Westport Fuel Systems (TSE:WPRT)
TSX:WPRT
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Westport Fuel Systems
(TSX:WPRT)
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Rating:50Neutral
Price Target:
C$2.50
▼(-14.09% Downside)
Action:Reiterated
Date:05/17/26
The score is held down primarily by weak financial performance (sharp revenue contraction, large losses, and ongoing cash burn), with only partial support from improved leverage. The earnings call adds upside due to improving JV metrics and reduced funding needs, while technicals are neutral and valuation remains constrained by continued unprofitability and no dividend support.
Positive Factors
JV revenue growth & adoption
Sustained double-digit growth at the Cespira JV indicates improving commercial traction with OEMs and fleet customers. As product volumes scale, the JV can cut per-unit costs and reduce Westport's funding needs, supporting a structural path to profitability if adoption continues.
Negative Factors
Sharp revenue decline & heavy losses
A sustained collapse in top-line and outsized negative margins materially erode equity and constrain reinvestment. Persistent operating losses undermine credibility with OEMs and suppliers, raise the need for external funding, and lengthen the timeline to durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
JV revenue growth & adoption
Sustained double-digit growth at the Cespira JV indicates improving commercial traction with OEMs and fleet customers. As product volumes scale, the JV can cut per-unit costs and reduce Westport's funding needs, supporting a structural path to profitability if adoption continues.
Read all positive factors
Westport Fuel Systems (WPRT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$49.23M
Dividend YieldN/A
Average Volume (3M)10.20K
Price to Earnings (P/E)―
Beta (1Y)1.97
Revenue Growth-93.85%
EPS Growth-426.87%
CountryCA
Employees1,509
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-3.43
Shares Outstanding17,395,735
10 Day Avg. Volume6,032
30 Day Avg. Volume10,203
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)0.40
Price to Sales (P/S)1.16
P/FCF Ratio-1.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.04Price Target Upside107.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.35
Revenue Forecast (FY)C$8.97M
Westport Fuel Systems Business Overview & Revenue Model
Company Description
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications worldwide. The company operates through Original Equipment Manufacturer and Independ...
How the Company Makes Money
Westport Fuel Systems primarily makes money by selling fuel-system products and technology that allow engine and vehicle OEMs (and aftermarket customers) to build or convert engines/vehicles to run on gaseous fuels. Key revenue streams typically i...
Westport Fuel Systems Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call communicated clear commercial momentum: strong top-line growth at the Cespira joint venture (+33% total revenue, +48% product revenue), improving profitability (net loss down 65%), expanded production footprint, reduced JV funding and debt, and strong market validation (ACT Expo, Volvo milestones). Key risks remain—Cespira is still loss-making, margins are modest (7%) and volume-dependent, cash balances dipped slightly, and near-term progress hinges on OEM trial outcomes and replacing a service project that rolls off. On balance, the positive execution and measurable financial improvements outweigh the challenges, but continued scaling is required to solidify profitability.Positive Updates
Cespira Revenue Growth
Total Cespira revenue of $22.2M in Q1 2026, up 33% year-over-year from $16.7M, driven by higher sales volumes.
Negative Updates
Cespira Still Loss-Making Despite Improvement
Cespira recorded a net loss of $2.5M in Q1 2026—an improvement but still a loss; business remains dependent on scaling volumes to reach sustained profitability.
Read all updates
Q1-2026 Updates
Positive
Negative
Cespira Revenue Growth
Total Cespira revenue of $22.2M in Q1 2026, up 33% year-over-year from $16.7M, driven by higher sales volumes.
