Improvement in key metrics drove net cash provided by operating activities of $7.2 million, which is a $20.4 million improvement over 2023 VANCOUVER, British Columbia, March 31, 2025 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. ("Westport") (TSX: WPRT / Nasdaq: WPRT) today reported financial results for the fourth quarter and year ended December 31, 2024, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated. "The past year has been transformative for Westport as we ...

VANCOUVER, British Columbia, March 31, 2025 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. ("Westport" or the "Company") (TSX:WPRT, NASDAQ:WPRT), has entered into a binding agreement (the "Agreement") to sell its interest in Westport Fuel Systems Italia S.r.l., which includes the Light-Duty segment, including the light-duty OEM, delayed OEM, and independent aftermarket businesses, to a wholly-owned investment vehicle of Heliaca Investments Coöperatief U.A. ("Heliaca Investments"), a Netherlands based invest ...

Core Viewpoint - Westport Fuel Systems Inc. will release its 2024 financial results on March 31, 2025, before market opening, followed by a conference call and webcast to discuss the results and corporate developments [1]. Group 1: Financial Results Announcement - The financial results for 2024 will be announced on March 31, 2025, prior to market opening [1]. - A conference call and webcast will take place on the same day to discuss the financial results and other corporate developments [1]. Group 2: Conference Call Details - The conference call is scheduled for 1:30 p.m. ET (10:30 a.m. PT) [2]. - Participants can register up to 60 minutes before the event through a provided link, receiving dial-in information and a unique PIN upon registration [2]. Group 3: Webcast Information - The webcast will be archived on Westport's website, with a replay available for later viewing [3]. Group 4: Company Overview - Westport Fuel Systems is a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels, including natural gas, renewable natural gas, propane, and hydrogen [4]. - The company focuses on delivering performance and fuel efficiency for transportation applications while addressing climate change and urban air quality challenges [4]. - Headquartered in Vancouver, Canada, Westport operates in Europe, Asia, North America, and South America, serving customers in approximately 70 countries [4].

Company Announcement - Westport Fuel Systems Inc announces the appointment of Carlos Gonzalez as President and CEO of Cespira, its High Pressure Direct Injection (HPDI) joint venture with Volvo Group, effective April 1, 2025 [1] - Carlos Gonzalez succeeds Dan Sceli, CEO of Westport, who held the position on an interim basis since the joint venture transaction closed in June 2024 [1] - Dan Sceli will continue to serve on Cespira's board [1] Leadership and Expertise - Carlos Gonzalez brings over 24 years of experience in the automotive and commercial vehicle industry across Europe [3] - He spent the last 12 years at ZF Group, a global technology leader in advanced mobility solutions, where he served as Vice President and Global Key Account Executive for the TRATON Group [3] - His career includes significant tenures at General Dynamics ELS, Continental AG, and Lear Corporation [3] - Carlos holds engineering degrees from Universitat Rovira i Virgili and Universidad Europea de Madrid, and executive training from Duke University (MBA), Insead Business School (HILP), and IESE Business School (PADE) [4] Strategic Vision - Carlos Gonzalez's leadership and expertise in business development and supply chain management are expected to drive Cespira's growth and success [2] - His passion for sustainability and innovation aligns with Westport's commitment to delivering transformative solutions for hard-to-decarbonize transportation applications [2] - Carlos aims to focus on customer satisfaction, environmental sustainability, and fleet efficiency to meet the evolving needs of the industry [2] Company Overview - Westport Fuel Systems is a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global transportation industry [5] - The company's technology delivers the performance and fuel efficiency required by transportation applications while addressing climate change and urban air quality challenges [5] - Headquartered in Vancouver, Canada, Westport operates in Europe, Asia, North America, and South America, serving customers in over 70 countries [5]

Company Overview - Westport Fuel Systems is a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen [2] - The company is headquartered in Vancouver, Canada, and operates in Europe, Asia, North America, and South America, serving customers in over 70 countries [2] Leadership Changes - Brenda Eprile has retired from Westport's Board of Directors effective January 6, 2025, and the Board is evaluating alternatives for appointing an independent director to fill the vacancy [1] - The Board Chair, Dan Hancock, expressed gratitude for Brenda's exceptional leadership and dedication during her 11-year tenure [2]

