On Friday, Westport Fuel Systems (TSX:WPRT) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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The full earnings call is available at https://edge.media-server.com/mmc/p/dxhbj7ur/
Summary
Westport Fuel Systems reported a 33% year-over-year increase in revenue for Q1 2026, driven by stronger volumes and market adoption of HPDI technology.
The company expects continued momentum supported by favorable fuel economics and tightening emissions regulations, with expanding interest from OEMs and fleets.
Cash and cash equivalents declined slightly to $24.5 million, but the company improved its cash usage from operating activities by $5.2 million year-over-year.
Cespira joint venture contributions decreased due to improved financial performance, with a significant 65% reduction in net loss for Q1 2026 compared to the previous year.
Operational highlights include increased production at facilities in Canada and China, successful demonstrations at the ACT Expo, and ongoing trials with a second OEM.
Management expressed optimism for capturing long-term growth opportunities in the heavy-duty transportation market, particularly in North America and emerging markets like India and Brazil.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the West Ports Q1 2026 conference call. At this time, all participants are in a listen only mode. After the speaker’s presentation, there will be a question and answer session. To ask a question during the session you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised to withdraw your question. Please press star one. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your first speaker today, Ashley Newell. Please go ahead.
Ashley Newell
Good morning everyone. Welcome to Westport Fuel Systems’s conference call regarding the first quarter 2026 financial and operational results. This call is being held to coincide with the press release containing our financial results that was issued yesterday after market close. On today’s call, speaking on behalf of Westport Fuel Systems will be our Chief Executive Officer and Director Dan Selai and our Chief Financial Officer Elizabeth Owens. Attendance on this call is open to the public, but questions will be restricted to the analyst community. You are reminded that certain statements made on the conference call and our responses to certain may constitute forward looking statements within the meaning of U.S. and applicable Canadian securities laws and as such, forward looking statements are made based on our current expectations and involve certain risks and uncertainties. With that, I will turn the call over to you Dan.
Dan Selai (Chief Executive Officer and Director)
Thank you Ashley and good morning everyone. I’ll turn to our financial results. Cespira’s momentum continues to build with revenue up 33% year over year in the first quarter. That growth is increasingly material to Westport, reflecting stronger volumes, broader market adoption of HPDI and progress with a second OEM. Importantly, we expect this momentum to continue through 2026, supported by favorable fuel economics, tightening emissions regulations and growing OEM and fleet interest in practical low carbon solutions. The significance for our investors is not only top line growth but the financial read through. As Cespira continues to scale and improve operating performance, we expect our funding requirements for the joint venture to continue to decline. That creates a more direct link between commercial execution at Cespira and improved capital efficiency at Westport. The broader market backdrop also remains supportive. Volvo Trucks recently announced it has delivered more than 10,000 gas powered trucks globally, highlighting growing adoption in key European markets. While cognitive market research projects the European LNG heavy truck market to grow at a 12.5% growth rate through 2030. Together, those indicators reinforced our view that Cespira is participating in a market with both near term momentum and multi year growth potential. Our high pressure controls business has also reflected improved results in Q1 2026 with a 21% increase in revenue compared with the same period last year. What makes it truly meaningful is how we delivered it. Our brand GFI Control Systems provides critical components that make this system viable, while AFS ensures that the technologies come together as a complete real world solution, enabling the performance, reliability and control our customers expect. Adding to this result, we commenced production at the expanded Product Development Manufacturing facility in Cambridge, Ontario and GFI’s new China hydrogen Innovation center and manufacturing facility in Jiangsu, China. With production underway at all facilities, combined with strong demand from large industrial companies, we remain optimistic about its performance this year. Building off this strong start Moving on to some recent excitement at the ACT Expo conference in Las Vegas. I believe it provides some key insights into our experience. Getting this truck to Las Vegas on time, show ready and performing was a complex high pressure effort and the fact that we delivered speaks volumes at act. From the moment the show floor opened, we saw strong interest. Other exhibitors, fleets and OEMs stopping to take a closer look and excited by what they saw because this is not a concept, it’s a fully integrated platform that proves we can deliver diesel performance with cleaner, more cost effective fuel. Today a Focus team brought this to life, but their success reflects something bigger our ability to execute, to integrate and to lead. As we showcased this platform, we demonstrated what sets us apart. Not just innovation, but the ability to bring it to market where it matters most. And fleets and OEMs are starting to notice. It was clear from the volume of interactions this year compared to previous years that this is an exciting time for Westport. We …
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