Core Viewpoint - Westport Innovations (WPRT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance and Outlook - The upgrade for Westport suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [5]. - For the fiscal year ending December 2025, Westport is expected to earn -$2.82 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 14.6% over the past three months, indicating positive sentiment among analysts [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places Westport in the top 20% of Zacks-covered stocks, suggesting it has a strong potential for market-beating returns in the near term [10].

Core Insights - Westport Fuel Systems Inc. (NASDAQ:WPRT) is currently viewed as a promising investment opportunity due to its strategic positioning and growth potential, with a Buy rating and a price target of $7 set by H.C. Wainwright [1][2] Group 1: Strategic Positioning - The company is undergoing a transition after divesting its Light Duty business, which is expected to enhance its focus on a joint venture with Volvo and Cespira, leading to market expansion and increased free cash flow [2] - Westport Fuel Systems is financially well-positioned to explore alternative fuel solutions, including LNG, CNG, RNG, and hydrogen systems, which are critical for future growth [3] Group 2: Technology and Market Applications - The application of the company's technology in larger generators and engines for data centers or stationary power generation is anticipated to open up substantial market opportunities [3] - The company designs, manufactures, and supplies advanced fuel systems and components for alternative fuels, contributing to cleaner, more fuel-efficient vehicles and lower emissions in the automotive and transportation industries [4]

Core Insights - Westport Fuel Systems Inc. (WPRT) reported a narrower loss of 60 cents per share in Q3 2025, compared to the expected loss of 89 cents and a loss of 22 cents in the same period last year [1][10] - The company achieved consolidated revenues of $1.62 million, exceeding the Zacks Consensus Estimate of $1 million, while net revenues were $66.25 million in Q3 2024 [2][10] - Adjusted EBITDA loss was $5.9 million, a significant increase from a loss of $800,000 in the previous year [2] Segment Performance - Cespira segment reported net sales of $19.3 million, surpassing the estimate of $12.6 million and increasing from $16.2 million in Q3 2024, but incurred an operating loss of $4.2 million, slightly wider than the previous year's loss of $4.1 million [3][4] - High-Pressure Controls and Systems segment had net sales of $1.6 million, down from $1.8 million in Q3 2024 due to lower sales during plant relocation, but exceeded the estimate of $1.1 million; gross profit improved to $0.5 million (31% of revenues) from $0.4 million (22% of revenues) [5] - Heavy-Duty OEM segment reported no sales activity following the conclusion of its transitional service agreement with Cespira in Q2 2025 [6] Financial Position - As of September 30, 2025, Westport had cash and cash equivalents of $33.1 million, up from $14.75 million at the end of 2024; long-term debt increased to $1.18 million from $548,000 [7] Market Position - Westport currently holds a Zacks Rank 3 (Hold); other better-ranked stocks in the auto sector include General Motors Company (GM), OPENLANE, Inc. (KAR), and Garrett Motion Inc. (GTX), all with a Zacks Rank 1 (Strong Buy) [8]

Financial Data and Key Metrics Changes - Westport reported revenue of $1.6 million for Q3 2025, a decline from $4.9 million in the same quarter last year [4] - Adjusted EBITDA for the quarter was negative $5.9 million, compared to negative $0.8 million in Q3 2024 [5] - Net loss from continuing operations was $10.4 million for the quarter, compared to a net loss of $6 million in the same quarter last year [6] - Cash and cash equivalents totaled $33.1 million as of September 30, 2025, reflecting a significant increase from the sale of the light-duty business [9] Business Line Data and Key Metrics Changes - High-pressure controls and systems revenue for Q3 2025 was $1.6 million, a slight decrease from Q3 2024 [8] - Sospira generated $19.3 million in Q3 2025, up 19% from the same period last year [9] - Gross profit for Sospira was negative $1.1 million in Q3 2025, compared to negative $0.2 million in Q3 2024 [9] Market Data and Key Metrics Changes - The global truck market is expected to reach 1.95 million units in 2025 [17] - The long-haul truck market is focusing on total cost of ownership, with natural gas being an affordable alternative to diesel fuel [18] Company Strategy and Development Direction - The divestiture of the light-duty segment is aimed at simplifying the business and focusing on core heavy-duty and alternative fuel systems [12] - Westport is pursuing strategic market expansion via technological leadership in heavy-duty transportation and truck OEMs [16] - The company is developing a new CNG solution to enhance its offerings in North America [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, highlighting the strengthened balance sheet and the strategic return to core operations [18] - The company is making difficult economic decisions to enhance future shareholder value, including planned reductions in capital expenditures and SG&A [19] Other Important Information - The company incurred one-time costs of approximately $1 million for severance and restructuring [7] - Net cash used in operating activities from continuing operations was $4.5 million, an improvement from $11.7 million in the same quarter last year [10] Q&A Session Summary Question: Can you provide more detail on the new OEM development with Sospira? - Management indicated that the development programs should be shorter due to proven technology, with feedback expected from the OEM by mid-2026 [24][25] Question: What are the capital needs for the Sospira joint venture over the next 12 months? - Management confirmed that additional capital will be needed next year as part of the three-year build-out plan for the joint venture [36] Question: When do you expect to have manufacturing fully moved out of Italy? - Management stated that the manufacturing is completely out of Italy, with equipment installation ongoing in Canada and China, expected to be operational by year-end [37] Question: What is the timeline for the CNG solution deployment? - Management clarified that the CNG solution is being developed for North America, with initial steps involving demonstration fleets before commercialization [45][46] Question: Is the engineering revenue recognized in the quarter ongoing or one-time? - Management confirmed that the engineering revenue is ongoing, as development work for hydrogen systems is a continuous part of the business [47]

