GreenPower Motor Q3 2025 Earnings Report

GreenPower Motor EPS Results

• Actual EPS: -$0.17
• Consensus EPS: -$0.19
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: N/A

GreenPower Motor Revenue Results

• Actual Revenue: $7.22 million
• Expected Revenue: $6.11 million
• Beat/Miss: Beat by +$1.11 million
• YoY Revenue Growth: N/A

GreenPower Motor Announcement Details

• Quarter: Q3 2025
• Date: 2/14/2025
• Time: Before Market Opens
• Conference Call Date: Tuesday, February 18, 2025
• Conference Call Time: 9:30AM ET

GreenPower Motor (NASDAQ:GP) (NASDAQ: GP) is a designer, manufacturer and distributor of zero‐emission electric vehicles. The company’s product lineup includes battery electric buses, school buses, shuttles, cutaway vans and medium‐duty trucks, all built on proprietary battery and propulsion technology. GreenPower’s flagship models include the EV Star medium-duty truck, the EV250 40-foot transit bus, and the BEAST school bus platform. In addition to complete vehicle manufacturing, GreenPower offers component supply solutions, including battery packs, powertrains and charging systems, to support third‐party electric vehicle integration.

Since its founding in 2007 and first vehicle shipment in 2011, GreenPower has established a vertically integrated manufacturing footprint. The company’s primary assembly operations are located in Porterville, California, with additional facilities in South Carolina and British Columbia. This strategic geographic presence enables GreenPower to serve municipal and commercial fleets across North America, addressing growing demand for sustainable transportation solutions in urban transit, school districts and corporate shuttle services.

GreenPower’s leadership team is led by President and Chief Executive Officer Fraser Atkinson, who has guided the company’s growth and product innovation since joining in 2017. Key executives include Robert Purdy, Chief Financial Officer, and Chief Technology Officer James Day, who oversee financial strategy and technology development, respectively. Under their direction, GreenPower has focused on scalable manufacturing processes, strategic partnerships and continuous improvement of battery management and vehicle telematics capabilities.

Environmental regulations and incentive programs in both the United States and Canada continue to drive fleet electrification, positioning GreenPower to capitalize on government grants and emission‐reduction mandates. By combining in‐house engineering, localized assembly and aftermarket support services, GreenPower Motor Company aims to deliver reliable, zero‐emission vehicles that meet the performance and safety standards of public transit authorities, school districts and commercial operators.

GreenPower Motor Q3 2025 Earnings Call Transcript

Key Takeaways

• In Q3, GreenPower generated $7.2M in revenue—a 35% quarter‐over‐quarter increase—and achieved a 14.6% gross profit margin from product sales.
• The South Charleston, WV facility is ramping production to one Beast unit per week, aiming for two per week by April while also scaling NanoBeast output.
• California operations will consolidate from five locations into a single Inland Empire facility to improve collaboration, reduce costs and boost manufacturing efficiency.
• State-level incentive programs remain strong—with California and New York each allocating ~$500M for electric school buses—while federal Clean School Bus funding faces timing uncertainty.
• The Truck Body division recorded lower-than-target margins due to overcapacity in the sector, prompting plans to fold its operations into the main manufacturing footprint.

Presentation

[Operator]

Good morning, and welcome to the Green Power Motor Company, Inc. Third Quarter Earnings Call. All participants will be in listen only mode.

[Operator]

After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. And I would now like to turn the conference over to Michael Seifert, CFO. Please go ahead.

[Michael Sieffert, CFO at GreenPower Motor Company]

Thank you. This is Michael Seifert, Chief Financial Officer of GreenPower Motor Company. I'd like to welcome everyone to our call to discuss GreenPower's financial results for the three and nine months ended 12/31/2024, and to provide an update on Green Power's operations and manufacturing. I'm here today with our Chief Executive Officer, Fraser Atkinson and our President, Brandon Rehilen. During today's call, we may make comments or statements about our future expectations, plans and prospects, which may constitute forward looking statements for the purposes of the Safe Harbor provision under the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws.

[Michael Sieffert, CFO at GreenPower Motor Company]

Actual results may differ materially from those discussed indicated by these forward looking statements as a result of various important factors, including those discussed in our quarterly interim results and MD and A filed on SEDAR and on Lettker. In addition, these forward looking statements relate to the date on which they are made. We anticipate that subsequent events and developments may cause the company's views to change. Green Power disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Also, during the course of today's call, we may refer to certain non IFRS financial measures.

