Westport Q3 Earnings Surpass Expectations, Decrease Y/Y

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]