WPRT · Aetherion Technologies Inc.

Westport Fuel Systems Inc. reported full year 2025 results reflecting a strategic pivot following the divestiture of its Light-Duty business, completed on July 29, 2025, to Heliaca Investments for $60.0 million, and a recent $6.5 million payment received. Revenue declined 43% to $23.3 million, primarily due to the termination of a transitional service agreement with Cespira in Q2 2025, which reduced Heavy-Duty OEM revenue from $31.3 million to $15.0 million, and a slowdown in hydrogen infrastructure impacting High-Pressure Controls revenue, down to $8.3 million from $9.4 million amid manufacturing relocation from Italy to Canada and China. Despite lower revenue, gross profit held at $2.7 million with improved 11% margin versus 7% prior year, aided by absence of prior inventory write-downs. Net loss from continuing operations improved to $29.6 million from $31.3 million, driven by reduced R&D and SG&A expenses and favorable FX, though offset by a $15.8 million equity method loss from full-year Cespira results versus seven months previously. Adjusted EBITDA loss widened to $17.3 million from $11.4 million. Balance sheet strengthened with $27.2 million cash, operating cash inflow of $14.2 million, and debt cut 57% to $2.9 million. Cespira, a key joint venture, showed robust revenue growth to $77.4 million (80% increase), with product sales up 89% on full-year OEM volume, but gross losses emerged from $1.7 million obsolete inventory provision and $2.8 million onerous contract loss. Management highlighted cybersecurity resolution, GFI production launches in China and Canada, new HPDI OEM truck trial, and upcoming CNG-HPDI field testing in 2026. However, a going concern note flags insufficient liquidity for 12 months, necessitating public equity, debt, or alternative financing amid market uncertainties. CEO Dan Sceli emphasized heavy-duty natural gas adoption, citing Volvo's 10,000+ trucks milestone and market traction in Europe and emerging regions.