Q2 2025 Westport Fuel Systems Inc Earnings Call Transcript
Key Points
- Westport Fuel Systems Inc (WPRT) successfully divested its light duty segment, strengthening its balance sheet and sharpening its strategic focus on high-impact opportunities in commercial transportation and industrial applications.
- The company reported consolidated revenue of $88.8 million for Q2 2025, an increase from $83.4 million in the same period of 2024, indicating growth in its continuing operations.
- Westport Fuel Systems Inc (WPRT) is well-positioned with fuel-agnostic technologies that offer performance, cost efficiency, and environmental benefits, providing a pathway to hydrogen adoption as its availability increases.
- The company is actively pursuing multiple growth opportunities in the renewable natural gas (RNG) sector, which represents a significant opportunity to reduce emissions in heavy-duty and off-road applications.
- Westport Fuel Systems Inc (WPRT) is opening a state-of-the-art hydrogen innovation center and manufacturing facility in China, which will serve as a hub for research, development, and collaboration to meet the increasing demand for hydrogen transportation solutions in the region.
- Westport Fuel Systems Inc (WPRT) reported a decrease in consolidated revenue from continuing operations, with $12.5 million for Q2 2025 compared to $14.1 million in the same period last year, primarily due to decreased sales in high-pressure controls and systems and heavy-duty OEM business segments.
- The company experienced a decrease in gross margin, which fell to 3% of revenue in Q2 2025 from 31% in Q2 2024, driven by lower revenue and increased material costs.
- Westport Fuel Systems Inc (WPRT) continues to face challenges in generating positive cash flow, with adjusted EBITDA reported as negative $1 million for the quarter.
- The company anticipates significant costs in Q3 2025, including incremental funding for the Cespira joint venture, transaction costs related to the light duty sale, and relocation costs for its high-pressure controls and systems operations.
- Westport Fuel Systems Inc (WPRT) is experiencing a slowdown in the hydrogen industry outside of China, impacting its high-pressure controls and systems revenue, which decreased to $2.9 million in Q2 2025 from $3.6 million in Q2 2024.
Thank you for standing by and welcome to the Westport Fuel Systems second-quarter 2025 conference call. (Operator Instructions) As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Ashley Newell, Vice President of Investor Relations. Please go ahead.
Good morning everyone. Welcome to Westport Fuel Systems conference call regarding its second quarter 2025 financial and operating results. This call is being held to coincide with the press release containing Westport's financial results that we that were issued yesterday after markets closed.
On today's call, speaking on behalf of Westport is Chief Executive Officer and Director Daniel Sceli; and Chief Financial Officer, Bill Larkin.
Attendance on this call is open to the public, but questions will be restricted to the investment community. You are reminded that certain statements made on this conference call and our responses to certain questions may
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