Worksport Sets New 4-Week Production Record; Strong Growth Continues 2,499 Units Produced in 4 weeks of July, Doubling March 2025 Output

Rhea-AI Summary

Worksport (NASDAQ: WKSP) has achieved a significant production milestone, manufacturing 2,499 tonneau covers in July 2025, more than doubling its March 2025 output of 1,234 units. This growth was achieved without proportional headcount increase at their ISO 9001:2015-certified facility in West Seneca, New York.

The company is on track to exceed $20 million in revenue this year and expects to achieve cash flow positivity soon. Worksport plans to launch its SOLIS solar-integrated tonneau cover and COR portable power system in Fall 2025, targeting a $13 billion market with projected initial revenue of $2-3 million, scaling to eight figures in 2026.

The company will discuss Q2 2025 performance in a webcast scheduled for August 13, 2025.

Positive

• Production doubled to 2,499 units in July 2025 compared to March 2025
• Over 100% gross margin improvement in past five months
• On track to exceed $20 million in revenue in 2025
• Strong dealer demand continuing to outpace supply
• New SOLIS and COR products targeting $13 billion market opportunity
• Top 15 U.S. construction company piloting SOLIS and COR units

Negative

• Current demand exceeding production capacity
• Cash flow positivity and profitability not yet achieved

Insights

Manufacturing & Operations Expert

Worksport's 103% production growth in four months with improved margins demonstrates operational excellence and positions them for strong financial performance.

Worksport's 2,499 tonneau cover production in July marks a substantial 103% increase from March's 1,234 units. What's particularly impressive is achieving this without proportional headcount growth, demonstrating significant operational efficiency improvements at their ISO-certified facility.

The company's ability to double production while simultaneously improving gross margins by over 100% in five months indicates exceptional manufacturing optimization. This production efficiency curve is following classic economies of scale - fixed costs are being spread across more units while variable costs are being controlled through process improvements.

The production acceleration comes at a critical time, as management indicates demand currently exceeds supply for their premium AL4 tonneau cover. This suggests they've successfully resolved earlier manufacturing bottlenecks without compromising quality.

From a capacity utilization perspective, these numbers indicate Worksport is likely approaching optimal production efficiency at their West Seneca facility. This operational leverage positions them well to generate meaningful returns on their manufacturing investment and achieve their stated goal of $20 million revenue and cash flow positivity.

Looking ahead, their pending expansion into clean-tech verticals (SOLIS solar covers and COR portable power) will test their manufacturing diversification capabilities. However, having established strong production processes with their core product provides a solid foundation for this expansion, with $2-3 million projected from initial clean-tech shipments and potential eight-figure revenue in 2026.

Financial Analyst

The production achievements detailed in this release represent a significant inflection point for Worksport's financial trajectory. The 103% production increase paired with 100% gross margin improvement creates a powerful financial multiplier effect - not only are they selling more units, but each unit is generating substantially more profit.

This operational leverage directly supports management's projection to exceed $20 million in revenue this year while achieving near-term cash flow positivity. The margin expansion is particularly noteworthy as it suggests they've crossed a critical threshold where fixed costs are now being efficiently absorbed by higher production volumes.

The pending clean-tech product vertical represents a high-margin diversification opportunity. By targeting the $13 billion combined market for clean energy and portable power, Worksport is strategically positioning itself beyond commodity tonneau covers into higher-value product categories. The $2-3 million initial revenue projection for SOLIS and COR seems conservative but prudent for new product categories.

The pilot program with a top 15 U.S. construction company represents a potential high-volume contract catalyst that could accelerate adoption. Fleet deals typically generate more predictable, recurring revenue streams compared to retail channels.

Investors should focus on whether the company can maintain these margin improvements while scaling production further. If these efficiency gains prove sustainable, Worksport could transition from growth-stage to profitability faster than anticipated, potentially making their current valuation compelling relative to projected earnings.

