Q1 2025 Workhorse Group Inc Earnings Call
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Stan March: Now my pleasure to turn the call over to Stan March. Please go ahead Stan.
Stan March: Thank you very much Kevin good morning, we'd like to welcome all of you to workhorse as Q1 2025 results call.
Stan March: Before we begin I'd like to note that we posted our results for the first quarter, which ended March 31, 2025 by our press release. This morning, and you can find the press release and an accompanying investor presentation that will form the basis of today's call in the Investor Relations section of our website.
Stan March: We track it along with the presentation during the call.
Greetings and welcome to the Workhorse Group Q1, 2025 earnings conference call and webcast.
Operator: Greetings and welcome to the Workhorse Group Q1 2025 Earnings Conference Call-In Webcast. At this time, all participants are in a listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad.
Speaker Change: Joining me on today's call are Rick <unk>, our CEO and Bob <unk> our CFO.
At this time, all participants are in listen only mode.
Stan March: For today's agenda, please turn to slide three.
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Stan March: Following my opening comments I'll hand, the call over to Rick who will give an update on our strategic and operational priorities and deliverables. During Q1, Bob will then walk us through our financial results before discussing our continued actions to preserve cash and extend our financial runway then Rick will wrap it up before we open the call to questions.
Operator: A question and answer session will follow the formal presentation and you may press star 1 at any time to be placed into question queue. As a reminder, this conference is being recorded.
A question and answer session will follow the formal presentation and you May press star one at any time to be placed into the question queue.
Speaker Change: As a reminder, this conference is being recorded its now my pleasure to turn the call over to Stan March. Please go ahead Dan.
Kevin: It's now my pleasure to turn the call over to Stan March. Please go ahead. Thank you very much, Kevin.
Speaker Change: Thank you very much Kevin.
Stan March: Good morning. We'd like to welcome all of you to Workhorse's Q1 2025 results call. Before we begin, I'd like to note that we've posted our results for the first quarter, which ended March 31st, 2025 via press. And you can find the press release and an accompanying investor presentation that will form the basis of today's call in the investor relations section of our website.
Speaker Change: We'd like to welcome all of you to work horses, Q1, 2025 results call.
Stan March: Turning to slide four you can find our disclaimer some of the comments that we've made on this call today are forward looking and are subject to certain provisions and are also subject to risks and uncertainties you can find the full disclaimer and our periodic SEC filings as well as today's release.
Speaker Change: Before we begin I'd like to note that we posted our results for the first quarter, which ended March 31, 2025 via a press release. This morning, and you can find the press release and an accompanying investor presentation that will form the basis of today's call in the Investor Relations section of our website, we will be tracking along with the presentation during the call.
Rick: With that behind Us I'd like to now turn the call over to Rick <unk> Rick.
Stan March: We'll be tracking along with the presentation during the Joining me on today's call are Rick Dauch, our CEO, and Bob Ginnan, our CEO.
Rick: Thanks, Dan and good morning, everybody as we wrap up the first quarter of 2025 customer demand in the commercial EV market continues to shift.
Speaker Change: Joining me on today's call are Rick Dow, our CEO and Bob <unk> our CFO.
Stan March: Today's agenda, please turn to slide three. Following my opening comments, I'll hand the call over to Rick, who will give an update on our strategic and operational priorities and deliverables during Q1.
Speaker Change: For today's agenda, please turn to slide three.
Rick: But our direction here at workhorse has never been more focused to design and build dependable capable electric trucks.
Speaker Change: Following my opening comments I'll hand, the call over to Rick who will give an update on our strategic and operational priorities and deliverables. During Q1, Bob will then walk us through our financial results before discussing our continued actions to preserve cash and extend our financial runway then Rick will wrap it up before we open the call to questions.
Rick: They perform in the field and win business by earning our customers' confidence and their purchase orders.
Stan March: Bob will then walk us through our financial results before discussing our continued actions to preserve cash and extend our financial Then Rick will wrap it up before we open the call.
Rick: Some competitors are finding out that doesn't happen through powerpoint decks or prototype factories. It takes real hardcore execution.
Rick: To include rigorous design engineering and testing strong partnerships with proven commercial vehicle industry suppliers up bidders dealers and service partners and it takes a dedicated talented workforce that shows up and get the job done every day.
Speaker Change: Turning to slide four you can find our disclaimer some of the comments that we've made on this call today are forward looking and are subject to certain provisions and are also subject to risks and uncertainties you can find the full disclaimer and our periodic SEC filings as well as today's release.
Stan March: Turning to slide four, you can find our disclaimer. Some of the comments that will be made on this call today are forward-looking and are subject to certain provisions and also subject to risk and uncertainty. You can find the full disclaimer in our periodic SEC filings as well as today's.
Rick: This quarter, we continue to execute on our strategy of focusing on our people our products our processes and our partners.
Rick Dauch: With that behind us, I'd like to now turn the call over to Rick Dauch. Thanks, Stan. Good morning, everybody. As we wrap up the first quarter of 2025, customer demand in the commercial EV market continues to shift, but our direction here at Workhorse has never been more focused to design and build dependable, capable electric trucks, prove they perform in the field, and win business by earning our customers confidence and their purchase orders. As some competitors are finding out, that doesn't happen through PowerPoint decks or prototype factories. It takes real, hardcore execution. to include rigorous design, engineering, and testing, strong partnerships with proven commercial vehicle industry suppliers, upfitters, dealers, and service partners.