Core Viewpoint - Westport Innovations (WPRT) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is expected to positively influence its stock price [1][2]. Earnings Estimate Revisions - Analysts have been consistently raising their earnings estimates for Westport, with the Zacks Consensus Estimate increasing by 10.8% over the past three months [7]. - The upgrade reflects an improvement in Westport's underlying business, suggesting that investor sentiment may drive the stock price higher [12]. Zacks Rating System - The Zacks rating system is designed to track earnings estimate revisions, which are strongly correlated with near-term stock price movements, making it a valuable tool for investors [4][6]. - The system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a 'Strong Buy' rating and the next 15% a 'Buy' rating, ensuring a rigorous evaluation process [8]. Financial Projections - Westport is projected to earn -$0.92 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 68.3% [14]. - The upgrade to Zacks Rank 2 places Westport in the top 20% of Zacks-covered stocks based on earnings estimate revisions, indicating potential for market-beating returns in the near term [16][17].

Core Viewpoint - Westport Innovations reported a narrower loss in Q3 2024 compared to the previous year, but revenues declined year-over-year, leading to mixed investor sentiment ahead of the next earnings release [2][3][15]. Financial Performance - The company incurred a loss of $0.22 per share in Q3 2024, better than the Zacks Consensus Estimate of a loss of $0.41 and an improvement from a loss of $0.68 in the same quarter last year [2]. - Consolidated revenues were $66.2 million, missing the Zacks Consensus Estimate of $67 million and down from $77.4 million in Q3 2023 [3]. - Adjusted EBITDA loss was $0.8 million, an improvement from a loss of $3 million in the prior year [3]. Segmental Performance - **Cespira**: Reported net sales of $16.2 million with an operating loss of $5.3 million [4]. - **Light-Duty**: Net sales increased to $61.5 million from $60.2 million year-over-year, with an operating income of $2.4 million compared to a loss of $3 million in the previous year [5][6]. - **High-Pressure Controls and Systems**: Net sales fell to $1.6 million from $3.7 million year-over-year, with an operating loss of $1.2 million [7][8]. - **Heavy-Duty OEM**: Net sales were $3.1 million, down from $13.5 million in the prior year, but operating income improved to $0.9 million from a loss of $3.7 million [9][10]. - **Corporate**: Reported an operating loss of $1 million, improved from a loss of $5 million in the previous year [10]. Financial Position - Cash and cash equivalents decreased to $33.26 million as of September 30, 2024, from $54.85 million at the end of 2023 [11]. - Long-term debt reduced to $23.5 million from $30.96 million as of December 31, 2023 [11]. Market Sentiment and Outlook - There has been an upward trend in estimates for Westport, with a consensus estimate shift of 20.13% [12][13]. - The stock has a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [15]. - Westport holds a Growth Score of B and a Momentum Score of A, but a lower value score of D [14]. Industry Context - Westport is part of the Zacks Automotive - Original Equipment industry, where competitor BorgWarner reported revenues of $3.45 billion, a year-over-year decline of 4.8% [16]. - BorgWarner has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating positive market sentiment within the industry [17].

Core Viewpoint - Westport Innovations (WPRT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors often rely on earnings estimates to assess a company's fair value, leading to significant stock price movements based on their buying or selling actions [3]. Company Performance and Outlook - The upgrade for Westport reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - For the fiscal year ending December 2024, Westport is expected to report earnings of -$0.97 per share, a 66.6% change from the previous year, with a recent 8.1% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [6]. - The upgrade to Zacks Rank 2 places Westport in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Insights - Westport Fuel Systems Inc. (WPRT) reported a loss of 22 cents per share in Q3 2024, which is an improvement compared to the Zacks Consensus Estimate of a loss of 41 cents and a loss of 68 cents in the same quarter last year [1][2] Financial Performance - The company registered consolidated revenues of $66.2 million, missing the Zacks Consensus Estimate of $67 million and down from $77.4 million in Q3 2023 [2] - Adjusted EBITDA loss was $0.8 million, an improvement from a loss of $3 million in the year-ago period [2] Segmental Performance - **Cespira**: Reported net sales of $16.2 million with an operating loss of $5.3 million in Q3 2024 [3] - **Light-Duty**: Net sales increased to $61.5 million from $60.2 million in Q3 2023, surpassing estimates of $53.2 million. The segment achieved an operating income of $2.4 million, compared to an operating loss of $3 million in the previous year [4][5] - **High-Pressure Controls and Systems**: Net sales fell to $1.6 million from $3.7 million year-over-year, missing estimates of $3 million. The segment incurred an operating loss of $1.2 million, wider than the previous year's loss of $0.4 million [6][7] - **Heavy-Duty OEM**: Net sales totaled $3.1 million, down from $13.5 million in the year-ago quarter, missing estimates of $11.4 million. The segment reported an operating income of $0.9 million, compared to a loss of $3.7 million in the previous year [8][9] - **Corporate**: Reported an operating loss of $1 million, improved from a loss of $5 million in the year-ago period [9] Financial Position - As of September 30, 2024, the company had cash and cash equivalents of $33.26 million, down from $54.85 million at the end of 2023. Long-term debt decreased to $23.5 million from $30.96 million as of December 31, 2023 [10]

