Group 1 - The article provides a buy rating for Dycom Industries (NYSE: DY), highlighting its strong positioning as a beneficiary of the ongoing digital infrastructure investment supercycle [1] - The core fiber-to-the-home rollout for Dycom Industries remains robust, indicating a solid demand for its services [1] - The author emphasizes a diverse investment background, utilizing various investment strategies such as fundamental, technical, and momentum investing to enhance the investment process [1] Group 2 - There is no disclosure of any stock, option, or similar derivative position in any of the companies mentioned, nor any plans to initiate such positions in the near future [2] - The article expresses the author's personal opinions and is not compensated beyond the platform used for publication [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the opinions of the platform as a whole [3]

Core Viewpoint - Workhorse Group Inc. is in discussions for a potential merger with a privately held U.S.-based manufacturer of electric commercial vehicles, which may significantly alter the ownership structure of the company [1][2]. Company Overview - Workhorse Group Inc. focuses on the transition to zero-emission commercial vehicles and is exploring a merger with a manufacturer in the same sector [1][2]. Potential Transaction Details - The merger would involve the manufacturer being merged into a newly created subsidiary of Workhorse in exchange for newly issued shares of common stock, likely resulting in the manufacturer’s investors holding a substantial majority of the outstanding shares post-transaction [2][3]. - The exact number of shares to be issued has not been determined yet [2]. Refinancing Plans - The potential transaction includes plans for refinancing approximately $33 million in outstanding senior secured convertible notes, with a new convertible note and a $20 million sale leaseback of the company's manufacturing facility in Indiana [3][4]. - The refinancing aims to fully repay the existing notes without incurring a redemption premium and to cancel related warrants [3][4]. Conditions and Timeline - The completion of the refinancing and the merger is intended to occur simultaneously, with the company planning to repay half of its obligations under the notes as a condition for executing a definitive agreement [4]. - The company has entered into an Exclusivity Agreement with the manufacturer, preventing negotiations with third parties for 14 days [5]. Regulatory and Approval Process - The consummation of the potential transaction is subject to various conditions, including stockholder approval and compliance with Nasdaq listing procedures [5][6]. - If definitive agreements are reached, the company will file a proxy statement with the SEC, and stockholders will be advised to read it carefully [6][7].

Financial Data and Key Metrics Changes - Sales net of returns and allowances for Q1 2025 were $600,000, a decrease from $1,300,000 in Q1 2024, primarily due to the Arrow divestiture and decreased W4CC and W56 truck sales [27] - Cost of sales for Q1 2025 was $5,200,000, down from $7,400,000 in the prior year, driven by lower sales volume and reduced labor costs [28] - Selling, general and administrative expenses decreased to $6,800,000 from $14,100,000 in the prior year, primarily due to lower headcount and related expenses [28] - Research and development expenses were $1,500,000, down from $3,500,000 in the prior year, mainly due to decreased employee compensation [29] - Interest expense net for Q1 2025 was $5,300,000, compared to $1,300,000 in the prior year, driven by higher outstanding convertible note balances [29] - As of March 31, 2025, the company had $2,600,000 in cash and cash equivalents and $27,900,000 in restricted cash [30] Business Line Data and Key Metrics Changes - Year to date, the company booked purchase orders for 27 W56 Step Vans, with deliveries expected in the next 60 to 120 days [6] - The company delivered FedEx's 2024 order of fully equipped W56 Step Vans, which are expected to be deployed at three terminals by the end of Q2 [8] - The company began delivering the extended wheelbase W56 Step Van to a national fleet, providing a larger electric alternative without range or payload compromise [9] - The company expanded its dealer and service networks, adding new partners to enhance market coverage and service reliability [11] Market Data and Key Metrics Changes - The commercial EV market is experiencing a shift in customer demand, with increasing interest in the company's vehicles and growing momentum through vehicle orders and deployments [5] - The company is the only North American OEM producing complete electric step vans in-house, providing a competitive advantage in quality and lead times [14][15] - The company has seen competitors struggling with production and quality