GreenPower Motor Company Inc.

For the three months ended December 31, 2024, revenue was $7.2 million, up 35% from the prior quarter. Cost of sales was $6.2 million, producing gross profit of approximately $1.05 million and a gross margin of 14.6%. Revenue came from 13 BEAST Type D school buses, one Nano BEAST Type A school bus, 14 EV Star vehicles, leases, parts and the truck body division. SG&A declined by $443,000, or 7.8%, versus the quarter ended December 31, 2023. Management said it had about $1.2 million in available liquidity on the EDC revolving credit facility at quarter-end and nearly $3.9 million in additional letter-of-credit capacity. In October, GreenPower completed an underwritten offering of 3 million common shares for gross proceeds of $3 million. Looking ahead, management said West Virginia is now set to deliver one BEAST per week, rising to two units per week by April, plus Nano BEAST production. It also expects California consolidation to continue through the beginning of summer and to support lower G&A and better gross profit margin over time.

Fraser Atkinson focused on demand durability for all-electric school buses despite policy uncertainty, saying the market for these vehicles is growing and citing parental concern about air quality, the school bus driver shortage, and grid-resiliency use cases. He said GreenPower is positioned as a purpose-built OEM for both Class IV Type A Nano BEAST and Type D BEAST school buses and expects incentive support to continue even as programs change. His tone was optimistic but measured, emphasizing gross profit improvement, manufacturing execution, and the strategic value of the company’s product lineup.

Michael Sieffert highlighted the quarter’s financial improvement, citing $7.2 million of revenue, $6.2 million of cost of sales, and approximately $1.05 million of gross profit at 14.6% margin. He said the gross profit improvement came from BEAST and Nano BEAST sales in California and Oregon and EV Star sales nationwide, partly offset by lower-than-target margins in the truck body division and West Virginia startup operations. He also noted SG&A was down $443,000 year over year, available EDC revolving credit capacity was about $1.2 million at quarter-end, and letters of credit had nearly $3.9 million of additional capacity. He framed California consolidation and West Virginia throughput improvements as the main levers for lower overhead and higher margins.

Analysts pressed on federal versus state funding support, and management said federal Clean School Bus Program funding is still too fluid to call, though some dealers have successfully drawn funds. By contrast, California and New York were described as well supported by large incentive pools, including California’s $500 million zero-emission school bus initiative and New York’s $500 million school bus incentive program. Questions on higher SG&A were answered with management saying the increase was mainly headcount-related, with some offset expected from California consolidation, and that there were no significant one-time lease-break charges. On EV Star demand, management said follow-on orders are increasing and that vocational applications are gaining traction, especially where electrification is nearing municipal and fleet mandates.