Exchange: NASDAQ | Sector: Consumer Cyclical | Industry: Auto Manufacturers
Q3 2025
Published: Feb 26, 2025
Earnings Highlights
Revenue of $7.22M down 13.9% year-over-year
EPS of $-0.17 increased by 10.5% from previous year
Gross margin of 14.6%
Net income of -4.74M
"Fraser Atkinson: We are now set to deliver one BEAST per week from the South Charleston facility with the production increasing to two units per week by April plus the Nano BEAST production. This will allow us to better meet the timely demand for orders on the East Coast from places like New York and West Virginia. To support this growth, we strengthened the leadership of our production team with the addition of James Redd as our new West Virginia production manager. Working alongside Vice President of Production, Wendell White, James has been instrumental in laying the groundwork for an increase in production output by focusing on the first shift productivity and by adding a second shift to the plant, positioning GreenPower to meet rising demands and to scale efficiently." - Fraser Atkinson
GreenPower Motor Company Inc (GP) QQ3 2025 Results — Throughput Acceleration, California Consolidation, and Incentive-Fueled Backlog Support in EV Bus/EV Star Markets
Executive Summary
GreenPower Motor Company (GP) reported QQ3 2025 results characterized by a notable sequential revenue increase and a material gross profit expansion driven by early-stage benefits from higher West Virginia output and California/Nano BEAST sales, offset by continued elevated operating expenses and ramp costs. Revenue reached $7.22 million in the quarter, up 35% QoQ but down roughly 13.9% YoY to reflect ongoing ramp costs and an intensified product mix during the manufacturing consolidation period. Gross profit was approximately $1.05 million for a gross margin of 14.60%, reflecting improvements from BEAST/Nano BEAST deployments in California and Oregon and broader EV Star sales, yet offset by less favorable margins in the truck-body division and West Virginia ramp inefficiencies.
Management highlighted a clear path to margin restoration through throughput gains, consolidation of California operations into a single Riverside plant, and West Virginia throughput enhancements. The company also staged a modest liquidity strategy, including a $3 million equity offering completed in October, and continues to rely on the EDC revolving facility and letters of credit to fund production. Management remains confident in the accelerated production plan (one BEAST per week, rising to two per week by April, plus Nano BEAST production) to capture growing demand on the East Coast and within state incentive programs. The near-term cash flow remains negative, with operating cash flow of approximately -$1.06 million and a free cash flow of about -$1.06 million; however, the financing activity contributed positive cash of about $1.44 million, helping to support ongoing capex and working capital aligned with the consolidation strategy. Overall, the QQ3 2025 results underscore a transition phase aimed at manufacturing efficiency and revenue mix improvement, complemented by a favorable policy backdrop in several key markets that could unlock higher adoption of GreenPower’s EV Star and school-bus platforms over the next 12–24 months.
Key Performance Indicators
Revenue
7.22M
QoQ: 35.00% | YoY:-13.89%
Gross Profit
1.05M
14.60% margin
QoQ: 129.32% | YoY:15.48%
Operating Income
-4.18M
QoQ: -1.35% | YoY:-4.32%
Net Income
-4.74M
QoQ: -0.79% | YoY:0.65%
EPS
-0.17
QoQ: 5.56% | YoY:10.53%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $7.2189 million in QQ3 2025, up 35.0% QoQ but down 13.89% YoY. The QoQ gain reflects stronger BEAST/Nano BEAST sales in California and Oregon and ongoing EV Star orders.
Gross profit: $1.054 million with gross margin 14.60%, up from prior quarters as BEAST/Nano BEAST contributions offset by West Virginia ramp costs and truck body margins.
R&D: $380k; SG&A (selling, general and administrative): $4.084 million; total operating expenses: $5.234 million.
Financial Highlights
Revenue and profitability momentum
- Revenue: $7.2189 million in QQ3 2025, up 35.0% QoQ but down 13.89% YoY. The QoQ gain reflects stronger BEAST/Nano BEAST sales in California and Oregon and ongoing EV Star orders.
- Gross profit: $1.054 million with gross margin 14.60%, up from prior quarters as BEAST/Nano BEAST contributions offset by West Virginia ramp costs and truck body margins.
- EBITDA/operating loss: EBITDA negative at -$3.777 million; operating loss -$4.181 million. Margin indicators remain negative (EBITDA margin -52.32%, operating margin -57.91%).
- Net income: -$4.739 million; diluted EPS -$0.17.
Cost structure and cash flow
- R&D: $380k; SG&A (selling, general and administrative): $4.084 million; total operating expenses: $5.234 million.
- Operating cash flow: -$1.059 million; free cash flow: -$1.062 million.
- Working capital: change in working capital positive $2.987 million, driven by inventory build and receivables dynamics; cash balance at period end: $0.621 million.
