Westport Fuel Systems Q4 2025 Earnings Report

Westport Fuel Systems EPS Results

• Actual EPS: -$0.52
• Consensus EPS: -$0.47
• Beat/Miss: Missed by -$0.05
• One Year Ago EPS: N/A

Westport Fuel Systems Revenue Results

• Actual Revenue: $1.16 million
• Expected Revenue: $1.13 million
• Beat/Miss: Beat by +$32.00 thousand
• YoY Revenue Growth: N/A

Westport Fuel Systems Announcement Details

• Quarter: Q4 2025
• Date: 4/23/2026
• Time: After Market Closes
• Conference Call Date: Friday, April 24, 2026
• Conference Call Time: 10:00AM ET

Westport Fuel Systems (NASDAQ:WPRT) (NASDAQ:WPRT) is a Canada-based company that develops and supplies alternative-fuel systems and components for transportation and other applications. Its technologies are designed to enable vehicles and engines to operate on fuels such as natural gas, renewable natural gas, liquefied natural gas, compressed natural gas, hydrogen and liquefied petroleum gas.

The company’s product portfolio includes high-pressure direct injection systems, fuel injectors, regulators, fuel-delivery components, electronic controls and complete fuel-system solutions. Westport’s technologies are used in commercial vehicles, trucks, buses, off-road equipment and other heavy-duty applications, with an emphasis on reducing emissions and supporting the transition to lower-carbon fuels.

Westport Fuel Systems works with vehicle and engine manufacturers, fleet operators and other industry partners. Its operations and customer base have extended across North America, Europe and Asia, as well as other international markets. The company was founded in 1995 and is headquartered in Vancouver, British Columbia.

Westport Fuel Systems Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Company reports its recent cybersecurity incident review is complete, allowing management to refocus on executing strategy and next-phase objectives.
• Positive Sentiment: Proceeds from the light-duty divestiture strengthened liquidity — Westport ended 2025 with $27.2 million cash and reduced long-term debt to $2.9 million, providing greater financial flexibility.
• Positive Sentiment: Commercial traction at Suspowera: a leading OEM has agreed to a truck trial for HPDI components and Volvo has surpassed 10,000 natural‑gas trucks on the road using Suspowera HPDI systems, supporting commercialization momentum.
• Negative Sentiment: Financial performance remains challenged — consolidated 2025 revenue fell 43% to $23.3M, adjusted EBITDA was -$17.3M and net loss from continuing operations was $29.6M; Suspowera Q4 gross profit was negative due to a $1.7M obsolete inventory provision and a $2.8M contract loss.
• Neutral Sentiment: High‑pressure controls operations were disrupted by the relocation of manufacturing from Italy to Canada and China (costing ~two months production and pressuring margins), but management expects production, volumes and margins to recover in 2026 while pursuing growth in China, India and power‑gen markets.

Presentation

[Operator]

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Westport's Q4 2025 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one, one on your telephone keypad. As a reminder, this conference call is being recorded. At this time, I would like to turn the conference over to Ms. Ashley Nuell. Ma'am, please begin.

[Ashley Nuell, VP of Investor Relations at Westport Fuel Systems]

Thank you. Good morning, everyone. Welcome to Westport Fuel Systems conference call regarding its Q4 and full year 2025 financial and operating results. This call is being held to coincide with the press release containing Westport's financial results that were issued yesterday after market close. On today's call, speaking on behalf of Westport will be Chief Executive Officer and Director, Dan Sceli, and Chief Financial Officer, Elizabeth Owens. You are reminded that certain statements made on this conference call and our responses to certain questions may constitute forward-looking statements within the meaning of the U.S. and applicable Canadian securities laws. As such, forward-looking statements are made based on our current expectations and involve certain risks and uncertainties. With that, I'll turn the call over to you, Dan.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Thank you, Ashley, and good morning, everyone. I want to begin by addressing recent events. We appreciate the patience and support of our shareholders as we worked through our recent cybersecurity incident. Our priority was to ensure the integrity of our IT systems, business continuity, and financial reporting, and we are pleased to confirm that this review has been successfully completed. With this behind us, we're looking forward to executing on our strategy and delivering on the next phase of our business objectives. Turning to our financial results, the past year has been a defining one for Westport, marked by the successful divestiture of our light-duty business, the recent receipt of a $6.5 million payment, and further strengthened by Suspowera's agreement with a leading OEM to manufacture and deliver HPDI components for a truck trial assessing the future commercialization.

