Lion Electric posted Q4 earnings that reflected an increase in deliveries and revenue, but increased losses due in part to impairment charges and delays in subsidy payments to customers.

Q4 revenue was $60.4 million (all figures U.S.), up from $46.8 million in the same quarter of 2022. Net loss climbed to $56.5 million compared to $4.6 million the same quarter of 2022.

But Lion delivered 188 vehicles, up 14 year over year. For the full year 2023, it delivered 852 vehicles, a 333 vehicle increase from the previous year. Its net loss on the full year was $103.8 million, compared to net earnings of $17.8 million in 2022.

The Quebec-based electric truck and bus maker now has more than 1,850 vehicles on the road with more than 22 million miles (36 million km) driven. Its order book totals 2,076 vehicles, including 285 trucks, with a value of about $500 million. Lion also has 132 charging stations on its order books.

Lion also announced the temporary layoffs of another 100 employees, mostly affecting the night shift production at its Saint-Jerome, Que., facility. In a press release, Lion said it’s being negatively affected by delays related to the processing and granting of various government subsidies and incentives, notably the federal ZETF program for transit buses.

CEO and founder Marc Bedard described 2023 as “a year of significant progress, marked by record vehicle deliveries and revenue, which translated into positive adjusted gross margins, and also by several achievements, including the construction and operation of our two new factories and the start of commercial production of our Lion5 electric truck and our LionD electric school bus.”

He added: “However, this past year has not been without its challenges, particularly as it relates to a volatile incentive environment that slowed down the pace of orders and deliveries. In 2024, with the growth capex investments now behind us, we will focus on driving growth in orders and deliveries, while diligently controlling costs and keeping a tight control of our liquidity, as we expect the volatile environment to persist for at least the next few months. Despite facing such uncertain environment, we remain committed to leveraging all investments made over the last 15 years, with the ultimate objective to reach profitability.”