SOUTH CHARLESTON - GreenPower Motor Company Inc. (NASDAQ:GP) (TSXV:GPV), a manufacturer of zero-emission electric vehicles, has announced plans to deliver 88 all-electric school buses to several school districts in West Virginia during its fiscal year 2025, which began on April 1, 2024. This move is part of a broader initiative to deploy environmentally friendly transportation solutions in the state.
The company's CEO, Fraser Atkinson, confirmed that the buses are being produced at GreenPower's South Charleston facility. These vehicles are part of the second round of the Environmental Protection Agency's (EPA) Clean School Bus Program, which aims to replace older, diesel-powered buses with cleaner, electric alternatives.
In January 2024, GreenPower received an $18.6 million grant from the EPA for the deployment of these electric school buses, including funding for the necessary charging infrastructure. The grant follows a successful pilot project in the 2022-23 school year, which demonstrated the buses' effectiveness in West Virginia's challenging terrain.
Mark Nestlen, GreenPower's Vice President of Business Development & Strategy, highlighted the benefits of the electric buses, emphasizing the safe and healthy transportation they will provide for students.
The upcoming deliveries will bring West Virginia to nearly 100 operational GreenPower electric school buses, positioning the state as a leader in electric school bus deployment on a per capita basis. Atkinson also noted a significant increase in school bus deliveries during the company's fiscal year 2024, with a total of 41 buses delivered, marking a 356% increase from the previous year.
GreenPower's President, Brendan Riley, mentioned that the commercial division also saw significant deliveries in fiscal year 2024, with a 9% increase in EV Star deliveries, excluding those to Workhorse. Riley anticipates that commercial vehicle sales will supplement income from school bus deliveries in the coming fiscal year.
The company's production facilities in West Virginia and California are expected to operate at high capacity, with a target of producing 50 to 60 school buses per quarter by the end of fiscal year 2025.
This announcement is based on a press release statement.
InvestingPro Insights
As GreenPower Motor Company Inc. (NASDAQ:GP) gears up to fulfill its ambitious delivery targets for all-electric school buses in West Virginia, investors are closely monitoring the company's financial health and stock performance. Despite the positive news on production and delivery, the company's stock price has experienced significant volatility, as indicated by the real-time data from InvestingPro.
The company's market capitalization stands at $42.57 million, reflecting its position in the market. However, the financial metrics reveal that GreenPower has not been profitable over the last twelve months, with a negative P/E ratio of -2.75, and analysts do not anticipate the company will be profitable this year. This aligns with an InvestingPro Tip that highlights the company's lack of profitability in the near term.
Moreover, the stock has been trading near its 52-week low, which could present a buying opportunity for investors who believe in the company's long-term growth prospects. This is supported by another InvestingPro Tip pointing out that GreenPower's liquid assets exceed its short-term obligations, suggesting a degree of financial stability despite current unprofitability.
For those considering adding GreenPower to their portfolios, it's important to note that the stock has fared poorly over the last six months, with a price total return of -48.51%. Nevertheless, the company's recent grant and production ramp-up could be harbingers of a turnaround. Investors interested in deeper analysis and more tips can find additional insights on InvestingPro, which lists 6 more InvestingPro Tips for GreenPower. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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