Rick: With that behind Us I'd like to now turn the call over to Rick <unk> Rick.
Rick: Midway through the second quarter interest in our vehicles is accelerating and momentum is building where accounts through vehicle orders real world fleet customer deployments and steady progress along our product technology roadmap.
Rick: Thanks, Dan and good morning, everybody as we wrap up the first quarter of 2025 customer demand in the commercial EV market continues to shift.
Rick: But our direction here at workhorse has never been more focused to design and build dependable capable electric trucks.
Rick: Most importantly, the <unk> six has earned a strong reputation among early adopters as the best commercial <unk> step back on the market.
Rick: They perform in the field and win business by earning our customers' confidence and their purchase orders.
Rick: Those R&R words, it's direct feedback from several customers who are operating workhorse trucks in the field as we speak.
Rick: And from some competitors are finding out that doesn't happen through powerpoint decks or prototype factories. It takes real hardcore execution.
Rick: Others are still testing products are talking about building future factories, we're delivering zero tailpipe emission trucks that are on the road and on the job.
Rick: To include rigorous design engineering and testing.
Rick: Strong partnerships with proven in commercial vehicle industry suppliers up bidders dealers and service partners and it takes a dedicated talented work force it shows up and gets the job done every day.
Rick: Police are putting our vehicles to work on last mile delivery routes where performance matters.
Rick Dauch: And it takes a dedicated, talented workforce that shows up and gets the job done every day. This quarter, we continue to execute on our strategy of focusing on our people, our products, our processes, and our partners. Midway through the second quarter, interest in our vehicles is accelerating, and momentum is building where it counts, through vehicle orders, real-world fleet customer deployments, and steady progress along our product technology roadmap. Most importantly, the W5-6 is earning a strong reputation among early adopters as the best commercial EB step van on the market. Those aren't our words, it's direct feedback from several customers who are operating workhorse trucks in the field as we speak.
Rick: Theyre cutting operating cost medium range requirements and earning the trust of the drivers and fleet managers, who rely on our trucks everyday.
Rick: This quarter, we continue to execute on our strategy of focusing on our people our products our processes and our partners.
Rick: How we will win additional business and that's how we'll continue to grow with results not rhetoric.
Rick: Midway through the second quarter interest in our vehicles is accelerating and momentum is building where it counts through vehicle orders real world fleet customer deployments and steady progress along our product technology roadmap.
Rick: So let's talk about the results and let's move to slide five.
Rick: Year to date, we book purchase orders for a total of 27 W. Five six step vans.
Rick: Covering both the W. The $1 78, and 200 agents wheel based models the.
Rick: Most importantly, the W. Five six has earned a strong reputation among early adopters as the best commercial E V step back on the market.
Rick: These trucks are on track for delivery through the next 60 to 120 days.
Rick: This does not include the first Wi Fi six order from gateway fleets for deployment across their vehicle network.
Rick: Those aren't our words, it's direct feedback from several customers who are operating workhorse trucks in the field as we speak.
Rick: Gateway fleets provides electric vehicle leasing and charging as a service solutions for last mile delivery operators.
Rick Dauch: While others are still testing products or talking about building future factories, we're delivering zero tailpipe emission trucks that are on the road and on the job. Police are putting our vehicles to work on last mile delivery routes, where performance matters. They're cutting operating costs, meeting range requirements, and earning the trust of the drivers and fleet managers who rely on our trucks every day. That's how we will win additional business, and that's how we'll continue to grow, with results, not rhetoric.
Rick: But others are still testing products are talking about building future factories, we're delivering zero tailpipe emission trucks that are on the road and on the job.
Rick: They offer flexible no capex financing models and turnkey depo deployment to help fleet operators lower operating costs and scale efficiently.
Rick: Police or putting our vehicles to work on last mile delivery routes where performance matters.
Rick: They are cutting operating costs medium range requirements and earning the trust of the drivers and fleet managers, who rely on our trucks everyday.
Rick: This initial order lays the foundation, but what we believe will grow into a long term partnership as gateway expands his presence and supports more independent contractors and routes across the country.
Rick: That's how we will win additional business and that's how we'll continue to grow with results not rhetoric.
Rick Dauch: So let's talk about the results, and let's move to slide five. Year-to-date, we've booked purchase orders for a total of 27 W56 step-vans, covering both the 178 and 280-inch wheel base models. These trucks are on track for delivery through the next 60 to 120 days. This does not include the first W56 order from Gateway Fleets for deployment across their vehicle network. Gateway Fleets provides electric vehicle leasing and charging as a service solutions for last mile delivery operators. They offer flexible, no capex financing models and turnkey depot deployment to help fleet operators lower operating costs and scale efficiently.
Rick: So let's talk about the results and let's move to slide five.
Rick: It is an important new relationship for workhorse and we're proud to share the news with you on this earnings call.
Rick: Year to date, we book purchase orders for a total of 27 W. Five six step vans.
Rick: Beyond these new orders, we delivered Fedex since 2024 order a fully equipped 178 inch wheel base W $5, except bands.
Rick: Both the W. The 178 and 208 inch wheel based models. These trucks are on track for deliveries over the next 60 to 120 days.
Rick: These vehicles were equipped by our update partnering with someone ASUR and built to meet Fedex exact operational requirements.