[Dan Sceli, President and CEO at Westport Fuel Systems]

These accomplishments, combined with ending the year with over $27 million in cash and very low debt, reflect the meaningful progress we have made in sharpening our strategic focus and building a stronger company. The global heavy-duty transportation market is increasingly recognizing natural gas as a practical, lower emission solution available today. This is evidenced by Volvo's recent milestone of delivering more than 10,000 natural gas trucks on the road, underscoring the accelerating adoption of Westport's HPDI fuel system technology and validates the strategic direction we have taken. From a market perspective, the U.K. leads the adoption of HPDI-powered LNG trucks, followed by Germany, Sweden, the Netherlands, Norway, and France. Emerging gas markets such as India and Latin America are also gaining momentum, with volume seeing steady growth.

[Dan Sceli, President and CEO at Westport Fuel Systems]

When we introduced our proprietary CNG fuel storage and delivery system several months ago, we emphasized its potential to significantly expand our addressable market, particularly in North America. Development has progressed well, and our confidence in the commercial opportunity continues to build. We look forward to showcasing this solution at the upcoming Advanced Clean Transportation Expo, ACT, where we will have the opportunity to show off our technology to industry partners and customers. By integrating advanced high-pressure CNG storage with Suspowera's field-proven HPDI fuel system, we match or exceed the performance and efficiency expected from diesel engines with compelling economics in markets where CNG is the natural choice, like North America. We believe this innovation meaningfully enables Westport and Suspowera to capture new opportunities as we move into field testing. Our GFI brand, through our high-pressure controls business, has also delivered important operational milestones.

[Dan Sceli, President and CEO at Westport Fuel Systems]

The opening of our facility is one of the world's fastest-growing hydrogen markets and in Canada represents a step in localizing manufacturing, reducing costs, and improving competitiveness. As the transportation industry continues to balance economic realities with sustainability objectives, we are confident that alternative fuel systems, including Suspowera's HPDI technology and our high-pressure components, provide real-world solutions that deliver both performance and affordability. With the completion of our strategic transition and only a few milestones remaining, a growing market validation of Suspowera's expansion, a path to address the North American market, and a clear strategic focus, Westport is excited to dive into this next phase. Now I'll have Elizabeth run through some financial details and then come back afterwards. Over to you, Elizabeth.

[Elizabeth Owens, CFO at Westport Fuel Systems]

Thank you, Dan. Before I dive into the details, I'll just touch on a few key milestones that were just achieved, the first of which is our strong cash position, reflective of a successful divestiture of the light-duty segment. As of December 31st, 2025, our cash and cash equivalents position increased by $12.4 to $27.2 million, compared to $14.8 million on December 31st, 2024. The increase in cash was primarily driven by the sale of our light-duty segment, as I mentioned, partially offset by cash used in our operating activities and debt repayments. Exiting 2025, with the proceeds from the disposition of Westport's light-duty segment, our long-term debt, including the current portion, reflected a 57% reduction to $2.9 million as of December 31st, 2025.

[Elizabeth Owens, CFO at Westport Fuel Systems]

This was compared to $6.8 million in the prior year period. Including the long-term debt from discontinued operations, the reduction was more than 90%. This improved financial position provides Westport with greater flexibility to concentrate on markets that are best suited to our current strategy. Suspowera continues to drive meaningful improvements in our results. In the Q4 of 2025, total revenue was $29.3 million, compared to $22.9 million in the same period last year, representing an increase of 28%. This progress is supported by strong market adoption, including Volvo reaching the milestone of more than 10,000 natural gas trucks on the road equipped with Suspowera's HPDI fuel systems. We are also encouraged by the continued progress of a second OEM that is currently conducting truck trials. We are excited about the opportunities ahead as we target an improvement in Suspowera's capital requirements.

[Elizabeth Owens, CFO at Westport Fuel Systems]

Turning to the details of our 2025 results, Westport reported revenue of $23.3 million for the year ended 2025, compared to $40.7 million in 2024. The 43% decrease in revenue was primarily due to the end of the transitional service agreement for inventory and contract manufacturing between Westport and Suspowera. Our adjusted EBITDA for 2025 was -$17.3 million as compared to the -$11.4 million reported for 2024. We reported a net loss from continuing operations in 2025 of $29.6 million, compared to a net loss from continuing operations of $31.3 million for the prior year, with the decrease in net loss attributed to lower operating expenditures across R&D and SG&A and a favorable change in foreign exchange rates, partially offset by a full-year pickup of Suspowera's operating results in 2025 compared to the seven months in 2024.

