Workhorse Group (WKHS, Financial) has completed a notable achievement with its W56 electric step van, concluding a 2,400-mile journey from Cincinnati, Ohio to Anaheim, California. This cross-country drive highlighted the vehicle's robust real-world capability as it traversed nine states and utilized various charging infrastructures. The journey results are significant for fleet managers, as the W56 maintained strong performance amidst challenging weather and terrains.
The van demonstrated remarkable efficiency, attaining 27 miles per gallon of gasoline-equivalent at highway speeds, significantly outpacing the fuel efficiency of conventional internal combustion engine step vans. Furthermore, the W56's operation averaged a 53% reduction in fuel costs in comparison to its internal combustion counterparts.
The public can now test drive the W56 at the ACT Expo, North America’s premier event for advanced vehicle technology, occurring from April 28 to May 1. This achievement underscores Workhorse's strides in advancing electric vehicle technology for commercial use.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Workhorse Group Inc (WKHS, Financial) is $2.00 with a high estimate of $2.00 and a low estimate of $2.00. The average target implies an upside of 72.41% from the current price of $1.16. More detailed estimate data can be found on the Workhorse Group Inc (WKHS) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Workhorse Group Inc's (WKHS, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
WKHS Key Business Developments
Release Date: March 31, 2025
- Revenue: $6.6 million for the full year 2024, down from $13.1 million in 2023.
- Cost of Sales: $28.2 million for 2024, a decrease from $38.4 million in 2023.
- SG&A Expenses: $42.5 million for 2024, down from $55.6 million in 2023.
- R&D Expenses: $9.1 million for 2024, a decrease from $24.5 million in 2023.
- Net Loss: $101.8 million for 2024, compared to a net loss of $123.9 million in 2023.
- Interest Expense: $22.2 million for 2024, up from $8.7 million in 2023.
- Cash and Cash Equivalents: $4.6 million as of December 31, 2024.
- Inventory: $41.8 million as of December 31, 2024.
- Working Capital: $8.2 million as of December 31, 2024.
- Capital Expenditures: $4.1 million in 2024, with similar spending expected in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Workhorse Group Inc (WKHS, Financial) launched the new W56 208-inch wheel-based truck, receiving positive customer feedback and a purchase order for 13 units.
- The company received approval for the sale of W750 and W56 step van models in Canada, expanding its market reach.
- Workhorse Group Inc (WKHS) achieved significant cost reductions, including headcount and spending cuts, to extend its financial runway.
- The W56 model demonstrated strong performance in real-world tests, achieving high fuel efficiency and reliability.
- Workhorse Group Inc (WKHS) established a national dealer network and service infrastructure, supporting long-term business growth.
Negative Points
- Sales for 2024 decreased to $6.6 million from $13.1 million in 2023, primarily due to lower W4 CC truck sales.
- The company reported a net loss of $101.8 million for 2024, although this was an improvement from the previous year's loss.
- Interest expenses increased significantly due to losses on convertible notes and higher interest rates.
- Workhorse Group Inc (WKHS) executed a reverse stock split to regain compliance with NASDAQ listing requirements.
- The commercial EV market faced regulatory delays and uncertainty, impacting the pace of EV adoption and sales.
