Executive Summary

Q3 2022 revenue rose to $3.88M (+448% YoY) on 37 vehicle deliveries; EVTV posted its first-ever quarterly profit with net income of $0.13M and diluted EPS of $0.01 .
Deliveries increased >75% sequentially from Q2 (37 vs. 21), supported by a 108-unit backlog (~$9.7M), though management cited shipping delays as a headwind in Q3 .
Management expects a sequential slowdown in Q4 deliveries due to holiday seasonality and a temporary NJ ZIP voucher pause; school bus launch targeted for H1 2023 and manufacturing start by mid-2024 .
Catalysts: first profitability, expanding product portfolio (Class 6 truck, electric school bus, right-hand-drive van), legislative tailwinds (EPA Clean School Bus, IRA credits), and Osceola plant progress; risks include funding program lumpiness and supply chain delays .

What Went Well and What Went Wrong

What Went Well

First profitable quarter driven by higher volumes and cost discipline: “we generated a profit, the first in our company’s history,” with net income of ~$0.13M and EPS $0.01 .
Strong execution and demand signals: 37 vehicles delivered in Q3 vs. 21 in Q2; backlog of 108 units (~$9.7M) with wins like Coastal Marine Services (3 vans, 2 delivered in October) and the first U.S. electric prisoner transport van .
Strategic manufacturing progress at Osceola (engineering/design teams secured; construction to begin; path to mid-2024 manufacturing and potential 10,000 EVs/year capacity), leveraging proximity to U.S. Steel and logistics infrastructure .

What Went Wrong

Shipping delays prevented management’s aspiration to double deliveries quarter-over-quarter; deliveries nonetheless rose >75% sequentially .
Outlook points to Q4 sequential softening from holiday shutdowns and NJ ZIP voucher pause, introducing near-term demand lumpiness .
Operating expenses increased YoY (Q3 OpEx $1.74M vs. $1.38M), reflecting headcount and sales/marketing investments; non-cash charges were $0.07M for Q3 .

Financial Results

Metric	Q1 2022	Q2 2022	Q3 2022
Revenue ($USD Millions)	$1.109	$2.088	$3.883
Gross Profit ($USD Millions)	N/A	$0.827	$1.836
Gross Margin %	N/A	39.6%	47.3%
Operating Income (EBIT) ($USD Millions)	N/A	-$1.006	$0.098
EBIT Margin %	N/A	-48.2%	2.5%
Net Income ($USD Millions)	-$2.527	-$1.010	$0.127
Net Income Margin %	-227.9%	-48.4%	3.3%
Diluted EPS ($USD)	$(0.01)	$(0.07)	$0.01
Vehicles Delivered (units)	12	21	37

Notes: Gross margin, EBIT margin, and net margin are derived from reported revenue, gross profit, operating income, and net income cited above.

YoY comparison:

Metric	Q3 2021	Q3 2022
Revenue ($USD Millions)	$0.709	$3.883
Diluted EPS ($USD)	$(0.06)	$0.01

Estimates:

Consensus EPS and revenue for Q3 2022 were unavailable due to SPGI access limitations; estimates comparison not provided (attempted S&P Global retrieval).

KPIs and Balance Sheet:

KPI	Q1 2022	Q2 2022	Q3 2022
Deliveries (units)	12	21	37
Backlog (units)	N/A	N/A	108
Backlog Value ($USD Millions)	N/A	N/A	~$9.7
Avg. Revenue per Vehicle ($USD Thousands)	~$92.4	~$99.4	~$105.0
Cash + Equivalents + Restricted + Marketable Securities ($USD Millions)	$9.099	$6.333	$4.660
Working Capital ($USD Millions)	$21.035	$19.995	$20.247
Total Liabilities ($USD Millions)	~$0.961	~$1.053	~$1.361

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Deliveries	Q4 2022	Management aimed to double Q3 vs Q2 and expected strong Q4 cadence	Expect sequential softening in Q4 due to holidays and NJ ZIP voucher pause	Lowered
NJ ZIP vouchers	Q4 2022	Ongoing tailwind supporting sales	Phase 1 concluded; pause until early 2023 before Phase 2 opens	Lowered
Electric school bus launch	H1 2023	School bus development underway (no firm date in Q2)	On track to market in first half of 2023	Clarified timeline
Manufacturing start (Osceola)	Mid-2024	18-month build-out; progress on roof/solar and equipment planning	Manufacturing production and assembly by mid-2024; potential 10,000 EVs/year over time	Maintained trajectory

