VANCOUVER, British Columbia, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. ("Westport") (TSX:WPRT, NASDAQ:WPRT), announces that Brenda Eprile has retired from Westport's Board of Directors (the "Board"), effective January 6, 2025. The Board is currently evaluating alternatives with respect to the appointment of an independent director to fill the vacancy. "On behalf of the entire Board of Directors, I would like to express our deepest gratitude to Brenda for her exceptional leadership and unw ...

Core Viewpoint - Westport Innovations (WPRT) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is expected to positively influence its stock price [1][2]. Earnings Estimate Revisions - Analysts have been consistently raising their earnings estimates for Westport, with the Zacks Consensus Estimate increasing by 10.8% over the past three months [7]. - The upgrade reflects an improvement in Westport's underlying business, suggesting that investor sentiment may drive the stock price higher [12]. Zacks Rating System - The Zacks rating system is designed to track earnings estimate revisions, which are strongly correlated with near-term stock price movements, making it a valuable tool for investors [4][6]. - The system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a 'Strong Buy' rating and the next 15% a 'Buy' rating, ensuring a rigorous evaluation process [8]. Financial Projections - Westport is projected to earn -$0.92 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 68.3% [14]. - The upgrade to Zacks Rank 2 places Westport in the top 20% of Zacks-covered stocks based on earnings estimate revisions, indicating potential for market-beating returns in the near term [16][17].

Core Viewpoint - Westport Innovations reported a narrower loss in Q3 2024 compared to the previous year, but revenues declined year-over-year, leading to mixed investor sentiment ahead of the next earnings release [2][3][15]. Financial Performance - The company incurred a loss of $0.22 per share in Q3 2024, better than the Zacks Consensus Estimate of a loss of $0.41 and an improvement from a loss of $0.68 in the same quarter last year [2]. - Consolidated revenues were $66.2 million, missing the Zacks Consensus Estimate of $67 million and down from $77.4 million in Q3 2023 [3]. - Adjusted EBITDA loss was $0.8 million, an improvement from a loss of $3 million in the prior year [3]. Segmental Performance - **Cespira**: Reported net sales of $16.2 million with an operating loss of $5.3 million [4]. - **Light-Duty**: Net sales increased to $61.5 million from $60.2 million year-over-year, with an operating income of $2.4 million compared to a loss of $3 million in the previous year [5][6]. - **High-Pressure Controls and Systems**: Net sales fell to $1.6 million from $3.7 million year-over-year, with an operating loss of $1.2 million [7][8]. - **Heavy-Duty OEM**: Net sales were $3.1 million, down from $13.5 million in the prior year, but operating income improved to $0.9 million from a loss of $3.7 million [9][10]. - **Corporate**: Reported an operating loss of $1 million, improved from a loss of $5 million in the previous year [10]. Financial Position - Cash and cash equivalents decreased to $33.26 million as of September 30, 2024, from $54.85 million at the end of 2023 [11]. - Long-term debt reduced to $23.5 million from $30.96 million as of December 31, 2023 [11]. Market Sentiment and Outlook - There has been an upward trend in estimates for Westport, with a consensus estimate shift of 20.13% [12][13]. - The stock has a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [15]. - Westport holds a Growth Score of B and a Momentum Score of A, but a lower value score of D [14]. Industry Context - Westport is part of the Zacks Automotive - Original Equipment industry, where competitor BorgWarner reported revenues of $3.45 billion, a year-over-year decline of 4.8% [16]. - BorgWarner has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating positive market sentiment within the industry [17].

