Westport Fuel Systems (WPRT) Q1 2026 earnings summary

Executive summary

• Cespira joint venture revenue grew 33% year-over-year in Q1 2026, driven by higher volumes, broader market adoption of HPDI technology, and incremental volumes to a second OEM.

• High Pressure Controls segment revenue increased 21% year-over-year, supported by improved sales volumes, operational execution, and expanded facilities in Canada and China.

• ACT Expo showcased a fully integrated HPDI and high-pressure CNG storage platform, generating significant OEM and fleet interest, especially in North America.

• Volvo milestone of 10,000 natural gas trucks equipped with HPDI system, reflecting growing market acceptance.

• Expansion into new markets such as India, Brazil, and North America is underway, with strong interest in alternative fuel solutions.

Financial highlights

• Cash and cash equivalents were $24.5 million as of March 31, 2026, down from $27.2 million at year-end 2025.

• Net cash used in operating activities was $3.3 million to $3.4 million, an improvement year-over-year due to working capital changes.

• Capital contributions to the Cespira JV decreased to $2.9 million from $4.7 million in Q1 2025.

• Total outstanding debt reduced to $1.9 million, with repayments of $1.0 million in the quarter and plans to retire it in Q3 2026.

• Adjusted EBITDA was negative $4.9 million, compared to nil in Q1 2025, mainly due to lower gross profit.

Segment performance

• High Pressure Controls: Q1 2026 revenue was $2.3 million (up from $1.9 million), with gross profit of $0.5 million and a 23% margin.

• Cespira: Q1 2026 revenue reached $22.2 million, up 33% from $16.7 million in Q1 2025; product revenue rose 48% to $19.5 million.

• Cespira gross profit improved to $1.6 million (7% margin), up 253% year-over-year.

• Cespira net loss narrowed to $2.5 million, a 65% reduction from $7.1 million in Q1 2025.

• Heavy-Duty OEM: No sales activity in Q1 2026 following the end of the Cespira service agreement.