[Elizabeth Owens, CFO at Westport Fuel Systems]

Looking at our specific business units, high-pressure controls revenue for the Q4 of 2025 increased 20% to $1.9 million, compared with $1.6 million in the prior year quarter, and decreased to $8.3 million for the year ended December 31st, 2025, from $9.4 million for the prior year. The decrease in year-over-year revenue for the period ending December 31st was primarily driven by the general slowdown in the hydrogen infrastructure development, leading to a slower adoption of automotive and industrial applications powered by hydrogen. In Q3 2025, we kicked off the move of our manufacturing capacity from Italy to our new facilities in Canada and China, which required shutting down our operations. In late Q4 2025, we resumed selling products to our customers to meet the backlogged demand from the aforementioned shutdown.

[Elizabeth Owens, CFO at Westport Fuel Systems]

Gross profit for the year ended December 31st, 2025, decreased by $1.3 to $0.9 million, or 11% of revenue, compared to $2.2 million or 23% of revenue for the prior year. Moving on to Suspowera. Total revenue generated in Q4 2025 was $29.3 million, compared to $22.9 million in the same period last year, an increase of 28%. Suspowera product revenue of $23.4 million increased 30% compared to Q4 2024, driven by higher volumes. Gross profit was -$1.1 million for Q4 2025, compared to $0.5 million in Q4 2024, with the negative variance driven primarily by an obsolete inventory provision of $1.7 million and a recognized loss on one of our contracts valued at $2.8 million. As I previously mentioned, we had a cash and cash equivalents balance of $27.2 million as of December 31st, 2025.

[Elizabeth Owens, CFO at Westport Fuel Systems]

Net cash used in operating activities from continuing operations was $14.2 million for the year ended December 31st, 2025, compared to $5.8 million in the prior year, an increase of $8.4 million. The decrease in net cash provided by investing activities was mainly driven by $21.7 million in capital contributions to Suspowera and purchases of property, plant, and equipment of $2.7 million, partially offset by proceeds from the sale of the light-duty segment. As noted, we also strengthened our balance sheet with total outstanding debt of $2.9 million, down from $6.8 million, while reducing the complexity of our corporate structure in 2025. Our business is focused on the right markets for us, and we are continually looking at ways to streamline our operations. With that, I will pass it back to you, Dan.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Thank you, Elizabeth. As we look to 2026, we see a transportation market increasingly grounded in economic reality. Operators are seeking solutions that deliver measurable emission reductions without sacrificing durability or operating economics. Natural gas is playing a larger role in that equation, not as a transitional concept, but as a fuel that can compete on performance and cost today. The HPDI platform delivered through Suspowera is central to that opportunity by pairing compression ignition performance with the advantages of natural gas, including the potential to incorporate hydrogen blends over time. We are providing OEMs and fleets with a pathway that aligns emission reductions with commercial expectations. As I mentioned earlier, Volvo's milestone of more than 10,000 natural gas trucks on the road in over 30 countries, featuring Suspowera's HPDI fuel systems, highlights our combined success in helping drive this path of success.

[Dan Sceli, President and CEO at Westport Fuel Systems]

We are encouraged by the progress of a second OEM conducting a full truck trial throughout 2026, which we further believe validates additional commercial potential. 2026 will be a pivotal year as we advance demonstrations and fleet trials, present this exciting new platform at the ACT conference this spring, and follow with targeted show-and-tell sessions with Canadian fleets through the spring and summer. Together, these initiatives position us to build momentum across our portfolio and translate technology progress into tangible commercial interest. I can appreciate the investment community's interest in our 2026 outlook. We are focused on delivering disciplined execution, continued advancement of OEM programs, and converting technical validation into new commercial opportunities. In our high-pressure controls segment, we're optimistic that volumes can increase as customers' facilities ramp up production, while we actively pursue cost reduction opportunities in China through greater total sourcing and supply chain optimization.

[Dan Sceli, President and CEO at Westport Fuel Systems]

With a focused organization and technologies aligned with market demand, we believe 2026 represents an important step forward, and we intend to deliver. Thank you.

[Operator]

Ladies and gentlemen, at this time, if you have a question or comment, please press star one, one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star one, one again. Again, if you have a question or comment, please press star one, one on your telephone keypad. Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of Amit Dayal from H.C. Wainwright. Your line is open, sir.

[Amit Dayal, Analyst at H.C. Wainwright]

Hey, good morning, everyone. Thank you for taking my questions.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Hey. Good morning, Amit.