Liquidity and balance sheet strength
- Total debt: $17.415 million; net debt: $16.794 million; long-term debt: $6.396 million; short-term debt: $11.019 million.
- Cash and equivalents: $0.621 million; current assets: $31.636 million; current liabilities: $18.800 million; current ratio: 1.68x; quick ratio: 0.185x; cash ratio: 0.033x.
- Shareholders’ equity: $2.139 million; total assets: $37.367 million.
- Leverage: debt-to-capitalization approximately 89.1%; debt-to-equity extremely elevated (~8.14x), underscoring significant balance-sheet risk amid ongoing ramp and consolidation costs.
Operational mix and back-half outlook
- Product mix in QQ3 2025: 13 BEAST Type D school buses, 1 Nano BEAST Type A school bus, 14 EV Star vehicles, plus parts/leasing revenue. Management cited improving BEAST/Nano BEAST contributions in California and Oregon as primary drivers of gross profit improvement.
- Production cadence: 1 BEAST per week currently, target 2 per week by April, with Nano BEAST production planned to support East Coast demand. A new West Virginia production manager (James Redd) was added to accelerate throughput and shift optimization.
- California footprint consolidation: planned to consolidate three to one facility in Riverside, enabling better collaboration and cost savings; expected to contribute to gross margin improvements over time via centralized manufacturing, sales, and engineering functions.
- Financing and capital deployment: October equity offering of 3 million shares (~$3 million gross proceeds) to support vehicle production and R&D; continued use of EDC revolving facility and letters of credit to fund manufacturing.
Policy and demand backdrop
- Federal incentives: EPA Clean School Bus program funding remains fluid; some dealers have drawn down funds, but full contract closures and disbursements depend on ongoing processes.
- State incentives: California and New York present meaningful, near-term demand catalysts with sizable committed program funds for electric school buses and related fleet upgrades; California’s approach emphasizes smaller fleets and commercial Class 4 EVs, which align with GreenPower’s EV Star lineup. New York’s incentive program adds to the growth runway over the next several years.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.22M
-13.89%
35.00%
Gross Profit
1.05M
15.48%
129.32%
Operating Income
-4.18M
-4.32%
-1.35%
Net Income
-4.74M
0.65%
-0.79%
EPS
-0.17
10.53%
5.56%
Key Financial Ratios
currentRatio
1.68
grossProfitMargin
14.6%
operatingProfitMargin
-57.9%
netProfitMargin
-65.6%
returnOnAssets
-12.7%
returnOnEquity
-222%
debtEquityRatio
8.14
operatingCashFlowPerShare
$-0.04
freeCashFlowPerShare
$-0.04
priceToBookRatio
10.25
priceEarningsRatio
-1.16
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management and operations themes from the QQ3 earnings call:
- Strategy and throughput: Fraser Atkinson emphasized that gross profit improved as West Virginia throughput increased and as production scales at the South Charleston facility progressed. He stated, We are now set to deliver one BEAST per week from the South Charleston facility with production increasing to two units per week by April, and we expect gross profits to improve over time as throughput expands.
- California consolidation and cost discipline: Brendan Riley noted the California consolidation into a single Riverside plant to realize higher quality, cost savings, and enhanced collaboration, while Michael Sieffert described ongoing SG&A reductions linked to consolidation and the path to margin improvement through throughput gains.
- Demand backdrop and incentives: Fraser Atkinson highlighted strong demand for electric school buses and cited California/New York incentive programs as tailwinds, with California’s 2025 plan focusing on smaller fleets and the New York School Bus Incentive Program providing additional deployment support.
- EV Star demand and vocational use cases: Brendan Riley explained growing interest in vocational applications for EV Star, including garbage and fueling trucks, with follow-on orders after initial deployments and expanding activity in California, Oregon, Arizona, and Washington.
- Financial hygiene and financing strategy: The call stressed ongoing liquidity management via the EDC facility and letters of credit; a $3 million equity offering was completed in October to bolster production and product development, with management reiterating the intent to leverage facilities to fund the manufacturing ramp and consolidate operations.
Fraser Atkinson: We are now set to deliver one BEAST per week from the South Charleston facility with the production increasing to two units per week by April plus the Nano BEAST production. This will allow us to better meet the timely demand for orders on the East Coast from places like New York and West Virginia. To support this growth, we strengthened the leadership of our production team with the addition of James Redd as our new West Virginia production manager. Working alongside Vice President of Production, Wendell White, James has been instrumental in laying the groundwork for an increase in production output by focusing on the first shift productivity and by adding a second shift to the plant, positioning GreenPower to meet rising demands and to scale efficiently.
