Q2 2024 Westport Fuel Systems Inc Earnings Call Transcript
Key Points
- Westport Fuel Systems Inc (WPRT) reported improvements in margins, with gross margin increasing from 17% to 21% of revenue compared to the previous year.
- The company successfully closed a joint venture with Volvo Group, acquiring a 45% interest for approximately $28 million, with potential for an additional $45 million based on performance.
- Westport Fuel Systems Inc (WPRT) has restructured its business into five key segments, enhancing transparency and aligning operations with strategic priorities.
- The company is actively pursuing growth in the High-Pressure Controls and Systems segment, which has a pipeline representing approximately $70 million in future revenue.
- Westport Fuel Systems Inc (WPRT) is committed to sustainability, as highlighted in their 2023 ESG report, focusing on reducing carbon emissions in transportation.
- Revenue for Q2 2024 decreased by 2% compared to the prior-year period, primarily due to decreased sales volumes in certain segments.
- The company faced higher general and administrative costs, including $2 million in consulting and legal fees related to the HPDI joint venture.
- Westport Fuel Systems Inc (WPRT) experienced a decrease in Light-Duty segment revenue, driven by lower sales in Delayed OEM and fuel storage businesses.
- The company is still in the early stages of cost reduction initiatives, with only about a third of the way into the process.
- There is uncertainty regarding the timing of inventory sell-through for a key European partner, which has impacted sales volumes.
Good day and thank you for standing by. Welcome to the Westport Fuel Systems Q2 2024 conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ashley Nuell, VP, Investor Relations. Please go ahead.
Thank you. Good morning, everyone. Welcome to Westport Fuel Systems' second quarter conference call for 2024. This call is being held to coincide with the press release containing Westport's financial results that was issued yesterday. On today's call, speaking on behalf of Westport is Chief Executive Officer and Director, Dan 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 constitute forward-looking statements within the meaning of the US and applicable
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