Core Viewpoint - Westport Innovations (WPRT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors often rely on earnings estimates to assess a company's fair value, leading to significant stock price movements based on their buying or selling actions [3]. Company Performance and Outlook - The upgrade for Westport reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - For the fiscal year ending December 2024, Westport is expected to report earnings of -$0.97 per share, a 66.6% change from the previous year, with a recent 8.1% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [6]. - The upgrade to Zacks Rank 2 places Westport in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Insights - Westport Fuel Systems Inc. (WPRT) reported a loss of 22 cents per share in Q3 2024, which is an improvement compared to the Zacks Consensus Estimate of a loss of 41 cents and a loss of 68 cents in the same quarter last year [1][2] Financial Performance - The company registered consolidated revenues of $66.2 million, missing the Zacks Consensus Estimate of $67 million and down from $77.4 million in Q3 2023 [2] - Adjusted EBITDA loss was $0.8 million, an improvement from a loss of $3 million in the year-ago period [2] Segmental Performance - **Cespira**: Reported net sales of $16.2 million with an operating loss of $5.3 million in Q3 2024 [3] - **Light-Duty**: Net sales increased to $61.5 million from $60.2 million in Q3 2023, surpassing estimates of $53.2 million. The segment achieved an operating income of $2.4 million, compared to an operating loss of $3 million in the previous year [4][5] - **High-Pressure Controls and Systems**: Net sales fell to $1.6 million from $3.7 million year-over-year, missing estimates of $3 million. The segment incurred an operating loss of $1.2 million, wider than the previous year's loss of $0.4 million [6][7] - **Heavy-Duty OEM**: Net sales totaled $3.1 million, down from $13.5 million in the year-ago quarter, missing estimates of $11.4 million. The segment reported an operating income of $0.9 million, compared to a loss of $3.7 million in the previous year [8][9] - **Corporate**: Reported an operating loss of $1 million, improved from a loss of $5 million in the year-ago period [9] Financial Position - As of September 30, 2024, the company had cash and cash equivalents of $33.26 million, down from $54.85 million at the end of 2023. Long-term debt decreased to $23.5 million from $30.96 million as of December 31, 2023 [10]

Financial Data and Key Metrics Changes - In Q3 2024, the company generated $66.2 million in revenue, a 14% decrease compared to the prior year period, primarily driven by the heavy-duty OEM business now conducted in Cespira [23] - Gross margin increased to $14.5 million or 22% of revenue, up from 17% in Q3 2023, largely due to increased sales volumes and a favorable sales mix [24] - Adjusted EBITDA loss improved to $800,000 from a loss of $3 million in the prior year period [25] Business Line Data and Key Metrics Changes - Cespira generated $16.2 million in revenue during Q3 2024, an increase of $2.7 million from the same quarter last year [10] - Light-duty revenue for Q3 2024 was $61.5 million, up from $60.2 million in Q3 2023, driven by increased sales in light-duty OEM and independent aftermarket businesses [25] - Heavy-duty OEM revenue decreased to $3.1 million, down $10.4 million compared to the same quarter last year due to the transfer of the heavy-duty business to Cespira [28] Market Data and Key Metrics Changes - The company noted a slowdown in hydrogen infrastructure development, which is leading to slower adoption of hydrogen-powered applications [15] - The light-duty segment is performing well, particularly in Europe, with increased demand for LPG systems [80] Company Strategy and Development Direction - The company remains focused on innovation and sustainability, emphasizing the role of alternative fuels in the future of transportation [15][36] - The joint venture with Volvo aims to attract multiple OEMs, with ongoing efforts to bring in a second OEM [53][74] - The company is committed to reducing costs and improving operational efficiency to achieve sustainable EBITDA break-even [63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the slow development of hydrogen infrastructure but remains optimistic about hydrogen's future role in decarbonization [15][36] - The company is targeting inventory reduction to more normal levels by the end of 2024, which is expected to free up cash [31][84] Other Important Information - Cash and cash equivalents at September 30, 2024, were $33.3 million, a decrease of $8.2 million from the end of Q2 2024 [30] - The company has not sold any shares under the ATM program since its establishment in mid-September [33] Q&A Session Summary Question: Contributions to gross margin improvement - Management indicated improvements related to supply chain optimization and cost structure reviews [38] Question: Non-transportation hydrogen applications in Europe - Management sees opportunities in high-pressure controls and systems, with ongoing development in both Europe and China [40] Question: Medium-term working capital and cash needs - Management expects inventory levels to decrease significantly in Q4, which will help reduce working capital needs [42] Question: Breakeven revenue levels for Cespira - Management stated that breakeven levels depend on product mix and are still working through operational setups [46] Question: Future contributions from Weichai - Management indicated no current orders from Weichai but continues to engage in technology development [47] Question: Impact of U.S. election on natural gas products - Management expressed optimism about opportunities for natural gas products in North America post-election [48] Question: Changes in OEM activity related to hydrogen - Management noted no significant changes in OEM development cycles but anticipates some slowdowns in hydrogen work [50] Question: Pipeline increase in heavy-duty business - Management confirmed an increase in volumes and demand in the heavy-duty market [62] Question: Timeline for restructuring and achieving EBITDA breakeven - Management indicated that restructuring will take at least another year to complete [65] Question: Infrastructure development for hydrogen - Management believes critical mass for hydrogen infrastructure is still several years away, with ongoing investments needed [71]

