Westport (WPRT, Financial) remains dedicated to completing the sale of its Light-Duty Segment to an investment entity fully owned by Heliaca Investments Cooperatief, a Dutch investment firm. This transaction, originally announced in March 2025, is now anticipated to conclude in July 2025, following a revised timeline due to an updated regulatory review. The company is actively engaging with all involved parties to fulfill the necessary conditions for closing the deal. This strategic move indicates Westport's focus on streamlining its operations while adhering to regulatory requirements, demonstrating their commitment to a seamless transition.
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 $6.67 with a high estimate of $8.00 and a low estimate of $4.00. The average target implies an upside of 124.47% from the current price of $2.97. 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 $5.64, suggesting a upside of 89.9% from the current price of $2.97. 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: May 14, 2025
- Revenue: $71 million for Q1 2025, a 9% decrease compared to Q1 2024.
- Cespira Revenue: $16.7 million, not included in top line due to equity accounting.
- Net Loss: Improved to $2.5 million from $13.6 million in Q1 2024.
- Gross Margin: Increased to $15.2 million or 21% of revenue, up from $11.7 million or 15% in Q1 2024.
- Operating Expenditures: Reduced by $8 million year-over-year.
- Adjusted EBITDA: Improved to nil from a loss of $6.6 million in Q1 2024.
- Light-Duty Revenue: $64.2 million, up from $63.3 million in Q1 2024.
- High Pressure Control & Systems Revenue: $1.4 million, down from $2.4 million in Q1 2024.
- Heavy-Duty OEM Revenue: $5.4 million, decreased due to transition to Cespira.
- Cash and Cash Equivalents: $32.6 million as of March 31, 2025, down from $37.6 million at December 31, 2024.
- Net Cash Used in Operating Activities: $4.9 million for Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Westport Fuel Systems Inc (WPRT, Financial) reported a significant improvement in net loss, reducing it to $2.5 million from $13.6 million in Q1 2024.
- Gross profit increased by $3.5 million, and operating expenditures decreased by $8 million, indicating improved operational efficiency.
- The company is focusing on high-growth areas by divesting its Light-Duty business to concentrate on long-haul and heavy-duty transport solutions.
- Cespira, the joint venture with Volvo, generated $16.7 million in revenue, showcasing strong performance and potential for future growth.
- Westport Fuel Systems Inc (WPRT) is strategically positioned as a leader in alternative fuels, with innovations like the CNG HPDI solution enhancing its market offerings.
Negative Points
- Reported revenue for Q1 2025 was $71 million, a 9% decrease compared to the same period last year.
- The transition of the Heavy-Duty OEM business into Cespira resulted in a shift of revenue, impacting reported figures.
- High Pressure Control & Systems revenues decreased to $1.4 million from $2.4 million in Q1 2024, primarily due to a slowdown in the hydrogen industry.
- Cash and cash equivalents decreased to $32.6 million from $37.6 million at the end of 2024, indicating a reduction in liquidity.
- The hydrogen infrastructure development is slowing, which could delay the adoption of hydrogen-powered automotive and industrial applications.
