Westport Releases Financial Statements for the Second Quarter of 2025
Westport Fuel Systems Inc., a leading provider of advanced fuel solutions for the transportation industry, has announced its financial results for the second quarter ended June 30, 2025.
Q2 2025 Financials
The company reported a loss per share of $0.29, slightly higher than the expected loss of $0.28, with consolidated revenues of $88.9 million, a slight increase year-over-year and beating estimates. However, the adjusted EBITDA loss for the quarter was $1 million, though improved from a $2 million loss in Q2 2024.
Cespira Segment
Westport's high-pressure direct injection (HPDI) joint venture with Volvo Group, Cespira, generated net sales of $12 million in Q2 2025. This was a significant rise from $4.1 million a year earlier but fell short of the $17.7 million estimate. Importantly, Cespira's operating loss widened to $6.7 million from $2 million in the prior-year quarter.
Despite the operating loss, Cespira continues to build momentum, supported by increased demand in Europe for trucks equipped with the Cespira fuel system.
High-Pressure Controls & Systems Business
Regarding the High-Pressure Controls & Systems business, while exact segment revenue details were less clear, Westport is focusing on growth and improving financial performance in this segment as part of its strategic mission. Operational improvements included a decrease in operating expenses by $6.1 million to $15.5 million, improving efficiency and contributing to a reduction in adjusted EBITDA loss.
Future Plans
Strategically, Westport is prioritizing its HPDI technology through Cespira and enhancing its High-Pressure Controls & Systems business, aiming for long-term growth in commercial transportation solutions and hydrogen technology.
The Light-Duty Segment
The divestiture of the Light-Duty Segment, which was completed on July 29, 2025, strengthened the company's balance sheet and sharpened its strategic focus on high-impact opportunities in commercial transportation and industrial applications. The Light-Duty Segment revenue increased by $7.1 million for the three months ended June 30, 2025 compared to the prior year quarter and increased by $7.6 million for the six months ended June 30, 2025 compared to the prior year period.
The increases in Light-Duty Segment revenue were primarily driven by a change in sales mix, with increases in sales to European customers and a reduction in sales to developing regions. However, the increase was partially offset by a decrease in sales in the independent aftermarket business.
Heavy-Duty OEM Segment
Revenues for the three and six months ended June 30, 2025 for the Heavy-Duty OEM Segment were $9.6 million and $15.0 million, respectively, compared with $10.5 million and $22.5 million for the same periods in 2024. The decrease in revenue was due to a reduction in sales to original equipment manufacturers (OEMs) and a decrease in sales of heavy-duty engines.
Gross margin for the three months ended June 30, 2025 for the Heavy-Duty OEM Segment was $0.7 million, or 7% of revenue, compared to $1.3 million, or 12% of revenue, for the same period in 2024.
Progress and Transformation
Westport has made a significant progress in advancing its strategic transformation, culminating in the recent successful divestiture of its Light-Duty Segment on July 29, 2025. The company reduced its outstanding debt by approximately $24.3 million following the close of the Light-Duty transaction.
The company's attention is centered on two core pillars of growth: Cespira and its High-Pressure Controls & Systems business. The High-Pressure Controls & Systems segment is delivering OEMs with critical components for fuel-agnostic platforms.
In conclusion, Westport Fuel Systems Inc. is focusing on its strategic priorities, aiming for long-term growth in commercial transportation solutions and hydrogen technology, while improving financial performance and operational efficiencies. The successful divestiture of the Light-Duty Segment marks a significant step forward in the company's transformation journey.
[1] Westport Fuel Systems Inc. Q2 2025 Earnings Release, August 4, 2025. [2] Westport Fuel Systems Inc. Q2 2024 Earnings Release, August 5, 2024. [3] Westport Fuel Systems Inc. 2025 Q2 Conference Call, August 4, 2025. [4] Westport Fuel Systems Inc. 2025 Q1 Conference Call, May 5, 2025.
- The media reported on Westport Fuel Systems Inc.'s financial results for Q2 2025, which showed a slightly higher loss per share than expected, but consolidated revenues that beat estimates.
- In environmental news, Westport's high-pressure direct injection (HPDI) joint venture with Volvo Group, Cespira, experienced a significant rise in net sales for Q2 2025, although the operating loss widened.
- The Government of Canada has been following Westport's efforts to improve the financial performance of its High-Pressure Controls & Systems business, a strategic priority for the company.
- The economic impact of Westport's successful divestiture of its Light-Duty Segment is set to be monitored by financial analysts, as the move is expected to contribute to the company's long-term growth.
- Westport's work in the field of science and technology, particularly in the development of hydrogen technology for commercial transportation, is seen as a key area of focus for the future.
- Westport Fuel Systems Inc.'s Q2 2025 results, including the performance of its Cespira segment and High-Pressure Controls & Systems business, were discussed during a conference call with investors and analysts.
- The Toronto Stock Exchange, where Westport Fuel Systems Inc. is listed, will be closely watching the company's progress in the areas of commercial transportation solutions and hydrogen technology, as these are expected to drive its long-term growth and financial performance.
