Westport's Q2 Loss Meets Expectations, Revenues Rise Y/Y

Westport Fuel Systems Inc. WPRT reported a loss of 29 cents per share in the second quarter of 2025, which was in line with the Zacks Consensus Estimate. The company incurred a loss of 43 cents in the year-ago period.

WPRT registered consolidated revenues of $88.9 million, which beat the Zacks Consensus Estimate of $74 million. The top line also rose from $88.6 million generated in the corresponding quarter of 2024. The company incurred an adjusted EBITDA loss of $1 million compared with a loss of $2 million recorded in the year-ago period.

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

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

WPRT’s Segmental Takeaways

From the third quarter of 2024, Westport has started reporting its results under four 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 $12 million, which missed our estimate of $17.7 million but rose from $4.1 million reported in the corresponding quarter of 2024. It incurred an operating loss of $6.7 million in the second quarter of 2025, wider than the loss of $2 million reported in the corresponding quarter of 2024.

Light-Duty: Net sales of the segment totaled $76.4 million, which increased from $69.3 million in the second quarter of 2024 and beat our estimate of $68.3 million. This upside was mainly due to delayed OEM and OEM businesses.

Gross profit rose to $15.1 million (20% of revenues) from the year-ago period’s $14.7 million (21% of revenues), primarily due to an increase in sales to European customers and lower sales in developing regions.

High-Pressure Controls and Systems: Net sales of the segment totaled $2.9 million compared with $3.6 million in the year-ago period. A slowdown in hydrogen infrastructure development due to a slower adoption of hydrogen-powered solutions has resulted in a year-over-year decline. The figure, however, surpassed our estimate of $2.3 million.  

In the reported quarter, gross profit fell to $0.1 million of revenues (3% of revenues) from $1.1 million (31% of revenues) in the year-ago period due to lower sales volume and increased material costs.

Heavy-Duty OEM: In the reported quarter, net sales of the segment fell to $9.6 million from $10.5 million in the year-ago quarter. The year-over-year decline resulted from the reduction in manufacturing support to Cespira. The metric, however, beat our estimate of $3.7 million. Gross profit totaled $0.7 million (7% of revenues), down from a gross profit $1.3 million in the second quarter of 2024.

WPRT's Financials

Westport had cash and cash equivalents (including restricted cash) of $6.06 million as of June 30, 2025, down from $14.75 million as of Dec. 31, 2024. Long-term debt decreased to $0.98 million as of June 30, 2025, from $2.93 million as of Dec. 31, 2024.

WPRT’s Zacks Rank & Key Picks

Westport carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the auto space are PHINIA Inc. PHIN, Gentex Corporation GNTX and Ferrari N.V. RACE. PHIN, GNTX and RACE sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year flat growth and an 18.13% rise, respectively. EPS estimates for 2025 and 2026 have improved 16 cents and 12 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for GNTX’s 2025 sales and earnings indicates year-over-year growth of 9.24% and 0.57%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents in the past 30 days and 2 cents in the past seven days, respectively.

The Zacks Consensus Estimate for RACE’s fiscal 2025 earnings and sales indicates year-over-year growth of 13.65% and 13.76%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 14 cents and 18 cents, respectively, in the past 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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