Rick: This does not include the first W. Five six order from gateway fleets for deployment across their vehicle network gateway.
Rick: They are expected to be deployed by Fedex or three terminals by the end of Q2, bringing the total number of Fedex terminals with Wi Fi six advance up to 12 and growing.
Rick: Gateway fleets provides electric vehicle leasing and charging as a service solutions for last mile delivery operators there.
Rick: Our ongoing engagement with Fedex continues for both high level meetings in Memphis, and Pittsburgh and through active vehicle demos and purchase orders with independent ground coffers across the country. We.
Rick: They offer flexible no capex financing models and turnkey depo deployment to help fleet operators lower operating costs and scale efficiently.
Rick Dauch: This initial order lays the foundation for what we believe will grow into a long-term partnership as Gateway expands its presence and supports more independent contractors in routes across the country.
Rick: We anticipate receiving the 2025 RF cue from Fedex corporate purchasing in Q2, which we verified this week.
Rick: This this initial order lays the foundation, but what we believe will grow into a long term partnership as gateway expands its presence and supports more independent contractors and routes across the country.
Rick: Meanwhile, beyond Fedex, we have multiple active Wi Fi six demos underway with logistics providers and service fleets. These.
Rick Dauch: It's an important new relationship for Workhorse, and we're proud to share the news with you on this earnings call. Beyond these new orders, we've delivered FedEx's 2024 order of fully equipped 178-inch wheelbase W56 step bands. These vehicles were equipped by our Upfit Partner Utility Master and built to meet FedEx exact operational requirements. They are expected to be deployed by FedEx at three terminals by the end of Q2, bringing the total number of FedEx terminals with W56 advance up to 12, and growing. Our ongoing engagement with FedEx continues through both high-level meetings in Memphis and Pittsburgh, and through active vehicle demos and purchase orders with independent ground contractors across the country.
Rick: It's an important new relationship for workhorse and we're proud to share the news with you on this earnings call.
Rick: These efforts are not only focused on building a backlog of orders, but also on validating product performance in real world conditions.
Rick: Beyond these new orders, we delivered Fedex is 'twenty 'twenty four order a fully equipped 178 inch wheelbase W. Five six step vans.
Just weeks ago, we began delivering the extended wheelbase 208 inch wheelbase step van to a national fleet through our partner evolve. This new model with 1200 cubic feet of cargo space is getting fleet operators, a larger class five six electric alternative without range or payload compromise. This order is for 13 W.
Rick: These vehicles are equipped by our update partnering with someone ASUR and built to meet Fedex exact operational requirements.
Rick: They are expected to be deployed by Fedex to three terminals by the end of Q2, bringing the total number of Fedex terminals with W. Five six that bands up to 12 and growing.
Rick: 56 units.
Rick: Our ongoing engagement with Fedex continues for both high level meetings in Memphis, and Pittsburgh, and you're active vehicle demos and purchase orders with independent ground koppers across the country.
Rick: Finally, we continue to expand the adoption of our <unk> electric work trucks recently, a municipality in Washington State purchased vehicles facilitated through our source well contract by our certified dealer the truck shop. These.
Rick Dauch: We anticipate receiving the 2025 RFQ from FedEx Corporate Purchasing in Q2, which we verified this week. Meanwhile, beyond FedEx, we have multiple active W56 demos underway with logistics providers and service fleets. These efforts are not only focused on building a backlog of orders, but also on validating product performance in real-world conditions. Just weeks ago, we began delivering the extended wheelbase 208-inch wheelbase step van to a national fleet through our partner, Revolve. This new model, with 1,200 cubic feet of cargo space, is giving fleet operators a larger Class 5-6 electric alternative without range or payload compromise.
Rick: We anticipate receiving the 2025 RFG from Fedex corporate purchasing in Q2, which we verified this week.
Rick: <unk> will be used for recycling and trash bin service. Another clear example of electric commercial trucks proving the value of practical daily fleet operations.
Rick: Meanwhile, beyond Fedex, we have multiple active W. Five six demos underway with logistics providers and service fleets. These.
Rick: These efforts are not only focused on building a backlog of orders, but also on validating product performance in real world conditions.
Rick: We continue to grow our dealer and service networks and government channel to meet rising demand. This quarter. We added two new Ziegler company dealers range truck group in Washington, and the third Ziegler truck group location in Wisconsin. These.
Rick: Just weeks ago, we began delivering the extended wheelbase 208 inch wheel base step van to a national fleet through our partner evolved this new model with 1200 cubic feet of cargo space is giving fleet operators a larger class five six electric alternative without range or payload compromise. This order is for 13 W.
Rick: These additions strengthen our market coverage in key states preparing to adopt carb emission standards.
Rick: We also expanded our certified service network, adding two new partners in key Metro markets Janus truck repair covering the San Francisco Bay area, and Gerber RV, serving the Hackensack, New Jersey, New York City, and broader New York Metro area.
Rick Dauch: This order is for 13W56 units. Finally, we continue to expand the adoption of our W4CC electric work truck.
Rick: 56 units.
Rick: Finally, we continue to expand the adoption of R. W. For Cc electric work trucks recently, a municipality in Washington State purchased vehicles facilitate through our source while contract by our certified dealer the truck shop. These.