Financial Data and Key Metrics Changes - Westport reported revenue of $1.6 million for Q3 2025, a decline from $4.9 million in the same quarter last year [4] - Adjusted EBITDA for the quarter was negative $5.9 million, compared to negative $0.8 million in Q3 2024 [5] - Net loss from continuing operations was $10.4 million for the quarter, compared to a net loss of $6 million in the same quarter last year [6] - Cash and cash equivalents totaled $33.1 million as of September 30, 2025, reflecting a significant increase from the sale of the light-duty business [9] Business Line Data and Key Metrics Changes - High-pressure controls and systems revenue for Q3 2025 was $1.6 million, a slight decrease from Q3 2024 [8] - Sospira generated $19.3 million in Q3 2025, up 19% from the same period last year [9] - Gross profit for Sospira was negative $1.1 million for Q3 2025, compared to negative $0.2 million in Q3 2024 [9] Market Data and Key Metrics Changes - The global truck market is expected to reach 1.95 million units in 2025 [17] - The long-haul truck market is focusing on total cost of ownership, with natural gas being an affordable alternative to diesel fuel [18] Company Strategy and Development Direction - The divestiture of the light-duty segment is aimed at simplifying the business and focusing on core heavy-duty and alternative fuel systems [12] - Westport is pursuing strategic market expansion via technological leadership in heavy-duty transportation and truck OEMs [16] - The company is focused on reducing capital expenditures by 60% and SG&A by 15% in 2026 to enhance shareholder value [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, highlighting the strengthened balance sheet and the strategic return to core operations [18] - The company is capitalizing on renewed market momentum, especially regarding the use of natural gas as a transport fuel in North America [15] Other Important Information - The transition of production lines from Italy to Canada and China is ongoing, with expectations for initial production by the end of the year [8] - The company incurred one-time costs of approximately $1 million for severance and restructuring during the quarter [7] Q&A Session Summary Question: Can you provide more detail on the new OEM development with Sospira? - Management indicated that the development cycle should be shorter due to proven technology, with feedback expected from the OEM by mid-2026 [24][25] Question: What are the capital needs for the Sospira joint venture over the next 12 months? - Management confirmed that additional capital will be needed next year as part of a three-year build-out plan for the joint venture [36] Question: When do you expect to have manufacturing fully moved out of Italy? - Management stated that manufacturing is completely out of Italy, with equipment installation in Canada and China expected to be completed by year-end [37] Question: What is the timeline for the CNG solution deployment? - Management clarified that the CNG solution is being developed for North America, with initial steps involving demonstration fleets before commercialization [45][46] Question: Is the engineering revenue recognized in the quarter ongoing or one-time? - Management confirmed that the engineering revenue is ongoing, as it involves development work for hydrogen systems from OEM customers [47]

Financial Data and Key Metrics Changes - Westport reported revenue of $1.6 million for Q3 2025, a decline from $4.9 million in the same quarter last year, primarily due to the divestiture of the light-duty business [4][5] - Adjusted EBITDA for the quarter was negative $5.9 million, compared to negative $0.8 million in Q3 2024, driven by lower gross profit and increased operating expenditures [5][12] - Net loss from continuing operations was $10.4 million for the quarter, compared to a net loss of $6 million in the same quarter last year [5][12] - Cash and cash equivalents totaled $33.1 million as of September 30, 2025, reflecting a significant increase from the sale of the light-duty business [8][12] Business Line Data and Key Metrics Changes - High-pressure controls and systems revenue for Q3 2025 was $1.6 million, a slight decrease from Q3 2024 [7] - Sospira generated $19.3 million in Q3 2025, up 19% from the same period last year, driven by higher volumes [4][8] - Gross profit for Sospira was negative $1.1 million in Q3 2025, compared to negative $0.2 million in Q3 2024, indicating a need for higher volumes to achieve positive margins [8] Market Data and Key Metrics Changes - The global truck market is expected to reach 1.95 million units in 2025, with a focus on the long-haul truck market, which has struggled to decarbonize [16][17] - Natural gas is gaining acceptance as an alternative to diesel fuel for long-haul trucking in North America, driven by affordability and abundant supply [14][17] Company Strategy and Development Direction - The divestiture of the light-duty segment is seen as a milestone in simplifying the business and focusing on core heavy-duty and alternative fuel systems [11][12] - Westport aims to strengthen its financial foundation and position itself for growth, with a focus on the Sospira joint venture as a central part of its growth strategy [12][13] - The company is pursuing strategic market expansion via technological leadership in heavy-duty transportation and truck OEMs [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, highlighting the strengthened balance sheet and the strategic return to developing innovative technology for the heavy-duty market [17] - The company is making difficult economic decisions to enhance future shareholder value, including planned reductions in capital expenditures and SG&A [18] Other Important Information - The company incurred one-time costs of approximately $1 million for severance and restructuring during the quarter [6] - Manufacturing operations are being moved from Italy to Canada and China, with both facilities expected to be operational by year-end [36] Q&A Session Summary Question: Can you provide more detail on the new OEM development with Sospira? - Management indicated that the development programs should be shorter due to proven technology, with feedback expected from the OEM by mid-2026 [24][25] Question: What are the capital needs for the Sospira joint venture over the next 12 months? - Management confirmed that additional capital will be needed next year as part of the three-year build-out plan for the joint venture [34] Question: When do you expect to have manufacturing fully moved out of Italy? - Management stated that manufacturing is completely out of Italy, with installations ongoing in Canada and China, expected to be operational by year-end [35] Question: What is the timeline for the CNG solution deployment? - Management clarified that the CNG solution is being developed for North America, with initial steps involving demonstration fleets before commercialization [41][42] Question: Is the engineering revenue recognized in the quarter ongoing or one-time? - Management confirmed that the engineering revenue is ongoing, as it involves development work for hydrogen systems from OEM customers [43]

