Yahoo Finance

• Revenue: $71 million for Q1 2025, a 9% decrease compared to Q1 2024.

• Cespira Revenue: $16.7 million, not included in top line due to equity accounting.

• Net Loss: Improved to $2.5 million from $13.6 million in Q1 2024.

• Gross Margin: Increased to $15.2 million or 21% of revenue, up from $11.7 million or 15% in Q1 2024.

• Operating Expenditures: Reduced by $8 million year-over-year.

• Adjusted EBITDA: Improved to nil from a loss of $6.6 million in Q1 2024.

• Light-Duty Revenue: $64.2 million, up from $63.3 million in Q1 2024.

• High Pressure Control & Systems Revenue: $1.4 million, down from $2.4 million in Q1 2024.

• Heavy-Duty OEM Revenue: $5.4 million, decreased due to transition to Cespira.

• Cash and Cash Equivalents: $32.6 million as of March 31, 2025, down from $37.6 million at December 31, 2024.

• Net Cash Used in Operating Activities: $4.9 million for Q1 2025.

• Warning! GuruFocus has detected 3 Warning Signs with WPRT.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Westport Fuel Systems Inc (NASDAQ:WPRT) reported a significant improvement in net loss, reducing it to $2.5 million from $13.6 million in Q1 2024.

• Gross profit increased by $3.5 million, and operating expenditures decreased by $8 million, indicating improved operational efficiency.

• The company is focusing on high-growth areas by divesting its Light-Duty business to concentrate on long-haul and heavy-duty transport solutions.

• Cespira, the joint venture with Volvo, generated $16.7 million in revenue, showcasing strong performance and potential for future growth.

• Westport Fuel Systems Inc (NASDAQ:WPRT) is strategically positioned as a leader in alternative fuels, with innovations like the CNG HPDI solution enhancing its market offerings.

Negative Points

• Reported revenue for Q1 2025 was $71 million, a 9% decrease compared to the same period last year.

• The transition of the Heavy-Duty OEM business into Cespira resulted in a shift of revenue, impacting reported figures.

• High Pressure Control & Systems revenues decreased to $1.4 million from $2.4 million in Q1 2024, primarily due to a slowdown in the hydrogen industry.

• Cash and cash equivalents decreased to $32.6 million from $37.6 million at the end of 2024, indicating a reduction in liquidity.

• The hydrogen infrastructure development is slowing, which could delay the adoption of hydrogen-powered automotive and industrial applications.

Q & A Highlights

Q: Just to clarify on the divestiture. Is this closing in 2Q or has it already been closed? A: Closing in Q2.