[Amit Dayal, Analyst at H.C. Wainwright]

Just on the margin side of things, it looks like inventory issues and relocation issues were sort of pressuring margins in the Q4. Do you think we see some bounce back in 1Q and the rest of 2026 on the margin side?

[Dan Sceli, President and CEO at Westport Fuel Systems]

Yeah, for sure. I think this transition; I'll start with the high-pressure controls transition from Italy to Canada and China. Launching the two new production facilities, moving the equipment over, managing the inventory transfers, starting up getting the plants certified, which is quite an extensive process. Yeah, that put a lot of pressure on margins, and we do expect margins to improve and volumes as well. We're already seeing some pickup in volumes as we move through the year.

[Amit Dayal, Analyst at H.C. Wainwright]

Understood. For the high-pressure controls segment, can you talk a little bit about how maybe the China market or the Indian market, et cetera, the international opportunities you highlighted could start ramping for you? What should we expect in terms of go-to-market sort of strategy in these geographies?

[Dan Sceli, President and CEO at Westport Fuel Systems]

Sure. I'll start with China. I think everybody knows that China is the fastest growing hydrogen market. The government goals that they set out are driving volume increases. We're in a bit of a lull right now where volumes globally have slowed down on hydrogen, but we expect them to begin to pick up again at some point here in China. Having our plant there allowed us to compete locally. It allowed us to have local costs, source local suppliers. For us, it's the right strategy to compete in China for the Chinese market. Shipping from Italy or from Canada just didn't make sense. The comment on India is really a huge opportunity for Suspowera in the long-haul trucking market. India has now put in a multi-state highway system. They're investing in clean fuel stations.

[Dan Sceli, President and CEO at Westport Fuel Systems]

We see that a number of trucking OEMs look at India as a beachhead for growth, and that market's going to pick up, we believe, pretty significantly.

[Amit Dayal, Analyst at H.C. Wainwright]

Understood. Just last one from me. Any opportunities or possibilities in the power gen or backup power space for you guys?

[Dan Sceli, President and CEO at Westport Fuel Systems]

Well, interesting you ask. We've been looking into power gen. We currently supply into power gen today. We have a customer that used to be Kohler, Roco, that we supply out of our high-pressure controls business. We see that opportunity growing with the investments going into power gen across North America and of course, globally. We think that there's an opportunity to build out that business and are expected to grow there.

[Amit Dayal, Analyst at H.C. Wainwright]

Understood. That's all I have, guys. I'll take my other questions offline. Thank you.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Great. Thanks, Amit.

[Operator]

Second, this question or comment comes from the line of Rob Brown from Lake Street Capital Markets. Mr. Brown, your line is open.

[Rob Brown, Analyst at Lake Street Capital Markets]

Hi, good morning.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Hey, good morning, Rob.

[Rob Brown, Analyst at Lake Street Capital Markets]

First question is on the OEM trial at Cespira, the second OEM. I know you can't give a lot of detail, but I think you said this year is sort of when the trial's happening. What's sort of the decision point on that? Is it sort of work this year and then just make decisions and then start potentially ramping into a production model or just sort of the outlines of the process would be helpful.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Sure. I wish I could say who it was, but in this commercial truck world, they're very careful about their commercial information. The trial's ongoing right now, right? There are trucks on the road running. There are discussions about expanding it, but we believe decisions will be made in the H2 of the year at some point. We don't know the exact timing. It depends when they get the miles on the trucks. Our expectation is that in the H2 of the year, we're going to start getting feedback. Of course, if it all goes well, we're hoping this is going to lead to a commercial launch.

[Rob Brown, Analyst at Lake Street Capital Markets]

Okay. Got it. Turning back to the high-pressure controls business run rate, get a sense of what's the sort of revenue run rate now that you've gotten the production transitioned. Is it sort of growing off the Q4 run rate? Or I guess, how much of the Q4 run rate was depressed from that, I guess? Just a sense of the run rate in that business.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Sure. The Q4 run rate was depressed. Number one, the market has slowed down somewhat, but also with shutting down the equipment in Italy, moving it all to the two new plants. Obviously, we weren't producing for some time while that transition happened. Yeah, we do see that market starting to grow. We see volumes increasing over what we expected for 2026 already. It's on a good path, and we believe that, I think specifically the Chinese market is the one that will take off first as the Chinese government puts those goals in place for hydrogen transition in both the automotive and in the industrial markets.

[Rob Brown, Analyst at Lake Street Capital Markets]

Okay, thank you. I'll turn it over.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Thank you.