concerns, highlighting its position as a reliable provider of electric trucks [23][24] Company Strategy and Development Direction - The company is focused on building dependable electric trucks and earning customer confidence through rigorous execution and partnerships [4][5] - The company aims to expand its product portfolio to meet the demands of last-mile delivery, with plans to introduce more range options and configurations [16][17] - The company is maintaining financial discipline and cash preservation while navigating market challenges and seeking larger fleet orders [12][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of disciplined execution and real-world impact, focusing on building and shipping key customer orders [34] - The company is ramping production in line with demand and assessing new battery suppliers to strengthen its supply chain [34] - Management acknowledged ongoing market challenges but expressed confidence in the company's ability to scale for long-term growth [26] Other Important Information - The company completed a reverse stock split in March 2025 to regain NASDAQ compliance, which is crucial for accessing capital [13] - The company received CMBSS certification for the import and sale of vehicles into Canada, broadening its international footprint [12] Q&A Session Summary Question: What is the company's outlook for future orders? - Management indicated that they anticipate receiving the 2025 RFQ from FedEx in Q2 and are actively engaging with multiple logistics providers for demos and orders [9][33] Question: How is the company managing its financial runway? - The company has successfully reduced monthly operating cash to below $3,000,000 and is focused on further cost reductions and increasing cash reserves [31][32]

Financial Data and Key Metrics Changes - Sales net of returns and allowances for Q1 2025 were $600,000, down from $1,300,000 in Q1 2024, primarily due to the Arrow divestiture and decreased W4CC and W56 truck sales [28] - Cost of sales decreased to $5,200,000 from $7,400,000 in the prior year, driven by lower sales volume and reduced labor costs [29] - Selling, general and administrative expenses were $6,800,000, down from $14,100,000, mainly due to a decrease in employee compensation and related expenses [29] - Research and development expenses decreased to $1,500,000 from $3,500,000, primarily due to lower headcount [30] - Interest expense net increased to $5,300,000 from $1,300,000, driven by higher outstanding convertible note balances [30] Business Line Data and Key Metrics Changes - Year to date, the company booked purchase orders for 27 W56 Step Vans, with deliveries expected in the next 60 to 120 days [6] - The company delivered FedEx's 2024 order of fully equipped W56 Step Vans, increasing the total number of FedEx terminals with W56 vehicles to 12 [9] - The company began delivering the extended wheelbase 208 inches W56 Step Van to a national fleet, showcasing a larger electric alternative [10] Market Data and Key Metrics Changes - The company added two new dealers in key states preparing to adopt CARB emission standards, expanding its market coverage [12] - The company received CMBSS certification for the import and sale of W56 and W750 vehicles into Canada, broadening its international footprint [13] Company Strategy and Development Direction - The company focuses on building dependable electric trucks and earning customer confidence through rigorous execution and partnerships [5] - The company aims to expand the W56 lineup to provide more range options and cargo capacity for fleet operators [17] - The company is integrating advanced telematics into its vehicles to support better operating decisions and efficiency gains [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of maintaining financial discipline and reducing operating expenses by $9,300,000 year over year [14] - The company is focused on building and shipping key customer orders while maintaining a lean operating environment [35] - Management expressed confidence in the company's ability to scale for long-term growth despite ongoing market challenges [27] Other Important Information - The company completed a reverse stock split in March 2025 to regain NASDAQ compliance, which is crucial for long-term plans and access to capital [14] - The company is actively pursuing additional funding to support its operations and growth [35] Q&A Session Summary - No specific annual revenue guidance was provided due to uncertainty in the EV landscape, but the company aims to ship more trucks in Q2 than in all of last year [33] - Management emphasized the importance of building trust with fleet customers through demonstrations and securing purchase orders [35]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) Overview of the company's financial performance and position, highlighting recurring