Westport Fuel Systems (NASDAQ:WPRT) reported fourth-quarter financial results on Friday. The transcript from the company’s fourth-quarter earnings call has been provided below.
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Summary
Westport Fuel Systems successfully completed a review following a cybersecurity incident, ensuring IT system integrity and business continuity.
The company divested its light-duty business, receiving a $6.5 million payment, and ended the year with over $27 million in cash and low debt.
Total revenue for Q4 2025 was $29.3 million, a 28% increase from the previous year, driven by strong market adoption of HPDI fuel systems.
Westport Fuel Systems is focusing on expanding its market reach with its proprietary CNG fuel storage and delivery system, particularly in North America.
The company reported a net loss from continuing operations of $29.6 million for 2025, a slight improvement over the previous year’s $31.3 million loss.
Strategic initiatives include relocating manufacturing capacity to Canada and China, aiming for cost reductions and improved competitiveness.
Future outlook emphasizes the growing role of natural gas in transportation, with plans for demonstrations and fleet trials of new technology in 2026.
Full Transcript
OPERATOR
Good day ladies and gentlemen and thank you for standing by. Welcome to the Westport Fuel Systems’ fourth quarter 2025 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 keypad. As a reminder, this conference call is being recorded. At At this time, I would like to turn the conference over to Ms. Ashley Newell. Ma’am, Please begin.
Ashley Newell (Moderator)
Thank you. Good morning everyone. Welcome to Westport Fuel Systems’ conference call regarding its fourth quarter and full year 2025 financial and operating results. This call is being held to coincide with the press release containing Westport’s financial results that were issued yesterday after market close. On today’s call, speaking on behalf of Westport will be Chief Executive Officer and Director Dan Selai and Chief Financial Officer Elizabeth Owen. You are reminded that certain statements made on this conference call and our responses to certain questions may constitute forward looking statements within the meaning of the 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’ll turn the call over to you, Dan.
Dan Selai (Chief Executive Officer and Director)
Thank you, Ashley. And good morning everyone. I want to begin by addressing recent events. We appreciate the patience and support of our shareholders as we work through our recent cybersecurity incident. Our priority was to ensure the integrity of our IT systems, business continuity and financial reporting and we are pleased to confirm that this review has been successfully completed. With this behind us, we’re looking forward to executing on our strategy and delivering on the next phase of our business objectives. Turning to our financial results, the past year has been a defining one for Westport, marked by the successful divestiture of our light duty business, the recent receipt of a 6.5 million payment and further strengthened by Suspira’s agreement with a leading OEM to manufacture and deliver HPDI components for a truck trial assessing the future commercialization. These accomplishments, combined with ending the year with over $27 million in cash and very low debt, reflect the meaningful progress we have made in sharpening our strategic focus and building a stronger company. The global heavy duty transportation market is increasingly recognizing natural gas as a practical lower emissions solution available today. This is evidenced by Volvo’s recent milestone of delivering more than 10,000 natural gas trucks on the road, underscoring the accelerating adoption of Suspira’s HPDI fuel system technology and validates the strategic direction we have taken from a market perspective. The UK leads the adoption of HPDI powered LNG trucks, followed by Germany, Sweden, the Netherlands, Norway and France. Emerging gas markets such as India and Latin America are also gaining momentum with volume seeing steady growth. When we introduced our proprietary CNG fuel storage and delivery system several months ago, we emphasized its potential to significantly expand our addressable market, particularly in North America. Development has progressed well and our confidence in the commercial opportunity continues to build. We look forward to showcasing this solution at the upcoming Advanced Clean Transportation Expo act where we will have the opportunity to show off our technology to industry partners and customers. By integrating advanced high pressure CNG storage with Suspira’s field proven HPDI fuel system, we match or exceed the performance and efficiency expected from diesel engines with compelling economics. In markets where CNG is the natural choice like North America, we believe this innovation meaningfully enables Westport and Suspira to capture new opportunities as we move into field testing our GFI brand through our high pressure controls, business has also delivered important operational milestones. The opening of one of the world’s fastest growing hydrogen markets and in Canada represents a step in localizing manufacturing, reducing costs and improving competitiveness. As the transportation industry continues to balance economic realities with sustainability objectives, we are confident that alternative fuel systems, including Suspira’s HPDI technology and our high pressure components provide real world solutions that deliver both performance and affordability. With the completion of our strategic transition and only a few milestones remaining, a growing market, validation of Suspira’s expansion, a path to address the North American market and a clear strategic focus Westport is excited to drive into this next phase. Now I’ll have Elizabeth run through some financial details and then come back afterwards. Over to you Elizabeth.
Elizabeth Owen (Chief Financial Officer)
Thank you Dan. Before I dive into the details, I’ll just touch on a few key milestones that we achieved, the first of which is our strong cash position reflective of a successful divestiture of the light duty segment. As of December 31, 2025, our cash and cash equivalents position increased by 12.4 million to 27.2 million compared to 14.8 million at December 31, 2024. The increase in cash was primarily driven by the sale of our light duty segment, as I mentioned, partially offset by cash used in our operating activities and debt repayments exiting 2025 with the proceeds from the disposition of Westport’s light duty segment debt, including the current portion reflected a 57% reduction to 2.9 million as at December 31, 2025. This was compared to 6.8 million in the prior year period, including the long term debt from discontinued operations. The reduction was more than 90%. This improved financial position provides Westport with greater flexibility to concentrate on markets that are best suited to our current strategy. Suspira continues to drive meaningful improvement in our Results. In the fourth quarter of 2025, total revenue was $29.3 million compared to 22.9 million in the same period last year, representing an increase of 28%. This progress is supported by strong market adoption, including Volvo reaching the milestone of more than 10,000 natural gas trucks on the road equipped with Saspira’s HPDI fuel systems. We are also encouraged by the continued progress of a second OEM that is …
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