GreenPower Motor Company Inc. (NASDAQ: GP) Q4 2025 Earnings | 08/05/2025

Summary of GreenPower Motor Company Q4 2025 Earnings Call

Key Participants:

• Host: Craig Brailsford (Red Ship Companies)

• Speakers: Fraser Atkinson (CEO & Chairman) and Brendan Riley (President & Director)

Company Overview:

GreenPower Motor Company (NASDAQ: GP) designs, manufactures, and distributes all-electric, zero-emission medium- and heavy-duty vehicles, focusing on commercial vehicles and school buses.

Recent Performance & Challenges:

• Delivered 700+ EV Star models (Class 4) and expanded school bus orders.

• Slowdown in EV adoption due to relaxed regulations, canceled mandates, and reduced pressure to transition.

• Impact of tariffs: Disrupted supply chain, delayed shipments, and increased production costs (mostly resolved by July 2025).

• Operational consolidation: Streamlined California facilities, reduced costs, and refocused business strategy.

Growth Opportunities – Electric School Buses:

• Strong demand in the school bus sector due to predictable routes, lower speeds, and health benefits for children (reducing diesel emissions-linked respiratory issues).

• Market potential: 490,000 school buses in the U.S., with only ~12,000 electrified so far.

• State mandates driving adoption:

  • New York: $15B opportunity, 100% zero-emission buses by 2035.

  • California: $10B opportunity, similar 2035 mandate.

• Vehicle-to-Grid (V2G) potential: School buses can stabilize the grid by supplying stored energy back during peak demand.

Product Highlights:

• Nano Beast (Type A) and Beast (Type D) school buses – only OEM offering both.

• Purpose-built EV platform (not converted from ICE), with high battery capacity (up to 400 kWh).

• Pilot project with New Mexico: $5M contract for electric school bus deployment.

Financial & Operational Updates:

• FY2025 Revenue: ~$20M (down YoY, but core business grew excluding one-time sales).

• Gross Profit: 9.7% (22-23% before adjustments).

• Capital Structure: ~30M shares outstanding, $6M operating loan, $5M production financing.

• Goal: Achieve positive cash flow by end of 2025 by focusing on profitable segments.

Competitive Edge:

• In-house EV platform (EV Star) – durable, high-capacity, and tested for reliability.

• Light manufacturing approach: Leverages U.S. and international contract production for scalability.

Challenges & Risks:

• Tariffs: Increased costs, though mitigated by USMCA trade agreement exemptions.

• Grid capacity limitations: V2G technology could help alleviate strain.

• Competition: BYD and others face tariff pressures, leveling the field somewhat.

Future Outlook:

• Focus on school buses amid softening commercial EV demand.

• Potential battery advancements (manganese-rich, solid-state) could improve performance.

• Legislative efforts: Lobbying against tariffs on school buses (viewed as self-taxing for public entities).

Q&A Highlights:

• Autonomy: Cautious approach due to regulatory and insurance uncertainties.

• Production capacity: Targeting 100 Nano Beasts/year (scaling from current low output).

• West Virginia issues: Ongoing discussions over contract disputes.

Conclusion:

GreenPower is navigating supply chain and tariff challenges while capitalizing on the growing electric school bus market. With strong state mandates, V2G potential, and a differentiated product lineup, the company aims to reach profitability by year-end. However, regulatory and macroeconomic factors remain key risks.