Westport (WPRT) Down 10.4% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Westport Innovations (WPRT). Shares have lost about 10.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Westport due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Westport Fuel Systems Inc. before we dive into how investors and analysts have reacted as of late.

Westport Q3 Earnings Surpass Expectations, Decrease Y/Y

Westport reported a loss of 60 cents per share in the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 89 cents. The company had incurred a loss of 22 cents in the year-ago period.

WPRT registered consolidated revenues of $1.62 million, which beat the Zacks Consensus Estimate of $1 million. The company reported net revenues of $66.25 million in the corresponding quarter of 2024. The company incurred an adjusted EBITDA loss of $5.9 million compared with a loss of $800,000 recorded in the year-ago period.

Segmental Takeaways

On July 29, 2025, Westport completed the sale of its Light-Duty segment. From the third quarter of 2025, Westport has started reporting its results under three segments: Cespira, 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 $19.3 million, which topped our estimate of $12.6 million and rose from $16.2 million reported in the corresponding quarter of 2024. It incurred an operating loss of $4.2 million in the third quarter of 2025, wider than the loss of $4.1 million reported in the corresponding quarter of 2024.

High-Pressure Controls and Systems: Net sales of the segment totaled $1.6 million, which fell from $1.8 million reported in the corresponding quarter of 2024 due to lower sales during the plant relocation from Italy to Canada and China. The figure, however, surpassed our estimate of $1.1 million.  

In the reported quarter, gross profit fell to $0.5 million of revenues (31% of revenues) from $0.4 million (22% of revenues) in the year-ago period due to higher margins in engineering service.

Heavy-Duty OEM: The segment’s transitional service agreement with Cespira concluded in the second quarter of 2025, resulting in no sales activity during the period.

Financials

Westport had cash and cash equivalents (including restricted cash) of $33.1 million as of Sept. 30, 2025, up from $14.75 million as of Dec. 31, 2024. Long-term debt increased to $1.18 million as of Sept. 30, 2025, from $548,000 as of Dec. 31, 2024.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 16.2% due to these changes.

VGM Scores

Currently, Westport has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Westport has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Westport belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Allison Transmission (ALSN), has gained 14.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Allison Transmission reported revenues of $693 million in the last reported quarter, representing a year-over-year change of -15.9%. EPS of $1.63 for the same period compares with $2.27 a year ago.

For the current quarter, Allison Transmission is expected to post earnings of $1.55 per share, indicating a change of -22.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Allison Transmission. Also, the stock has a VGM Score of B.

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

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