Financial Data and Key Metrics Changes - In Q3 2024, the company generated $66.2 million in revenue, a 14% decrease compared to the prior year period, primarily driven by the heavy-duty OEM business now conducted in Cespira [23] - Gross margin increased to $14.5 million or 22% of revenue, up from 17% in Q3 2023, largely due to increased sales volumes and a favorable sales mix [24] - Adjusted EBITDA loss improved to $800,000 from a loss of $3 million in the prior year period [25] Business Line Data and Key Metrics Changes - Cespira generated $16.2 million in revenue during Q3 2024, an increase of $2.7 million from the same quarter last year [10] - Light-duty revenue for Q3 2024 was $61.5 million, up from $60.2 million in Q3 2023, driven by increased sales in light-duty OEM and independent aftermarket businesses [25] - Heavy-duty OEM revenue decreased to $3.1 million, down $10.4 million compared to the same quarter last year due to the transfer of the heavy-duty business to Cespira [28] Market Data and Key Metrics Changes - The company noted a slowdown in hydrogen infrastructure development, which is leading to slower adoption of hydrogen-powered applications [15] - The light-duty segment is performing well, particularly in Europe, with increased demand for LPG systems [80] Company Strategy and Development Direction - The company remains focused on innovation and sustainability, emphasizing the role of alternative fuels in the future of transportation [15][36] - The joint venture with Volvo aims to attract multiple OEMs, with ongoing efforts to bring in a second OEM [53][74] - The company is committed to reducing costs and improving operational efficiency to achieve sustainable EBITDA break-even [63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the slow development of hydrogen infrastructure but remains optimistic about hydrogen's future role in decarbonization [15][36] - The company is targeting inventory reduction to more normal levels by the end of 2024, which is expected to free up cash [31][84] Other Important Information - Cash and cash equivalents at September 30, 2024, were $33.3 million, a decrease of $8.2 million from the end of Q2 2024 [30] - The company has not sold any shares under the ATM program since its establishment in mid-September [33] Q&A Session Summary Question: Contributions to gross margin improvement - Management indicated improvements related to supply chain optimization and cost structure reviews [38] Question: Non-transportation hydrogen applications in Europe - Management sees opportunities in high-pressure controls and systems, with ongoing development in both Europe and China [40] Question: Medium-term working capital and cash needs - Management expects inventory levels to decrease significantly in Q4, which will help reduce working capital needs [42] Question: Breakeven revenue levels for Cespira - Management stated that breakeven levels depend on product mix and are still working through operational setups [46] Question: Future contributions from Weichai - Management indicated no current orders from Weichai but continues to engage in technology development [47] Question: Impact of U.S. election on natural gas products - Management expressed optimism about opportunities for natural gas products in North America post-election [48] Question: Changes in OEM activity related to hydrogen - Management noted no significant changes in OEM development cycles but anticipates some slowdowns in hydrogen work [50] Question: Pipeline increase in heavy-duty business - Management confirmed an increase in volumes and demand in the heavy-duty market [62] Question: Timeline for restructuring and achieving EBITDA breakeven - Management indicated that restructuring will take at least another year to complete [65] Question: Infrastructure development for hydrogen - Management believes critical mass for hydrogen infrastructure is still several years away, with ongoing investments needed [71]