Westport Fuel Systems (WPRT) AI Stock Analysis

• Market Cap: C$47.75M
• Dividend Yield: N/A
• Average Volume (3M): 10.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: -47.09%
• EPS Growth: -119.76%
• Country: CA
• Employees: 1,509
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -1.07
• Shares Outstanding: 17,362,535
• 10 Day Avg. Volume: 6,032
• 30 Day Avg. Volume: 10,203
• PEG Ratio: 0.05
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -6.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.19
• Revenue Forecast (FY): C$8.27M

• Rating: 50 Neutral
• Price Target: C$2.50 ▼(-10.39% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is held down primarily by weak financial performance (declining revenue, ongoing losses, and deteriorating free cash flow), partially offset by a stronger balance sheet with low leverage. Technicals provide some support from positive momentum, but overbought signals raise near-term risk. Earnings call messaging is mixed, with improved margins and planned cost reductions counterbalanced by a larger net loss and negative EBITDA.

Positive Factors

Balance sheet strength / low leverage

The company's very low debt-to-equity (0.06) and high equity ratio (77%) provide durable financial flexibility, lowering bankruptcy risk and enabling investment in product development or facility ramps without heavy interest burdens. This supports multi-quarter restructuring and capex plans.

Strategic refocus and JV volume growth

Cespira's 19% revenue growth and the divestiture of the light-duty business mark a structural pivot to higher-margin heavy-duty and alternative fuel systems. Narrowing focus and growing JV volumes can improve product-market fit and scale in core markets over the next several quarters.

Capacity expansion for hydrogen and manufacturing

New and expanded manufacturing and a China hydrogen innovation center create lasting production capacity and R&D proximity to Asian markets. Early shipments and ongoing ramp support commercialization of hydrogen/CNG products and reduce future scaling bottlenecks.

Negative Factors

Declining revenue and scale

A near-term structural decline in revenue reduces scale economies and weakens bargaining power with OEMs. Persistently lower top-line complicates fixed-cost absorption, slows product rollouts, and limits reinvestment capacity unless replaced by sustained new segment growth.

Ongoing losses and negative margins

Sustained negative profitability and negative EBITDA indicate the business still lacks operational leverage. Continued losses constrain free cash flow generation and force reliance on balance-sheet actions or asset sales to fund R&D and facility ramps, increasing strategic risk.

Deteriorating cash generation

A steep fall in free cash flow growth undermines the company's ability to self-fund expansion and absorb working-capital swings. Weak FCF increases dependence on non-operating receipts and financing, which can be unpredictable and reduce resilience across multiple quarters.

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 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 Money

Westport Fuel Systems generates revenue primarily through the sale of its alternative fuel technology products, including fuel systems, components, and related services. The company has key revenue streams from various sectors, such as commercial vehicles, passenger vehicles, and industrial applications. Additionally, Westport engages in partnerships with original equipment manufacturers (OEMs) and other industry players to integrate its technologies into their vehicles, which helps expand their market reach. The company's earnings are also supported by ongoing research and development initiatives aimed at innovating and enhancing their product offerings to meet changing regulatory standards and consumer demands for cleaner fuel alternatives.

Westport Fuel Systems Financial Statement Overview

Summary

Overall financials remain weak: revenue declined sharply (TTM -28.75%) and profitability is negative (net margin -22.60%, negative EBIT/EBITDA margins). The balance sheet is a relative bright spot with low leverage (debt-to-equity 0.06) and a strong equity ratio (77.08%), but ROE is deeply negative (-38.14%) and cash generation has deteriorated (TTM free cash flow growth -78.20%).

Income Statement

Westport Fuel Systems has faced significant challenges in its income statement. The TTM (Trailing-Twelve-Months) data shows a substantial decline in revenue by 28.75%, indicating a downturn in sales. The gross profit margin is relatively low at 19.94%, and the net profit margin is negative at -22.60%, highlighting ongoing profitability issues. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Despite these challenges, the company has shown some resilience in gross profit margin improvement over the years.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio has improved to 0.06 in the TTM period, indicating reduced leverage, which is a positive sign. However, the return on equity is negative at -38.14%, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 77.08%, indicating a strong equity base relative to total assets, which provides some stability.