losses and going concern issues [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Presents the company's unaudited Q1 2025 financial statements, revealing decreased sales, a net loss, and significant going concern doubts [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the company's financial position as of March 31, 2025, showing increased assets and liabilities, and negative working capital Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $2,645 | $4,120 | | Restricted cash | $27,947 | $525 | | Inventory, net | $41,309 | $41,839 | | Total current assets | $77,544 | $53,432 | | Total Assets | $115,484 | $93,841 | | **Liabilities & Equity** | | | | Accounts payable | $11,092 | $11,509 | | Convertible notes at fair value | $45,244 | $10,492 | | Total current liabilities | $80,388 | $45,236 | | Total Liabilities | $84,092 | $49,553 | | Total stockholders' equity | $31,392 | $44,288 | - The company had negative working capital of **$2.8 million** as of March 31, 2025[25](index=25&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Reports the company's operational results for Q1 2025, indicating reduced sales, a gross loss, and a net loss Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales, net | $641 | $1,339 | | Cost of sales | $5,165 | $7,443 | | Gross loss | $(4,524) | $(6,103) | | Selling, general and administrative | $6,784 | $14,095 | | Research and development | $1,529 | $3,528 | | Loss from operations | $(12,837) | $(23,727) | | Net loss | $(20,644) | $(29,156) | | Net loss per share (Basic and Diluted) | $(4.68) | $(24.09) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Outlines changes in stockholders' equity for Q1 2025, primarily driven by the net loss and capital raised from convertible notes - The company's accumulated deficit grew from **$853.4 million** to **$874.0 million** during the first quarter of 2025[17](index=17&type=chunk) - Common stock issued under convertible notes added **$7.0 million** to stockholders' equity during the quarter[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash movements for Q1 2025, showing cash used in operations and significant cash generated from financing activities Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(8,154) | $(17,964) | | Net cash used in investing activities | $(18) | $(3,026) | | Net cash provided by (used in) financing activities | $34,118 | $(8,128) | | **Change in cash, cash equivalents and restricted cash** | **$25,946** | **$(29,117)** | - Proceeds from convertible notes were the primary source of financing, providing **$33.7 million** in cash during Q1 2025[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides critical disclosures, including the company's going concern status, financing dependencies, and legal proceedings - Management has concluded that **substantial doubt exists** regarding the company's ability to continue as a going concern for at least one year from the issuance date of the financial statements[26](index=26&type=chunk)[33](index=33&type=chunk) - The company's ability to continue operations is **contingent on obtaining proceeds** from third-party financing, primarily the 2024 Securities Purchase Agreement, which has conditions for fund release[27](index=27&type=chunk)[37](index=37&type=chunk) - The company is in a legal dispute with supplier Coulomb Solutions Inc. (CSI) over alleged unpaid invoices **exceeding $4 million**. Workhorse has accrued **$1.0 million** in connection with this dispute[127](index=127&type=chunk) - Subsequent to the quarter end, the company received consent for the release of an **additional $5.5 million** from its lockbox account in two tranches (**$3.0M in April**, **$2.5M in May**)[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses the company's financial condition and operational results, emphasizing going concern risks, cost-saving measures, and market challenges - The company's ability to obtain additional financing is '**extremely limited under current conditions**,' and if unsuccessful, it may need to **seek bankruptcy protection**[141](index=141&type=chunk)[179](index=179&type=chunk) - Cost-saving measures implemented include a **20% reduction** in workforce (excluding direct labor), furloughing employees, reducing capital expenditures, and raising capital through the 2024 Securities Purchase Agreement[149](index=149&type=chunk) Q1 2025 vs Q1 2024 Results of Operations Summary (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Sales, net | $0.6 | $1.3 | $(0.7) | | Cost of sales | $5.2 | $7.4 | $(2.2) | | SG&A expenses | $6.8 | $14.1 | $(7.3) | | R&D expenses | $1.5 | $3.5 | $(2.0) | | Net loss | $(20.6) | $(29.2) | $8.6 | - Market demand in Q1 2025 was negatively impacted by slower-than-anticipated EV adoption, lack of government subsidies, and delays in charging infrastructure roll-out[152](index=152&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Confirms