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Introduction & Market Context
Workhorse Group Inc. (NASDAQ:WKHS) held a joint conference call with Motiv Electric Trucks on August 19, 2025, announcing a strategic merger between the two companies. The announcement comes as Workhorse reported a significant improvement in its Q2 2025 financial results, with sales jumping more than sevenfold year-over-year.
The stock saw a premarket gain of 3.09% following the announcement, trading at $1.66 after closing at $1.61 the previous day. This represents a modest recovery for a company that has faced significant challenges, with its stock trading near the 52-week low of $0.81 in recent months.
As shown in the following slide from the presentation, the two companies aim to create a leading North American medium-duty electric truck OEM through this strategic combination:
Quarterly Performance Highlights
Workhorse reported a dramatic improvement in its financial performance for Q2 2025. Sales reached $5.7 million, up 612% from $0.8 million in the same period last year. This represents a substantial turnaround from Q1 2025, when the company reported sales of just $600,000.
Despite the revenue growth, the company continues to operate at a loss, reporting a net loss of $14.8 million for the quarter. However, this represents a significant improvement from the $26.3 million loss reported in Q2 2024.
The company secured 36 purchase orders in Q2 and reported that its W56 vehicles are now in service across FedEx (NYSE:FDX) terminals. Workhorse also highlighted a $7.0 million reduction in operating expenses year-over-year, demonstrating its focus on financial discipline.
The following financial summary highlights the company’s Q2 performance:
Strategic Merger with Motiv
The centerpiece of the presentation was the announcement of Workhorse’s strategic merger with Motiv Electric Trucks. The combined company aims to create a leading North American medium-duty electric truck OEM with a broader product portfolio, stronger customer relationships, and enhanced manufacturing capabilities.
Post-merger, Motiv’s controlling investor will own approximately 62.5% of the combined company, while Workhorse shareholders will retain approximately 26.5%. The senior secured lender will hold the remaining 11%.
The merger is expected to provide several strategic benefits, as illustrated in the following slide:
The combined company will have a broader product portfolio, expanding its total addressable market within the medium-duty trucking sector, which is estimated to be worth over $23 billion in 2025. The expanded product lineup includes vehicles ranging from Class 4 to Class 6, as shown below:
The merger also brings together complementary customer bases, with the combined entity having existing commercial relationships with 10 of the largest medium-duty fleets in North America. Key customers include FedEx, Cintas (NASDAQ:CTAS), Bimbo Bakeries USA, Purolator, and Aramark.
Detailed Financial Analysis
While Workhorse showed significant improvement in its top line, the company’s balance sheet reveals ongoing financial challenges. As of June 30, 2025, Workhorse reported cash and cash equivalents of $2.2 million, down from $4.1 million at the end of 2024. However, restricted cash increased substantially to $22.5 million from $0.5 million.
Total (EPA:TTEF) assets stood at $99.3 million, up from $93.8 million at the end of 2024, while total liabilities increased to $76.9 million from $49.6 million. Stockholders’ equity declined to $22.3 million from $44.3 million.
The following balance sheet highlights provide a more detailed view of the company’s financial position:
The merger is expected to strengthen Workhorse’s financial position through several mechanisms. These include a $20 million sale-leaseback of Workhorse’s Union City facility, a $5 million secured convertible note from entities affiliated with Motiv, and potential access to an additional $20 million in new debt financing post-merger.
The companies expect to achieve approximately $20 million in synergies by the end of 2026, as outlined in this slide:
Forward-Looking Statements
Looking ahead, Workhorse and Motiv outlined several near-term priorities, including completing the transaction (targeted for Q4 2025), expanding the product portfolio, and strengthening the combined company’s financial position and operational efficiency.
Key product initiatives include the W56 140 kWh model, which is planned for production launch in 2026. The company also plans to develop an integrated product roadmap that leverages the strengths of both organizations.
The combined company will benefit from a national dealer network with 19 locations in key states for EV adoption, as well as from Motiv’s consultative and direct selling methodology:
Workhorse CEO Rick Dauch, who participated in the presentation along with Motiv CEO Scott Griffith, has previously emphasized the company’s focus on practical achievements, stating, "We don’t build hype, we build trucks." This pragmatic approach appears to be bearing fruit with the significant improvement in Q2 sales, though substantial challenges remain as the company works toward profitability.
The merger with Motiv represents a strategic pivot that could potentially accelerate Workhorse’s path to sustainability in the competitive electric commercial vehicle market. Investors will be watching closely to see if the combined entity can deliver on its promised synergies and capitalize on the growing demand for electric medium-duty trucks.
Full presentation:
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