Vancouver–based GreenPower continues to bet heavily that the future of school transportation lies in all-electric buses rather than aging, polluting diesel models.
[Related: GreenPower's first all-electric buses roll off production line]
The company announced earlier this month plans to accelerate production of its EV school bus lineup thanks to $18 million in new financing that'll be deployable in tranches of up to $2 million. The move is structured to optimize cash conversion cycles, allowing GreenPower to align capital deployment with production timing as the company scales output.
The financing facility supports the conversion of more than $50 million in contracted school bus orders, with over 130 chassis already produced to accelerate revenue recognition and improve working-capital efficiency. This early production work positions the manufacturer to achieve stronger gross margins and move toward positive operating cash flow.
"We are entering a period of meaningful operational leverage," said Fraser Atkinson, CEO of GreenPower. "With more than $50 million in contracted orders for our Nano BEAST and BEAST school buses, this facility allows us to convert backlog into deliveries more efficiently. Before finalizing the facility, we pre-built over 100 Nano BEAST cab chassis and 30 BEAST chassis, significantly reducing production lead times. This creates a clear path toward accelerated revenue recognition, margin expansion, and improved operating cash flow."
To date, GreenPower is the only fully EV company to manufacture both Class 4 Type A and Class 8 Type D school buses, including the BEAST and Mega BEAST.
Just last summer, GreenPower announced the signing of a deal with the state of New Mexico worth over $5 million for the purchase and deployment of zero-emission school buses. This two-year pilot project that aims to deploy six zero-emission school buses, three Type A and three Type Ds. The company also confirmed it'll be partnering with Highland Electric Fleets for the installation of, which it'll supervise, the necessary charging infrastructure.
