Westport Fuel Systems (TSE:WPRT)
TSX:WPRT
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Westport Fuel Systems
(TSX:WPRT)
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Rating:47Neutral
Price Target:
C$2.50
▼(-14.09% Downside)
Action:ReiteratedDate:04/28/26
The score is held down primarily by weak financial performance (ongoing losses, negative free cash flow, and a sharp revenue decline). The latest earnings call adds some support due to improved liquidity/deleveraging and a stated 2026 margin/volume recovery plan, while technicals and valuation remain neutral-to-negative given mixed momentum and loss-making fundamentals.
Positive Factors
Stronger liquidity and lower debt
A materially stronger cash position and sharply reduced long‑term debt meaningfully lower refinancing and solvency risk. This gives the company runway to fund commercialization, support plant ramps and absorb near‑term losses without immediate external financing, improving strategic optionality.
Negative Factors
Persistent losses and negative free cash flow
Repeated operating and net losses with negative free cash flow indicate the business is not yet self‑funding. Over months this pattern erodes equity returns and forces reliance on asset sales, partner funding, or debt; sustained losses threaten the company’s ability to scale commercialization.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger liquidity and lower debt
A materially stronger cash position and sharply reduced long‑term debt meaningfully lower refinancing and solvency risk. This gives the company runway to fund commercialization, support plant ramps and absorb near‑term losses without immediate external financing, improving strategic optionality.
Read all positive factors
Westport Fuel Systems (WPRT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$48.09M
Dividend YieldN/A
Average Volume (3M)10.20K
Price to Earnings (P/E)―
Beta (1Y)2.03
Revenue Growth-70.06%
EPS Growth-150.51%
CountryCA
Employees1,509
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-3.25
Shares Outstanding17,362,535
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$5.97Price Target Upside105.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.19
Revenue Forecast (FY)C$8.20M
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:Apr 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call painted a mixed picture: materially improved liquidity and a much lower debt load, strong Q4 growth and commercial validation for Cespira (including Volvo adoption and an OEM trial), and strategic product/mfg progress that positions the company for 2026. Offsetting these positives are a large year‑over‑year revenue decline at the consolidated level, wider adjusted EBITDA losses, increased operating cash burn, inventory and contract charges that drove Cespira to a Q4 gross loss, and compressed gross margins. Management expects operational improvements and margin recovery in 2026 as new facilities ramp and field trials progress, but near‑term financial pressures remain.Positive Updates
Stronger liquidity position
Cash and cash equivalents of $27.2M at Dec 31, 2025, up $12.4M from $14.8M a year earlier (≈+84%), driven primarily by the sale of the Light‑Duty segment and receipt of a $6.5M payment.
Negative Updates
Sharp year‑over‑year revenue decline for Westport
Reported consolidated revenue for fiscal 2025 was $23.3M compared with $40.7M in 2024, a 43% decrease driven primarily by the end of the transitional service agreement with Cespira.
Read all updates
Q4-2025 Updates
Positive
Negative
Stronger liquidity position
Cash and cash equivalents of $27.2M at Dec 31, 2025, up $12.4M from $14.8M a year earlier (≈+84%), driven primarily by the sale of the Light‑Duty segment and receipt of a $6.5M payment.
Read all positive updates
Company Guidance
The company guided that 2026 will focus on margin recovery, higher volumes and commercialization milestones — expecting margins to improve in Q1 and through the year, volumes to ramp as High‑Pressure Controls plants in Canada and China come online, and a decision from the second OEM truck trial in the second half of 2026 while advancing field tests, fleet trials and an ACT trade‑show launch in spring (with show‑and‑tell sessions in Canada in spring/summer); financially they enter 2026 with $27.2M cash (up $12.4M from $14.8M a year earlier), only $2.9M of long‑term debt (down 57% from $6.8M, and >90% including discontinued operations), and a recent $6.5M payment from the Light‑Duty divestiture — after 2025 results that included Westport revenue $23.3M (‑43% YoY), adjusted EBITDA of ‑$17.3M (vs ‑$11.4M), net loss from continuing operations $29.6M (vs $31.3M), net cash used in operating activities $14.2M (vs $5.8M), $21.7M capital contributions to Cespira and $2.7M of PP&E, while Cespira delivered Q4 revenue $29.3M (+28% YoY; product revenue $23.4M, +30%) despite a Q4 gross loss of $1.1M driven by a $1.7M obsolete inventory charge and a $2.8M contract loss; management highlighted targets to improve Cespira’s capital requirements and pursue China cost reductions to support commercialization.Westport Fuel Systems Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
56
Neutral
Cash Flow
28
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
2.65
Positive
3.18
Negative
Market Momentum
0.04
Negative
61.01
Neutral
82.09
Negative
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 2.67, above the 50-day MA of 2.72, and below the 200-day MA of 3.18, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 82.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WPRT.
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$34.55M | -19.58 | ― | ― | ― | 52.38% | |
47 Neutral | C$48.09M | -0.75 | -62.32% | ― | -70.06% | -150.51% | |
43 Neutral | C$11.09M | -5.83 | -165.33% | ― | 49.68% | 60.57% | |
41 Neutral | C$1.51M | -3.42 | 288.71% | ― | ― | -67.37% |
* Consumer Cyclical Sector Average
TSE:WPRT
Westport Fuel Systems
2.77
-1.14
-29.16%
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-4.35%
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0.02
33.33%
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...
Business Operations and StrategyM&A Transactions
Westport Boosts Cash Reserves With $6.5 Million Light-Duty Divestiture Milestone Payment
Positive
Feb 4, 2026
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...
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.