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Westport Fuel Systems (TSE:WPRT)
TSX:WPRT
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Westport Fuel Systems
(TSX:WPRT)
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Rating:38Underperform
Price Target:
C$4.00
▲(19.76% Upside)
Westport Fuel Systems' overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The technical analysis further supports a bearish outlook, with indicators pointing to oversold conditions and a persistent downtrend. Despite some strategic initiatives highlighted in the earnings call, the company's ongoing financial struggles and market uncertainties weigh heavily on the stock's attractiveness.
Positive Factors
Negative Factors
Westport Fuel Systems (WPRT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$57.95M
Dividend YieldN/A
Average Volume (3M)11.24K
Price to Earnings (P/E)―
Beta (1Y)2.14
Revenue Growth-28.72%
EPS Growth-55.01%
CountryCA
Employees1,509
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-2.76
Shares Outstanding17,351,006
10 Day Avg. Volume9,299
30 Day Avg. Volume11,241
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit1.64
Enterprise Value/Ebitda-8.01
Forecast
1Y Price Target
$6.97Price Target Upside108.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strategic achievements, such as the divestiture of the Light-Duty segment and growth in Cespira revenue, alongside challenges including revenue decline in continuing operations and negative EBITDA. Despite some positive developments, the financial struggles and market uncertainties contribute to a more balanced outlook.Q2-2025 Updates
Positive Updates
Strategic Transformation and Divestiture
Successful divestiture of the Light-Duty segment, which strengthened the balance sheet and sharpened strategic focus on high-impact opportunities in commercial transportation and industrial applications.
Cespira Revenue Growth
Cespira generated $12 million in revenue during the quarter, showing growth from $4.1 million in the same period last year.
Cost Reduction Initiatives
Operating expenses, including R&D, sales and marketing, and G&A, were reduced to $15.5 million in Q2 2025 from $21.6 million in Q2 2024.
Strong Positioning in Hydrogen Market in China
Opening of a state-of-the-art hydrogen innovation center and manufacturing facility in China, anticipated to drive growth in the hydrogen transportation solutions sector.
Negative Updates
Revenue Decline in Continuing Operations
Consolidated revenue from continuing operations decreased by 11% to $12.5 million compared to $14.1 million in the same period last year, primarily driven by decreased sales volumes in High-Pressure Controls & Systems and Heavy-Duty OEM segments.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $1 million for the quarter, compared to negative $2 million in the same quarter last year, despite cost reductions.
Gross Margin Decline
Gross margin decreased to $100,000 or 3% of revenue, down from $1.1 million or 31% of revenue in Q2 2024, primarily due to lower revenue and increased material costs.
Continued Cash Burn
Net cash used in operating activities from continuing operations was $5.6 million, primarily driven by operating losses and funding of the Cespira joint venture.
