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Westport Fuel Systems (TSE:WPRT)
TSX:WPRT
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Westport Fuel Systems
(TSX:WPRT)
Rating:47Neutral
Price Target:
C$4.00
▲(0.00% Upside)
Positive Factors
Business Development
The company is planning to open a Hydrogen Innovation Center and manufacturing facility in China to capitalize on the strong hydrogen market there.
Business Focus
The company's future business model is expected to focus on leveraging its HPDI technology to develop products for alternative fuel solutions, including LNG, CNG, RNG, and hydrogen systems.
Financial Strategy
Westport Fuel Systems could take advantage of the restructured balance sheet to pursue acquisitions that could support commercialization efforts.
Negative Factors
Financial Performance
Gross margins for the quarter were 6%, compared to 17% in the previous year.
Financial Results
Westport reported a net loss for the quarter of $34.3M, including a significant loss from the discontinued Light-Duty business.
Revenue Decline
Westport reported consolidated revenues of $75.1M in 4Q24, showing a 14% year-over-year decrease.
Westport Fuel Systems (WPRT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$70.17M
Dividend YieldN/A
Average Volume (3M)9.63K
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth-28.72%
EPS Growth-55.01%
CountryCA
Employees1,509
SectorConsumer Cyclical
Sector Strength75
IndustryAuto - Parts
Share Statistics
EPS (TTM)-2.74
Shares Outstanding17,326,733
10 Day Avg. Volume10,467
30 Day Avg. Volume9,634
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.25
Enterprise Value/Gross Profit1.20
Enterprise Value/Ebitda-8.29
Forecast
1Y Price Target
$6.86Price Target Upside71.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Westport Fuel Systems Business Overview & Revenue Model
Company DescriptionWestport 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 Independent Aftermarket segments. It offers alternative fuel systems and components, which include a range of alternative fuels, such as liquefied petroleum gas, compressed natural gas, liquefied natural gas, renewable natural gas, and hydrogen; and independent aftermarket, light and heavy-duty original equipment manufacturers (OEMs) and delayed OEMs, electronics, hydrogen, and fuel storage activities. The company also provides Westport High Pressure Direct Injection 2.0, a fully integrated fuel systems that enables diesel engines using primarily natural gas fuel to match the power, torque, and fuel economy benefits found in traditional compression ignition diesel engines, which reduces greenhouse gas emissions. Its products and services are used for passenger cars; light-, medium-, and heavy-duty trucks; and cryogenics and hydrogen applications under the Cummins Westport, BRC Gas Equipment, Westport, OMVL, Prins, GFi Control systems, Emer, Zavoli, TA Gas Technology, Valtek, and AFS brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyWestport Fuel Systems generates revenue through multiple streams, primarily by selling its proprietary fuel systems and components to automotive manufacturers and end-users in the transportation sector. The company earns money from both original equipment manufacturer (OEM) sales and aftermarket parts, as well as service contracts. Significant partnerships with major automotive brands and collaborations with government entities on clean energy initiatives also contribute to its revenue. Additionally, Westport invests in research and development to innovate and expand its product offerings, enhancing its market position and potential earnings.
Westport Fuel Systems Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q1-2025)
| % Change Since: -22.18%|
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant progress in revenue growth, loss reduction, strategic partnerships, and innovation in fuel solutions. However, challenges such as a slowdown in the hydrogen industry and decreased cash reserves were noted. Despite these challenges, the strategic divestment and focus on high-potential growth areas indicate strong future potential.Q1-2025 Updates
Positive Updates
Revenue Growth and Loss Reduction
Reported revenue was $71 million for Q1 2025. When adjusting for the 55% ownership share in Cespira, total revenue would have exceeded $80 million, higher than the $77.6 million reported in Q1 2024. Net loss improved significantly to $2.5 million from a net loss of $13.6 million in Q1 2024.
Improved Gross Profit and Operating Expenditures
Gross profit rose by $3.5 million while operating expenditures dropped by $8 million. Adjusted EBITDA improved year-over-year, showing improved financial performance.
Successful Partnership with Volvo
Volvo Trucks highlighted the success achieved with their gas-powered solution using Cespira's HPDI technology, with sales increased by more than 25% in 2024, and continued demand growth into Q1 2025.
Strategic Divestment of Light Duty Business
Announced the proposed sale of the light duty business to align Westport more with the hardest-to-decarbonize applications, expected to deliver immediate cash proceeds to strengthen the balance sheet and fuel growth in both Cespira and high pressure controls and systems business.
Innovative Fuel Solutions Development
Development of a CNG HPDI solution running on 700 bar storage without a compressor, expanding cleaner fuel alternatives and opening up new decarbonization pathways.
New Production Facility in China
Upcoming completion of a new hydro innovation center and manufacturing facility in China, anticipated to come online later this year, focusing on delivering to the Chinese market.
Negative Updates
Revenue Decrease in High Pressure Control and Systems
High Pressure Control and Systems revenues for Q1 2025 were $1.4 million, a decrease from $2.4 million for Q1 2024. The decline was driven by a slowdown in the hydrogen industry.
Challenges with Hydrogen Infrastructure Development
There is a reported slowing in hydrogen infrastructure development, leading to slower adoption of automotive and industrial applications powered by hydrogen.
