Westport Fuel Systems Reports Mixed Q4, Reveals Light-Duty Segment Sale

Westport Fuel Systems WPRT reported mixed fourth-quarter 2024 results.

The company reported a quarterly revenue decline of 13.9% year-over-year to $75.1 million, beating the consensus of $70.28 million. Net loss per share reduced to $0.59 from $0.81 a year ago, missing the consensus loss of $0.22.

The Cespira division contributed $22.8 million in revenue for the quarter.

Gross margin expanded 990 bps to 19%, with gross profit at $14.3 million (+78.7% YoY).

The quarter’s adjusted EBITDA loss was $1.8 million compared to the loss of $10 million in the prior year quarter.

As of December 31, 2024, the company held $37.6 million in cash and cash equivalents, with a total long-term debt of $33.7 million, of which $14.7 million was current.

Westport continues to sustain operating losses and use cash to support its business activities. The company expects its cash and equivalents will not be sufficient to fund operations through the next twelve months, raising substantial doubt about its ability to continue as a going concern.

To address this, Westport Fuel Systems agreed to sell its interest in Westport Fuel Systems Italia S.r.l., which includes the Light-Duty segment, including the light-duty OEM, delayed OEM, and independent aftermarket businesses, to Heliaca Investments for $73.1 million (plus up to $6.5 million in earnouts). Pending shareholder approval, the transaction is expected to close in the late second quarter of 2025.

This strategic divestiture aims to strengthen Westport’s balance sheet and allow a sharper focus on high-growth areas like HPDI fuel technology and the Cespira joint venture.

“The launch of Cespira, our joint venture with Volvo Group, was a key milestone for us in 2024. Cespira is committed to accelerating the commercialization of HPDI technology with carbon-neutral fuels like hydrogen and renewable natural gas. This partnership underscores the industry’s recognition of HPDI as a leading solution to enable affordable, sustainable heavy transport,” commented Dan Sceli, Chief Executive Officer.

“Additionally, we are taking bold steps to streamline our operations and strengthen our financial footing, allowing us to focus on areas with the highest growth potential.”

Price Action: WPRT shares are trading lower by 2.07% at $3.78 at the last check Monday.

Photo via Shutterstock.