Company Guidance
During Westport Fuel Systems' second quarter 2025 conference call, the company provided a detailed update on its financial performance and strategic initiatives. The reported revenue for Q2 2025 was $12.5 million, a decrease from $14.1 million in the same quarter of the prior year. Consolidated revenue, including discontinued operations, totaled $88.8 million, showing growth from $83.4 million in the same period of 2024. Westport highlighted the divestiture of its Light-Duty segment, enhancing its strategic focus on high-impact opportunities in commercial transportation and industrial applications. The Cespira joint venture generated $12 million in revenue for the quarter. The company aims to grow Cespira's market presence, particularly in heavy-duty transportation, by leveraging the adoption of CNG, LNG, and RNG fuels, while also focusing on geographic expansion and OEM partnerships. Westport is relocating its European operations to Canada and establishing a hydrogen innovation center in China, aligning its manufacturing with innovation hubs to better serve global markets. Additionally, the company reported an improvement in adjusted EBITDA, reducing operating expenses from $21.6 million in Q2 2024 to $15.5 million in Q2 2025. Westport's balance sheet showed $21.4 million in cash and cash equivalents as of June 30, 2025, with plans for further investments and restructuring activities.Westport Fuel Systems Financial Statement Overview
Summary
Westport Fuel Systems is facing significant financial challenges, with declining revenues, negative profitability, and weakening cash flows. Despite manageable leverage, the company's ability to generate cash and profit is concerning, necessitating strategic improvements.Income Statement
Westport Fuel Systems has experienced a challenging period with declining revenue and profitability. The Gross Profit Margin for TTM is 20.66%, which is a slight improvement from previous years but still low for the industry. Net Profit Margin remains negative at -3.60% (TTM), indicating the company is not currently profitable. The Revenue Growth Rate from 2023 to 2024 is -8.89%, highlighting a significant decline in sales. Additionally, both EBIT and EBITDA Margins are negative, reflecting ongoing operational challenges.35
Negative
Balance Sheet
The Balance Sheet shows moderate financial leverage with a Debt-to-Equity Ratio of 0.37 (TTM), which is manageable. The Equity Ratio stands at 46.61% (TTM), indicating a reasonable level of equity financing. However, Return on Equity is negative at -7.73% (TTM), which suggests the company is currently unable to generate profit from shareholder investments. The decline in total assets and stockholders' equity over the years is a concern.45
Neutral
Cash Flow
Cash flows present a mixed picture. The Free Cash Flow has deteriorated over time, with a significant negative Free Cash Flow and a Free Cash Flow to Net Income Ratio of 1.22 (TTM), indicating cash outflows exceed earnings. Operating Cash Flow to Net Income Ratio is poor at 0.20 (TTM), reflecting insufficient cash generation from operations. The Free Cash Flow Growth Rate from 2023 to 2024 is -33.89%, indicating worsening cash flow conditions.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 224.79M | 302.30M | 331.80M | 305.70M | 312.41M | 252.50M |
| Gross Profit | 44.81M | 57.59M | 48.94M | 36.20M | 48.15M | 39.54M |
| EBITDA | -9.18M | -5.40M | -33.24M | -28.81M | -18.18M | -11.78M |
| Net Income | -50.80M | -21.84M | -49.72M | -32.70M | 13.66M | -7.36M |
Balance Sheet | ||||||
| Total Assets | 272.05M | 291.62M | 355.75M | 407.45M | 471.31M | 346.26M |
| Cash, Cash Equivalents and Short-Term Investments | 5.67M | 37.24M | 54.75M | 86.18M | 124.89M | 64.26M |
| Total Debt | 6.85M | 52.78M | 82.83M | 76.42M | 97.92M | 113.36M |
| Total Liabilities | 163.16M | 154.60M | 195.30M | 203.49M | 234.89M | 242.20M |
| Stockholders Equity | 108.89M | 137.03M | 160.45M | 203.97M | 236.42M | 104.06M |
Cash Flow | ||||||
| Free Cash Flow | -15.54M | -9.74M | -28.77M | -46.11M | -57.95M | -42.27M |
| Operating Cash Flow | -4.98M | 7.18M | -13.19M | -31.58M | -43.79M | -35.15M |
| Investing Cash Flow | 1.10M | 4.47M | -15.41M | 17.65M | 2.29M | 13.84M |
| Financing Cash Flow | -15.39M | -25.21M | -2.22M | -22.46M | 104.73M | 39.69M |
Westport Fuel Systems Technical Analysis
Negative
3.34
Price Trends
4.21
Negative
4.17
Negative
4.77
Negative
Market Momentum
-0.22
Negative
39.72
Neutral
67.27
Neutral
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 3.34 is below the 20-day moving average (MA) of 3.37, below the 50-day MA of 4.21, and below the 200-day MA of 4.77, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 67.27 is Neutral, 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 (61)
Financial Indicators
Performance Comparison
TSE:WPRT
Westport Fuel Systems
3.34
-2.86
-46.13%
TSE:ATHR
Aether Catalyst Solutions
0.09
0.06
200.00%
FHYDF
First Hydrogen
0.34
0.04
13.33%
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.