— Fraser Atkinson
Brendan Riley: The EV Star, we've had a lot of interest lately in actually vocational applications for the vehicles... We continue to sell, have follow-on orders for customers that have started to electrify their fleet. And now, we're starting to see some of the vocational. The electrification in our space is a medium-duty fleet size vehicles where we really think that electrification makes a lot of sense and can pencil very quickly.
— Brendan Riley
Forward Guidance
Strategic outlook and near-term milestones from management include: (1) Throughput ramp in West Virginia with a planned two Beasts per week by April and Nano BEAST production to support East Coast demand; (2) Completion of California consolidation into Riverside by mid-2025, expected to reduce G&A and improve gross margins as oversight improves and scale economies are realized; (3) Continued leverage of state incentives (California and New York) to drive EV Star and school bus deployments; (4) Maintenance of financing flexibility via the EDC revolving facility and letters of credit to fund working capital and production. The absence of explicit revenue or EBITDA targets makes the forecast highly dependent on policy developments and the success of the West Virginia ramp and Riverside consolidation. Investors should monitor: the pace of BEAST/Nano BEAST production and West Virginia throughput, the timing and magnitude of California incentives, EPA grant disbursement progress, and the company’s ability to sustain G&A reductions through consolidation. The achievability of margin uplift hinges on (a) sustained throughput gains, (b) continued integration of California operations, and (c) favorable incentive environments in California and New York.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
GP Focus
14.60%
-57.90%
-2.22%
-1.16%
PEV
23.40%
-1.75%
-37.50%
-61.20%
EVTV
0.00%
0.00%
-6.52%
-5.91%
VLCN
-8.57%
-11.28%
-2.70%
-8.69%
PTRA
-13.30%
-69.50%
1.90%
1.09%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Longer-term, GreenPower’s investment thesis rests on successful execution of the West Virginia throughput ramp and California Riverside consolidation, which should drive gross margin expansion and better operating leverage. The company stands to benefit from growing demand for electric school buses and vocational EV Star deployments, particularly in California and New York, aided by generous state incentives and revisited EPA funding dynamics. However, near-term profitability remains challenged by ramp costs, a high debt burden, and liquidity constraints. Investors should monitor the pace of BEAST/Nano BEAST production, the speed and certainty of California incentives, EPA grant disbursement progress, and the company’s ability to sustain G&A reductions through consolidation. In a balanced view, GP offers upside potential tied to policy-driven adoption and execution-driven margin recovery, but the downside risk is tied to continued cash burn and financing dependence during the ramp period.
Key Investment Factors
Growth Potential
Medium term growth hinges on successful throughput ramp (West Virginia), the Riverside consolidation delivering lower unit costs and better margin via integrated operations, and the expanding EV Star and school bus backlog supported by state incentives (California, New York) and EPA fund disbursement.
Profitability Risk
Key risks include persistent negative net earnings and EBITDA due to high fixed costs and ramp costs; policy and grant disbursement uncertainty (EPA program timing); liquidity constraints given elevated debt load and limited cash; execution risk in rapid production ramp and facility consolidation; customer concentration and backlog reliance on government funding cycles.
Financial Position
Leverage remains high with debt-to-capitalization near 89%, debt-to-equity approximately 8.14x, and negative operating cash flows. While there is near-term liquidity from a revolving facility (~$1.2M available) and credit lines (~$3.9M in LC capacity), the balance sheet requires ongoing equity and debt management to fund the manufacturing ramp and working capital needs.
SWOT Analysis
Strengths
Niche focus on electric school buses (Type D BEAST) and multi-use EV Star platform providing dual-market upside.
Growing production cadence in West Virginia with new management and planned throughput improvements.
Single-Riverside CA consolidation promising cost savings, improved quality, and closer collaboration between engineering and manufacturing.
Backlog supported by state incentives (California, New York) and emerging EPA funding (even if timing remains fluid).
Strong strategic emphasis on vehicle-to-grid opportunities and B2G demand.
Weaknesses
Significant negative profitability in near term (EBITDA and net income deeply negative).
High leverage and limited liquidity, with negative free cash flow and a heavy debt load.
Consolidation and ramp introduce execution risk and temporary cost pressure.
Reliance on government incentive programs, which are subject to political and regulatory changes.
Opportunities
Expanded EV Star deployments and school bus orders in California and New York supported by grants and incentives.
Vehicle-to-grid (V2G) applications opening up additional deployment channels.
California Riverside consolidation enabling scale economies and cross-functional synergies.
Potential offsets to ramp costs through higher throughput and improved gross margins as operations mature.
Threats
Federal EPA grant disbursement delays or policy shifts affecting backlog monetization.
Competition from other EV OEMs and larger bus manufacturers with greater scale.
Macro volatility impacting capital availability and customer funding cycles.
Operational risks tied to rapid production ramp in new and consolidated facilities.
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