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Supply chain & shipping	Supply chain issues noted; deliveries expected to begin late Q2/early Q3; multi-month inbound schedule	Shipping delays limited Q3 deliveries from doubling; >75% sequential growth achieved	Improving volumes but episodic delays
Legislative incentives	NJ ZIP and state programs as tailwinds; IRA passage expected to accelerate adoption	EPA Clean School Bus funding round; hired grant writing firm; expect to benefit in 2023; IRA commercial credits supportive	Strengthening policy support
Product roadmap	Orders for Class 5 trucks and Class 4 vans; right-hand-drive van homologation in progress	Class 6 truck “coming in next few months”; school bus targeted H1 2023; right-hand-drive capability highlighted	Broadening lineup
Manufacturing footprint	Osceola facility renovation underway; roof/solar planning; 18-month to first line	Construction to start Q4; mid-2024 manufacturing goal; scale to 10,000 EVs/year potential	On schedule
Government/Postal opportunity	USPS electrification viewed as “Holy Grail”; RHD van targeted	Continued enthusiasm; RHD van highlighted as differentiator	Opportunity intact
International interest	Early inquiries for RHD vehicle	Growing prospective international interest	Building

Management Commentary

“In the third quarter, we generated a profit, the first in our company’s history…driven by a more than 75% increase in vehicle deliveries relative to the second quarter, as we delivered 37 units” — Phillip Oldridge, CEO .
“As of the end of the third quarter, we had 108 units in backlog…estimated total value of $9.7 million” — Phillip Oldridge, CEO .
“We remain excited about large scale government fleet electrification opportunities…we expect to be a beneficiary [of EPA school bus funding] in 2023” — Phillip Oldridge, CEO .
“We expect to begin manufacturing vehicles at our facility by mid 2024…potential to eventually produce at least 10,000 EVs per year” — Phillip Oldridge, CEO .
“We do expect some slowdown in the fourth quarter…natural seasonal slowdown due to the holidays…NJ ZIP award [pause]” — Susan Emry, EVP .
“Net income was approximately $127,000, or $0.01 per…share…cash…approximately $4.66 million…and working capital…$20.2 million” — Christian Rodich, CFO .

Q&A Highlights

The published Q3 2022 transcript captures prepared remarks and outlook; Q&A content is not included in the available document. Outlook clarifications include expected Q4 sequential softening (holidays, NJ ZIP pause) and continued progress on Osceola construction and 2023 product launches .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2022 EPS and revenue was unavailable due to SPGI access limitations; therefore, we cannot assess beats/misses versus consensus for this quarter (attempted retrieval via S&P Global and encountered access limit).

Key Takeaways for Investors

First-ever profitability is a key proof point; margin expansion to ~47% gross margin with positive EBIT reflects price/mix and disciplined cost structure, but scale and supply chain reliability will determine sustainability .
Sequential demand momentum is tangible (37 deliveries, 108-unit backlog), yet near-term Q4 deliveries likely soften due to calendar and NJ ZIP funding cadence; expect lumpiness tied to voucher/grant timing .
2023 catalysts: school bus launch (H1), Class 6 truck, and potential EPA Clean School Bus awards; right-hand-drive van positions EVTV for USPS and select international markets .
Manufacturing ramp at Osceola remains central to the mid-term thesis; hitting mid-2024 production start is key to cost-downs, scale, and potential carbon credit monetization from 2025 .
Liquidity adequate for current operations (Q3 cash + marketable securities ~$4.66M; working capital ~$20.25M), but larger-scale manufacturing and product expansion likely require external capital; monitor financing timing/structure .
Without consensus data, trade the narrative: first profitability, backlog growth, and policy tailwinds are positives; watch Q4 delivery softness and FY23 funding normalization as stock reaction drivers .

Sources: Q3 2022 8-K and press release (Exhibit 99.1) ; Q3 2022 earnings call transcript ; Q2 2022 8-K and call ; Q1 2022 8-K and call .

Envirotech Vehicles, Inc. (EVTV)·Q3 2022 Earnings Summary