The following is a summary of the Workhorse Group Inc. (WKHS) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Workhorse reported Q3 2024 sales of $2.5 million, down from $3 million in the same quarter last year, primarily due to a nonrecurrence of a sales allowance reversal.

• Gross margin and operational costs reflect a focus on cost reduction, including a 50% reduction in staff and overall operating expenses down $7.5 million year-over-year.

• Net loss for the quarter was $25.1 million, an improvement from $30.6 million loss in Q3 2023.

Business Progress:

• Secured a three-year master supply agreement with FedEx, marking a significant entry into commercial EV supply for large fleets.

• Awarded a GSA contract to streamline procurement by federal government agencies.

• Introduced a 200-inch wheelbase version of the W56 step van, with orders already secured for Q4 2024.

Opportunities:

• Engagement with FedEx and strategic alignment with government-funded fleet opportunities present significant potential for scaling operations.

• Introduced several vehicle models, anticipating higher demand for EV step vans, notably with a 200-inch wheelbase W56.

Risks:

• The achievement of cost reductions through significant headcount cuts might impact operational capacity and innovation pace.

• The political and economic uncertainties that impact incentives and market adoption rates for EV technologies pose challenges.

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