West Seneca, New York, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Worksport Ltd. (NASDAQ: WKSP) (“Worksport” or the “Company”), a U.S. based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, is pleased to report its strongest 4-week production stretch to date. From early July through the final week of the month, the Company produced 2,499 tonneau covers—more than double the 1,234 units produced in March 2025 and reflecting over 100% sequential growth in just four months.

Operational Scaling Drives Record Performance

This latest production milestone continues a clear trend of sequential growth for Worksport, following its 50% production increase reported in May and a more than 100% gross margin improvement over the past five months. Importantly, the July output gains were also achieved without a proportional increase in headcount—demonstrating significant operational efficiency at the Company’s ISO 9001:2015-certified facility in West Seneca, New York.

Management notes that this growth in output is critical as demand continues to outpace supply, driven by the exceptional market reception of the Company’s flagship Made in USA AL4 premium tonneau cover.

“To double production in four months, while simultaneously improving gross margins significantly, is a powerful validation of our factory team, processes, and strategy,” said Steven Rossi, Chief Executive Officer of Worksport Ltd. “Dealer demand continues to scale, and we're manufacturing more than ever before. We believe this progress puts Worksport on track to surpass $20 million in revenue this year and achieve cash flow positivity in the near term.”

Looking Ahead: Clean-Tech Product Launches and Expanded Verticals

Later this year, Worksport is expected to launch its first clean-tech product vertical: the SOLIS solar-integrated tonneau cover and the COR portable power system. Together, these products form a portable nano-grid and target a combined $13 billion market in clean energy and portable power—representing new revenue streams beyond the Company’s core tonneau cover business.

Both SOLIS and COR have passed third-party lab and beta testing, with production lines in development. The Company expects first shipments in Fall 2025, with projected revenue of $2-3 million from the initial launch, followed by 8-figure revenue contributions anticipated in 2026 and beyond.

Notably, a top 15 U.S. construction company is currently piloting the SOLIS and COR units for integration into their national fleet.

Webcast Registration for Presentation on Q2 Performance

Worksport reminds investors, analysts, and media to register in advance for the Worksport’s Q2 2025 live webcast, where management will provide insights into the Company’s Q2 2025 financial performance and outlook for 2025. Worksport is focused on achieving cash flow positivity, followed by profitability, in the next few quarters. With increasing margins and record revenues, the Company is excited to share details on its progress and highlight multiple growth verticals ahead.

• Register Here: [Conference Call Registration]
  • https://us06web.zoom.us/webinar/register/7017422424665/WN_m3Yovd_dQ7-hi_SHoLCbyA

Earnings Call Details:

• Date: August 13, 2025
• Time: 1:00 P.M. ET
• Format: Live webcast with management discussion and Q&A
  

For further information:
Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128
W: investors.worksport.com W: www.worksport.com E: investors@worksport.com

Join: Worksport’s Newsletter

About Worksport

Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport’s hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy’s website is terravisenergy.com.

Connect with Worksport

Please follow the Company’s social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram (collectively, the “Accounts”), the links of which are links to external third-party websites, as well as sign up for the Company’s newsletters at investors.worksport.com.

Social Media Disclaimer

The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission (SEC”) filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.

Forward-Looking Statements

The information contained herein may contain “forward‐looking statements.” Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “scheduled,” “expect,” “future,” “intend,” “plan,” “project,” “envisioned,” “should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company’s actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.

FAQ

What is Worksport's (WKSP) latest production record in July 2025?

Worksport produced 2,499 tonneau covers in July 2025, more than double their March 2025 production of 1,234 units.

What is Worksport's revenue target for 2025?

Worksport expects to exceed $20 million in revenue for 2025 and aims to achieve cash flow positivity in the near term.

When will Worksport launch its SOLIS and COR products?

Worksport plans to launch the SOLIS solar-integrated tonneau cover and COR portable power system in Fall 2025, with initial revenue projected at $2-3 million.

What is the market size for Worksport's new clean-tech products?

The SOLIS and COR products target a combined $13 billion market in clean energy and portable power.

When is Worksport's Q2 2025 earnings call?

Worksport's Q2 2025 earnings webcast is scheduled for August 13, 2025, at 1:00 P.M. ET.