Westport (WPRT, Financial) reported first-quarter revenue of $71.0 million, slightly surpassing the market projection of $70.96 million. By the end of the quarter, the company's cash and cash equivalents stood at $32.6 million. The Cespira joint venture contributed $16.7 million in revenue but also resulted in a net loss of $3.9 million for the period.
Highlighting significant progress, Westport reduced its net loss to $2.5 million in the first quarter of 2025, a considerable improvement from the $13.6 million net loss recorded in the same period last year. The company's strategic initiatives are showing positive results, as reflected in these financial outcomes.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Westport Fuel Systems Inc (WPRT, Financial) is $7.19 with a high estimate of $10.00 and a low estimate of $4.00. The average target implies an upside of 137.20% from the current price of $3.03. More detailed estimate data can be found on the Westport Fuel Systems Inc (WPRT) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Westport Fuel Systems Inc's (WPRT, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Westport Fuel Systems Inc (WPRT, Financial) in one year is $6.55, suggesting a upside of 116.17% from the current price of $3.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Westport Fuel Systems Inc (WPRT) Summary page.
WPRT Key Business Developments
Release Date: March 31, 2025
- Q4 2024 Revenue: $75.1 million, a 14% decrease compared to Q4 2023.
- Full Year 2024 Revenue: $302.3 million, a 9% decrease compared to 2023.
- Q4 2024 Gross Margin: $14.3 million or 19% of revenue, up from $8 million or 9% in Q4 2023.
- Full Year 2024 Gross Margin: $57.6 million or 19% of revenue, up from $48.9 million or 15% in 2023.
- Q4 2024 Adjusted EBITDA Loss: $1.8 million, improved from a loss of $10 million in Q4 2023.
- Full Year 2024 Adjusted EBITDA Loss: $11.2 million, improved from a loss of $21.5 million in 2023.
- Cash and Cash Equivalents at End of 2024: $37.6 million, down from $54.9 million at the end of 2023.
- Net Cash Provided by Operating Activities 2024: $7.2 million, marking positive cash flow from operations.
- Net Cash Provided by Investing Activities 2024: $4.5 million, driven by proceeds from the sale of investments.
- Net Cash Used in Financing Activities 2024: $25.2 million.
- Divestiture Transaction Value: $75.1 million or EUR69.5 million, with potential earn-outs of $6.5 million or EUR6 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Westport Fuel Systems Inc (WPRT, Financial) announced a significant transaction to divest its light-duty business, which is expected to strengthen its financial position.
- The company reported improvements in gross profit and gross profit margins for both the fourth quarter and full year of 2024.
- Westport Fuel Systems Inc (WPRT) achieved positive net cash from operations for the first time, marking a significant milestone.
- The company is focusing on high-growth areas such as HPDI technology and high-pressure controls and systems, which are expected to drive future growth.
- The divestiture will allow Westport Fuel Systems Inc (WPRT) to streamline operations and focus on hard-to-decarbonize segments of the heavy-duty transport and industrial markets.
Negative Points
- Westport Fuel Systems Inc (WPRT) experienced a 9% decrease in revenue for the full year of 2024 compared to the previous year.
- The company reported an adjusted EBITDA loss of $11.2 million for the full year, although this was an improvement from the previous year.
- Cash and cash equivalents decreased from $54.9 million at the end of 2023 to $37.6 million at the end of 2024, primarily due to debt payments.
- The company projects that its cash and cash equivalents will not be sufficient to fund operations for the next 12 months under the current business plan.
- Westport Fuel Systems Inc (WPRT) faces challenges in the adoption of its technologies, with the need to secure additional OEM partnerships to drive growth.