Rick Dauch: Recently, a municipality
Rick: These partners are helping us as your fast reliable service, where our customers need it most.
Rick: And the public sector Kingsbury truck Center was awarded the California Department of General services contract for both our <unk> and our Wi Fi six vehicles. This streamlines the procurement process for state agencies and gives government buyers easier access to our trucks.
Rick: These W. Fours. He sees will be used for recycling and trash bin service. Another clear example of electric commercial trucks proving the value of practical daily fleet operations.
Rick: We continue to grow our dealer and service networks and government channel to meet rising demand.
Rick: We also received <unk> certification and approval for the important and sale for the import and sale of Wi Fi six and W. 750 vehicles into Canada, broadening our international footprint and unlocking new opportunities up there and we have lined up a large well known treated out there for demos later in the quarter.
Rick: This quarter, we added two new Ziegler company dealers range truck group in Washington, and the third Ziegler truck group location in Wisconsin.
Rick: These additions strengthen our market coverage in key states preparing to adopt carb emission standards.
Rick: We also expanded our certified service network, adding two new partners in key Metro markets, Janet struck repair covering the San Francisco Bay area, and Gerber RV, Serbian Hackensack, New Jersey, New York City, and broader New York Metro area.
Rick: In the face of ongoing market challenges and dynamics many of them outside of our control we remain focused on maintaining financial discipline and Q1, we successfully reduced operating expenses by $9 $3 million on a year over year basis.
Rick: These partners are helping us ensure fast reliable service, where our customers need it most.
Rick: Cash preservation and capital discipline continue to be priorities as we navigate the complexity of the fleet adoption delays shifting government incentives of mandates and gaps in charging infrastructure across the country.
Rick: And the public sector Kingsbury truck Center was awarded a California Department of General services contract for both our W. For C C and R. W. Five six vehicles. This streamlines the procurement process for state agencies and gives government buyers easier access to our trucks.
Rick: We're working diligently to keep workhorse on a financially viable path forward until a few commercial and state funded fleets place larger orders.
Rick: We also received C. M D S S certification and approval for the important and sale for the import and sale of W. Five six and W. 750 vehicles into Canada, broadening our international footprint and on unlocking new opportunities up there and we have lined up a large well known up there for demos later in the quarter.
Rick: We believe we have a superior product and the Wi Fi six step van built 100% and our World Class Union City, Indiana plant with an experienced chassis builder team.
Rick: In March we completed a reverse stock split that brought us back into NASDAQ compliance.
Rick: <unk> milestone that helps support our long term plans and near term access to capital.
Rick: In the face of ongoing market challenges and dynamics many of them outside of our control we remain focused on maintaining financial discipline and Q1, we successfully reduced operating expenses by $9 $3 million on a year over year basis.
Rick: In addition, we continue to work with <unk> on near term funding needs.
Rick: While these actions are dilutive to shareholders. They are buying us the necessary time to earn the type of larger fleet orders that we need in order to go out and secure additional long term funding to finance the company.
Rick: Cash preservation and capital discipline continue to be priorities as we navigate the complexities of fleet adoption delays shifting government incentives of mandates and gaps in charging infrastructure across the country.
Rick: Move to slide six where of course is the only north American OEM, producing complete electric step vans in house body and chassis under one roof.
Rick: We're working diligently to keep workhorse on a financially viable path forward until a few commercial and state funded please place larger orders.
Rick: That capability gives us greater control over quality lead times and customization.
Rick: We believe we have a superior product and the W. Five six step van built 100% and our World Class Union City, Indiana plant with an experienced chassis builder team.
Rick: It allows us to move faster and respond more effectively to customer needs is a key differentiator in a market where many other step van competitors rely 100% on third party manufacturing.
Rick: In March we completed a reverse stock split that brought us back into NASDAQ compliance.
Workhorse, we're not just building an electric truck we're building a full scale product portfolio for the demands of last mile delivery Cross the class four to six segment of work trucks.
Rick: Myles on that helps support our long term plans and near term access to capital.
Rick: In addition, we continue to work with a T W on near term funding needs.
Rick: That's why we are expanding the W. Five six lineup that give fleet operators more of what they would need more range options more cargo capacity and more flexibility to configure the vehicle around the world World job requirements. They have in the field.
Rick: While these actions are dilutive to shareholders. They are buying us the necessary time to earn the type of larger fleet orders that we need in order to go out and secure additional long term funding the buying this company.
Rick: Today, we have six class four to six electric models in production with four more variance and development to support a wide range of fleet use cases.
Rick: Move to slide six where of course is the only north American OEM, producing complete electric step vans in house body and chassis under one roof.
Rick: That includes our extended wheelbase <unk> Wi Fi six now fully certified in both the U S and Canada, which was durability tested out the 250000 miles it's in production and already being delivered to customers.
Rick: That capability gives us greater control over quality lead times and customization.
Rick: Allows us to move faster and respond more effectively to customer needs is a key differentiator in a market where many other step van competitors rely 100% on third party manufacturing.
Rick: We're also preparing to start production this year on a 140 kilowatt model designed for fleets with lower daily mileage requirements.
Rick: This version offers a more affordable upfront costs, while helping customers lower their total cost of ownership over time.
Speaker Change: Yeah. We're of course, we're not just building an electric truck we're building that full scale product portfolio for the demands of last mile delivery crossed the class four to six segment of work trucks.
