Worksport Ltd (NASDAQ:WKSP) on Wednesday announced preliminary top-line results for the fourth quarter ended December 31, 2025.
Net sales for the quarter increased to $4.84 million, a 65% increase year-over-year.
Profits And Margins
Gross profit for the quarter rose 392% Y/Y to $1.5 million. The margin expanded 2,100 basis points to 32%.
Full-year 2025 revenue reached $16.2 million, up 91% from $8.5 million in 2024, but missing the analyst consensus estimate of $19.58 million.
During the year, domestic aluminum prices rose by more than 35%, driven by supply constraints and tariff-related pressures.
For most industrial manufacturers, particularly those where aluminum is a primary input for products such as the AL3, HD3, and AL4, cost inflation typically results in margin compression.
Worksport, however, grew gross margins despite aluminum price volatility.
By transitioning production to its West Seneca, NY facility, the company offset rising commodity costs through advanced manufacturing, scrap reduction, fixed cost absorption, and a strategic pivot from R&D spend to the monetization phase.
Worksport is executing a shift in how it allocates capital across its clean-energy portfolio in 2026.
The majority of the capital expenditures and Research & Development investments required to design, validate, and de-risk the SOLIS Solar Tonneau Cover, COR Portable Energy System, and Aetherlux Heat Pump have now been incurred.
With core development substantially complete, management expects R&D intensity to decline meaningfully.
With the commercial launch beginning in January 2026, these products are transitioning from development projects to revenue-generating inventory.
The infrastructure to manufacture and distribute these units is fully deployed, marketing will now scale up, the company said.
2026 Outlook Update
Worksport expects to issue an update on forward guidance for fiscal year 2026, including specific revenue and cash flow positivity targets, later this quarter.
The analyst consensus estimates for first-quarter 2026 revenue is $10.9 million.
WKSP Price Action: Worksport shares were up 5.10% at $1.65 during premarket trading on Wednesday. The stock is trading near its 52-week low of $1.57, according to Benzinga Pro data.