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Workhorse Group (WKHS)
NASDAQ:WKHS
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Workhorse Group (WKHS) AI Stock Analysis

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WKHS

Workhorse Group

(NASDAQ:WKHS)

Rating:45Neutral
Price Target:
$1.50
▲(16.28% Upside)
Workhorse Group's overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and high leverage. While the strategic merger with Motiv Power Systems and recent operational improvements offer some positive outlook, the technical indicators and valuation metrics remain unfavorable. The company's reliance on external financing and increased costs further weigh on the score.
Positive Factors
Government Contracts
Workhorse was awarded a General Service Administration (GSA) contract, enabling streamlined procurement of their vehicles by federal agencies.
Revenue Growth
The company's revenue estimates have been increased for FY2024 and FY2025, suggesting growth expectations.
Strategic Partnerships
Workhorse secured a three-year Master Framework Agreement with FedEx, under which they've already shipped 15 trucks and expect more orders in 2025.
Negative Factors
Dependency on Government Policies
Workhorse's success may become dependent on the government upholding its previous new energy objectives and driving electrification, which is currently uncertain.
Financial Challenges
The forecasted adjusted EBITDA remains negative, indicating ongoing financial challenges.
Market Uncertainty
The stock is rated Neutral, reflecting uncertainty about its future performance.

Workhorse Group (WKHS) vs. SPDR S&P 500 ETF (SPY)

Workhorse Group Business Overview & Revenue Model

Company DescriptionWorkhorse Group Inc. is an American technology company focused on providing sustainable and efficient electric delivery vehicles and drones. The company operates primarily in the transportation sector, targeting commercial fleet operators by designing and manufacturing electric vehicles, including last-mile delivery vans and trucks. Workhorse is also engaged in the development of drone technology for package delivery, aiming to enhance logistics and distribution efficiency.
How the Company Makes MoneyWorkhorse Group generates revenue primarily through the sale of its electric delivery vehicles to commercial clients, including fleet operators and logistics companies. The company has established key partnerships with various organizations to enhance its distribution capabilities and expand its market presence. Additionally, Workhorse may earn revenue from service agreements, maintenance contracts, and potential licensing of its drone technology. The company is also involved in research and development (R&D) initiatives, which could lead to future revenue streams through innovative products and solutions in the electric vehicle and drone delivery markets.

Workhorse Group Earnings Call Summary

Earnings Call Date:Aug 19, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
Workhorse and Motiv presented a strong second quarter performance with record truck shipments and significant financial improvements. The strategic merger with Motiv is expected to enhance their market position. However, increased costs of sales and reliance on external financing highlight underlying challenges. Despite these lowlights, the positives appear to outweigh the negatives.
Q2-2025 Updates
Positive Updates
Record Truck Shipments
In the second quarter of 2025, Workhorse secured 36 purchase orders for W56 step vans and shipped a record 32 trucks, a significant increase from the previous year's single truck shipment.
Financial Improvement
Workhorse reported a $4.8 million increase in sales due to higher W56 shipments and a decrease in operating expenses by $7 million year-over-year.
Strategic Merger with Motiv
Workhorse and Motiv are merging to create a leading North American medium-duty electric truck OEM, combining product portfolios and strengthening financial positions.
Cost Reductions
SG&A expenses decreased by $6.3 million compared to the prior year, and research and development expenses decreased by $700,000.
Reduced Net Loss
The net loss for the first half of 2025 improved from $55.5 million in 2024 to $35.4 million in 2025, with operating expenses down by $16.3 million year-over-year.
Negative Updates
Increased Cost of Sales
Cost of sales for the second quarter of 2025 was $13.1 million, an increase of $5.8 million compared to the prior year, driven by higher sales volume and increased inventory reserves.
Operational Challenges
Factors such as shifting political landscapes and changing government regulations have led to delayed fleet customer adoption rates, impacting growth.
Dependence on External Financing
The combined company will need to seek additional new financing to fuel strategic execution plans in 2026 and beyond, indicating ongoing financial challenges.
Company Guidance
During the joint conference call, Workhorse Group and Motiv discussed their strategic merger, highlighting several key metrics and financial improvements. Workhorse secured 36 purchase orders and shipped a record 32 W56 step vans in Q2 2025, demonstrating increasing demand and operational success. The company reported a significant year-over-year improvement with sales reaching $5.7 million, a $4.8 million increase, driven by higher shipments. Operating expenses decreased by $7 million, contributing to a net loss improvement from $55.5 million in 2024 to $35.4 million in 2025. The merger is expected to close in Q4 2025, with Workhorse shareholders owning approximately 26.5% of the combined company, which aims to enhance financial positioning, operational efficiency, and market reach in the medium-duty electric vehicle segment.

