Westport Fuel Systems (NASDAQ:WPRT) executives highlighted balance sheet improvements, ongoing market adoption of its high-pressure direct injection (HPDI) technology, and near-term product demonstrations during the company’s Q4 and full-year 2025 earnings call.
Cybersecurity incident review completed
CEO Dan Sceli opened the call by addressing a recent cybersecurity incident. He said the company’s priority was “to ensure the integrity of our IT systems, business continuity, and financial reporting,” and added that Westport’s review has been “successfully completed.” Sceli said management is now focused on executing its strategy and “delivering on the next phase of our business objectives.”
Strategic changes and market backdrop
Management also pointed to broader adoption trends for natural-gas heavy-duty transportation. Sceli cited Volvo’s milestone of delivering more than 10,000 natural gas trucks on the road equipped with Suspowera’s HPDI fuel systems, calling it evidence of accelerating adoption and validation of Westport’s direction. He listed the U.K. as leading adoption of HPDI-powered LNG trucks, followed by Germany, Sweden, the Netherlands, Norway, and France, and said emerging markets such as India and Latin America are “gaining momentum.”
Sceli also discussed a proprietary CNG fuel storage and delivery system intended to expand the company’s addressable market in North America. He said development has progressed and that Westport plans to showcase the solution at the Advanced Clean Transportation (ACT) Expo. The company is aiming to integrate high-pressure CNG storage with Suspowera’s HPDI system to match diesel-like performance and efficiency with “compelling economics” in CNG-heavy markets such as North America.
Financial results and balance sheet position
CFO Elizabeth Owens said Westport ended 2025 with a stronger cash position following the light-duty divestiture. Cash and cash equivalents increased to $27.2 million as of December 31, 2025, up from $14.8 million a year earlier, driven primarily by the segment sale and partially offset by operating cash use and debt repayments.
Owens said long-term debt (including the current portion) fell 57% year over year to $2.9 million as of December 31, 2025, compared to $6.8 million at the end of 2024. Including long-term debt from discontinued operations, she said the reduction was “more than 90%.”
For the fourth quarter, Owens reported total revenue of $29.3 million, up from $22.9 million in the prior-year quarter, an increase of 28%. She attributed the quarterly progress to market adoption and referenced Volvo’s 10,000-truck milestone. Owens also said the company was encouraged by a second OEM that is conducting truck trials and said Westport is targeting an improvement in Suspowera’s capital requirements.
For the full year 2025, Owens reported revenue of $23.3 million, down from $40.7 million in 2024. She said the 43% decline was primarily due to the end of a transitional services agreement for inventory and contract manufacturing between Westport and Suspowera.
Adjusted EBITDA for 2025 was negative $17.3 million, compared with negative $11.4 million in 2024, Owens said. Net loss from continuing operations was $29.6 million in 2025, compared with a net loss from continuing operations of $31.3 million in 2024. Owens attributed the improvement in net loss to lower operating expenditures across R&D and SG&A and favorable foreign exchange, partially offset by the inclusion of Suspowera’s operating results for a full year in 2025 versus seven months in 2024.
Owens said net cash used in operating activities from continuing operations was $14.2 million in 2025, compared with $5.8 million in 2024. She also said investing activity reflected $21.7 million in capital contributions to Suspowera and $2.7 million in purchases of property, plant, and equipment, partially offset by proceeds from the light-duty sale.
Segment performance: high-pressure controls and Suspowera
Owens said high-pressure controls revenue increased 20% in Q4 to $1.9 million, compared with $1.6 million in the year-ago quarter. For the full year, high-pressure controls revenue declined to $8.3 million from $9.4 million, which she attributed primarily to “the general slowdown in the hydrogen infrastructure development,” which in turn slowed adoption of hydrogen-powered automotive and industrial applications.
She also discussed a manufacturing transition: in Q3 2025, Westport began moving manufacturing capacity from Italy to new facilities in Canada and China, requiring a shutdown. Owens said the company resumed selling products in late Q4 2025 to meet backlogged demand.
Gross profit for the year fell to $0.9 million, or 11% of revenue, compared with $2.2 million, or 23% of revenue, in the prior year.
For Suspowera, Owens reiterated Q4 total revenue of $29.3 million, up 28% year over year, and said product revenue of $23.4 million rose 30% due to higher volumes. However, Suspowera gross profit was negative $1.1 million in Q4 2025, compared with positive $0.5 million in Q4 2024. She said the decline was driven primarily by a $1.7 million obsolete inventory provision and a recognized loss on one contract valued at $2.8 million.
2026 priorities: trials, ACT Expo, and margin recovery
Looking ahead, Sceli said the transportation market is increasingly focused on solutions that reduce emissions “without sacrificing durability or operating economics,” positioning natural gas as a fuel that can compete on performance and cost. He said HPDI is central to that opportunity and noted the potential to incorporate hydrogen blends over time.
Management emphasized that 2026 will include demonstrations and fleet trials and public showcasing of its CNG storage and delivery system at the ACT conference, followed by “targeted show-and-tell sessions with Canadian fleets through the spring and summer.”
During Q&A, Sceli said the transition of the high-pressure controls manufacturing footprint from Italy to Canada and China pressured margins as the company moved equipment, managed inventory transfers, and completed plant certifications. He said the company expects margins and volumes to improve and added, “We’re already seeing some pickup in volumes as we move through the year.”
On international opportunities for high-pressure controls, Sceli described China as “the fastest growing hydrogen market” and said having a plant in China enables local cost competitiveness and local sourcing. While acknowledging a global lull in hydrogen volumes, he said Westport expects volumes to begin picking up in China and suggested the Chinese market could “take off first” as government targets drive adoption in automotive and industrial markets.
Sceli also pointed to India as a “huge opportunity” for Suspowera in long-haul trucking, citing investment in a multi-state highway system and clean-fuel stations and saying the market could pick up significantly.
Asked about power generation and backup power, Sceli said Westport already supplies into power generation through its high-pressure controls business, including a customer he identified as “used to be Kohler, Roco,” and said the company sees the opportunity growing with investment in power generation across North America and globally.
Regarding the second OEM trial at Suspowera, Sceli said trucks are already on the road and that discussions are underway about expanding the trial. He said he expects decisions and feedback in the second half of the year as the OEM accumulates mileage, with the hope that success could lead to a commercial launch.
Sceli also provided an update on Westport’s North America-focused CNG storage initiative, clarifying it is a Westport product that integrates with Suspowera’s on-engine HPDI technology. He said Volvo provided a truck and Westport has installed the back-of-cab system, which has already been “running miles developing data.” He said the truck is expected to head to Las Vegas for the ACT show and that initial trials will be conducted in Canada, with U.S. trials expected later.
On the manufacturing move’s impact, Sceli said the company likely lost “a couple of months of production” during the transition. He said both plants are now up and running and shipping product, adding that Westport has “gotten through that transition hump.”
About Westport Fuel Systems (NASDAQ:WPRT)
Westport Fuel Systems Inc is a Canadian-based company that designs, engineers and manufactures alternative fuel systems and components for transportation and industrial applications. Specializing in natural gas, propane and hydrogen technologies, the company develops complete fuel delivery systems, high-pressure direct injection solutions and fuel storage modules tailored for light-, medium- and heavy-duty vehicles. Its platforms are designed to reduce emissions and lower operating costs for original equipment manufacturers (OEMs) and fleet operators worldwide.
The company’s product portfolio includes compressed natural gas (CNG) and liquefied natural gas (LNG) fuel systems, electronic controls, injectors, pressure regulators and specialized fuel tanks.
