Westport Fuel Systems (WPRT) Q2 2025 earnings summary

Executive summary

• Completed divestiture of the Light-Duty segment, strengthening the balance sheet and sharpening strategic focus on commercial transportation, industrial applications, and the Cespira joint venture.

• Cespira JV (also referred to as Sospira) continues to expand, with strong demand and 25% year-over-year truck volume growth in Europe and emerging markets.

• Strategic restructuring includes relocating manufacturing to Canada and China, aligning with innovation hubs and customer proximity, and opening a Hydrogen Innovation Center in China in late 2025.

• High-Pressure Controls & Systems segment is expanding in China, while the company advances zero-emissions hydrogen solutions and leverages alternative fuel offerings.

Financial highlights

• Q2 2025 revenue from continuing operations was $12.5M, down 11% year-over-year, mainly due to lower sales in High-Pressure Controls & Systems and Heavy-Duty OEM segments.

• Cespira generated $12.0M in Q2 2025 revenue, up from $4.1M in the prior year, with gross margin between -16% and 5% depending on sales mix.

• Adjusted EBITDA improved to -$1.0M from -$2.0M year-over-year, driven by reduced operating expenses.

• Net loss from continuing operations was $5.1M, compared to net income of $4.1M in Q2 2024, with a total net loss of $34.3M including discontinued operations.

• Cash and cash equivalents at quarter-end were $6.1M; cash used in operating activities was $5.6M.

Outlook and guidance

• Focused on driving volume growth for Cespira, expanding OEM partnerships, and geographic expansion, especially in Europe and North America.

• Cespira expected to require ongoing cash contributions from owners as part of a multi-year build-out.

• Further cost reductions anticipated post-divestiture, with normalized OpEx run rate expected in 2026.

• Anticipates incremental growth from new product launches, particularly in hydrogen and CNG/RNG markets.