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GreenPower (GP) Buys Lion Truck for Sustainable Truck Solutions

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GreenPower Motor Company Inc. (GP - Free Report) recently announced that it has acquired Lion Truck Body.

Based in California, Lion Truck Body designs and installs a range of resilient state-of-the-art truck bodies for industries that include goods movement, construction, catering, landscaping, utility and service sectors. It also offers a complete line of truck bodies like dry-freight aluminum, refrigerated box, aluminum beds, stake bed, flatbed and service body.

The two companies entered into an asset purchase agreement under which Greenpower has purchased the business's assets through a wholly owned subsidiary. The purchase comprises upfront cash payments of $215,000, and with the assumption of certain liabilities, the total amount is nearly $1.45 million. Other cash payments of roughly $25,000 remain subject to customary adjustments and other post-closing conditions.

The deal seeks to leverage Lion Truck’s long-standing expertise and add to GreenPower’s EV Star truck customer offerings. The demand for energy-efficient solutions that maximize cargo capacity and delivery range will be catered to. The acquisition will provide GreenPower’s EV Star truck customers with a wide range of options for any number of body types required to meet their business needs with greater speed to the market. GreenPower has been working with Lion Truck Body for quite some time to make lightweight and efficient truck bodies for its EV Star as well as other models of electric trucks.

Early this month, GP announced full-year fiscal 2022 results. It reported revenues of $17,236,773 in fiscal 2022, which marked an increase of 30% on a year-over-year basis. The firm’s inventory was $32.3 million as of Mar 31, 2022.

GreenPower has been actively pursuing sales in New Jersey and has seen significant demand in the state for its 22-foot cargo van, which marked the first sale of this new product. It also launched the new Nano-BEAST’s all-electric Type A school bus.

In fiscal 2022, the company expanded its dealer network across the United States and signed dealership agreements that will expand GreenPower’s sales footprint into new territories, including the states of Arizona, Nevada, Washington State, New Jersey, New York, and several specialized dealerships in California.

Shares of GP have lost 81.7% over the past year compared with its industry’s 29.3% decline.

Zacks Investment Research
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Zacks Rank & Key Picks

GP carries a Zacks Rank #3 (Hold), currently.

Better-ranked players in the auto space include BorgWarner (BWA - Free Report) , LKQ Corporation (LKQ - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BorgWarner has an expected earnings growth rate of 23% for 2023. The Zacks Consensus Estimate for current-year earnings has been constant in the past 30 days.

BorgWarner’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. BWA pulled off a trailing four-quarter earnings surprise of 33.1%, on average. The stock has declined 28.4% over the past year.

LKQ has an expected earnings growth rate of 6.3% for 2023. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.

LKQ’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. LKQ pulled off a trailing four-quarter earnings surprise of 23.55%, on average. The stock has fallen 0.3% in the past year.

Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.

Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 2% over the past year.

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