call webcast, please go to the Investor Relations section of Workhorse’s website at ir.workhorse.com. To listen via telephone, please call (877)-407-0789 (U.S.) or (201)-689-8562 (international). A telephonic replay of the conference call will be available after 7pm Eastern time on the same day through May 28, 2026. Toll-free replay number: (844)-512-2921International replay number: (412)-317-6671Replay ID: 13760452 About Workhorse Group Inc. Headquartered in the Detroit area with a commercial-scale manufacturing plant in Indiana, Workhorse (Nasdaq: WKHS) is redefining what a medium-duty truck should be. Workhorse builds software-first, electric trucks, shuttles and buses that are powerful, cost-efficient, reliable, safe and comfortable—all with zero tailpipe emissions. Our deep experience building electric vehicles at scale drives intentional innovations designed to help customers lower operating costs, improve performance of their fleets, enhance the driver experience, and maximize uptime without compromise. By electrifying their fleets, our customers can make a positive impact on our world while meeting their financial, sustainability and compliance goals. More information is available at www.workhorse.com. Media Relations Contacts: WorkhorseJohn Williams, Communications+1-206-660-5503, [email protected], [email protected] Investor Relations Contact: [email protected] Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical fact included in this press release, including, among other things, statements regarding future events, plans and anticipated results of operations, business strategies, the anticipated benefits of the Motiv/Workhorse merger, the anticipated impact of the Workhorse/Motiv merger on the combined company’s business and future financial and operating results, the expected amount and timing of synergies from the Workhorse/Motiv merger, Workhorse’s ability to achieve profitability, Workhorse’s sales integration and pipeline, Workhorse’s access to capital to fund operations and fulfill orders, Workhorse’s expected delivery of contracted vehicle orders, Workhorse’s product development plans, and other statements regarding the company’s anticipated or planned operations, access to capital or operating results are forward-looking statements. Some of these statements may be identified by the use of the words “plans”, “expects” or “does not expect”, “estimated”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “targets”, “projects”, “contemplates”, “predicts”, “potential”, “continue”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, “will” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management of Workhorse as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some factors that could cause actual results to differ include our ability to raise capital to fund our operations and to maintain access to our current debt facilities; our ability to achieve the expected synergies and/or efficiencies from our operations and as a result of the Motiv/Workhorse merger; our ability to reduce the cost to build our vehicles; our ability to deliver vehicles as contracted; our ability to further develop and bring to market new products as planned; the effect of the Motiv/Workhorse merger on the ability of the parties to operate their businesses and retain and hire key personnel and to maintain favorable business relationships; the possibility that the integration of the parties may be more difficult, time-consuming or costly than expected or that operating costs and business disruptions may be greater than expected; the risk that the price of our securities may be volatile due to a variety of factors; changes in laws, regulations, technologies, the global supply chain, and macro-economic and social environments affecting our business, including demand for electric trucks and our cost of production; our status as a controlled company; and our ability to maintain compliance with Nasdaq rules and otherwise maintain our listing of securities on Nasdaq. Additional information on these and other factors that may cause actual results and Workhorse’s performance to differ materially is included in Workhorse’s periodic reports filed with the SEC, including, but not limited to, Workhorse’s Annual Report on Form 10-K for the year ended December 31, 2025, including those factors described under the heading “Risk Factors” therein, and Workhorse’s subsequent periodic reports. Copies of Workhorse’s filings with the SEC are available publicly on the SEC’s website at www.sec.gov or may be obtained by contacting Workhorse. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. These forward-looking statements are made only as of the date hereof, and Workhorse undertakes no obligations to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. * Note on Financial Statement Presentation On December 15, 2025, we completed our merger with Motiv. While the legal acquirer in the merger was Workhorse, for financial accounting and reporting purposes under U.S. GAAP, Motiv was the accounting acquirer, and the Merger was accounted for as a reverse acquisition. Accordingly, the consolidated assets, liabilities and results of operations of Motiv became the historical consolidated financial statements of the consolidated company, and Workhorse’s assets, liabilities and results of operations were consolidated with those of Motiv beginning on December 15, 2025. As a result, comparative first quarter 2025 financial information reflects only Motiv and is not directly comparable to the combined company results for the first quarter of 2026. Workhorse Group, Inc.Unaudited Pro Forma Revenue The table below reflects the combined revenue of Workhorse and Motiv for the period ended March 31, 2025 as if the merger had occurred at the beginning of the period presented. The unaudited pro forma revenue presented is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the merger was completed at the beginning of the period presented or of the future operating results of the combined company. A reconciliation of pro forma revenue is provided below.