Company Performance - Westport Innovations reported a quarterly loss of $0.22 per share, better than the Zacks Consensus Estimate of a loss of $0.41, and an improvement from a loss of $0.68 per share a year ago, representing an earnings surprise of 46.34% [1] - The company posted revenues of $66.25 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.94%, and down from $77.39 million year-over-year [2] - Over the last four quarters, Westport has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - Westport shares have declined approximately 39.4% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $73.57 million, and for the current fiscal year, it is -$1.12 on revenues of $302.84 million [7] Industry Context - The Automotive - Original Equipment industry, to which Westport belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Revenue Performance - Revenue for Q3 2024 was $66,251,000, a decrease of 14.3% compared to $77,391,000 in Q3 2023[4] - For the three months ended September 30, 2024, total revenue was $66,251, a decrease from $77,391 in the same period of 2023, representing a decline of approximately 14.6%[65] - For the nine months ended September 30, 2024, total consolidated revenue was $227,211, down from $244,653 in 2023, reflecting a decrease of approximately 7.1%[66] - The Light-Duty segment generated revenue of $61,466 for the three months ended September 30, 2024, compared to $60,181 in 2023, indicating a growth of 2.1%[65] - The Light-Duty segment's revenue for the nine months ended September 30, 2024, was $194,171, an increase from $200,329 in 2023, showing a decline of 3.1%[66] - Cespira, a joint venture with Volvo, reported revenue of $16,209 for the three months ended September 30, 2024, with an operating loss of $5,257[65] Net Loss and Improvements - Net loss for Q3 2024 was $3,868,000, compared to a net loss of $11,937,000 in Q3 2023, representing a 67.7% improvement[4] - For the three months ended September 30, 2024, Westport Fuel Systems reported a net loss of $3,868,000, compared to a net loss of $11,937,000 for the same period in 2023, representing a 68.7% improvement[7] - The company reported a comprehensive loss of $2,500,000 for Q3 2024, compared to a comprehensive loss of $15,364,000 in Q3 2023, indicating a significant reduction in losses[4] - The company incurred an operating loss of $16,689,000 during the nine months ended September 30, 2024, compared to a loss of $35,772,000 in the same period of 2023, indicating a 53.3% reduction in losses[7] - The total consolidated operating loss for the three months ended September 30, 2024, was $1,042, a significant improvement from the operating loss of $12,131 in the same period of 2023[65] Assets and Liabilities - Total assets decreased to $311,634,000 as of September 30, 2024, down from $355,748,000 at the end of 2023, a decline of 12.4%[2] - Current liabilities decreased to $110,721,000 as of September 30, 2024, down from $134,837,000 at the end of 2023, a reduction of 17.9%[2] - Total shareholders' equity decreased to $149,292,000 as of September 30, 2024, down from $160,448,000 at the end of 2023, a decrease of 6.9%[2] - Cash and cash equivalents decreased to $33,257,000 as of September 30, 2024, down from $54,853,000 at the end of 2023, a decline of 39.4%[2] - Cash and cash equivalents at the end of the period were $33,257,000, down from $43,967,000 at the end of September 2023, reflecting a decrease of 24.4%[7] - As of September 30, 2024, the company's total debt was $38,743,000, with $15,260,000 classified as current liabilities[15] - The company’s long-term investments totaled $41,322 thousand as of September 30, 2024, compared to $4,792 thousand at December 31, 2023[32] - The company fully repaid its revolving financing facility of $20,000 as of September 30, 2024, which was previously secured by certain receivables[40] Cash Flow and Operating Activities - The company generated net cash used in operating activities of $9,933,000 for the three months ended September 30, 2024, compared to $11,937,000 for the same period in 2023[7] - The company is facing inflationary pressures on production input costs, which are