Rick: In March we integrated <unk> industry, leading telematics into the Wi Fi six putting advanced technology into the hands of our fleet operators.
Speaker Change: That's why we're expanding the W. Five six lineup to give fleet operators more of what they would need more range options more cargo capacity and more flexibility to configure the vehicle around the world World job requirements. They have in the field.
Rick: With more than $3 5 million connected vehicles worldwide <unk> is one of the most widely adopted telematics platforms and commercial transportation.
Speaker Change: Today, we have six class four to six electric models in production with four more variants and development to support a wide range of fleet use cases.
Rick: And now it's available on every W. Five six supporting better operating and business decisions optimize routes and real world efficiency gains.
Speaker Change: That includes our extended wheelbase two O E. W. Five six now fully certified in both the U S and Canada, which was durability tested out the 250000 miles it's in production and already being delivered to customers.
Rick: Vehicles and technology are just part of the workhorse platform. We also partner with more than 30 certified up theres nationwide, including utility Master Nab pod and switching go.
Rick: These relationships allow us to deliver tailored solutions for parcel service and municipal fleets.
Speaker Change: We're also preparing to start production this year on a W. 140 kilowatt model designed for fleets with lower daily mileage requirements.
Rick: Coupled with our in house cabin body manufacturing and painting capabilities at Union City. It gives us a significant competitive advantage in terms of providing three to six months shorter lead times from Po to delivery to customers versus our competitors.
Speaker Change: This version offers a more affordable upfront costs, while helping customers lower their total cost of ownership over time.
Speaker Change: In March we integrated G O tabs industry, leading telematics into the W. Five six putting advanced technology into the hands of our fleet operators.
Rick: When a customer puts a workhorse vehicle on the road, they're not done not going it alone because we understand what it what matters most of the fleet upright operators reliability serviceability and uptime.
Speaker Change: With more than $3 5 million connected vehicles worldwide G. O tab is one of the most widely adopted telematics platforms and commercial transportation.
Rick: That's why we're actively expanding our national dealer services and support networks to ensure our customers get the attention and parts they need wherever they are.
Speaker Change: And now it's available on every W. Five six supporting better operating and business decisions optimize routes and real world efficiency games.
Rick: Whether it's a dealer for purchase a service center for maintenance or support for ongoing fleet needs, We're making sure. We're there for every mile.
Speaker Change: Vehicles and technology are just part of the workhorse platform. We also partner with more than 30 certified up theres nationwide, including utility mats or Nab part in switching go.
Rick: Our 24 months of experience operating stables by workhorse is a Fedex ground contractor has to provide us with critical lessons learned in the field.
Speaker Change: These relationships allow us to deliver tailored solutions for parcel service and municipal fleets.
Rick: Owners make money when their trucks are out doing business, that's why they're called work trucks and during the recent peak season, the Wi Fi six that Vance prove themselves in real world conditions, achieving 96% uptime across diverse routes regional train and winter weather.
Speaker Change: Coupled with our in house cabin body manufacturing and painting capabilities at Union City. It gives us a significant competitive advantage in terms of providing three to six months shorter lead times from P O to delivery to customers versus our competitors.
Rick: According to our customers that is by far the best uptime record of anybody in the commercial segment.
Speaker Change: When a customer puts a workhorse vehicle on the road, they're not done not going it alone because we understand what it what matters most of the fleet up right operators reliability serviceability and uptime.
Rick: Moving to slide seven.
Rick: To demonstrate just how reliable the Wi Fi six is in the field in April we completed the 2400 mile Cross country trip driving the band from Ohio to California.
Speaker Change: That's why we're actively expanding our national dealer services and support networks to ensure our customers get the attention and parts they need wherever they are.
Rick: This is our second long distance journey following a 900 mile Route tour L. Orlando last fall.
Speaker Change: Whether it's a dealer for purchase a service center for maintenance or support for ongoing fleet needs, We're making sure. We're there for every mile.
Rick: We crossed nine states tackle multiple charging networks drove through challenging train and whether all without missing a beat.
Speaker Change: Our 24 months of experience operating stables by workhorse is our Fedex ground contractor has to provide us with critical lessons learned in the field.
Rick: The Wi Fi six consistently delivered 27 miles per gallon equivalent at highway speeds nearly three times the fuel efficiency of an ice step then when.
Speaker Change: He had owners make money when their trucks are out doing business, that's why they're called work trucks and during the recent peak season. The W. Five six that bans prove themselves in real world conditions, achieving 96% uptime across diverse routes regional train and winter weather.
Rick: When you combine that with 53% lower fuel cost and 40% lower scheduled maintenance. The total cost of ownership advantage of the W. 56 becomes crystal clear.
Rick: Through telematics, we track every mile of performance data and validate our Heartland 50, plus mile range, even at highway speeds with over 2000 pounds of payload and little opportunity for region.
Speaker Change: According to our customers that is by far the best uptime record of anybody in the commercial E B segment.
Speaker Change: Moving to slide seven.
Speaker Change: To demonstrate just how reliable the W. Five six is in the field in April we completed the 2400 mile Cross country trip driving that would be a ban from Ohio to California.
Rick: These are the numbers that matter to fleet managers and they reinforce that we're building here at workhorse trucks that are durable reliable.
Rick: And operationally ready from day one.
Speaker Change: This is our second long distance journey following a 900 mile route toward L. Orlando last fall.
