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
▼(-4.58% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Westport Fuel Systems (WPRT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$45.49M
Dividend YieldN/A
Average Volume (3M)10.20K
Price to Earnings (P/E)―
Beta (1Y)1.98
Revenue Growth-47.09%
EPS Growth-119.76%
CountryCA
Employees1,509
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)N/A
Shares Outstanding17,362,535
10 Day Avg. Volume6,032
30 Day Avg. Volume10,203
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.46
Price to Sales (P/S)0.21
P/FCF Ratio-6.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.19
Revenue Forecast (FY)C$8.27M
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 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 ...
Westport Fuel Systems Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. While there were significant achievements such as the increase in Cespira's revenue, improved gross margin, and a strong cash position, these were counterbalanced by declines in overall revenue, increased net loss, negative adjusted EBITDA, and foreign exchange losses. The strategic shift towards heavy-duty systems is promising, but challenges remain.Positive Updates
Cespira Revenue Increase
Cespira increased its revenue by 19% over the same period last year to $19.3 million in the quarter, driven by higher volumes.
Negative Updates
Negative Adjusted EBITDA
Adjusted EBITDA for the quarter was negative $5.9 million, compared to negative $0.8 million in the same quarter last year, impacted by lower gross profit and increased operating expenditures.
Read all updates
Q3-2025 Updates
Positive
Negative
Cespira Revenue Increase
Cespira increased its revenue by 19% over the same period last year to $19.3 million in the quarter, driven by higher volumes.
Read all positive updates
Company Guidance
During Westport's Q3 2025 conference call, the company reported a revenue of $1.6 million, marking a decline from the previous year's $4.9 million due to strategic changes, including the divestiture of its light-duty business. However, Cespira's revenue increased by 19% to $19.3 million, driven by higher volumes. The company faced a net loss of $10.4 million from continuing operations, influenced by an increase in R&D and SG&A costs, alongside a $3 million negative swing in foreign exchange impacts. Westport ended the quarter with $33.1 million in cash and reduced its debt to $3.9 million, following the sale of its light-duty segment. The company anticipates further cost reductions, projecting a 60% decrease in CapEx and a 15% reduction in SG&A by 2026, as it focuses on its core heavy-duty and alternative fuel systems markets, with significant developments in the Cespira joint venture and new CNG solutions for the North American market.Westport Fuel Systems Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| 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
Neutral
2.62
Price Trends
2.72
Negative
2.61
Positive
3.25
Negative
Market Momentum
-0.05
Positive
47.04
Neutral
57.92
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 2.62 is below the 20-day moving average (MA) of 2.68, below the 50-day MA of 2.72, and below the 200-day MA of 3.25, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 57.92 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
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$45.49M | -0.96 | -52.33% | ― | -47.09% | -119.76% | |
43 Neutral | C$33.77M | -19.58 | ― | ― | ― | 57.00% | |
43 Neutral | C$10.39M | -5.83 | -165.33% | ― | 278.39% | 71.84% | |
41 Neutral | C$1.89M | -3.42 | 288.71% | ― | ― | -67.37% |
* Consumer Cyclical Sector Average
TSE:WPRT
Westport Fuel Systems
2.62
-1.33
-33.67%
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Westport Fuel Systems Corporate Events
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...
Business Operations and Strategy
Westport Boosts Hydrogen and Alternative Fuel Capacity With New China and Expanded Canada Plants
Positive
Jan 19, 2026
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 ...
Business Operations and StrategyProduct-Related Announcements
Westport Unveils CNG Solution for HPDI Engines, Enhancing Clean Transportation
Positive
Nov 6, 2025
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 ...
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.