Decrease in Cash and Cash Equivalents
Cash and cash equivalents at March 31, 2025, were $32.6 million, compared to $37.6 million at December 31, 2024, with net cash used in operating activities being $4.9 million.
Company Guidance
During Westport Fuel Systems' first-quarter 2025 earnings call, the company provided a comprehensive overview of its financial and operational performance. Reported revenue for the quarter was $71 million, with Cespira contributing an additional $16.7 million, not reflected in the top line due to equity accounting, which, when adjusted for Westport's 55% ownership, would surpass $80 million. This is higher than the $77.6 million reported in Q1 2024. The net loss significantly improved to $2.5 million from $13.6 million in the previous year, and gross profit increased by $3.5 million while operating expenditures decreased by $8 million. Adjusted EBITDA showed marked improvement, and light-duty revenue increased slightly to $64.2 million from $63.3 million in Q1 2024. The company highlighted the proposed sale of its light-duty business to focus on heavy-duty and alternative fuel solutions, with an anticipated closing in Q2 2025. High pressure controls and systems revenue decreased to $1.4 million, affected by a slowdown in the hydrogen industry. The call emphasized Westport's strategic pivot towards decarbonizing long-haul transport, driven by innovations like the CNG HPDI solution, and underscored its commitment to sustainable growth and strengthening its financial outlook.Westport Fuel Systems Financial Statement Overview
Summary
Westport Fuel Systems shows improvement in gross profit margin and operating cash flow, but continues to face challenges with negative net income and free cash flow, indicating underlying profitability and cash generation issues. Reduced leverage is positive, yet revenue stability and profitability need focus.Income Statement
Westport Fuel Systems has shown improvement in its gross profit margin from 14.7% to 19.0% over the last year. However, the company continues to face challenges with negative EBIT and net income, resulting in negative net profit and EBIT margins. Revenue growth has been volatile, with a decline in the latest year, indicating instability in revenue streams.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved from 0.52 to 0.39, indicating reduced leverage. However, return on equity remains negative due to the negative net income. The equity ratio has slightly decreased, suggesting a moderate reliance on debt financing.55
Neutral
Cash Flow
Westport Fuel Systems has managed to improve its operating cash flow from a significant negative to a positive figure. However, free cash flow remains negative, reflecting ongoing challenges in generating cash after capital expenditures. The company has shown a better operating cash flow to net income ratio, but the free cash flow to net income ratio is still concerning.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 295.68M | 302.30M | 331.80M | 305.70M | 312.41M | 252.50M |
| Gross Profit | 61.09M | 57.59M | 48.94M | 36.20M | 48.15M | 39.54M |
| EBITDA | -8.88M | -5.40M | -33.24M | -28.81M | -18.18M | -11.78M |
| Net Income | -10.64M | -21.84M | -49.72M | -32.70M | 13.66M | -7.36M |
Balance Sheet | ||||||
| Total Assets | 295.25M | 291.62M | 355.75M | 407.45M | 471.31M | 346.26M |
| Cash, Cash Equivalents and Short-Term Investments | 32.53M | 37.24M | 54.75M | 86.18M | 124.89M | 64.26M |
| Total Debt | 50.45M | 52.78M | 82.83M | 76.42M | 97.92M | 113.36M |
| Total Liabilities | 157.65M | 154.60M | 195.30M | 203.49M | 234.89M | 242.20M |
| Stockholders Equity | 137.60M | 137.03M | 160.45M | 203.97M | 236.42M | 104.06M |
Cash Flow | ||||||
| Free Cash Flow | -13.03M | -9.74M | -28.77M | -46.11M | -57.95M | -42.27M |
| Operating Cash Flow | 2.14M | 7.18M | -13.19M | -31.58M | -43.79M | -35.15M |
| Investing Cash Flow | 11.93M | 4.47M | -15.41M | 17.65M | 2.29M | 13.84M |
| Financing Cash Flow | -23.29M | -25.21M | -2.22M | -22.46M | 104.73M | 39.69M |
Westport Fuel Systems Technical Analysis
Negative
4.00
Price Trends
4.61
Negative
4.40
Negative
5.13
Negative
Market Momentum
-0.10
Positive
28.42
Positive
7.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WPRT, the sentiment is Negative. The current price of 4 is below the 20-day moving average (MA) of 5.11, below the 50-day MA of 4.61, and below the 200-day MA of 5.13, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 28.42 is Positive, neither overbought nor oversold. The STOCH value of 7.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WPRT.
Westport Fuel Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
TSE:WPRT
Westport Fuel Systems
4.00
-3.87
-49.17%
TSE:ATHR
Aether Catalyst Solutions
0.10
0.04
66.67%
FHYDF
First Hydrogen
0.47
0.17
56.67%
Westport Fuel Systems Corporate Events
Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Westport Fuel Systems Files New Shelf Prospectus to Raise Capital
Positive
Aug 15, 2025
Westport Fuel Systems has filed a preliminary short form base shelf prospectus to replace its expired one, allowing the company to offer up to USD$100 million in securities over a 25-month period. This move will enable Westport to access new capital or issue securities for strategic acquisitions, enhancing its financial flexibility and market positioning.
The most recent analyst rating on (TSE:WPRT) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Westport Fuel Systems stock, see the TSE:WPRT Stock Forecast page.
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.