Workhorse lands 200-truck Gateway Fleets order as electric delivery van pipeline expands

Workhorse Group Inc. has secured a follow-on order for 200 W56 fully electric step vans from Gateway Fleets, tripling the electric fleet provider’s cumulative 2026 commitment to 300 vehicles and giving the struggling commercial electric vehicle manufacturer a sizeable new order extending into 2028. Gateway Fleets is purchasing the trucks through Kingsburg Truck Center and plans to lease them primarily to independent last-mile package delivery operators through a bundled model combining vehicles, charging infrastructure, fleet support and depot access.

The order represents an important commercial validation for Workhorse Group Inc. because Gateway Fleets had already ordered 100 W56 vehicles earlier this year and has begun deploying those trucks across its Southern California operations. Rather than representing an untested customer relationship, the additional 200-unit commitment suggests Gateway Fleets is expanding a deployment model already being introduced among commercial delivery operators.

The financial impact will not arrive immediately. Workhorse Group Inc. expects vehicles from the new order to begin reaching customers during the second half of 2027, with deliveries continuing through 2028, meaning the contract provides longer-term production visibility rather than a major near-term revenue boost.

That distinction matters because Workhorse Group Inc. remains financially challenged despite improving vehicle deliveries. The company generated only $3.6 million of second-quarter revenue while recording a $7.5 million gross loss and $20.2 million net loss, leaving investors focused not only on how many orders Workhorse Group Inc. wins but whether higher production volumes can eventually improve manufacturing economics.

Why Gateway Fleets doubled down with another 200 Workhorse electric delivery trucks

Gateway Fleets placed its first 100-unit W56 purchase order earlier this year, with deployment scheduled to begin during the summer ahead of the important holiday delivery season. The additional 200 trucks substantially expands that relationship and indicates that Gateway Fleets intends to build its commercial electric vehicle leasing network around a larger W56 fleet as it opens additional operating locations.

Gateway Fleets differs from a traditional fleet customer because it bundles the truck, charging infrastructure, operational support and financing into a single service for delivery operators. That structure is intended to address two of the largest obstacles facing smaller fleets considering electric commercial vehicles: the higher upfront cost of electric trucks and the investment needed to install charging equipment.

Workhorse Group Inc. Chief Executive Officer Scott Griffith indicated that the Gateway Fleets model could make electric trucks accessible to more operators by allowing them to capture lower operating costs without independently funding both vehicles and charging infrastructure. Gateway Fleets similarly said its model is designed to give delivery operators access to electric trucks while simplifying cash flow, charging and fleet-support requirements.

There is some real-world evidence behind the operating-cost argument. When announcing its initial 100-vehicle order, Gateway Fleets said a year-long case study at its Riverside, California site showed fuel-cost savings of as much as 65% on active delivery routes, even after electricity expenses were included.

Those savings could become particularly relevant for independent package-delivery operators running predictable daily routes. Electric commercial vehicles generally become more economically attractive when trucks travel consistent distances, return to a depot where they can charge overnight and accumulate enough annual mileage for fuel and maintenance savings to offset higher acquisition costs.

Workhorse W56 order expands production visibility but revenue will stretch into 2028

The 200 vehicles are standard-wheelbase W56 step vans equipped with 210-kilowatt-hour batteries. Each vehicle offers approximately 1,000 cubic feet of cargo capacity, a payload of 10,000 pounds and a nominal driving range of around 150 miles, specifications aimed squarely at high-cycle last-mile delivery routes.

Workhorse Group Inc. manufactures the W56 at its Union City, Indiana facility, which the company says can produce more than 5,000 vehicles annually on a standard operating shift. The company has delivered more than 1,100 vehicles across its broader fleet history, with those vehicles accumulating more than 21 million real-world miles.

That production capacity means the 200-unit order itself should not strain the plant if Workhorse Group Inc. can fund and manage the required production ramp. Instead, the strategic benefit is that the order adds a multi-year customer commitment while providing another reference point for a vehicle that Workhorse Group Inc. needs to sell at substantially larger volumes to improve factory utilization.

The timing nevertheless tempers the immediate financial impact. Deliveries from the new order are expected to begin in the second half of 2027 and continue into 2028, while the original 100-unit Gateway Fleets order began deployment much earlier. Investors should therefore view the latest commitment as an expansion of future backlog rather than revenue likely to materially change the next few quarterly results.

The order also comes without a disclosed transaction value. Without pricing information, it is not possible to accurately calculate the contract’s eventual revenue contribution or margins, particularly because fleet pricing, incentives and dealer arrangements can differ from advertised vehicle prices.

Workhorse needs higher W56 volume after another quarter of heavy manufacturing losses

The commercial momentum arrives against a difficult financial backdrop. Workhorse Group Inc. generated $3.6 million of net sales during the second quarter, up from $800,000 on a reported basis a year earlier, while vehicle deliveries increased to 26 from four. However, because the company completed its merger with Motiv Electric Trucks late last year, historical reported comparisons do not fully represent the current combined business.

More importantly, Workhorse Group Inc. still loses substantial money producing and selling vehicles. Cost of sales reached approximately $11 million against $3.6 million of revenue, producing a gross loss of $7.5 million, while operating expenses totaled another $11.9 million and the quarterly net loss reached approximately $20.2 million.

Management has argued that gross margins should improve as production rises and cost reductions from the combined Workhorse Group Inc. and Motiv Electric Trucks platform take effect. Engineering teams have been redesigning components and negotiating with suppliers to reduce the W56 bill of materials, while the company continues targeting an annualized $20 million cost-synergy run rate from the merger by the end of 2026.

