GreenPower Achieves $8.5 Million Revenue, Shifting Focus for Electric Vehicle Production

GreenPower Motor Company Reports Third Quarter Results

GreenPower Motor Company Inc. (Nasdaq: GP), a prominent player in the manufacturing and distribution of all-electric medium and heavy-duty vehicles, has recently released its financial results for the third quarter of the fiscal year ending December 31, 2025. The company reported a revenue of $8.5 million and a net income of $4.2 million, reflecting its ongoing commitment to innovation in the electric vehicle (EV) sector.

Revenue Growth Amidst Industry Challenges

The reported revenue of $8.5 million underscores a notable increase from $7.2 million during the same timeframe in the previous year. This growth primarily stems from vehicle sales, parts, leases, and deferred income, demonstrating GreenPower’s effectiveness in navigating a competitive market dominated by traditional automotive manufacturers. Furthermore, the gross profit margin on vehicle sales reached approximately 28%, showcasing the company's ability to maintain profitability even amidst a challenging economic landscape.

Fraser Atkinson, the Chairman and CEO of GreenPower, emphasized this achievement in the face of substantial headwinds affecting the EV industry overall. He noted that the company has successfully transitioned from producing vehicles based on speculative demand to a more reliable production strategy driven by client orders. This pivot necessitated essential changes such as recapitalization, a reevaluation of manufacturing processes, improved inventory management, and new sources of production funding.

Advancements in Electric School Buses

One of the key highlights of the recent quarter was the ongoing progress with GreenPower's all-electric school bus initiative. The company has been actively managing the New Mexico All-Electric School Bus Pilot Program, which has secured over $5 million in funding from the state. This program involves deploying several model buses, including the Type A Nano BEAST and Type D Mega BEAST, designed to meet diverse operational needs across various New Mexico school districts, especially in areas with unique challenges such as extreme weather conditions and limited charging infrastructure.

Brendan Riley, President of GreenPower, expressed enthusiasm about the deployment of these zero-emission school buses, indicating that they serve as a significant step toward transforming school transportation in the state. The pilot project draws on the success of an earlier initiative in West Virginia, modifying it to cater to New Mexico's specific requirements.

Financial Management Improvements

GreenPower has also reported notable reductions in its operating costs, with total sales, general, and administrative expenses falling to $2.4 million from $5.2 million in the same quarter last year. Excluding non-cash items, these costs are estimated to be below $2 million, reflecting improved efficiencies within the company. Additionally, GreenPower entered the last quarter with over $5 million in working capital, indicating a more robust financial position.

To support these advancements, GreenPower successfully raised approximately $1.12 million through the issuance of Series A convertible preferred shares. This financial maneuver is part of an ongoing strategy that allows the company to issue up to $16 million in Series A Shares, establishing a solid financial foundation as they scale operations.

In the wake of the reported quarter, GreenPower has taken proactive steps to recapitalize the company. This includes securing term loans totaling $5 million and establishing a new banking relationship with CIBC, alongside other strategic financial exchanges aimed at strengthening the balance sheet.

Conclusion

As GreenPower continues to make significant strides in the electric vehicle sector, its latest financial performance indicates a promising trajectory. The company is not just focused on profitability but is paving the way for sustainable transportation solutions crucial for reducing emissions and fostering environmental responsibility. Going forward, the successful execution of electric school bus initiatives, combined with improved operational efficiencies, positions GreenPower for further growth in the rapidly expanding zero-emission vehicle market.