Workhorse Group Inc. (WKHS) Q2 2025 Earnings Call Transcript

Written by Emily J. Thompson, Senior Investment Analyst

Source: SeekingAlpha

Updated: Aug 19 2025

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Source: SeekingAlpha

Truck Shipments In Q2 2025, Workhorse shipped 32 trucks, a significant increase from 1 truck in Q2 2024. This increase of 31 trucks year-over-year was driven by customer demand for the W56 step van.

Sales (Net of Returns and Allowances) Sales for Q2 2025 were $5.7 million, compared to $800,000 in Q2 2024, marking a $4.8 million increase. This was due to higher W56 shipments, partially offset by the loss of revenue from the Aero divestiture and higher W4 CC sales in the prior year.

Cost of Sales Cost of sales for Q2 2025 was $13.1 million, up $5.8 million from $7.3 million in Q2 2024. The increase was driven by higher sales volume, a $1.8 million increase in inventory excess and obsolescence reserves, partially offset by lower production expenses and labor costs.

Selling, General and Administrative (SG&A) Expenses SG&A expenses for Q2 2025 were $5.8 million, a decrease of $6.3 million from $12.1 million in Q2 2024. The decrease was primarily due to lower employee compensation, legal and professional expenses, IT-related expenses, corporate insurance, and depreciation and amortization expenses.

Research and Development (R&D) Expenses R&D expenses for Q2 2025 were $1.2 million, down $700,000 from $2 million in Q2 2024. The decrease was driven by lower employee compensation, prototype part expenses, and rent expenses.

Net Loss Net loss for the first half of 2025 improved to $35.4 million from $55.5 million in the first half of 2024. Excluding interest and fair value adjustments, the net loss from operations improved from $44.2 million to $27.3 million.

Revenue (First Half Comparison) Revenue for the first half of 2025 was $6.3 million, up $4.1 million from $2.2 million in the first half of 2024. This increase was primarily due to higher deliveries of W56 trucks.

Operating Expenses (First Half Comparison) Operating expenses for the first half of 2025 were down $16.3 million year-over-year, driven by reductions in employee compensation, consulting-related expenses, legal and professional expenses, insurance, IT-related expenses, and depreciation and amortization expenses.

WKHS

$5.72+Infinity%1D

Analyst Views on WKHS

Wall Street analysts forecast WKHS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WKHS is 0.65 USD with a low forecast of 0.65 USD and a high forecast of 0.65 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Analyst Rating

0 Buy

1 Hold

0 Sell

Hold

Current: 5.960

Low

0.65

Averages

0.65

High

0.65

Current: 5.960

Low

0.65

Averages

0.65

High

0.65

Roth Capital

Neutral

downgrade

2025-11-14

Reason

Roth Capital

Price Target

2025-11-14

downgrade

Neutral

Reason

Roth Capital lowered the firm's price target on Workhorse Group to 65c from $1.50 and keeps a Neutral rating on the shares. The firm notes Workhorse reported non-consequential Q3 results and delayed the shareholder vote on the merger with Motiv, as it believes there was insufficient shareholder support. Roth hears Motiv needs Workhorse since there are questions about whether Motiv will have future access to the Ford chassis that they use to build many of their vehicles. The firm would look to revisit its view following a successful merger and related financing.

Roth Capital

Neutral

downgrade

2025-08-19

Reason

Roth Capital

Price Target

2025-08-19

downgrade

Neutral

Reason

Roth Capital lowered the firm's price target on Workhorse Group to $1.50 from $1.75 and keeps a Neutral rating on the shares post the Q2 report. The firm cites limited growth visibility for the target cut and says it could get more constructive on the shares with a creditable timeline to positive gross margins.

Roth Capital

Neutral

downgrade

2025-08-15

Reason

Roth Capital

Price Target

2025-08-15

downgrade

Neutral

Reason

Roth Capital lowered the firm's price target on Workhorse Group to $1.75 from $2 and keeps a Neutral rating on the shares post the Q2 report. The company showed progress with revenue ahead on the delivery of 32 units and the Motiv Electric Trucks merger provides a wider path for ramping deliveries, the analyst tells investors in a research note. Roth says it could get constructive on the shares with a credible timeline to positive gross margins.

About WKHS

Workhorse Group Inc. is a technology company. Its primary focus is to provide solutions to the commercial transportation sector. The Company designs and manufactures all-electric trucks, including the technology that optimizes the way these trucks operate. The Company also manufactures medium-duty electric trucks and buses. Its products are marketed under the Workhorse brand. It manufactures Class 4 and 5/6 commercial delivery vehicles. These vehicles include the W56, based on long-standing Company know-how in the Class 5/6 truck chassis market, a medium-duty chassis, designed for last-mile delivery and high payload work-truck applications. The W56 is delivered in either a striped chassis or a complete step van configuration. In addition, it sells Class 4 cab chassis and step van vehicles, including the W4 CC and W750, and E-100 and E-GEN delivery vans. It also develops and maintains the Workhorse Connect remote data management system.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.