[Michael Sieffert, CFO at GreenPower Motor Company]

Reconciliation of these non IFRS measures can be found in our MD and A. For additional information on the results of operations for the period ended 12/31/2024, you can access the financial statements and MD and A posted on Green Power's website as well as on sedarplus.com or filed in anchor. I will now pass the call over to Green Power's CEO, Fraser Atkinson.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

Thank you, Michael, and good morning, everyone. We appreciate you joining our call to review Green Power's operations and discuss the results of the third quarter. As I look at the financials of the third quarter, I'm encouraged with the improvement in our gross profit. GreenPower has from quarter to quarter been one of only a handful of EV OEMs that have enjoyed a gross profit with the sale of its products. We knew there would be a reduction in that overall percentage as the West Virginia facility got fully up to speed.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

Now that we are reaching higher output at the South Charleston facility in West Virginia, as Brendan will discuss, we expect that gross profits will improve over time. Since the election last November, the market has seen some uncertainty. While political winds are still shaking out, clearly the demand for all electric school buses across the nation has never been greater. A survey conducted recently by Highland Electric Fleets found that 65% of parents would prefer their child ride on an electric school bus than a diesel powered one. The survey captured data from parents of children aged five to 17 who ride a school bus.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

Data showed support for electric school buses are largely tied to parents' concerns about their children's health. In fact, 89% of parents ranked air quality in a safe and healthy commute to school among their highest concerns. And research shows that all electric school buses are less likely to produce harmful emissions than diesel emitting school buses. The growing demand for electric school buses is also rooted in the school bus driver shortage nationwide. First Student, a leading private contractor of school transportation, reports that school districts are using the deployment of electric school buses to attract and retain drivers.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

They prefer the smoother ride, the quiet nature of the vehicles and the reduced behavioral issues seen among students. These are two reasons why electric school buses make sense. And a third is grid resiliency. As GreenPower focuses on B2G, which is vehicle to grid options among deployments, electric school buses are becoming the answer to creating grid stability in communities. We will have more on this on future calls.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

GreenPower is the only EBM OEM that has a purpose built Class four Type A SCOBUS with our Nano Beast and the larger Type B SCOBUS with our Beast, providing a cleaner and safer transportation options for student transportation. While exact incentive programs at both the federal and state level will go through changes, the support for this mode of transportation will continue and funds will be there to support the transition from dirty school buses to clean school buses. GreenPower has continued to prepare its operations for this growing demand. I'll now turn it over to Brendan Riley, GreenPower's President.

[Operator]

Hello, Brendan. If you are speaking, your line may be muted.

[Brendan Riley, President & Director at GreenPower Motor Company]

Good morning. Thank you, Wyatt. Thanks, Mr. Frasier. Green Power spent the quarter continuing to increase its output from the West Virginia manufacturing facility.

[Brendan Riley, President & Director at GreenPower Motor Company]

As a result of the work that we did during the quarter, 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 NanoBeasts 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 our 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. On the West Coast, GreenPower finalized its plans to expand its California manufacturing footprint into one facility located in the Inland Empire of the LA Basin, consolidating our operations from three separate locations and five different facilities spread out through California into one plant that's larger and allows for higher quality, greater cost savings and increased efficiency.

[Brendan Riley, President & Director at GreenPower Motor Company]

Having California operations under one roof will provide for better collaboration between our engineers and our production staff. It will also provide an opportunity for GP Truck Body to grow exponentially as it builds closer working relationships with the manufacturing team at Green Power. Moving operations to Riverside also gets us closer to a larger customer base, provides us with better and more efficient access to suppliers and provides us with a city partner that is dedicated to supporting local companies. All in all, we remain focused on the manufacturing objectives, increased output in a more efficient manner that increases gross profit. These efforts are just the beginning of our story, dedication to continuous improvement of our costs, our quality and our output.

[Brendan Riley, President & Director at GreenPower Motor Company]

Now I'd like to turn the call back over to Michael Seifert to discuss the quarterly earnings specifics.

[Michael Sieffert, CFO at GreenPower Motor Company]

Thank you, Brendan. For the three months ended 12/31/2024, Green Power generated revenue of $7,200,000 a 35% increase over revenue generated during the prior quarter. Our cost of sales for the quarter was $6,200,000 generating a gross profit of approximately $1,050,000 or 14.6% of revenues. Revenue was generated from the sale of 13 Beast Type D all electric school buses, one Nano Beast Type A school bus from the sale of 14 EVStar model vehicles as well as revenue from leases, from the sale of parts and from our truck body division. GreenPower's gross profit improved in the third quarter compared to the first two quarters of the year due to contributions from Beast and Nano Beast sales in California and Oregon and from the sale of various EV Star models across the country.