no material changes to market risk disclosures from the prior annual report - There have been **no material changes** to the market risk disclosures previously reported in the 2024 Form 10-K[188](index=188&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Concludes that disclosure controls and procedures were ineffective due to material weaknesses in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of March 31, 2025[190](index=190&type=chunk) - Material weaknesses identified include deficiencies in reviewing third-party valuations and a lack of sufficient, experienced accounting personnel due to turnover and cost-cutting measures[193](index=193&type=chunk) - The company is implementing remediation plans, but the material weaknesses **remain unresolved** as of the reporting date[196](index=196&type=chunk)[198](index=198&type=chunk) [PART II OTHER INFORMATION](index=39&type=section&id=PART%20II%20OTHER%20INFORMATION) Contains supplementary information not covered in the financial statements, including legal proceedings and risk factors [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) Refers to the financial statement notes for details on material legal disputes, specifically the CSI litigation - For details on legal proceedings, the report directs readers to Note 15 in the financial statements, which discusses the CSI litigation[201](index=201&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) States that no material changes to the company's previously disclosed risk factors occurred during the period - There have been **no material changes** in the company's risk factors during the current period[202](index=202&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered sales of equity securities during the reporting period - **None**[203](index=203&type=chunk) [Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Indicates that the company experienced no defaults on senior securities - **None**[204](index=204&type=chunk) [Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Confirms that this disclosure item is not applicable to the company's operations - **Not applicable**[205](index=205&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) Notes that no directors or officers adopted or terminated Rule 10b5-1 trading plans in Q1 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans or similar arrangements in Q1 2025[206](index=206&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) Lists all documents filed as exhibits with the Form 10-Q, including financing agreements and certifications

Financial Performance - Q1 2025 sales were $06 million, a decrease of $07 million compared to $13 million in Q1 2024, primarily due to the Aero divestiture and lower W4 CC and W56 truck sales[21] - Q1 2025 cost of sales was $52 million, a decrease of $22 million compared to $74 million in Q1 2024, mainly due to lower sales volume, partially offset by lower inventory reserves of $05 million and lower direct and indirect labor costs of $16 million[22] - Q1 2025 SG&A expenses were $68 million, a decrease of $73 million compared to $141 million in Q1 2024, driven by lower employee compensation ($44 million), consulting expenses ($10 million), legal and professional expenses ($07 million), marketing expenses ($05 million), and IT expenses ($05 million)[23] - Q1 2025 R&D expenses were $15 million, a decrease of $20 million compared to $35 million in Q1 2024, primarily driven by lower employee compensation ($13 million)[24] - Cash and cash equivalents, including restricted cash, totaled $306 million as of March 31, 2025[25,26] Operational Highlights - Secured initial W56 order with Gateway Fleets and purchase orders for 27 W56 step vans and 6 W4 CC/W750[10] - Delivered fully-upfitted W56 178-inch step-vans to FedEx, with vans to be in service at 12 FedEx terminals by the end of Q2[10] - Completed a 2,400-mile cross-country trip with the W56, achieving 27 MPGe at highway speeds, 53% lower fuel costs, and 40% lower scheduled maintenance than ICE vehicles[16] Strategic Priorities - The company is focused on converting finished goods inventory to cash, aiming to ship more trucks in Q2 2025 than in all of 2024[29] - The company reduced the cash burn rate to $28 million per month by year-end 2024[29] - Near-term priorities include growing backlog, advancing product roadmaps, and strengthening the financial position[31]

Exhibit 99.1 Workhorse Group Reports First Quarter 2025 Results CINCINNATI, May 15, 2025 – Workhorse Group Inc. (Nasdaq: WKHS) ("Workhorse" or "the Company"), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today reported financial results for the first quarter ended March 31, 2025. Management Commentary "We continue to deliver high-quality electric trucks and build strong momentum as customer interest grows," said Workhorse CEO Rick Dauch. "Our W56' ...

