Workhorse Group, Inc.

Ladies and gentlemen, greetings and welcome to the Workhorse Group Q1 2026 earnings call. At this time, all participants are in the listen-only mode. A brief question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference call, please signal an operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, John Williams, Chief Communications Officer. Please go ahead.

Thank you, Operator, and good afternoon, everyone. I would like to welcome all of you to our first quarter 2026 earnings call. Before we begin, I'd like to note that we have posted our results for the first quarter ended March 31st, 2026 via press release in 8K. We filed our associated quarterly report on Form 10Q with the SEC. You can find the release and an accompanying presentation in the investor relations section of our website. We will be tracking along with the presentation during this call. Joining me on today's call are Scott Griffith, our chief executive officer, and Bob Ginnan, our chief financial officer. For today's agenda, please turn to slide three. Following my opening remarks, I will hand it over to Scott, who will provide an update on our operational and commercial progress and the strategic priorities we are focused on. Bob will then walk us through our financial results for the quarter and our capital position. Scott will then make closing remarks before we open the call for questions. Our cautionary statements can be found on slide four. Some of the comments that will be made today are forward-looking statements, which are based on current expectations, projections, or opinions about future periods. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties are discussed in today's press release and in our filings with the SEC, including our Form 10-K. Now, I will turn it over to Scott.

