Workhorse Group reported financial results for the second quarter ending June 30, 2026, and provided an update on its recent announcement about a new product line. The Workhorse financials show an improvement in sales, but an operating loss.

“As we complete the final stages of merger integration, Workhorse is transforming from a pure-play manufacturer of electric commercial vehicles into a new, American industrial technology company built to serve critical commercial, government, defense, and infrastructure markets,” said Scott Griffith, CEO of Workhorse. “At the heart of this transformation is our foundational expertise in the design, engineering, testing, validation, and manufacturing of industrial products. While traditionally this expertise has been applied to the commercial vehicle market, we believe we are positioned to leverage it for broader industrial applications, opening up access to additional large, high-growth markets.”

Workhorse said it has spent the first half of 2026 reducing costs to manufacture its flagship commercial electric vehicles through smart engineering, strategic supply chain use and the elimination of redundant operations and facilities. It has also continued work on its lower-cost and more flexible next-generation platforms, which Workhorse believes will enable the production of a wider variety of models that can meet the needs of a larger share of the medium-duty commercial truck segment.

“We believe the combination of our new enterprise sales strategy, the 2026 promotional pricing, and the strong TCO and on-road performance of our W56 step van product line is continuing to drive product enthusiasm and market interest,” Griffith added. “We have a growing backlog of firm orders and our sales pipeline has more than doubled since the start of 2026.”

In addition to the strategic efforts designed to grow market share in the commercial trucking market, Workhorse has announced its intent to leverage its expertise and manufacturing capabilities to enter a new market. In July, Workhorse announced its intent to manufacture a turnkey, compute-ready, mobile AI data center designed for the localized infrastructure needs of distributed AI deployments. The company believes that this new line of business can leverage current capabilities and assets to offer a compelling value proposition to a high-growth market.

Second Quarter & Recent Strategic Highlights

Merger Integration on Track

Workhorse continued integrating enterprise technology systems and reducing redundancies across facilities and personnel during the quarter. It continues to expect to exit 2026 at a $20 million annualized cost synergy run rate.

Bill of Materials Cost Reduction Advancing

Engineering and design work on Workhorse’s modular chassis program is progressing on schedule. Workhorse has begun discussions with new suppliers for key components expected to reduce vehicle costs and continues to work with existing suppliers on further cost reductions. These efforts, together with the company's planned entry into the Class 5/6 cab-chassis segment, are designed to expand Workhorse's addressable market beyond its step van business and into a broader range of Class 5-6 truck types, including box trucks, representing a larger share of the $23 billion medium-duty truck market.

The modular chassis is the first step in a broader strategy to commonize hardware and software across all product lines, with production for the new chassis platform expected to begin in late 2027.

Optimizing for Rapid Production Ramp

Workhorse increased production in the second quarter and continued building efficiencies across its supply chain and manufacturing processes. The company expects to produce more fully electrified Class 5/6 chassis over the next five months than in any prior five-month period in its history.

Driven by a new strategic enterprise sales approach, the total cost of ownership and performance advantages of the W56, and Workhorse’s promotional pricing on the W56 step van, demand is building from both existing and new customers for deliveries in late 2026 and early 2027.

Leadership Team Strengthened

In July, Workhorse announced the appointment of Jody Davis as chief financial officer. Davis brings approximately 15 years of finance leadership across manufacturing, energy storage, aerospace, and technology companies, with a track record of closing large capital rounds and guiding development-stage businesses into full production.

Entry into Mobile AI Data Center Market

In July, Workhorse announced its planned entry into the containerized mobile AI data center category, targeting an estimated $41 billion market by 20312. Workhorse believes its engineering competencies in power electronics, thermal management, ruggedized enclosures, mobile connectivity, vibration isolation, and embedded systems can translate directly to containerized platforms that must meet the operating demands of AI hardware in the field.

The company's go-to-market approach for this new product line is partnership-based, with Workhorse intending to serve as the design, engineering, and manufacturing partner while strategic partners lead end-market development and manage customer relationships, an approach intended to reduce execution risk. Workhorse is targeting 2027 for commencement of initial production and commercial deliveries.

Second Quarter 2026 Financial Highlights

Highlights from the second-quarter financial report includes:

• Revenue: Sales, net of returns and allowances, for the second quarter of 2026 were $3.6 million, compared to $0.8 million in the second quarter of 2025 on a GAAP basis. On a pro forma combined basis, revenue for the second quarter of 2025 was $6.4 million. For the first half of 2026, revenue was $7.9 million, roughly in line with pro forma combined revenue of $8.2 million in the first half of 2025.
• Vehicles Delivered: The Company delivered 26 vehicles during the second quarter of 2026, compared to 4 vehicles in the second quarter of 2025.
• Cost of Sales: Cost of sales for the second quarter of 2026 was $11.0 million, resulting in a gross loss of $7.5 million, consistent with the first quarter. The company continues to expect gross margin to improve as production volumes at Union City scale and the cost benefits of the combined platform are realized.
• Operating Expenses: Total operating expenses for the second quarter of 2026 were $11.9 million. Selling, general and administrative expenses were $7.8 million, reflecting the costs of running the combined company, partly offset by merger-related synergies, including reductions in redundant headcount and other operating costs. Research and development expenses were $4.1 million, reflecting continued strategic investment in the Company's bill of materials cost reduction program and early-stage engineering work supporting the mobile AI data center product line.
• Operating Loss: Operating loss was $19.4 million in the second quarter of 2026, compared to $9.0 million in the second quarter of 2025.
• Net Loss: Net loss for the second quarter of 2026 was $20.2 million, or $1.86 per basic and diluted share, compared to a net loss of $12.8 million, or $1.38 per share, in the same period last year.
• Capital Position: As of June 30, 2026, Workhorse had $9.6 million in cash and cash equivalents, plus $0.7 million of restricted cash. During the first half of 2026, the Company drew $20.0 million under its Cash Flow Credit Agreement, bringing the outstanding balance to $30.0 million, and drew $18.3 million under its Customer Order Credit Agreement. Subsequent to quarter-end, Workhorse amended its Cash Flow Credit Agreement to increase capacity and borrowed an additional $10 million to fund its operations.