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Westport's Q1 Loss Narrower Than Expected, Revenues Fall Y/Y

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Westport Fuel Systems Inc. (WPRT - Free Report) reported a loss of 14 cents per share in the first quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 47 cents. The company had incurred a loss of 79 cents in the year-ago period.

WPRT registered consolidated revenues of $71 million, which missed the Zacks Consensus Estimate of $72 million. The top line also fell from $77.6 million generated in the corresponding quarter of 2024. The company incurred an adjusted EBITDA loss of $0.1 million compared with a loss of $9.2 million recorded in the year-ago period.

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Westport Fuel Systems Inc. Price, Consensus and EPS Surprise

Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote

Segmental Takeaways

From the third quarter of 2024, Westport has started reporting its results under four reportable segments: Cespira, Light-Duty, High-Pressure Controls and Systems, and Heavy-Duty OEM. Cespira is Westport’s HPDI joint venture with Volvo Group.

Cespira: The segment reported net sales of $16.7 million, which missed our estimate of $22.8 million and incurred an operating loss of $7.1 million in the first quarter of 2025.

Light-Duty: Net sales of the segment totaled $64.2 million, which increased from $63.3 million in the first quarter of 2024 and surpassed our estimate of $63.8 million. The upside was mainly due to higher sales to light-duty original equipment manufacturer (OEM) and delayed OEM businesses. 

Gross profit rose to $14 million (22% of revenues) from the year-ago period’s $12.4 million (20% of revenues), primarily due to an increase in sales to European customers and lower sales in developing regions.

High-Pressure Controls and Systems: Net sales of the segment totaled $1.4 million compared with $2.4 million in the year-ago period. The figure also missed our estimate of $1.6 million. A slowdown in hydrogen infrastructure development has resulted in slower adoption of hydrogen-powered solutions, which has resulted in a year-over-year decline. 

In the reported quarter, gross profit fell to $0.2 million of revenues (14% of revenue) from $0.4 million (17% of revenues) in the year-ago period due to lower sales volume, which increased the per-unit manufacturing costs. 

Heavy-Duty OEM: In the reported quarter, net sales of the segment fell to $5.4 million from $11.9 million in the year-ago quarter. The metric also missed our estimate of $6.7 million. The year-over-year decline resulted from the continuation of the business in Cespira.

Gross profit totaled $1 million (19% of revenues) against a gross loss of $1.1 million in the first quarter of 2024.

Financials

Westport had cash and cash equivalents (including restricted cash) of $32.6 million as of March 31, 2025, down from $37.6 million as of Dec. 31, 2024. Long-term debt decreased to $17.9 million as of March 31, 2025, from $19.1 million as of Dec. 31, 2024.

WPRT’s Zacks Rank & Key Picks

Westport carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) and Standard Motor Products, Inc. (SMP - Free Report) . RACE sports a Zacks Rank #1 (Strong Buy), while SMP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 12.37% and 4.8%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 36 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 17.1% and 12.62%, respectively. EPS estimates for 2025 and 2026 have improved 6 cents and 2 cents, respectively, in the past 30 days.


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