That makes orders such as Gateway Fleets strategically important beyond their headline revenue potential. A commercial vehicle factory carrying substantial fixed costs needs greater production throughput to spread those expenses across more units, making sustained order volume a critical part of the path toward positive gross margins.

However, volume alone will not solve the problem if vehicles continue costing significantly more to manufacture than Workhorse Group Inc. receives from customers. The investment case therefore increasingly depends on two things happening together: more vehicles moving through the Union City plant and a materially lower cost per truck.

Motiv Electric Trucks merger is reshaping Workhorse beyond the W56 step van business

Workhorse Group Inc. entered 2026 as a substantially different company after completing its merger with Motiv Electric Trucks. The transaction combined Workhorse Group Inc.’s vehicle portfolio, manufacturing operations and dealer network with Motiv Electric Trucks’ medium-duty vehicle technology and customer relationships, creating a broader Class 4 through Class 6 commercial electric vehicle platform.

Management has since broadened the strategy even further. Workhorse Group Inc. now describes itself as an American industrial technology company and is developing additional products including Class 5 and Class 6 platforms and a mobile artificial intelligence data-center product intended to use some of the company’s existing engineering and manufacturing capabilities.

The Gateway Fleets order nevertheless reinforces the importance of the core commercial vehicle business. Workhorse Group Inc. may be diversifying into new industrial markets, but the W56 remains one of its most commercially developed products and one of the clearest opportunities to improve existing factory utilization.

The company had already secured the original 100-vehicle Gateway Fleets commitment alongside a separate 100-vehicle Purolator order and other commercial business earlier this year. Adding another 200 W56 vehicles provides further evidence that Workhorse Group Inc. is building a larger contracted delivery pipeline following the merger.

Workhorse stock reaction remains muted as liquidity concerns overshadow larger order book

Workhorse Group Inc. shares traded around $2.92 during Wednesday’s session, up less than 1% from the previous close of $2.90 despite the 200-vehicle order announcement. The muted reaction suggests investors are acknowledging the commercial progress without treating the order as sufficient evidence that the company’s financial challenges have been resolved.

Longer-term sentiment remains considerably weaker. Workhorse Group Inc. shares have fallen roughly 43% year to date and about 78% over the past year, while the company’s market capitalization stands at approximately $32 million.

Liquidity helps explain some of that caution. Workhorse Group Inc. finished the second quarter with approximately $9.6 million of cash and cash equivalents while carrying $30 million outstanding under its cash-flow credit agreement and another $18.3 million drawn under its customer-order credit facility. The company subsequently borrowed an additional $10 million after expanding its cash-flow facility.

Those financing needs make successful execution of the growing vehicle backlog particularly important. Producing hundreds of commercial vehicles requires working capital for batteries, components, labor and manufacturing before all customer payments are ultimately collected, meaning a larger order book can itself increase short-term capital requirements even when it strengthens future revenue visibility.

Investor sentiment therefore remains mixed. The Gateway Fleets expansion provides tangible evidence of repeat demand for the W56, but the market still needs to see improved gross margins, stronger revenue conversion and a more durable liquidity position before a larger order pipeline can materially alter the financial narrative.

Why the 200-truck Gateway Fleets order matters for Workhorse Group’s turnaround

The most encouraging aspect of the announcement is that this is a repeat order rather than an initial trial. Gateway Fleets has already committed to W56 vehicles and is now expanding that commitment by another 200 units while building more depots and charging infrastructure, suggesting growing confidence in the commercial relationship.

The structure also addresses an important adoption problem within commercial electrification. Independent delivery operators may recognize the operating savings available from electric vehicles but lack the capital or expertise needed to purchase trucks and install charging systems, while Gateway Fleets effectively packages those requirements into a leasing and infrastructure solution.

For Workhorse Group Inc., the opportunity is straightforward: larger recurring orders can improve factory utilization and create the production scale needed to attack manufacturing costs. Yet the latest financial results demonstrate why additional volume must eventually translate into significantly better margins rather than simply larger revenue numbers accompanied by continued gross losses.

The 200-truck expansion therefore represents meaningful commercial progress, but the bigger test remains ahead. If Gateway Fleets successfully places the vehicles with delivery operators and continues expanding its network, Workhorse Group Inc. could gain a repeatable channel for W56 sales; if production economics improve at the same time, the order could become part of a broader operational turnaround rather than another isolated electric vehicle contract.

Key takeaways from Workhorse Group’s 200-truck Gateway Fleets electric vehicle order

• Gateway Fleets placed a follow-on order for 200 Workhorse Group Inc. W56 electric step vans.
• The new order lifts Gateway Fleets’ cumulative 2026 W56 commitment to 300 vehicles.
• Gateway Fleets plans to lease the trucks primarily to independent last-mile delivery operators.
• Its bundled model combines electric vehicles, charging, depot access, financing and fleet support.
• The W56 offers about 150 miles of nominal range and a 10,000-pound payload with its 210-kilowatt-hour battery.
• New-order deliveries are expected to begin in the second half of 2027 and continue through 2028.
• Workhorse Group Inc. reported just $3.6 million of second-quarter revenue and a $20.2 million net loss.
• The company is targeting higher production volumes and $20 million of annualized merger-related cost synergies.
• Workhorse Group Inc. shares rose only modestly following the announcement and remain sharply lower over the past year.
• Improving gross margins and liquidity will determine whether larger W56 orders can support a sustainable turnaround.