Workhorse Group Inc. Issues Strategic Update Following Motiv Merger

Key Developments and Forward-Looking Outlook

Workhorse Group Inc. (Nasdaq: WKHS) has released a significant update to shareholders following the completion of its merger with Motiv Power Systems, Inc. in December 2025. This communication, which includes both a shareholder letter and an investor presentation, outlines the integration progress, strategic roadmap, financial positioning, and forward-looking outlook for the newly combined company.

Key Points for Investors

• Merger Integration Progress: The integration of Motiv and Workhorse is nearly complete. The company has established its new board and governance structure, integrated employees and offices, and reviewed all enterprise systems and processes. A comprehensive plan for full enterprise systems integration is in place, expected to be completed over the next two to three quarters.
• Product Portfolio Expansion: A new cycle plan and product roadmap have been developed. Highlights include commonization and harmonization of hardware and software platforms and the design of a new proprietary cab-chassis that will open access to a broader Class 4–6 truck market. Production of the W56 model continues at the Union City, Indiana facility, and all remaining manufacturing is being consolidated at this site.
• Strengthened Financial Position: Post-merger, Workhorse reports a much stronger balance sheet. The company has secured a new line of supply chain financing, enabling advance orders of parts and components while significantly reducing cash usage. Initial synergies and cost reductions are already being recognized, especially through economies of scale and lower fixed and bill-of-materials costs.
• Operational Momentum and Sales Pipeline: Integration of Go-To-Market teams has improved customer engagement and contributed to a strengthening sales pipeline. Early trends point to increased opportunity creation and closing, supporting the company’s growth plans for 2026 and beyond.

Strategic and Financial Highlights

• Industry Position: The combined company brings over 20 years of operating experience, more than \$860 million in prior capital investment, deployment of 1,100 trucks across major North American fleets, and more than 20 million miles of real-world use.
• Market Opportunity: Workhorse is targeting the \$23 billion U.S. medium-duty truck market, which remains largely unaddressed by modern, connected electric vehicle solutions. The company believes it is well-positioned to capitalize on this market as regulatory and operator preferences shift away from legacy ICE platforms.
• Profitability and Scalability: Management asserts that profitability is achievable at a low volume—estimated at less than 1% of the target market (about 2,500 vehicles/year). Importantly, the current Union City plant has the capacity to support the five-year growth plan with minimal additional capital expenditure.
• Demonstrated Value: The company’s Stables by Workhorse division, operating as an independent FedEx contractor, demonstrates approximately 64% savings in fuel and maintenance compared to ICE vehicles. This real-world data is used as a strong selling point for fleet operators assessing total cost of ownership.
• R&D and Product Roadmap: R&D investments for 2026 and 2027 will focus on expanding the product lineup using maximum shared architecture, a strategy aimed at reducing per-unit costs and enhancing pricing flexibility.
• Sales Momentum: The company is witnessing increasing sales momentum post-merger, attributed to improved alignment and discipline in its go-to-market strategy. Management highlights a strengthening backlog that is expected to support growth plans for 2026 and beyond.

Forward-Looking Statements and Risks

• The company reiterates that all forward-looking statements are based on management’s current opinions and estimates, and various risks could cause actual results to differ materially. These include potential challenges in achieving expected merger synergies, integration costs, volatility in the company’s share price, changes in regulations or technology, supply chain disruptions, and the need to maintain compliance with Nasdaq listing standards.
• Additional details on risk factors are available in Workhorse’s Annual Report on Form 10-K for the year ended December 31, 2024, subsequent 10-Q filings, and the Definitive Proxy Statement on Schedule 14A dated October 8, 2025.

Potentially Price-Sensitive Information

• Merger Integration Progress and Early Synergies: Investors should note that the company is already realizing expected synergies and economies of scale from the merger, which is leading to lower costs and a stronger balance sheet.
• Scalable Profitability at Low Volume: The assertion that profitability is achievable at less than 1% of Workhorse’s target market (about 2,500 vehicles/year) is a significant milestone and could influence investor sentiment and the company’s valuation.
• Minimal CapEx for Growth: The existing Union City facility can support the five-year growth plan with little additional capital investment required, which could be viewed positively by investors seeking capital efficiency.
• Strengthening Sales Pipeline and Backlog: Early results from the integrated Go-To-Market teams are showing increased sales momentum and a stronger backlog, indicating the potential for revenue growth in upcoming quarters.
• Real-World Cost Savings: Documented fuel and maintenance savings of 64% versus ICE vehicles, as demonstrated by the Ohio FedEx fleet, could drive further fleet adoption and boost future revenues.

Upcoming Events

• Q4 and Full Year 2025 Results: Workhorse plans to report its Q4 and full-year 2025 financial results at the end of March 2026. Shareholders are advised to monitor this event for additional updates on integration progress and financial performance.

Management Commentary

Scott Griffith, CEO, emphasized the company’s clear vision: “Our vision is straightforward: make the adoption of Workhorse trucks simple, strategic, and cost-effective for every commercial fleet customer we serve. By doing so, we aim to drive growth, achieve profitability, and create long-term value for our shareholders.”

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