Workhorse Posts $23.7M Q4 Loss, Targets Breakeven by 2028 with $20M Synergies
Workhorse posted a $23.7 million fourth-quarter loss on $9.7 million revenue, including over $4 million in one-time merger costs and a $2.35 adjusted EPS loss. Management plans $20 million in synergies by end-2026, expects positive gross margins after 2026 and targets cash-flow breakeven by 2028 at 1% market share.
1. Q4 Financial Results
Workhorse incurred a $23.7 million loss in the fourth quarter on $9.7 million of revenue, translating to a $2.46 per share reported loss and a $2.35 adjusted EPS loss after removing nonrecurring items.
2. Merger Costs and Synergy Plans
The fourth quarter included over $4 million in one-time merger-related costs, while management expects to achieve a $20 million annual synergy run rate by the end of 2026 through personnel reductions and facility consolidations.
3. Profitability Path and Product Strategy
Management does not anticipate positive gross margins until after 2026, is working on cost parity with internal combustion trucks, has received positive feedback on its lower-cost step van, and aims for cash-flow breakeven by 2028 by capturing 1% of the medium-duty truck market.