Westport Fuel Systems (WPRT) Q1 2026 earnings summary

Executive summary

• Cespira 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 for truck trials.

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

• Net loss narrowed by 65% to $2.5 million in Q1 2026 from $7.1 million in Q1 2025, though total net loss from continuing operations was $5.7 million due to other segment impacts.

• Market acceptance of HPDI fuel system technology is growing, with Volvo surpassing 10,000 natural gas trucks using Cespira's systems.

• ACT Expo showcased integrated HPDI and CNG platforms, generating significant OEM and fleet interest, especially in North America.

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 $3.4 million, an improvement of $5.2 million 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 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 from $0.4 million year-over-year.

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

• Heavy-Duty OEM segment had no sales activity in Q1 2026 following the end of the Cespira service agreement.