Read all positive updates
Company Guidance
Management guided that Cespira momentum is expected to continue through 2026, which should materially reduce Westport’s JV funding needs as volumes scale — Q1 metrics cited include cash and cash equivalents of $24.5M (vs. $27.2M at 12/31/25), net cash used in operations of $3.4M (improved $5.2M from $8.6M), total debt of $1.9M (down $1.0M), and capital contributions to Cespira down to $2.9M from $4.7M in 2025 with further reductions targeted into mid‑2027; Cespira revenue rose 33% to $22.2M (product revenue +48% to $19.5M), gross profit to $1.6M (gross margin 7% vs 3%) and net loss narrowed to $2.5M (a 65% reduction from $7.1M); management also highlighted HP controls revenue of $2.3M (+21%, gross profit $0.5M), Volvo’s milestone of >10,000 gas trucks, an expected decision from a second OEM before year‑end, plans to commercialize HPDI/HP CNG in North America, and an HPDI 3.0 launch late in the year.Westport Fuel Systems Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.73M | 302.30M | 331.80M | 305.70M | 312.41M |
| Gross Profit | 2.20M | 57.59M | 48.94M | 36.20M | 48.15M |
| EBITDA | -18.64M | -5.40M | -33.24M | -28.81M | -18.18M |
| Net Income | -24.74M | -21.84M | -49.72M | -32.70M | 13.66M |
Balance Sheet | |||||
| Total Assets | 94.14M | 291.62M | 355.75M | 407.45M | 471.31M |
| Cash, Cash Equivalents and Short-Term Investments | 27.11M | 37.24M | 54.75M | 86.18M | 124.89M |
| Total Debt | 4.70M | 52.78M | 82.83M | 76.42M | 97.92M |
| Total Liabilities | 25.45M | 154.60M | 195.30M | 203.49M | 234.89M |
| Stockholders Equity | 68.69M | 137.03M | 160.45M | 203.97M | 236.42M |
Cash Flow | |||||
| Free Cash Flow | -18.11M | -9.74M | -28.77M | -46.11M | -57.95M |
| Operating Cash Flow | -15.37M | 7.18M | -13.19M | -31.58M | -43.79M |
| Investing Cash Flow | 12.81M | 4.47M | -15.41M | 17.65M | 2.29M |
| Financing Cash Flow | -10.34M | -25.21M | -2.22M | -22.46M | 104.73M |
Westport Fuel Systems Technical Analysis
Positive
2.91
Price Trends
2.72
Positive
2.75
Positive
2.88
Negative
Market Momentum
0.01
Negative
51.62
Neutral
68.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WPRT, the sentiment is Positive. The current price of 2.91 is above the 20-day moving average (MA) of 2.73, above the 50-day MA of 2.72, and above the 200-day MA of 2.88, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WPRT.
Westport Fuel Systems Risk Analysis
Westport Fuel Systems disclosed 33 risk factors in its most recent earnings report. Westport Fuel Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westport Fuel Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | C$49.23M | -1.39 | -80.75% | ― | -93.85% | -426.87% | |
50 Neutral | C$38.48M | -19.58 | ― | ― | ― | 52.38% | |
43 Neutral | C$1.13M | 10.64 | 288.71% | ― | ― | -12.87% | |
43 Neutral | C$10.39M | -5.83 | -165.33% | ― | 49.68% | 60.57% |
* Consumer Cyclical Sector Average
TSE:WPRT
Westport Fuel Systems
2.77
-1.24
-30.92%
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Westport Fuel Systems Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Westport Advances Audit Work After Cyber Incident as CEO, CFO Remain Under Trade Ban
Neutral
Apr 15, 2026
Westport Fuel Systems has provided a bi-weekly update on the management cease trade order imposed on its CEO and CFO after a cybersecurity incident delayed its 2025 annual financial filings. The order does not affect trading by other investors, an...
Financial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Westport Hit With Management Cease Trade Order After Cybersecurity Incident Delays Annual Filings
Negative
Apr 2, 2026
Westport Fuel Systems has obtained a temporary management cease trade order from the British Columbia Securities Commission that restricts trading in its securities by the CEO and CFO but leaves other investors unaffected. The order stems from a c...
Business Operations and Strategy
Westport and Volvo Start On-Road Trials of Hydrogen HPDI Trucks
Positive
Apr 1, 2026
Westport Fuel Systems’ joint venture Cespira has begun on-road testing of its hydrogen HPDI fuel system with Volvo heavy-duty trucks, marking a significant step toward commercial deployment before 2030. The system, which builds on an LNG-bas...
Financial Disclosures
Westport Sets March Date to Unveil 2025 Results and Host Investor Call
Neutral
Mar 12, 2026
Westport Fuel Systems will publish its fourth-quarter and full-year 2025 financial results on March 26, 2026, after markets close, followed by a conference call and webcast on March 27 to discuss the figures and broader corporate developments. The...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.