Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Westport Q4 Loss Wider Than Expected, Revenues Decline Y/Y

In This Article:

Westport Fuel Systems Inc. WPRT reported a loss of 59 cents per share in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 24 cents. The company had incurred a loss of 81 cents in the year-ago period.

See the Zacks Earnings Calendar to stay ahead of market-making news.

WPRT registered consolidated revenues of $75.1 million, surpassing the Zacks Consensus Estimate of $72 million. The top line, however, fell from $87.2 million generated in the corresponding quarter of 2023. The company incurred an adjusted EBITDA loss of $1.8 million compared with a loss of $10 million recorded in the year-ago period.

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise
Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote

Segmental Takeaways

From the third quarter of 2024, Westport has started reporting its results under four reportable segments: Cespira, Light-Duty, High-Pressure Controls and Systems and Heavy-Duty OEM. Cespira is Westport’s HPDI joint venture with Volvo Group.

Cespira: The segment reported net sales of $22.8 million and incurred an operating loss of $4.8 million in the fourth quarter of 2024.

Light-Duty: Net sales of the segment totaled $68 million, which increased from $63.4 million in the fourth quarter of 2023 and surpassed our estimate of $56.8 billion. The upside was mainly due to higher sales of LPG fuel system solutions to a global original equipment manufacturer (OEM).

Gross profit rose to $14 million (21% of revenues) from the year-ago period’s $12 million (19% of revenues), primarily due to an increase in sales volumes, a change in sales mix with higher sales to European customers and lower sales in developing regions.

High-Pressure Controls and Systems: Net sales of the segment totaled $1.4 million compared with $2.5 million in the year-ago period. The figure missed our estimate of $1.9 million. A slowdown in hydrogen infrastructure development has resulted in slower adoption of hydrogen-powered solutions in the automotive and industrial sectors, which has resulted in a year-over-year decline. 

In the reported quarter, gross profit was 0% of revenues due to lower sales volume. The company’s gross profit was $0.4 million or 16% of revenues in the fourth quarter of 2023.

Heavy-Duty OEM: In the reported quarter, net sales of the segment, which includes revenues from the business, totaled $5.7 million. The company reported $21.3 million in the year-ago quarter. The metric missed our estimate of $13.7 million. The year-over-year decline resulted from the continuation of the business in Cespira.

Gross profit totaled $4.7 million (5% of revenues) against a gross loss of $4.4 million in the fourth quarter of 2023.