Thanks, John. Good afternoon, everyone, and thank you for joining us. On our last call, I outlined three commitments we made at the close of the merger, complete the integration, expand our product portfolio, and strengthen our financial positions. The first quarter was about translating those commitments into measurable progress, and the early read on what we've accomplished confirms our approach and execution are on target. Let's dig into those. Starting with integration, the combination of workhorse and motive is on track. Our facility aggregation is complete, and the relocation of the motive production line into our Union City, Indiana plant is progressing as expected. We now have three production lines operating in Union City. In addition to the W56 step-band line, we've begun builds on the new F59 chassis line, and our EPIC-4 production line has also been successfully integrated into Union City. Hardware and software platform commonization continues across the engineering organization. Supply chain optimization is underway, and we are systematically winding down our external integration support and the interim transition team that supported our early integration efforts we're also making exciting progress on our product development plans and activities during the quarter we made strong progress on further detailing and executing our product vision in a few minutes i'll come back to this topic to talk more about two new product initiatives which are focused on the development of the next generation chassis and powertrain as well as the coming launch of our first class five, six cap chassis. We've also continued the simplification of our capital structure that began at close. And as Bob will also describe, we strengthened our liquidity position with incremental borrowing to support production for the orders we have in hand. We resolved two previously disclosed legal matters that had created overhang and distraction for the company, including the column solutions matter that we resolved through a settlement agreement in April. Again, Bob will walk you through the financial details. The cost discipline that the team is applying across the combined organization is evident in the early read on synergy capture, which Bob will also detail. We continue to expect to exit 2026 at our previously communicated $20 million in annualized cost synergy run rate. in short i'm pleased to report we are continuing to deliver on our commitments controlling what is controllable and positioning workhorse for sustained growth as we are now almost midway through the second quarter i'd like to reflect on the many recent conversations i've had with current and potential customers industry and financial analysts and partners about the overall state of the market i've been struck by the consistency of their feedback In particular, when I compare it to the ongoing questions about whether or not we've proven product market fit for EVs in our category. Frankly, to those who keep lingering on the question of product market fit, I believe you're focused on the wrong question. Let me explain. For the most part, in the medium-duty sector, we believe it's clear that today's electric trucks, shuttles, and buses are meeting the moment. The strongest use cases, including mid-mile logistics, last-mile delivery, municipal fleets, school buses and shuttles, and yard operations are now moving from questions around proof of concept and product market fit to scale deployment. This is due primarily to the duty cycle of these early adoption applications and use cases which have short and predictable routes that return to a depot for lower-cost overnight charging and have lots of low-speed start-stop driving that maximizes regenerative braking, further extending range, and lowering total cost of electricity. Publicly reported data also emphasizes how far we are moving beyond questions of product market fit. For example, battery electric vehicle registrations in the medium and heavy-duty commercial truck segment grew 21% in 2025, with medium-duty delivery vans setting a new sales record. Fleets running those vehicles are already reporting total cost of ownership advantages versus the trucks they replaced, according to the State of Sustainable Fleets 2026 Market Brief. The largest logistics operator in the world, Amazon, has deployed more than 30,000 all-electric Rivian vans, with announced plans to more than triple that amount in the near future. In a plenary session at ACT Expo last week, Amazon's head of fleet business development stated plainly that the business case for electrification is solid and that Amazon intends to continue. Other major logistics operators, including Purolator, Syntos, UPS, and the FedEx Delivery Network, are committing at scale. These trends are borne out in our own sales success so far in 2026. In the first quarter, Workhorse announced two major purchase orders. Purolator, a longstanding customer, completed their fourth order from us. The PO is for 100 new step vans and will more than double the existing number of workhorse vehicles already in their fleet. Their continued orders from us reflects the quality of our vehicles, TCO success, and the service levels we're providing. We also announced the 100-unit purchase order from Gateway Fleets to our long-standing dealer, Kingsburg Truck Center. Gateway is a California-based provider of bundled electric vehicle and charging solutions for commercial delivery operators. Their lease-based model, which packages the truck, the charging infrastructure, fleet support, and depot access in a single offering, is a great example of how the EV ecosystem is maturing to accelerate adoption of electric trucks. Importantly, this model eliminates the upfront costs of vehicles and charging infrastructure a barrier to adoption for some. We continue to have success selling our W56 step vans to small businesses who are independent service providers contracted with FedEx for last mile package delivery. In fact, we now have 75 vehicles either deployed or on order for near-term delivery to ISPs operating in several states. In summary, the data is telling us it's no longer a question of if EV trucks work in large segments of the medium-duty commercial truck market. Rather, it's now a question of when will we move past the tipping point to a time when software-defined all-electric medium-duty trucks are the norm, not the exception. So the question everyone should be asking is, what is it going to take to get the industry to that tipping point? Well, the data suggests we've already proven the case for EVs on a total cost-of-ownership basis. In fact, the data from Stables by Workhorse, an independent service provider contracted with FedEx that we own and operate, tells a powerful story. In 2025, our Stables operation delivered nearly 560,000 packages over nearly a quarter million miles. It's a real-world testbed, not only of our technology, but of the comparative cost of operations. Last year, in that fleet, we spent more than $76,000 on gas for our ice trucks. We spent a little more than $10,800 to power our electric trucks. On a per-mile basis, that translated to about 53 cents per mile for ice trucks and a little more than 10 cents per mile for EVs. But that was before the conflict in Iran and the refinery accident in Ohio, which both happened earlier this year. Using today's gas prices and electricity prices in Ohio, the cost gap widens to 73 cents per mile. Apply that math to a fleet of 20 vehicles, and that fleet would save $220,000 alone on fuel over the course of a year. That's a significant savings in a business with extremely tight margins. This analysis does not include additional savings from maintenance like oil changes or increased uptime because EVs need less service than ICE vehicles. With demonstrated TCO savings continuing to make the case for electric trucks on an operating basis, what remains is to get the entry price more competitive with ICE. We believe that's what will drive the tipping point. Now I'll spend a few minutes discussing what we've already done to accomplish exactly that, as well as where we're headed. During Q1, we announced a new version of our popular W56 step van. This new version offers 140 kilowatt battery that provides a sufficient range for many of our last mile delivery customers, but at a lower sticker price. Response to this new offer has been strong and will be reflected in future financial disclosures. We also announced significantly reduced promotional pricing on our 210 kilowatt step van, a key factor in Gateway Fleet's decision to purchase 100 W56s. These data points have convinced me that focusing on closing the price gap with ICE as quickly as possible will increase the adoption of our vehicles in many of the largest and most important commercial fleets in North America. So how do we continue to narrow the gap between ICE and EV price points? While I'm pleased to progress on cost reduction through synergies resulting from the merger, the reality is that such savings only go so far. To achieve the kind of breakthrough cost reduction needed to compete with ICE requires fundamental structural changes in hardware and software, as well as strategic use of global supply chain. Toward that end, today I'm announcing we're developing a plan for a new proprietary modular chassis design that will be produced exclusively at our Union City manufacturing plant. The new chassis design will be based on the foundational learnings gathered from proven W56 components, but with a scalable architecture that supports flexible wheelbase configurations, advanced battery and axle technologies, and next generation software and power electronics. This approach includes the standardization of both hardware and software systems, enabling us to build a broad portfolio of vehicles in an extremely cost-efficient manner at a low volume. While we're moving forward very aggressively to begin tests and validation of this groundbreaking design later in 2026, with initial production expected in early 2027. I'm also pleased to announce we've developed a plan for our first class 5-6 cab chassis, which will pair with our innovative new modular chassis with a lightweight, low-cost cab design for efficient upfitting. The result will be a greater payload capacity, faster time to market, and a price point and total cost of ownership that compares very well with ICE alternatives. As with the new modular chassis, our engineering team is planning to begin test and validation of this revolutionary platform that spans application across all classes of medium-duty trucks in 2026, supporting a planned start of production for the cab chassis platform in early 2027. The combination of a combined modular chassis and the Class 5-6 cab chassis will enable us to not only offer fully electric software-defined trucks that should compare well with ICE Economics, but also appeal to a wider segment of the total addressable market to a broader product portfolio. We believe these actions will bring us to the tipping point I referred to earlier, and I'm looking forward to reporting our progress each quarter and in between as we bring this exciting vision and product strategy to life. In the meantime, we continue to take steps to not only take care of our current customers, but plan for future expected growth. Last week, we announced our plans for scalable customer support across our North American network of trucks through a combination of national dealer relationships, internal capabilities, and a partnership we announced with InCharge. When the program launches later this year, Workhorse Fleet customers will have access to live specialists, to simplify support by giving fleets one accountable entity to navigate matters that span workhorse vehicles, charging infrastructure, electrical systems, and third-party hardware and software. Fleet electrification is still relatively early in the adoption cycle, so when technical issues arrive, it isn't always obvious where the culprit lies. Sorting that out quickly requires genuine expertise in both vehicle and charging ecosystem around it. InCharge's deep knowledge of EV charging hardware and software is a real asset in helping workhorse customers find and resolve the root cause faster. This industry-first partnership is a key aspect of our plan to deliver scalable, first-call service operations and provide large fleets with what they value most, high uptime. Major fleet operators expect not only a great truck at a competitive cost, but also OEM-grade customer service. We believe our ability to offer such a combination will be an important part of how we win and retain the largest fleet operators in North America. In summary, we're executing against the commitments we made at close. Integration is on track. Pricing actions are converting into orders, and we have a cleaner operational foundation than we had 90 days ago. We have developed what we believe is a clear and achievable plan to deliver purchase price and TCO metrics that favor EVs over ICE trucks. I look forward to reporting on our progress in the coming months. With that, let me hand it over to Bob to walk you through the financial details.