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]