Cash Flow

Cash flow analysis reveals significant challenges. The free cash flow growth rate is negative at -78.20% in the TTM period, indicating declining cash generation. The operating cash flow to net income ratio is negative, reflecting difficulties in converting earnings into cash. However, the free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.16M	302.30M	331.80M	305.70M	312.41M	252.50M
Gross Profit	30.82M	57.59M	48.94M	36.20M	48.15M	39.54M
EBITDA	-15.70M	-5.40M	-33.24M	-28.81M	-18.18M	-11.78M
Net Income	-60.66M	-21.84M	-49.72M	-32.70M	13.66M	-7.36M
Balance Sheet
Total Assets	104.09M	291.62M	355.75M	407.45M	471.31M	346.26M
Cash, Cash Equivalents and Short-Term Investments	33.10M	37.24M	54.75M	86.18M	124.89M	64.26M
Total Debt	5.71M	52.78M	82.83M	76.42M	97.92M	113.36M
Total Liabilities	23.87M	154.60M	195.30M	203.49M	234.89M	242.20M
Stockholders Equity	80.22M	137.03M	160.45M	203.97M	236.42M	104.06M
Cash Flow
Free Cash Flow	-3.39M	-9.74M	-28.77M	-46.11M	-57.95M	-42.27M
Operating Cash Flow	5.54M	7.18M	-13.19M	-31.58M	-43.79M	-35.15M
Investing Cash Flow	7.94M	4.47M	-15.41M	17.65M	2.29M	13.84M
Financing Cash Flow	-9.49M	-25.21M	-2.22M	-22.46M	104.73M	39.69M

Westport Fuel Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WPRT, the sentiment is Neutral. The current price of 2.79 is above the 20-day moving average (MA) of 2.75, above the 50-day MA of 2.73, and below the 200-day MA of 3.37, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 39.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WPRT.

Westport Fuel Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WPRT	50 Neutral	C$47.75M	-0.96	-24.45%	―	-47.09%	-119.76%
HC	46 Neutral	C$10.39M	-5.83	-262.27%	―	278.39%	71.84%
FHYD	43 Neutral	C$31.81M	-19.58	―	―	―	57.00%
ATHR	41 Neutral	C$2.26M	-3.42	―	―	―	-67.37%

Westport Fuel Systems Corporate Events

Westport Boosts Cash Reserves With $6.5 Million Light-Duty Divestiture Milestone Payment

Westport Fuel Systems has received a US$6.5 million (EUR 5.5 million) escrow payment tied to the previously announced divestiture of its Light-Duty segment, triggered by the achievement of a post-closing milestone. The interim payment bolsters the company’s cash position to support ongoing operations and strategic initiatives, while management continues to execute remaining phases of the divestiture and pursue operational efficiency improvements, underscoring Westport’s effort to streamline its portfolio and reinforce its financial flexibility within the alternative-fuels transport market.

The most recent analyst rating on (TSE:WPRT) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Westport Fuel Systems stock, see the TSE:WPRT Stock Forecast page.

Westport Boosts Hydrogen and Alternative Fuel Capacity With New China and Expanded Canada Plants

Westport Fuel Systems has begun production at its expanded high-pressure controls and systems facility in Cambridge, Ontario, and at a new China Hydrogen Innovation Center and manufacturing plant in Changzhou, China, both dedicated to GFI-branded hydrogen, CNG and RNG fuel system components. The dual-site expansion increases Westport’s global manufacturing capacity, tightens its footprint in the world’s largest hydrogen transportation market, and strengthens its ability to serve a growing customer base in commercial vehicles, buses, trains, marine, material handling and stationary power, while bolstering North American innovation and logistics for high-pressure alternative fuel technologies.

The most recent analyst rating on (TSE:WPRT) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Westport Fuel Systems stock, see the TSE:WPRT Stock Forecast page.

Westport Unveils CNG Solution for HPDI Engines, Enhancing Clean Transportation

Westport Fuel Systems has announced a new compressed natural gas (CNG) solution for its HPDI engines, aiming to expand its market reach and improve the affordability and performance of heavy-duty natural gas trucks. This innovation is expected to significantly impact the transportation industry by offering a viable alternative to diesel, reducing emissions, and providing economic advantages for fleet operators, particularly in North America where natural gas resources are abundant.

The most recent analyst rating on (TSE:WPRT) stock is a Sell with a C$2.50 price target. To see the full list of analyst forecasts on Westport Fuel Systems stock, see the TSE:WPRT Stock Forecast page.