Westport Fuel Systems (WPRT) investor relations material

Executive summary

• Q2 2025 revenue from continuing operations was $12.5M, down from $14.1M year-over-year, while the divested Light-Duty segment contributed $76.4M in revenue and $15.1M gross profit.

• Completed divestiture of Light-Duty segment post-quarter, generating $62.5M in net proceeds, strengthening the balance sheet, and reducing debt by $24.3M.

• Strategic focus now on Cespira joint venture and High-Pressure Controls & Systems, targeting growth in heavy-duty, hydrogen, and RNG markets.

• Cespira JV generated $12.0M in revenue, with ongoing investment required for its growth and negative gross margin due to scaling phase.

• Relocating European manufacturing to Canada and opening a Hydrogen Innovation Center in China to support innovation and market expansion.

Financial highlights

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

• Operating expenses dropped to $15.5M from $21.6M year-over-year.

• Gross margin from continuing operations was 6% ($0.8M), down from 17% ($2.4M) year-over-year, due to lower revenue and higher material costs.

• Net loss from continuing operations was $5.1M, compared to net income of $4.1M in Q2 2024, impacted by prior year’s $13.3M gain on HPDI JV deconsolidation.

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

Outlook and guidance

• Focused on expanding Cespira’s market presence and technology leadership in heavy-duty transportation, with volume growth targeted in Europe, North America, and emerging markets.

• Anticipates continued cash contributions to Cespira over a multi-year build-out.

• Expects further cost reductions and right-sizing of OpEx, with normalized run rate anticipated in 2026.

• Sees significant growth opportunities in RNG and CNG, especially in North America, China, and Europe.

• Incremental growth expected from new product launches and hydrogen innovation.