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Investor Presentation Q3 2025 Results NASDAQ: WPRT / TSX: WPRT Speaking Today... November 11, 2025 Westport Fuel Systems Disclaimer and Forward-Looking Statements This presentation contains forward-looking statements that are based on the beliefs of management and reflects our current expectations as contemplated under the safe harbor provisions of Section 21E of the United States Securities Act of 1934, as amended. Such forward-looking statements include, but are not limited to, future strategic initiative ...

Core Insights - Westport Fuel Systems Inc. reported its Q3 2025 financial results, highlighting improved margins and liquidity despite a decline in revenue due to the divestiture of its Light-Duty segment [1][2][3] Financial Performance - Revenues for Q3 2025 were $1.6 million, a decrease of 67% from $4.9 million in Q3 2024, primarily due to the cessation of the Light-Duty segment [6][8] - Gross margin improved to 31% in Q3 2025 from 14% in Q3 2024, driven by higher-margin engineering services [3][8] - Net loss from continuing operations was $10.4 million in Q3 2025, compared to a net loss of $6.0 million in Q3 2024, attributed to increased operating expenditures and foreign exchange impacts [6][8] - Adjusted EBITDA was negative $5.9 million in Q3 2025, worsening from negative $0.8 million in Q3 2024, mainly due to lower gross profit from the divestiture [6][8] Liquidity and Financial Position - The company ended Q3 2025 with $33.1 million in cash and less than $4 million in debt, indicating a strengthened balance sheet [4][6] - Cash used in operating activities was $4.5 million, offset by a decrease in working capital [6][8] Strategic Initiatives - The divestiture of the Light-Duty segment is seen as a milestone in simplifying operations and focusing on core heavy-duty and alternative fuel systems [2][3] - The Cespira joint venture is central to the growth strategy, with increased deliveries supported by aftermarket sales as supply chain constraints ease [5][6] Operational Highlights - The Heavy-Duty OEM segment ended its transitional service agreement with Cespira at the end of Q2 2025, resulting in no sales activity for Q3 2025 [6][13] - The High-Pressure Controls & Systems segment generated $1.6 million in revenue for Q3 2025, down from $1.8 million in the same quarter last year, primarily due to lower sales during plant relocations [10][11]

Core Insights - Westport Fuel Systems has introduced a new compressed natural gas (CNG) solution that aims to enhance the performance and affordability of heavy-duty natural gas trucks, expanding the addressable market for its HPDI™ technology [1][3] - The new CNG solution is expected to provide diesel-like performance at a lower total cost of ownership while significantly reducing greenhouse gas emissions [1][4] Company Developments - The HPDI system has been available as a liquefied natural gas (LNG) solution and is currently operational in over 30 countries, powering more than 9,000 trucks globally [2] - Westport's proprietary CNG solution utilizes advanced high-pressure storage technology, which is designed to optimize system design and reduce lifecycle costs [3] - Field testing for the CNG solution is anticipated to begin in 2026, with commercialization expected to follow shortly after [3] Market Context - The transportation industry is increasingly recognizing the economic and environmental benefits of natural gas-based solutions, with renewable natural gas usage in transportation growing by 93% over the past five years [4][5] - The introduction of Westport's CNG solution is seen as a significant step towards providing lower fuel prices and reducing emissions in the heavy-duty transport sector [5] Strategic Goals - Westport aims to deliver practical, affordable, and scalable solutions for fleet operators, enhancing their competitiveness in a changing market [4] - The company is committed to supporting the transition to a low-carbon economy, aligning with Canadian government initiatives to strengthen leadership in clean energy solutions [5][6]