[Michael Sieffert, CFO at GreenPower Motor Company]

This improvement was partially offset by lower than target gross profit margins from the Truck Body division and from West Virginia manufacturing operations and sales. Going forward, management has taken steps to reduce its overhead costs through the consolidation of its California operations into a single facility. The move into a single facility will bring manufacturing, sales, engineering and truck body manufacturing under one roof. This consolidation started in January and we expect these efforts will continue through the beginning of the summer and lead to improved management oversight, lower G and A expense and contribute to improvements in gross profit margin over time. In West Virginia, management continues to work on improving manufacturing throughput and managing costs in order to improve the financial results of this division.

[Michael Sieffert, CFO at GreenPower Motor Company]

For the quarter ended 12/31/2024, compared to the quarter ended 12/31/2023, sales general administrative expense costs declined by $443,000 or 7.8 percent. The reduction in these expenses was primarily due to reductions in professional fees, share based payments, salaries and administration, as well as from recoveries in allowance for credit losses, which were partially offset by increases in other expenses. We continue to utilize the EDC revolving credit facility to fund production during the quarter with approximately $1,200,000 in available liquidity on the facility at quarter end. In addition, Green Power continued to use EDC backed letters of credit to fund production payments with nearly $3,900,000 in capacity for additional letters of credit to support continued short term production funding. Both the revolving credit facility and the letters of credit continued to be an important source of capital to fund Green Power's manufacturing investments.

[Michael Sieffert, CFO at GreenPower Motor Company]

In October, we completed an underwritten offering of 3,000,000 common shares raising gross proceeds of $3,000,000 The net proceeds from this offering are being used for the production of all electric vehicles, including B School buses and EV Star commercial vehicles product development with the remainder, if any, for general corporate purposes. Finally, we continue to receive important and much needed financial support from Green Power's directors and officers during and after the quarter. We'd now like to open up the call to any questions from the listeners.

[Operator]

We will now begin the question and answer session. And the first question will come from Craig Irwin with ROTH Capital Partners. Please go ahead.

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

Good morning and thanks for taking my questions. So first I should say, in this environment, this is a really solid quarter. You beat my expectations consensus. It's definitely a great way to start calendar 2025. So I wanted to ask specifically about the different opportunities for fiscal support for your customers out there.

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

I understand that a lot of your backlog, a lot of your bookings in this last year have been focused on things that are funded by state level programs, particularly California and Oregon, you mentioned. We expect those to remain strong. Can you maybe comment a little bit about the mix as far as state funding? And then can you update us on federal funding? Have you been able to get to checks from EPA for your customers?

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

What are you hearing about the opportunity for some of these grants that were not fully executed to potentially be resolved? Is this freeze and unfreeze that happened around the funding potentially going to impact the trajectory this year? Or are you comfortable enough with sort of the state level funding and things where you already have certainty?

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

Well, I'll break that down into federal and state level, Craig. And at the federal level, it's so fluid that we really need more time to see how this would all shake out. And we have had a number of our dealers that have been successful in drawing down some of the funds from the Clean School Bus program. But in terms of the who's going to be able to fully complete the contracts that are in place between EPA and dealers or our dealers, we're going to need more time to see how all that shapes out. At the state level, speaking first on California, their funding plan for 2025 differs from the past and that their focus is on those areas and sectors that struggle to get incentives or funding for their particular program, which actually bodes well for the smaller fleets that are seeking commercial vehicles like our Class IV EV STARS or the school bus space.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

And they on the school buses, the zero emission school bus initiative that had $500,000,000 or has $500,000,000 3 70 5 million dollars of which is for the purchase of electric school buses is that the applications or that program closed at the November. So that's funding that's going to be used to deploy electric school buses through this year and well through next year as well. So there's strong support in California. And then in New York, of course, there's the New York School Bus Incentive Program and that has initially was $300,000,000 and they topped it up with an additional $200,000,000 So there is $500,000,000 that to support adoption of electric school buses in the state over the next few years.

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

That's really good. Well, I'm glad to hear there's green shoots. To change gears a little bit, in the December and the third fiscal quarter, your general and administrative expenses were $2,900,000 I mean that was up from $2,200,000 in the preceding quarter or $2,300,000 in the year ago quarter. Now Fraser, I know you and Michael and the team there as pretty frugal. You don't usually spend on things unless there's a direct return.

