Westport Fuel Systems (WPRT) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was $1.6 million, down from $4.9 million year-over-year due to the light-duty business divestiture and business structure changes.

• Cespira/Sospira joint venture revenue rose 19% year-over-year to $19.3 million, driven by higher volumes.

• Gross margin improved to 31% in Q3 2025 from 14% in Q3 2024, reflecting higher-margin engineering services and operational transformation.

• The company completed the divestiture of its light-duty segment, focusing on heavy-duty and alternative fuel systems.

• Net loss from continuing operations was $10.4 million, versus $6 million in the prior year, impacted by higher R&D, SG&A, and FX losses.

Financial highlights

• Adjusted EBITDA was negative $5.9 million, compared to negative $0.8 million in Q3 2024.

• Cash and cash equivalents totaled $33.1 million at quarter-end, reflecting proceeds from the light-duty sale.

• Net cash used in operating activities improved to $4.5 million from $11.7 million year-over-year.

• Outstanding debt stands at $3.9 million, maturing in September 2026.

• Net cash used in financing activities was $1 million, down from $4.4 million year-over-year.

Outlook and guidance

• Further cost reductions are expected as the company adjusts to a smaller organization post-divestiture, with CapEx planned to be reduced by 60% and SG&A by 15% in 2026.

• Sospira/Cespira aims for continued volume growth, new OEM customers, and geographic expansion.

• CNG solution for North America is in demonstration phase, with commercialization targeted after successful trials.

• Management expresses strong confidence in the strategic direction and expects continued operational improvements.