Westport Fuel Systems (WPRT) Q4 2025 earnings summary

Executive summary

• Completed divestiture of the Light-Duty segment, receiving $6.5 million to $60 million, resulting in a stronger cash position and reduced debt.

• Achieved strategic focus on HPDI technology and CNG solutions, with over 10,000 HPDI-powered trucks delivered and new OEM agreements.

• Opened new manufacturing facilities in Canada and China, supporting localization, cost reduction, and expanded production.

• Resolved a cybersecurity incident with no ongoing impact, ensuring business continuity.

Financial highlights

• Cash and cash equivalents increased to $27.2 million at year-end 2025, up from $14.8 million, mainly due to the Light-Duty segment sale.

• Long-term debt reduced by 57% to $2.9 million, providing greater financial flexibility.

• Q4 2025 total revenue was $29.3 million, up 28% year-over-year; full-year revenue was $23.3 million, down 43% due to the end of a transitional agreement.

• Adjusted EBITDA for 2025 was -$17.3 million, compared to -$11.4 million in 2024.

• Net loss from continuing operations was $29.6 million, an improvement from $31.3 million in the prior year.

• Gross margin for 2025 was 11%, up from 7% in 2024 but down from 23% in 2024 in some segments.

Outlook and guidance

• 2026 expected to be pivotal, with increased focus on commercializing HPDI and CNG solutions in North America and globally.

• Anticipates margin improvement and volume growth as new production facilities ramp up and inventory issues resolve.

• Field testing for the new CNG solution is expected in 2026, with commercialization to follow.

• Management projects current cash may not be sufficient for the next twelve months, with plans to seek additional funding.