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 ...

VANCOUVER, British Columbia, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (TSX: WPRT / Nasdaq: WPRT) ("Westport" or "The Company") announces that it has established an at-the-market equity offering program (the "ATM Program") that allows the Company to issue and sell up to US$35,000,000 (or its Canadian dollar equivalent) of common shares of the Company (the "Common Shares") from treasury to the public, from time to time, at the Company's discretion. Distributions of the Common Shares under ...

Scharfsinn86 Note: I have covered Westport Fuel Systems Inc. or "Westport" (NASDAQ: WPRT) previously, so investors should view this as an update to my earlier articles on the company. Last week, Westport Fuel Systems reported mixed Q2/2024 results with revenues coming in below and profitability altead of consensus expectations mostly due to a $13.3 million gain resulting from the transfer of the company's High Pressure Direct Injection ("HPD") operations to a recently established joint venture ("the Volvo j ...

Westport Fuel Systems Inc. (WPRT) incurred a loss of 43 cents per share in the second quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 55 cents. The company had incurred a loss of 60 cents in the year-ago period. WPRT registered consolidated revenues of $83.4 million, missing the Zacks Consensus Estimate of $86 million. The top line also fell from $85 million generated in the corresponding quarter of 2023. The company delivered an adjusted EBITDA of negative $2 million compared with ...

Core Insights - Westport Innovations (WPRT) reported a quarterly loss of $0.43 per share, better than the Zacks Consensus Estimate of a loss of $0.55, and an improvement from a loss of $0.60 per share a year ago, resulting in an earnings surprise of 21.82% [1] - The company achieved revenues of $88.64 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.80% and showing an increase from $85.02 million year-over-year [2] - Westport shares have declined approximately 14.7% year-to-date, contrasting with the S&P 500's gain of 12.1% [3] Earnings Outlook - The future performance of Westport's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is -$0.49 on revenues of $84.68 million, and for the current fiscal year, it is -$2.23 on revenues of $343.44 million [7] Industry Context - The Automotive - Original Equipment industry, to which Westport belongs, is currently ranked in the bottom 22% 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 be tracked by investors [5][6]

June 30, 2024 and December 31, 2023 | | | June 30, 2024 | | December 31, 2023 | | --- | --- | --- | --- | --- | | Assets | | | | | | Current assets: | | | | | | Cash and cash equivalents (including restricted cash) | $ | 41,522 | $ | 54,853 | | Accounts receivable (note 6) | | 93,789 | | 88,077 | | Inventories (note 7) | | 56,407 | | 67,530 | | Prepaid expenses | | 6,482 | | 6,323 | | Total current assets | | 198,200 | | 216,783 | | Long-term investments (note 8) | | 45,647 | | 4,792 | | Property, plant and ...