Rick: We wrapped up our journey by showcasing the W. Five six in the ride and drive at the <unk> Expo in Anaheim, where it drew strong attention from fleet buyers partners and industry leaders looking for Evs that deliver beyond the spec sheet and can be counted on to do the job every day.
Speaker Change: We crossed nine states tackled multiple charging networks drove through challenging train and whether all without missing a beat.
Speaker Change: The W. Five six consistently delivered 27 miles per gallon equivalent at highway speeds nearly three times the fuel efficiency of an ice step then when.
Rick: Slide eight the commercial EV landscape continues to change with a few more competitors disappearing in the last 90 days.
Speaker Change: When you combine that with 53% lower fuel costs, and 40% lower scheduled maintenance the total cost of ownership and the damage of the W. Five six becomes crystal clear.
Rick: The difference between promise and production is widening.
Some manufacturers are just beginning early customer deliveries and we're already hearing chatter about quality concerns and product returns.
Speaker Change: Through telematics, we track every mile of performance data and validate our Heartland 50, plus mile range, even at highway speeds with over 2000 pounds of payload and little opportunity for region.
Rick: Others are showing vehicles at trade shows, but can't yet support hands on demos a reliable fleet deployments some.
Rick: Some are still talking about building plans for volume production.
Speaker Change: These are the numbers that matter to fleet managers and they reinforce that we're building here at workhorse trucks that are durable reliable.
Rick: In contrast, workhorses building and delivering improving that electric trucks that are on the road in service and generating results for fleets.
Speaker Change: And operationally ready from day one.
Rick: Our products are certified production ready and backed by a growing network of trusted dealers and service partners.
Speaker Change: We wrapped up our journey by showcasing the W. Five six in the ride and drive with the a C. T Expo in Anaheim, where it drew strong attention from fleet buyers partners and industry leaders looking for Evs that deliver beyond the spec sheet and can be counted on to do the job every day.
Rick: We're not scaling from scratch, we've already built the necessary infrastructure earned customer trust and demonstrated reliability in the field.
Rick: That's what separates workhorse has faced in our space full of first tries and future plans, we're offering a no compromise solution that is working right now and customers are taking notice.
Speaker Change: Slide eight the commercial EV landscape continues to change with a few more competitors disappearing in the last 90 days.
Speaker Change: The difference between promise and production is widening.
Rick: I've said it before and it's still true we don't build hype, we build trucks and the value of our offering is resonating with customers from large fleet customers and municipalities to independent service providers buyers are telling us they want real EV solutions that work on their terms.
Speaker Change: Some manufacturers are just beginning early customer deliveries and we're already hearing chatter about quality concerns and product returns.
Speaker Change: Others are showing vehicles at trade shows, but can't yet support hands on demos, a reliable fleet deployments summer.
Speaker Change: Some are still talking about building plans for volume production.
Rick: What we're delivering.
Rick: We know the road ahead isn't without its challenges, but we have the right people the right products and the right partners in place. We're proud of the momentum we're building and confident in our ability to scale workhorse for the long term.
Speaker Change: In contrast, workhorses building and delivering proven that electric trucks that are on the road in service and generating results for fleets.
Speaker Change: Our products are certified production ready and backed by a growing network of trusted dealers and service partners.
Rick: Let me hand, the call over to Bob to cover the financial results and cost actions.
Speaker Change: We're not scaling from scratch, we've already built the necessary infrastructure earned customer trust and demonstrated reliability in the field.
Rick: Yeah.
Bob: Thanks, Rick.
Rick: Turning to slide nine to cover the first quarter results.
Rick: As a reminder, our financial statements have been adjusted for the March 2025, 1% to 12 five reverse stock split.
Speaker Change: That's what separates workhorse is faced in this space full of first tries and future plans, we're offering a no compromise solution. That's working right now and customers are taking notice.
Rick: Sales net of returns on allowances for the first quarter of 2025 were $600000 compared to $1 3 million in the first quarter of last year.
Speaker Change: I've said it before and it's still true we don't build hype, we build trucks and the value of our offering is resonating with customers from large fleet customers and municipalities to independent service providers buyers are telling us they want real easy solutions that work on their terms.
Rick: The 700000 decrease in sales was primarily due to the arrow divestiture and decreased <unk> and Wi Fi six truck sales.
Rick: Cost of sales for the first quarter of 2025 was $5 2 million a decrease of $2 3 million compared to $7 4 million in the prior year.
Speaker Change: What we're delivering.
Speaker Change: We know the road ahead isn't without its challenges, but we have the right people the right products and the right partners in place. We're proud of the momentum we're building and confident in our ability to scale workhorse for the long term.
Rick: Cost of sales decrease was primarily driven by lower sales volume, which were partially offset by lower inventory reserves of $500000 and lower direct and indirect labor costs of $1 6 million, primarily due to lower head count as a result of employee furloughs during the period.
Speaker Change: Let me hand, the call over to Bob to cover the financial results and cost actions.
Speaker Change: Yeah.
Speaker Change: Thanks, Rick.
Rick: Selling general and administrative expense in the first quarter of 2025 were $6 8 million a decrease of $7 3 million compared to $14 1 million in the prior year.
Speaker Change: Let's turn to slide nine to cover the first quarter results.
As a reminder, our financial statements have been adjusted for the March 2025, 1% to 12 and a half reverse stock split.
