This article first appeared on GuruFocus .
Release Date: May 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Workhorse Group Inc ( NASDAQ:WKHS ) successfully integrated the Motive production line into their Union City, Indiana plant, with three production lines now operational.
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The company announced two major purchase orders in Q1 2026, including a 100-unit order from Gateway Fleets and another from Purolator, indicating strong demand for their vehicles.
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Workhorse Group Inc ( NASDAQ:WKHS ) has developed a plan for a new proprietary modular chassis design, expected to reduce costs and improve competitiveness with ICE vehicles.
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The company resolved two previously disclosed legal matters, reducing distractions and potential financial overhangs.
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Workhorse Group Inc ( NASDAQ:WKHS ) strengthened its liquidity position with incremental borrowing to support production for existing orders.
Negative Points
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The company reported a gross loss of $7.5 million for Q1 2026, driven by higher sales volume and increased costs associated with operating their own manufacturing facility.
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A $1.5 million warranty charge was recorded due to higher-than-expected costs related to a retrofit campaign for certain trucks sold in Canada.
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Selling, general, and administrative expenses increased to $9.5 million in Q1 2026, up from $4.3 million in the same period of 2025.
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Net loss for the quarter was $19.9 million, compared to a net loss of $12.7 million in the prior year, reflecting ongoing financial challenges.
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The company is not providing specific financial guidance at this time, indicating uncertainty in future financial performance.
Q & A Highlights
Q: Can you elaborate on the preliminary demand response to the promotional pricing and how it fits into your long-term strategy? A: Scott Griffith, CEO: The promotional pricing is not just a test; it's indicative of our strategy to reduce prices as our cost structure improves. The Gateway order likely wouldn't have happened without this pricing, highlighting its importance for price-sensitive customers like small businesses and FedEx ISPs. We plan to continue these pricing actions as we achieve further cost reductions.
Q: How have rising fuel costs impacted customer conversations and demand for Workhorse's products? A: Scott Griffith, CEO: While we haven't received hard orders due to rising fuel costs yet, there's been a significant increase in inquiries and interest. Customers are now more actively calculating the cost benefits of electric vehicles, which we expect will eventually translate into orders.
Q: What are the key factors driving the tipping point for electric vehicle adoption in the medium-duty truck market? A: Scott Griffith, CEO: The total cost of ownership (TCO) advantages of electric vehicles are clear, with significant savings on fuel and maintenance. The challenge is to make the entry price more competitive with internal combustion engines (ICE), which we are addressing through cost reductions and new product developments like our modular chassis.
Q: Can you provide more details on the new modular chassis and its expected impact? A: Scott Griffith, CEO: The new modular chassis will be produced at our Union City plant and is designed to support flexible configurations and advanced technologies. It aims to significantly reduce costs and improve competitiveness with ICE vehicles, with testing and validation planned for later in 2026 and production in early 2027.
Q: How is Workhorse planning to support its customers as fleet electrification progresses? A: Scott Griffith, CEO: We are enhancing customer support through partnerships like the one with InCharge, which will provide comprehensive service for vehicles, charging infrastructure, and related systems. This approach aims to ensure high uptime and meet the expectations of major fleet operators for OEM-grade service.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
