Workhorse Group Inc. Reports 2025 Annual Results: A Year of Transformation and Challenges

Workhorse Group Inc. has been at the forefront of developing all-electric vehicles tailored for last-mile delivery and medium-duty operations. The merger with Motiv Power Systems, completed on December 15, 2025, has reshaped the company's financial landscape and operational capabilities. This strategic move is expected to enhance Workhorse's product offerings and market reach.

The financial performance for the year ended December 31, 2025, was characterized by increased revenues driven by a higher number of vehicle deliveries and a rise in average selling prices. However, the company faced substantial challenges, including increased production costs and rising administrative expenses, particularly related to the merger.

Despite the increase in sales, Workhorse reported a net loss of $64.1 million, a notable improvement compared to a loss of $101.8 million in 2024.

The revenue for 2025 was primarily derived from vehicle sales, which accounted for $20.76 million, alongside extended warranty revenue and services, parts, and accessories. The breakdown is illustrated below:

Workhorse focuses on the medium-duty trucking market, which is projected to be worth $23 billion. In 2025, over 50% of the vehicle deliveries were made to repeat customers, underscoring the company's commitment to customer support and service. The current product lineup includes the Class 5/6 W56 Step Van and Stripped Chassis, along with the legacy Motiv 6th generation electrified chassis and the Class 4 EPIC4 Shuttle Bus.

The company is also actively working on a new proprietary Class 5/6 cab chassis, aiming to diversify its offerings to meet market demands.

In April 2025, Workhorse launched the Motiv Premier Partner Network (MPPN) to assist commercial fleets in transitioning to net-zero emissions. This initiative is aimed at reducing charging infrastructure costs and enhancing operational efficiencies for fleet operators.

Workhorse's vehicles have consistently met Federal Motor Vehicle Safety Standards, allowing them to qualify for various state and federal incentive programs. However, the removal of the Commercial Clean Vehicle Credit as of September 30, 2025, poses a challenge for future sales growth.

The adoption of electric trucks has been slower than anticipated, influenced by the lack of government subsidies and the slow development of charging infrastructure. Proposed changes to incentive programs in California and the removal of federal tax rebates could further impede growth.

Workhorse is also managing ongoing volatility in commodity prices, particularly for lithium and cobalt, which are vital for electric truck production. The company is actively working to mitigate these risks through strong supplier relationships.

As of December 31, 2025, Workhorse reported total assets of $117.8 million, significantly increasing from $93.84 million in 2024. The balance sheet reflects a total equity of $43.04 million and total liabilities of $74.85 million, indicating a challenging financial position that requires careful management.

The company experienced significant cash outflows from operating activities amounting to -$35.6 million. However, it secured $32.01 million from financing activities, which included proceeds from debt and equity. Despite these inflows, there remains substantial doubt regarding Workhorse's ability to continue as a going concern due to recurring losses.

As Workhorse Group Inc. navigates a complex landscape impacted by regulatory uncertainties, market demand fluctuations, and ongoing supply chain issues, the merger with Motiv Power Systems represents a strategic step forward. The company must address its significant financial and operational challenges to ensure long-term viability in the evolving electric vehicle market. With a focus on innovation, customer support, and sustainability, Workhorse aims to solidify its position as a leader in the medium-duty electric truck sector.