[Operator]

Thank you. Again, ladies and gentlemen, if you have a question or comment at this time, please press star one, one on your telephone keypad. Our next question or comment comes from the line of Mr. Eric Stine from Craig-Hallum Capital Group. Mr. Stine, your line is open.

[Eric Stine, Analyst at Craig-Hallum Capital Group]

Hi, Dan. Hi, Elizabeth. Good morning.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Hey, good morning, Eric.

[Eric Stine, Analyst at Craig-Hallum Capital Group]

Dan, you touched on HPDI in India and in your prepared remarks, Latin America, and some other markets. In terms of in North America, I know that's a very high priority. You did mention some trials that you are planning or that the joint venture is planning in Canada. Could you maybe go into that a little bit? Anything you can share-

[Dan Sceli, President and CEO at Westport Fuel Systems]

Sure.

[Eric Stine, Analyst at Craig-Hallum Capital Group]

Should we assume then that Canada is kind of the initial spot in North America that you would target?

[Dan Sceli, President and CEO at Westport Fuel Systems]

I think it is a Westport product, not a Cespira product. Obviously Cespira has the on-engine HPDI technology that will be part of the solution, but the back-of-cab high-pressure storage, smart storage system is a Westport product. We have already got the first truck. Volvo got us a truck, and we've already put the back-of-cab system on it. It's been running miles developing data. The reason that is that we're not having to redevelop any of these systems. It's a matter of putting these systems together. It's not a huge development project. It's more of a market development that's required. The truck, as I said, is on the road. The truck will be on its way shortly to Las Vegas for the ACT show. I hope you're gonna be there, Eric, and see it. We have a booth right next to Volvo there.

[Dan Sceli, President and CEO at Westport Fuel Systems]

As you know, this CNG storage system is primarily focused on the North American market. We will be doing the initial trials in Canada. We will, at some point here, be moving to the U.S. for trials as well.

[Eric Stine, Analyst at Craig-Hallum Capital Group]

Got it. Okay. I misunderstood that. Thank you for the clarification. I guess the follow-up then would be just about bringing HPDI, the joint venture, and since you just talked about back-of-cab, but HPDI to North America.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Yeah.

[Eric Stine, Analyst at Craig-Hallum Capital Group]

I would assume that that would be Volvo, right?

[Dan Sceli, President and CEO at Westport Fuel Systems]

Yes. Well, as a starting point, for sure.

[Eric Stine, Analyst at Craig-Hallum Capital Group]

Yeah.

[Dan Sceli, President and CEO at Westport Fuel Systems]

this whole CNG, I mean, HPDI is growing fast globally. The difference is that all the growth to 10,000 trucks are on LNG because that's how those countries receive their natural gas. Natural gas in North America is primarily delivered through compressed, right? It's a CNG market. Our on-engine system really doesn't care whether it's compressed or liquid. The system adapts to that. The storage system is the big difference, going from a liquid storage to a compressed storage, and that's what we're bringing in, and the first truck on the road is a Volvo truck. It's their new truck, and we're very excited to have it showing up at ACT. Yeah, this is pretty exciting for us. We're finally getting to execute on this strategy, and any growth we have on this back-of-cab system obviously pulls through HPDI for Suspowera.

[Eric Stine, Analyst at Craig-Hallum Capital Group]

Yep. Nope. Absolutely. Okay, thanks for that. Just housekeeping for my last question or questions. Just, I might have missed it, but did you quantify or estimate what you think the move did in terms of limiting Q4 for the high-pressure segment?

[Dan Sceli, President and CEO at Westport Fuel Systems]

Oh, sure. I think we lost probably a couple of months of production. We had built up some inventory, but when you lose a couple of months production, you got to play catch up. That coincides with a bit of the market pause that had happened. We've launched both plants. Both plants are up and running and shipping product. We've gotten through that transition hump, through the launch hump, and we're pretty excited about where that's gonna go. We have the control in our hands.

[Eric Stine, Analyst at Craig-Hallum Capital Group]

Okay. Thank you.

[Dan Sceli, President and CEO at Westport Fuel Systems]

Perfect. All right. Thanks, Eric. Well, that's all the questions we have for today. I want to thank you for your time, everyone, and have a great, wonderful weekend.

[Operator]

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day. Speakers stand by.

Participants

Executives

• Ashley Nuell, VP of Investor Relations
• Dan Sceli, President and CEO
• Elizabeth Owens, CFO

Analysts

• Amit Dayal, Analyst at H.C. Wainwright
• Rob Brown, Analyst at Lake Street Capital Markets
• Eric Stine, Analyst at Craig-Hallum Capital Group