Rick: The decrease in SG&A expense is primarily driven by a $4 4 million decrease in employee compensation and related expenses.
Speaker Change: Sales net of returns and allowances for the first quarter of 'twenty type twenty-five were $600000 compared to $1 3 million in the first quarter of last year.
Rick: Primarily due to lower head count.
Rick: <unk> of $1 million in consulting expenses, a decrease in legal and professional expenses of $700000 decrease of $500000 in marketing expense a decrease in <unk> expenses of 500000, and lower corporate insurance of $500000.
Speaker Change: The 700000 decrease in sales was primarily due to the arrow divestiture and decreased Debbie for C. C. N W. Five six truck sales.
Speaker Change: Cost of sales for the first quarter of 2025 was $5 2 million a decrease of $2 3 million compared to $7 4 million in the prior year.
Rick: These are all partially offset by increases in rent and depreciation and amortization expenses.
Speaker Change: Cost of sales decrease was primarily driven by lower sales volume, which were partially offset by lower inventory reserves of $500000 and lower direct and indirect labor costs of $1 6 million, primarily due to lower head count as a result of employee furloughs during the period.
Rick: Research and development expenses during the first quarter of 2025 or $1 5 million, a decrease of $2 million compared to $3 5 million in the prior year.
Rick: The decrease in R&D expenses, primarily driven by $1 $3 million decrease in employee compensation related expenses due to lower head count and a $400000 decrease in consulting expenses.
Speaker Change: Selling general and administrative expense in the first quarter of 2025 were $6 8 million a decrease of $7 3 million compared to $14 1 million in the prior year.
Interest expense net for the first quarter of 2025 was $5 3 million compared to $1 3 million in the prior year.
Speaker Change: The decrease in SG&A expense is primarily driven by a $4 4 million decrease in employee compensation and related expenses.
Rick: The increase was primarily driven by recognition of interest expense related to higher outstanding convertible note balances.
Speaker Change: Primarily due to lower head count.
Speaker Change: A decrease of $1 million in consulting expenses, a decrease in legal and professional expenses of $700000 a decrease of $500000 in marketing expense a decrease of I T really the expenses of 500000 and lower corporate insurance of $500000.
Rick: During the three months ended March 31, 2025, institutional investors converted $5 9 million of principal into common stock.
Rick: The company recorded a $2 9 million fair value net loss and interest expense.
Speaker Change: These were all partially offset by increases in rent and depreciation and amortization expenses.
Rick: Future fair value adjustments attributed to change in credit risk will be recorded in other comprehensive loss.
Speaker Change: Research and development expenses during the first quarter of 2025, or one 5 million a decrease of $2 million compared to $3 5 million in the prior year.
Rick: As of March 31, 2025, the estimated fair value of outstanding warrants totaled $5 1 million. During the three months ended March 31, 2025, and 2024. The company recorded a $3 3 million fair value gain and a $500000 value net loss respectively.
Speaker Change: The decrease in R&D expenses, primarily driven by 1.3 million decrease in employee compensation related expenses due to lower head count and a $400000 decrease in consulting expenses.
Rick: As of March 31, 2025, the company at $2 6 million of cash and cash equivalents and $27 9 million in restricted cash.
Speaker Change: Interest expense net for the first quarter 'twenty 25 was $5 3 million compared to $1 3 million in the prior year.
Rick: Receivable of 27000 other receivables of 100000 inventory net.
Speaker Change: The increase was primarily driven by recognition of interest expense related to higher outstanding convertible note balances.
Rick: Net of reserves of $41 3 million in accounts payable of $11 1 million.
Speaker Change: During the three months ended March 31, 2025, institutional investors converted $5 9 million of principal into common stock.
Rick: <unk>.
Rick: On slide 10, you can find our balance sheet as of March 31, 2025. The company had a total working capital of $13 7 million, including $2 9 million of cash and cash equivalents net accounts receivable of 500000 other receivables.
Speaker Change: The company recorded a $2 9 million fair value net loss and interest expense.
Speaker Change: Future fair value adjustments attributed to change in credit risk will be recorded in other comprehensive loss.
Rick: 500000 inventory net of reserves of $41 8 million in accounts payable of $11 5 million.
Speaker Change: As of March 31, 2025, the estimated fair value of outstanding warrants totaled $5 1 million.
Rick: During Q1, we spent about 118000 on capital expenditures and we expect that same level of spending to carry into the second quarter.
Speaker Change: During the three months ended March 31st 2025, and 2024, the company recorded a $3 3 million fair value gain and a $500000 value net loss respectively.
Rick: Now, let's turn to slide 11 to discuss our financial runway, we recognize the importance of strengthening our balance sheet.
Speaker Change: As of March 31, 2025, the company had $2 6 million of cash and cash equivalents and $27 9 million in restricted cash.
Rick: Significant cost reduction actions throughout 'twenty, four and into 2025.
Rick: We reduced monthly operating cash to below $3 million, a month, which is materially lower than we were at a year ago and you can readily see the results in the income statement, we reduced operating costs by $9 3 million compared to Q1 2024.
Speaker Change: Counts receivable of 27000 other receivables of 100000 inventory.
Speaker Change: Net of reserves of $41.3 million in accounts payable of 11 1 billion.
Speaker Change: Yes.