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

Can you maybe talk us through the sequential increase 2.2 to 2.9? Were there any one time items in there? Is this maybe related to some of the hiring and some of the consolidation of your operations that you're going through? Any color there would be helpful.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

Well, the go ahead. Sorry, go ahead, Michael.

[Michael Sieffert, CFO at GreenPower Motor Company]

I was going to say, yes, thanks, Craig. I would say the primary driver of the increase year over year would be definitely headcount. We do anticipate though going forward that some of the salary expenses will be reducing over time as a result of some of the consolidation that we're undertaking in California.

[Michael Sieffert, CFO at GreenPower Motor Company]

And there certainly is a focus on our other operations as well in terms of managing that salary cost. So Fraser, please go ahead if there's more you'd like to add there.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

No, I think that covers it.

[Michael Sieffert, CFO at GreenPower Motor Company]

Okay.

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

And are there any specific charges related to the consolidation or any lease exit expenses or things like this that you might be able to estimate for us at this time? Or will these basically be non cash and expense when incurred?

[Michael Sieffert, CFO at GreenPower Motor Company]

Yes, the expenses I would characterize is definitely SG and A, things like transportation and additional services related to moving some of the property plant equipment between locations and inventory, things of that nature. But there aren't any one time charges to speak of anything significant in the nature of breaking leases or anything like that.

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

Excellent. Then last question. Sorry.

[Michael Sieffert, CFO at GreenPower Motor Company]

Overall, very straightforward. Sorry, Craig, go ahead.

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

Yes. So last question for me is the EV Star, I was pleasantly surprised that we've continued to see a gradual improvement in sales there. Can you maybe frame out for us the sales prospects for 2025? What do these look like right now? Is this a business where you feel like you're gaining traction?

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

As you look at a business mix away from where you did business over the last couple of years? Are there any specific end use cases we really need to look at closely to understand why we are seeing this improvement?

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

Brendan, did you want to start or

[Brendan Riley, President & Director at GreenPower Motor Company]

Yes. Thanks, Craig. This is Brendan. Good morning to you and good morning to all those on the call. The EV Stars, we've had a lot of interest lately in actually vocational applications for the vehicles.

[Brendan Riley, President & Director at GreenPower Motor Company]

A lot of the fleets have some number of electric vehicles right now across the entire country that they're basically evaluating and figuring out where they fit in their operations, which is typical if you look at adoption cycles. So 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. What we mean by vocational vehicles, we're talking about a garbage truck would be a vocational vehicle, a fueling truck, vehicles that have one purpose outside of basically pickup and delivery, and then actually do some work might have steps involved in the vehicle itself and that how they are operated. So the electrification and 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, President & Director at GreenPower Motor Company]

You have meaningful payload and meaningful range and you don't have a price point that will kill you on top of the fact that the vehicles don't tax the grid as much as the larger vehicles that are out there. So the answer to your question from my perspective, Craig, is yes. We are seeing this kind of wave of the follow on orders. People have bought some to try them out. We're getting now follow on orders.

[Brendan Riley, President & Director at GreenPower Motor Company]

We're starting to look at other places that will be electrified, need to be electrified. On top of that, in places like California, where we're getting close to the mandates for larger percentage of electrification, especially among the municipalities and other fleets, we are seeing renewed activity in the acquisition or the getting information about these vehicles. So we are very bullish on the EV Star line commercially. Again, the beauty of our EV Star line is that not only do we leverage it for commercial vehicles, we also leverage the same product essentially for our school bus. So it really allows us to in a way double dip in two different sectors with the same product.

[Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

Excellent. Well, thank you for that. Congratulations on the momentum here. I'll go ahead and hop back in the queue.

[Operator]

Our next question comes from Tate Sullivan with Maxim Group. Please go ahead.

[Tate Sullivan, Senior Research Analyst at Maxim Group]

Thank you. Appreciate it, Brendon. Can you give some comments on how many electric school buses are on the road actively transporting students now your electric school buses and how has performance been? How has the feedback from customers in terms of ranges and charging or parts replacement has all been as you expected, please?

[Brendan Riley, President & Director at GreenPower Motor Company]

Fraser, I can start and maybe you could follow on. So GreenPower has taken a very, very conservative approach to deploying our battery electric school buses. We deploy them where we believe they'll have the best opportunity for success from the weather, the terrain and the operators. So of the, let's say, the 100 vehicles from West Virginia, we've delivered about 10 of those so far, but now we're starting to deliver one a week and soon two a week and we should have those delivered here all entirely delivered relatively soon. Those are doing great and we're expecting to expand that deployment and continue to do great. As far as places like California where we've been delivering for a while, I think Frasier's got the exact numbers of the vehicles that have been deployed in California. But we have a strong backlog and we're delivering those at a regular run rate. And those knock on wood have been very solid deployments with very satisfied often cases really giving us follow on orders. Our strategy now moving forward is going after the places where we see the vehicles having meaningful partner, an excellent atmosphere for deployment.