Core Viewpoint - Workhorse Group Inc. reported its financial results for Q1 2025, highlighting a decrease in sales but progress in securing purchase orders and expanding its electric vehicle offerings, while focusing on cash conservation and operational efficiency [1][5][14]. Management Commentary - CEO Rick Dauch emphasized the company's momentum in delivering electric trucks and securing initial orders, including 27 W56 step vans and six W4 CC/W750 trucks in 2025 [2]. - The company is negotiating additional orders and has begun delivering W56 step vans to a national customer [2]. - Workhorse is focused on cash preservation and extending its financial runway while capitalizing on long-term EV market opportunities [2]. Recent Strategic & Financial Actions - Workhorse secured a purchase order for two W4 CC electric work trucks for a municipal fleet in Washington [3]. - The integration of Geotab telematics technology into the W56 step van enhances fleet management capabilities [3]. - The company expanded its certified dealer network, adding new locations to strengthen its presence in key markets [3]. First Quarter Financial Results - Q1 2025 sales were $0.6 million, down from $1.3 million in the same period last year, primarily due to the Aero divestiture and decreased truck sales [5]. - Cost of sales decreased to $5.2 million from $7.4 million, driven by lower sales volume and reduced labor costs [6]. - SG&A expenses fell to $6.8 million from $14.1 million, reflecting a significant reduction in employee compensation and related expenses [7]. Research and Development Expenses - R&D expenses in Q1 2025 were $1.5 million, down from $3.5 million, mainly due to lower headcount and consulting expenses [8]. Interest Expense and Financial Position - Interest expense increased to $5.3 million from $1.2 million, attributed to higher outstanding convertible note balances [9]. - As of March 31, 2025, the company had $2.6 million in cash and cash equivalents, $27.9 million in restricted cash, and $41.3 million in inventory [12]. Financial Overview and Future Outlook - The CFO stated that the company expects to secure additional orders and aims to ship more trucks in Q2 2025 than in all of 2024 [13]. - Workhorse has reduced operating expenses by $9.3 million year-over-year, focusing on revenue generation while preserving financial runway [14]. - The company regained compliance with Nasdaq's minimum bid price requirement following a reverse stock split [14].

Core Insights - Workhorse Group Inc. is expanding its partnership with Ziegler Truck Group by adding two new dealer locations, enhancing its national network for zero-emission commercial vehicles [1][2] - The addition of Range Truck Group in Fife, Washington, strengthens Workhorse's presence in the Pacific Northwest, a region with increasing demand for electric last-mile delivery trucks [2][4] - A third Ziegler Truck Group location in DeForest, Wisconsin, is also being added to support Workhorse's Class 4–6 all-electric work trucks, reinforcing the company's commitment to fleet support [3][4] Company Developments - Range Truck Group specializes in zero-emission commercial vehicles and charging solutions, contributing to the electric vehicle adoption in the Pacific Northwest [2][6] - Ziegler Truck Group is an approved California Air Resource Board HVIP dealer, providing access to incentives for fleets adopting clean transportation technologies [4][6] - Workhorse's strategy includes a service-first approach, equipping fleets with tools to electrify operations while maintaining performance and reliability [5][7] Market Position - Workhorse Group focuses on the transition to zero-emission commercial vehicles, designing and building its vehicles in the U.S. for last-mile delivery and medium-duty operations [7] - The company aims to make its lineup of 100% electric, medium-duty work trucks more accessible to commercial fleets, addressing the need for reduced emissions [5][7]

Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860. The conference call will be broadcast live and available for replay here and via the Investor Relations section of Workhorse's website. A telephonic replay of the conference call will be available after 11:00 a.m. Eastern time on the same day through May 22, 2025. Tol ...