Workhorse Group (NASDAQ:WKHS) reported fourth-quarter and full-year 2025 results in its first earnings call as a combined company following the completion of its merger with Motiv Electric Trucks in December 2025. Chief Executive Officer Scott Griffith, who joined Workhorse through the transaction after serving as Motiv’s CEO, said the company is focused on integrating operations, expanding its medium-duty product portfolio, and strengthening its balance sheet to support a path toward profitability.
Merger integration and targeted cost synergies
Griffith described the call as a “milestone moment” and said the company has made progress on post-merger integration in the months since closing. He said Workhorse’s board and governance are in place, workforce and office integrations are nearly complete, and the company has completed a review of enterprise systems and operating processes.
On the Q&A, CFO Bob Ginnan said Workhorse recorded “a little over $4 million” of one-time fees and costs associated with the merger in the fourth quarter, while Griffith outlined four main sources of targeted cost synergies:
- Manufacturing consolidation and exiting facilities tied to the former Motiv footprint
- Headcount reductions, primarily in SG&A and R&D
- Reducing redundant costs such as professional fees, insurance, and marketing
- Facility reductions from consolidating into fewer spaces with a smaller team
Griffith said the company did not include supply chain savings in the $20 million synergy target, noting “moving parts” in the supply chain environment, including tariffs. He said Workhorse believes there is “more there” and it expects to provide estimates in future quarters.
Medium-duty market backdrop and operational data points
Griffith positioned the company’s strategy around what he described as structural changes in logistics and delivery networks since the pandemic, citing increased e-commerce penetration and shifts toward distributed fulfillment and shorter, more predictable routes. He said annual mileage for medium-duty vehicles has increased from roughly 31,000 miles in 2020 to nearly 48,000 miles in 2025, while heavy-duty truck mileage has declined.
He also pointed to customer operating data as support for electric vehicle adoption in predictable, depot-based medium-duty routes. Griffith cited Workhorse’s “Stables by Workhorse” division, which operates as an independent FedEx contractor in Ohio, saying it has documented approximately 64% savings on fuel and maintenance compared to internal combustion vehicles based on three years of mixed fleet comparisons.
Griffith said the combined company’s vehicles have surpassed 20 million “real-world miles” across more than 1,100 vehicles deployed in customer fleets. He added that Workhorse serves 10 of the largest medium-duty commercial truck fleets in North America and is seeing repeat purchase behavior, which management views as a positive customer satisfaction signal.
Product roadmap and manufacturing footprint changes
Griffith said Workhorse’s product portfolio spans Class 4, 5, and 6 medium-duty commercial vehicles. Following the merger, he said the company is developing a product roadmap aimed at commonizing key hardware and software components, while also developing a proprietary Class 5-6 cab chassis intended to expand its addressable market.
He highlighted what he called the first “concrete step” in lowering costs: a new lower-cost configuration of the W56 step van featuring a 140-kilowatt battery option. During the Q&A, Griffith said preliminary feedback from dealers and buyers has been “really good,” and he said customers had asked for a complementary lower-cost vehicle with less payload and range for shorter routes.
On manufacturing, management emphasized that the Union City, Indiana facility is already “built, tooled, and ready,” with capacity for more than 5,000 vehicles per year on a single shift. Griffith and Ginnan said incremental CapEx needs to support that level are limited, with Ginnan citing items such as “lift equipment and torque guns.” Griffith added that in the first quarter Workhorse relocated Motiv’s former chassis and powertrain line into Union City as a second production line, and said the company is adding a third line for its Class 4 truck that is expected to come up in the second quarter.
Asked how products will evolve after the merger, Griffith said Workhorse plans to “sunset” the former Class 5-6 chassis from the Motiv side after completing existing firm backlog orders. He said the company expects at least three lines running at Union City, with plans to bring up a new Class 5-6 cab chassis line as one of the existing lines is moved offline later in the year.
Profitability framework and gross margin outlook
Griffith said Workhorse does not need a large market share to reach profitability. He cited an estimated annual replacement rate of 200,000 to 250,000 medium-duty trucks and said capturing about 1% of that annual market—roughly 2,500 vehicles per year—would be “very achievable.” Based on the company’s modeling, he said that level could enable Workhorse to reach cash flow breakeven by the end of 2028, noting that 2,500 units would represent about half of Union City’s single-shift capacity.
However, Griffith signaled that reaching positive gross margins may take longer. In response to a question about gross margin turning positive by the fourth quarter of the current year, he said, “I don’t think we’re quite there for the Q4 this year,” and added, “it probably won’t be in 2026.”
Financial results and liquidity position
CFO Bob Ginnan said the merger closed on Dec. 15, 2025 and was accounted for as a reverse merger, meaning Workhorse’s fourth-quarter and full-year financial statements reflect Motiv on a standalone basis through Dec. 15 and the combined company from Dec. 16 onward.
For the fourth quarter of 2025, Ginnan reported revenue of $9.7 million, up from $6.0 million in the fourth quarter of 2024. The company delivered 65 vehicles in the quarter and 112 units for the full year 2025, compared with 40 vehicles in the fourth quarter of 2024 and 46 units for full-year 2024. He said the increase was driven by deliveries of follow-on orders from existing customers.
Cost of sales in the quarter was $15.5 million versus $9.0 million a year earlier, resulting in gross margin of negative $5.7 million. Operating expenses were $14.4 million in the fourth quarter, compared with $13.5 million in the prior-year period, including $4.9 million in merger expenses in Q4 2025. Operating loss was $20.1 million, compared with $16.5 million in the fourth quarter of 2024. Interest expense was $4.4 million versus $3.0 million a year ago, which Ginnan said largely reflected interest costs of pre-merger Motiv debt that was settled in connection with the merger. Net loss for the fourth quarter was $23.7 million, compared with $19.6 million in the same period last year.
For full-year 2025, revenue was $21.2 million, compared with $7.0 million in 2024. Ginnan also provided pro forma figures, stating that if the merger had been completed for both full-year periods, revenue would have been $34.0 million in 2025 compared with $13.7 million in 2024, while cautioning those figures were illustrative and not necessarily indicative of what would have occurred.
On liquidity, Ginnan said that as of Dec. 31, 2025, the combined company had $12.9 million of cash and cash equivalents, including $700,000 of restricted cash. He said Workhorse’s only outstanding debt at year-end was a $5 million convertible note that may convert to equity in connection with post-closing equity financing, and $10 million outstanding under a new cash flow credit facility put in place at closing. He also said the company has access to a customer order lending facility of up to $40 million to fund vehicle manufacturing as confirmed orders are received, with no borrowings outstanding under that facility at year-end.
Looking ahead, Workhorse said it is evaluating financing alternatives and exploring opportunities to raise additional capital to support its growth plan. While the company is not providing specific guidance, Ginnan said Workhorse expects deliveries to increase over the course of 2026 as it ramps production at Union City and converts its pipeline into confirmed orders.
About Workhorse Group (NASDAQ:WKHS)
Workhorse Group Inc is a U.S.-based technology company specializing in the design and manufacture of electric vehicles and drone-integrated delivery solutions. Founded in 2007 and headquartered in Loveland, Ohio, Workhorse focuses on last-mile delivery, combining electric powertrain systems, advanced telematics and proprietary composite bodies to address the growing demand for sustainable logistics fleets.
The company’s core product lineup includes the N-GEN™ chassis, a modular electric vehicle platform available in Class 3–5 configurations, and the C-1000™ all-electric delivery van.