[Brendan Riley, President & Director at GreenPower Motor Company]

Also with the infrastructure in place, places, we have markets that we're moving into. Arizona has been strong for us. Oregon has been strong for us. We're expecting some activity in Washington State here. So take to be perfectly honest, we're very we're in a measured way, in a sustainable way, we're deploying our school buses in places where we believe they can be successful.

[Brendan Riley, President & Director at GreenPower Motor Company]

And Fraser can, I'm sure, give us some more specifics or Michael on the total exact number.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

I think I'd add that to your point, Brandon, that the deployment in order to support and have a long term plan in place with various geographic areas, you've got to have a strong service and support network. So pushing out parts supply through our dealer network and our support network, as well as building out our service desk are part of those requirements to help the end customer with the adoption of electric school buses.

[Tate Sullivan, Senior Research Analyst at Maxim Group]

Great. Thank you for that. And then there were some in the MD and A document, some comments on increasing your gross profit margin from here? And can you talk about what drives throughput in your truck body division? I believe it's linked to an acquisition from a couple of years ago at this point.

[Tate Sullivan, Senior Research Analyst at Maxim Group]

Is it Europe mostly your vehicles? Is it can you talk about that?

[Michael Sieffert, CFO at GreenPower Motor Company]

Yes. I can touch on that. Go ahead. Yes. So I can talk about that.

[Michael Sieffert, CFO at GreenPower Motor Company]

So the truck body division, I would say the split is primarily third party vehicles that that division is building truck bodies on. What we've seen in that division, if we go back three years ago, there was a lot of demand for that type of work across the industry. And so the market dynamics at that time were such that if we took one of our cabin chassis to a competitor to have a body built on it, we may have a wait time of over nine months, nine to twelve months. And as you can appreciate, that type of wait time would have a negative impact on our customer sales experience. And so the acquisition at that time made a lot of sense and really helped us prioritize our truck body needs for our particular vehicles.

[Michael Sieffert, CFO at GreenPower Motor Company]

What we found is that if we fast forward to today, there's actually overcapacity in the sector. And as a result, there's frankly less demand for these builds than we've seen in the past. And as a result, the throughput, it was just not there that we anticipated. So as part of the consolidation that we're doing, we will be closing that location that we have for the Truck Body division. We will be consolidating that into all of our operations and we do anticipate that there'll be measured efficiencies from doing this, because building truck bodies, we certainly have the in house expertise, we have the employees who can handle this.

[Michael Sieffert, CFO at GreenPower Motor Company]

And by folding that into our other operations, we just see a number of efficiencies from that.

[Tate Sullivan, Senior Research Analyst at Maxim Group]

Does the gross profit margin depend more on the efficiencies, would you say, Michael, from consolidating California operations or also it relies on the higher throughput for the truck?

[Michael Sieffert, CFO at GreenPower Motor Company]

It's really the higher throughput that will be driving this. The consolidation of the operations will have an impact, but that's the primary focus of this consolidation as well as the efforts that are happening in West Virginia. So that throughput will certainly as that improves over time, we anticipate that there'll be a measured improvement here in the gross profit margin.

[Tate Sullivan, Senior Research Analyst at Maxim Group]

Okay. Thank you all.

[Operator]

With no further questions, this concludes our question and answer session. I would like to turn the conference back over to Fraser Atkinson for any closing remarks.

[Fraser Atkinson, CEO and Chairman at GreenPower Motor Company]

Thank you. We continue to see strong mandates supporting the adoption of our all electric vehicles combined with an evolving landscape of incentive programs to support this adoption. We continue to work on the throughput in West Virginia with a resulting increase in sales and improvement with our gross profit. Finally, we're very excited about bringing all of our operations in California under under one roof in Riverside as this is not only going to provide operational efficiencies, but more importantly having all of our team of production, engineering, technical support, bringing them all together provides for a much stronger collaboration and team approach to producing high quality products for the marketplace. Thank you for your continued support and this ends today's call.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Michael Sieffert, CFO
• Fraser Atkinson, CEO and Chairman
• Brendan Riley, President & Director

Analysts

• Craig Irwin, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC
• Tate Sullivan, Senior Research Analyst at Maxim Group