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Westport Fuel Systems (WPRT) investor relations material
Westport Fuel Systems Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Completed divestiture of the Light-Duty segment, focusing on core heavy-duty and alternative fuel systems, and enhancing liquidity with $33.1 million in cash and less than $4 million in debt at quarter-end.
Transformation initiatives led to improved gross margin and operational efficiency, with a strategic focus on scaling the Cespira/Sospira joint venture.
Sospira/Cespira joint venture delivered 19% year-over-year revenue growth to $19.3 million, expanding its OEM customer base and geographic reach.
Manufacturing for high-pressure controls is transitioning from Italy to Canada and China, with new facilities expected online by year-end.
Net loss from continuing operations was $10.4 million, impacted by higher R&D, SG&A, and FX losses.
Financial highlights
Q3 2025 revenue was $1.6 million, down from $4.9 million in Q3 2024, reflecting the end of the transitional service agreement and Light-Duty divestiture.
Gross margin improved to 31% in Q3 2025 from 14% in Q3 2024, driven by higher-margin engineering services.
Adjusted EBITDA was negative $5.9 million, compared to negative $0.8 million in Q3 2024.
Net loss for the period was $13.7 million, compared to $3.9 million in Q3 2024.
Sospira/Cespira revenue reached $19.3 million, up 19% year-over-year, but gross profit remained negative at -$1.1 million.
Outlook and guidance
Further cost reductions are expected post-divestiture, with CapEx and SG&A planned to be reduced by 60% and 15%, respectively, in 2026.
Sospira/Cespira aims for continued volume growth, new OEM customers, and expansion into new geographies.
Anticipates feedback from a new OEM trial by mid-2026, with potential for commercial agreements.
Management expresses confidence in strategic direction and expects continued operational improvements, focusing on innovation and cost efficiency.
The global heavy-duty truck market is projected to reach 1.95 million units in 2025, with customers prioritizing total cost of ownership.
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