Speaker Change: On Slide 10, you can find your balance sheet as of March 31st 2025. The company had a total working capital of $13 7 million, including $2 9 million of cash and cash equivalents net accounts receivable of 500000 other receivables.
Rick: As we look ahead, we will continue to focus on seeking additional opportunities to reduce cost increase cash.
Rick: Sure we have the financial runway to achieve our strategic goals.
Rick: Just a reminder, given the level of uncertainty in the EV landscape right now we intend to report on progress when it occurs.
Speaker Change: 500000 inventories net of reserves of 41.8 million in accounts payable of $11 5 million.
Rick: As a result, and consistent with our last call.
Speaker Change: During Q1, we spent about 118000 on capital expenditures and we expect that same level of spending to carry into <unk> into the second quarter.
Rick: We will not be providing specific annual revenue guidance at this time. However, as of today, we have shipped 18 trucks. So far in the second quarter as Rick mentioned and we aim to have more trucks shipped in the second quarter than we did all of last year.
Speaker Change: Now, let's turn to slide 11 discuss our financial runway, we recognize the importance of strengthening our balance sheet and took significant cost reduction actions throughout 'twenty four and into 2025.
Rick: We are beginning to see an increase in sales momentum.
Rick: It's it's turning.
Rick: And with that let me turn the call back over to Rick.
Speaker Change: We reduced monthly operating cash to below 3 million a month, which is materially lower than we were at a year ago and you can readily see the results in the income statement, we reduced operating costs by $9 3 million compared to Q1 2024.
Rick: Thanks, Bob.
Rick: As we look ahead, our focus remains on disciplined execution of a real world impact in the near term that means building and shipping key customer orders continuing to earn fleet through trust through demos and securing the next round of purchase orders, including Fedex is 2025 number to.
Speaker Change: As we look ahead, we will continue to focus on seeking additional opportunities to reduce costs increase cash.
Speaker Change: Sure we have the financial runway to achieve our strategic goals.
Rick: We're also supporting our dealer network as they drive adoptions across both private and government channels, while strategically showing up at trade shows that align with our mission.
Speaker Change: Just a reminder, given the level of uncertainty in the EV landscape right now we intend to report on progress when it occurs.
Speaker Change: As a result, and consistent with our last call.
Rick: Operation, we're ramping production in step with demand.
Speaker Change: We will not be providing specific annual revenue guidance at this time. However, as of today, we have shipped 18 trucks. So far in the second quarter as Rick mentioned and we aim to have more trucks shipped in the second quarter than we did all of last year.
Rick: Finally in finalizing testing of our 140 kilowatt W. Five six variant and assessing new North American battery suppliers to further strengthen our supply chain.
Rick: At the same time, we are maintaining a lean operating environment converting inventory to revenue and pursuing additional funding to position workhorse for long term growth.
Speaker Change: We are beginning to see an increase in sales momentum and a it's a it's turning.
Rick: In short, we're saying focus moving with intention and scaling smart turning proven products and customer traction into lots of momentum in the commercial EV market.
Rick: And with that let me turn the call back over to Rick.
Rick: Thanks, Bob.
Rick: As we look ahead, our focus remains on disciplined execution of a real world impact in the near term that means building and shipping key customer orders continuing to earn fleet through trust through demos and securing the next round of purchase orders, including Fedex is 2025 P O number two.
Rick: Thank you for your support and your patience and Kevin I will turn it back over to you for questions. Thank you.
Rick: Certainly will now be conducting a question and answer session.
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Rick: We're also supporting our dealer network as they drive adoptions across both private and government channels, while strategically showing up at trade shows that align with our mission.
Speaker Change: Confirmation tone will indicate your line is in the question queue.
Speaker Change: Press Star two if we'd like to move your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing star one one moment. Please while we poll for questions.
Rick: Operationally, we're ramping production in step with the man.
Rick: Finally in finalizing testing of our 140 kilowatt W. Five six variant and assessing new North American battery suppliers to further strengthen our supply chain.
Speaker Change: We've really shed some of our question and answer session I like to turn the floor back over for any further or closing comments.
Rick: At the same time, we are maintaining a lean operating environment converting inventory to revenue and pursuing additional funding to position workhorse for long term growth.
Speaker Change: No further comments, we appreciate your support we appreciate your patience and we're going to put our nose, the grindstone and keep trying to build to sell trucks, thanks and have a great day.
Rick: In short, we're same focus moving with intention and scaling smart.
Speaker Change: Thank you that does conclude today's teleconference and webcast you may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.
Rick: Turning proven products and customer traction into lots of momentum in the commercial EV market. Thank.
Rick: Thank you for your support and your patience and Kevin I'll turn it back over to you for questions. Thank you.
Speaker Change: Certainly without conducting a question and answer session, if you'd like to be placed into the question queue. Please press star one on your telephone keypad.
Speaker Change: Confirmation tone will indicate your line is in the question queue.
Speaker Change: Press Star two if you'd like to move or question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing star one one moment. Please while we poll for questions.
Speaker Change: We shed some of our question and answer session I'd like to turn the floor back over for any further or closing comments.
Speaker Change: No further comments, we appreciate your support we appreciate your patience and we're going to put our nose, the grindstone and keep trying to build and sell trucks. Thanks and have a great day bye bye.
Speaker Change: Thank you that does conclude today's teleconference and webcast you may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.