Westport Fuel Systems 2025 Q2 Earnings Net Income Plunges 690.4% into Deficit

Westport Fuel Systems(WPRT) reported its fiscal 2025 Q2 earnings on Aug 12th, 2025. The earnings missed expectations significantly, with the company swinging to a loss from a profit and reporting a 690.4% deterioration in net income. The results highlighted a challenging period for the firm, marked by a sharp decline in revenue and profitability.

Revenue
The total revenue of Westport Fuel Systems decreased by 11.4% to $12.50 million in 2025 Q2, down from $14.11 million in 2024 Q2.

Earnings/Net Income
Westport Fuel Systems swung to a loss of $1.98 per share in 2025 Q2 from a profit of $0.34 per share in 2024 Q2 (682.4% negative change). Meanwhile, the company reported a net loss of $-34.34 million in 2025 Q2, reflecting a 690.4% deterioration from the net income of $5.82 million achieved in 2024 Q2. The earnings performance was extremely negative, with both per-share and total net income plummeting into the red.

Price Action
The stock price of Westport Fuel Systems has edged up 2.76% during the latest trading day, has tumbled 10.43% during the most recent full trading week, and has edged up 0.90% month-to-date.

Post Earnings Price Action Review
The strategy of buying WPRT when earnings beat expectations and selling after 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 49.37% return, with a Sharpe ratio of 0.30, indicating a reasonable risk-adjusted return. However, it had a maximum drawdown of 0.00%, suggesting no risk of losing money during the backtest period. The strategy's CAGR was 9.00%, trailing the benchmark's 74.64% return, indicating it missed significant long-term gains.

CEO Commentary
Daniel Sceli, CEO & Director, highlighted that Westport is focused on a strategic transformation, divesting the Light-Duty segment to sharpen its focus on high-impact opportunities in commercial transportation and industrial applications. The company is leveraging fuel-agnostic technologies and is positioned to benefit from RNG adoption and hydrogen transition. Sceli emphasized the importance of Cespira’s market expansion and the role of high-pressure controls and systems in supporting the energy transition. He noted challenges in hydrogen adoption outside China and shifting market dynamics in natural gas, particularly in North America and Europe. Despite a bumpy path, Sceli expressed optimism about the company’s long-term prospects, citing renewed industry focus on CNG, LNG, and RNG, as well as government support for hydrogen in China.

Guidance
Daniel Sceli, CEO & Director, stated that Westport expects to see demonstrated volume growth for Cespira over the coming 12 months, supported by favorable CNG, LNG, and RNG fuel economics. The company expects to continue providing incremental funding to Cespira, with additional spending in Q3, including relocation costs and transaction expenses. Westport also expects to reduce operating expenses as it adjusts to a smaller organizational structure post-divestiture, with normalized operating expense levels anticipated in 2026. The company is also preparing to file a replacement base shelf prospectus and anticipates continued R&D investment in natural gas markets.

Additional News
On Aug 12th, 2025, Westport announced its decision to divest its Light-Duty segment to refocus on core growth areas in commercial transportation and industrial applications. The announcement marked a significant strategic shift, aiming to streamline operations and enhance long-term profitability. In addition, the company is investing further in Cespira to support its expansion in CNG, LNG, and RNG technologies, which are expected to benefit from growing industry interest and supportive government policies, especially in China. Westport also outlined plans to reduce operating expenses, with normalized levels anticipated in 2026 following the divestiture.