Westport Fuel Systems (WPRT) Q4 2025 earnings summary

Executive summary

• Completed divestiture of the Light-Duty segment, receiving $6.5 million to $60 million, resulting in a stronger cash position and reduced debt.

• Achieved strategic focus with progress in HPDI technology, including over 10,000 natural gas trucks delivered and new OEM agreements.

• Launched proprietary CNG storage system and expanded manufacturing with new facilities in Canada and China.

• Overcame a cybersecurity incident, ensuring IT and business continuity.

Financial highlights

• Cash and cash equivalents rose to $27.2 million at year-end 2025, up from $14.8 million the prior year, mainly due to the Light-Duty segment sale.

• Long-term debt reduced by 57% to $2.9 million, providing greater financial flexibility.

• Q4 2025 revenue was $29.3 million, up 28% year-over-year; full-year revenue was $23.3 million, down 43% due to the end of a transitional agreement.

• Adjusted EBITDA for 2025 was -$17.3 million, compared to -$11.4 million in 2024.

• Net loss from continuing operations was $29.6 million, an improvement from $31.3 million in 2024.

Outlook and guidance

• 2026 expected to be pivotal, with increased focus on commercializing HPDI and CNG systems in North America.

• Anticipates margin improvement and volume growth as new facilities ramp up and inventory issues resolve.

• Ongoing OEM trials and field testing for new CNG solutions, with commercialization and decisions expected in 2026.

• Management projects current cash may not be sufficient for the next twelve months, with plans to seek additional funding.