Workhorse Group Financial Statement Overview

Summary
Workhorse Group faces significant financial challenges across all verticals. The income statement shows persistent losses despite revenue growth, the balance sheet indicates high leverage and low equity, and cash flow statements reflect ongoing cash deficits. The company needs to address these issues to improve financial health and stability.
Income Statement
25
Negative
Workhorse Group's income statement shows significant challenges with negative gross and net profit margins, indicating unprofitability. Despite a notable revenue growth rate of 81.57% in the TTM, the company continues to incur substantial losses, as evidenced by negative EBIT and EBITDA margins. The trajectory suggests ongoing operational difficulties.
Balance Sheet
30
Negative
The balance sheet reflects a high debt-to-equity ratio of 1.61 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio is low, suggesting limited financial stability.
Cash Flow
20
Very Negative
Cash flow analysis reveals negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, but overall cash flow health remains weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.75M6.62M13.09M5.02M-851.92K1.39M
Gross Profit-21.57M-22.23M-25.26M-32.65M-133.34M-11.67M
EBITDA-55.04M-71.76M-111.24M-113.90M-414.55M-40.17M
Net Income-81.74M-101.79M-123.92M-105.47M-401.34M69.78M
Balance Sheet
Total Assets99.25M93.84M141.67M182.74M228.14M632.54M
Cash, Cash Equivalents and Short-Term Investments2.19M4.12M25.85M99.28M201.65M46.82M
Total Debt44.54M16.32M29.02M10.13M26.26M199.11M
Total Liabilities76.91M49.55M58.56M74.16M53.45M237.34M
Stockholders Equity22.35M44.29M83.11M108.59M174.69M395.20M
Cash Flow
Free Cash Flow-31.86M-51.65M-141.71M-111.32M-137.89M-76.01M
Operating Cash Flow-31.55M-47.59M-123.02M-93.82M-132.58M-70.28M
Investing Cash Flow-304.94K-4.06M-18.69M-20.02M99.81M-5.73M
Financing Cash Flow51.27M20.45M78.28M11.47M-6.82M292.37M

Workhorse Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.29
Price Trends
50DMA
1.77
Negative
100DMA
1.41
Negative
200DMA
4.65
Negative
Market Momentum
MACD
-0.13
Positive
RSI
36.25
Neutral
STOCH
11.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKHS, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.77, and below the 200-day MA of 4.65, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.25 is Neutral, neither overbought nor oversold. The STOCH value of 11.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKHS.

Workhorse Group Risk Analysis

Workhorse Group disclosed 43 risk factors in its most recent earnings report. Workhorse Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Workhorse Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$17.87B13.25-4.92%3.05%1.25%-14.67%
46
Neutral
$7.98M-189.10%2.97%-11.17%
45
Neutral
$20.29M-201.87%11.73%74.79%
40
Underperform
$4.12M-264.35%-98.22%49.35%
40
Underperform
$1.21M-3842.15%5865.42%99.51%
38
Underperform
$8.38M-119.04%
28
Underperform
$1.71M
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WKHS
Workhorse Group
1.29
-6.42
-83.27%
SBLX
StableX Technologies
5.44
-8.48
-60.92%
BINI
Bollinger Innovations
0.21
-3,166,500,399.79
-100.00%
EVTV
Envirotech Vehicles
2.12
-15.48
-87.95%
ZAPPF
Zapp Electric Vehicles
0.06
-3.68
-98.40%
PEVMD
Phoenix Motor
0.85
-1.65
-66.00%

Workhorse Group Corporate Events

M&A TransactionsBusiness Operations and Strategy
Workhorse Group Announces Merger with Motiv
Neutral
Aug 19, 2025

On August 19, 2025, Workhorse Group Inc. will present to industry analysts about transactions detailed in a recent report, highlighting a merger with Motiv. This announcement is significant for Workhorse as it could impact their market positioning and operational strategies, with potential implications for stakeholders, including regulatory approvals and market reactions.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Workhorse Group Announces Merger with Motiv Power Systems
Positive
Aug 15, 2025

On August 15, 2025, Workhorse Group Inc. entered into a merger agreement with Motiv Power Systems, Inc., aiming to create a leading medium-duty electric truck OEM in North America. The merger, which involves an all-stock transaction, positions Motiv’s controlling investor as the majority owner of the combined company, while Workhorse shareholders retain a significant equity stake. The merger is expected to enhance the combined company’s financial profile and operational scale, allowing it to offer a broader portfolio of commercial electric vehicles at lower costs. The transaction also includes a $20 million sale leaseback of Workhorse’s Union City plant and a $5 million convertible note, providing liquidity to fund operations and repay existing debt. The merger is anticipated to drive cost synergies and strengthen the company’s market position in the electric vehicle industry.

M&A Transactions
Workhorse Group Reenters Exclusivity Agreement for Merger
Neutral
Aug 4, 2025

On August 4, 2025, Workhorse Group Inc. announced that it has reentered an exclusivity agreement with a privately held U.S.-based manufacturer of electric commercial vehicles. This agreement reinstates restrictions from a previous agreement, which expired on July 28, 2025, and is part of ongoing discussions about a potential merger where the manufacturer would be merged into a newly created subsidiary of Workhorse in exchange for newly issued shares. The potential transaction could impact the company’s operations and market positioning, but it is subject to various risks and uncertainties, including regulatory approvals and market reactions.

Private Placements and FinancingM&A Transactions
Workhorse Group Engages in Merger Discussions
Neutral
Jul 14, 2025

On July 14, 2025, Workhorse Group announced ongoing discussions with a U.S.-based electric commercial vehicle manufacturer about a potential merger. This transaction could lead to the Manufacturer’s investors holding a majority of Workhorse’s stock. The deal also involves refinancing existing notes and a sale-leaseback of a manufacturing facility. However, no definitive agreements have been reached, and the transaction is subject to various approvals and conditions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025