Westport Fuel Systems (WPRT) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was $302.3 million, down 9% year-over-year, with Q4 revenue at $75.1 million, down 14% from Q4 2023.

• Net loss narrowed to $21.8 million ($1.27/share), a 56% improvement from the prior year; adjusted EBITDA loss improved to $11.2 million from $21.5 million.

• Achieved positive cash flow from operations for the first time in over 25 years, enabling net debt repayments of $25.2 million.

• Announced divestment of the Light-Duty business for $73.1–$75.1 million plus potential earnouts, expected to close by late Q2 2025, to focus on heavy-duty and high-pressure segments.

• Formed Cespira JV with Volvo Group to accelerate HPDI technology commercialization and target hard-to-decarbonize transport and industrial markets.

Financial highlights

• Gross profit increased to $57.6 million (19% margin), up from $48.9 million (15%) in 2023.

• Adjusted EBITDA loss improved to $11.2 million from $21.5 million in 2023; Q4 Adjusted EBITDA loss was $1.8 million.

• Cash provided by operating activities was $7.2 million, a $20.4 million improvement over 2023.

• Cash and cash equivalents at year-end were $37.6 million, down from $54.9 million, mainly due to debt payments.

• Net debt repayments totaled $25.2 million in 2024.

Outlook and guidance

• Projected cash and equivalents are not sufficient to fund operations for the next 12 months under the current plan unless the Light-Duty divestiture closes.

• Strategic focus is shifting to scaling alternative fuel solutions (CNG, RNG, hydrogen) and heavy-duty applications.

• Proceeds from the Light-Duty sale are expected to strengthen the balance sheet and fund growth in Cespira and High-Pressure Controls & Systems.

• Continued cost reduction initiatives and margin improvements are planned.

• Positioned to benefit from growing heavy-duty truck market and increasing adoption of natural gas and hydrogen solutions.