impacting margins, particularly due to increased costs for semiconductors and raw materials[16] - Management is focusing on initiatives to reduce working capital and improve profitability, with expectations of meaningful collections from accounts receivable and a reduction in inventory levels[17] Share Issuance and Stock-Based Compensation - The company issued 90,362 common shares on the exercise of share units during the nine months ended September 30, 2024[5] - The company issued 90,362 common shares during the nine months ended September 30, 2024, compared to 44,656 shares during the same period in 2023, indicating a significant increase in share issuance[50] - The company recognized a stock-based compensation expense of $1,352 for the nine months ended September 30, 2024, compared to $1,238 for the same period in 2023, showing an increase of approximately 9.2%[52] Inventory and Receivables - The total inventory as of September 30, 2024, was $66,322 thousand, slightly down from $67,530 thousand at December 31, 2023, reflecting a decrease of about 1.8%[31] - The company reported customer trade receivables of $51,306 thousand as of September 30, 2024, down from $83,175 thousand at December 31, 2023, indicating a decrease of approximately 38.4%[30] - Westport Fuel Systems reported a significant increase in accounts receivable, totaling $13,977,000 for the three months ended September 30, 2024, compared to $2,877,000 in the same period of 2023, marking a 385.5% increase[7] Debt and Liabilities - The company’s long-term debt decreased to $38,743, down from $45,065 as of December 31, 2023, representing a reduction of approximately 14.5%[41] - The current portion of long-term debt increased to $15,260 as of September 30, 2024, compared to $14,108 at the end of 2023, indicating a rise of approximately 8.2%[41] - The warranty liability decreased to $5,395 as of September 30, 2024, from $8,506 at the end of 2023, reflecting a reduction of approximately 36.5%[49] Joint Ventures and Investments - The company recognized a loss from investment accounted for by the equity method of $3,001 thousand and $4,104 thousand for the three and nine months ended September 30, 2024, respectively, related to its investment in Cespira[32] - The company contributed $32,728 thousand of property, plant, and equipment as part of the formation of the joint venture Cespira[34] - Cash proceeds from the joint venture agreement with Volvo Group amounted to $27,328 thousand, with a total gain on deconsolidation of $13,266 thousand[29] Accounting and Financial Standards - The company expects the recently issued accounting standards to impact disclosures but not its operations, cash flows, or financial position[24] - The average remaining lease term for the company's operating leases is approximately seven years, with a present value of operating lease liabilities at $20,437 thousand[38] Interest Rate Swaps - The total notional value of interest rate swaps as of September 30, 2024, was $25,711, with $15,868 related to UniCredit and $9,843 related to Deutsche Bank[47] - The fair value of interest rate swaps decreased to $204 as of September 30, 2024, from $822 at the end of 2023[47]

VANCOUVER, British Columbia, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport") (TSX:WPRT / Nasdaq:WPRT), a leading supplier of advanced alternative fuel systems and components for the global transportation industry, reported financial results for the third quarter ended September 30, 2024, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated. “Westport delivered solid results in the third quarter of 2024. Although revenue was down, this decrea ...

VANCOUVER, British Columbia, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (TSX: WPRT / Nasdaq: WPRT) (“Westport” or “The Company”) announces that the Company will release financial results for the third quarter of 2024 on Tuesday, November 12, 2024, after market close. A conference call and webcast to discuss the financial results and other corporate developments will be held on Wednesday, November 13, 2024. Time: 10:00 a.m. ET (7:00 a.m. PT)Call Link: https://register.vevent.com/register/BI ...