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Westport Fuel Systems
(TSX:WPRT)
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Rating:47Neutral
Price Target:
C$2.50
▼(-1.96% Downside)
Action:Reiterated
Date:08/18/26
The score is held down primarily by weak financial performance (continued losses, materially lower TTM revenue, and negative operating/free cash flow) and bearish technical signals (price below key moving averages and negative MACD). The earnings call provides a meaningful offset via strong Cespira growth and improving profitability trajectory toward 2027 breakeven, while valuation is constrained by negative earnings and no indicated dividend support.
Positive Factors
Cespira growth and improving profitability
Rapid Cespira growth and better gross economics indicate increasing customer adoption of HPDI systems. If sustained, this trajectory can expand Westport’s commercial scale and support management’s targeted path to joint-venture breakeven in 2027.
Negative Factors
Persistent losses and revenue contraction
Recurring losses and sharply lower trailing revenue show that commercial traction has not yet translated into a stable, profitable core business. Continued weakness could constrain investment capacity and increase dependence on financing before the business reaches breakeven.
Read all positive and negative factors
Positive Factors
Negative Factors
Cespira growth and improving profitability
Rapid Cespira growth and better gross economics indicate increasing customer adoption of HPDI systems. If sustained, this trajectory can expand Westport’s commercial scale and support management’s targeted path to joint-venture breakeven in 2027.
Read all positive factors
Westport Fuel Systems (WPRT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$49.96M
Dividend YieldN/A
Average Volume (3M)6.13K
Price to Earnings (P/E)―
Beta (1Y)1.96
Revenue Growth-96.27%
EPS Growth32.55%
CountryCA
Employees112
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-2.07
Shares Outstanding18,995,733
10 Day Avg. Volume7,263
30 Day Avg. Volume6,135
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.40
Price to Sales (P/S)1.16
P/FCF Ratio-1.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.53Price Target Upside117.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.41
Revenue Forecast (FY)C$10.05M
Westport Fuel Systems Business Overview & Revenue Model
Company Description
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company oper...
How the Company Makes Money
Westport Fuel Systems generates revenue primarily by selling fuel-system products and related technologies that enable OEMs and vehicle/engine customers to build or convert platforms to operate on natural gas and/or hydrogen. Key revenue streams g...
Westport Fuel Systems Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and commercial momentum—most notably Cespira's very large year-over-year revenue growth, product revenue expansion to $18.9M, improved gross profit and a material improvement in net loss—supported by a strategic hydrogen development agreement with Volvo and a completed $10M financing. Offsetting items include a small decline in corporate cash, temporary manufacturing relocation-related volume shortfalls in the high pressure controls segment, warrant liability accounting that can cause earnings volatility, and some uncertainty around market pace and warrant exercise timing. On balance, the substantial JV growth, technology validation and financing flexibility were presented as dominant positives with manageable near-term execution and accounting risks.Positive Updates
Cespira Revenue Surge
Cespira delivered the strongest quarter since inception with revenue up 125% year-over-year in Q2 2026 versus Q2 2025; product revenue increased 127% to $18.9 million (from $8.3 million).
Negative Updates
Slight Decline in Cash Position
Cash and cash equivalents were $23.9 million at June 30, 2026, down from $24.5 million at March 31, 2026, a modest decrease driven by operating losses, one-time financing and cyber-incident costs, Cespira funding and debt repayment.
Read all updates
Q2-2026 Updates
Positive
Negative
Cespira Revenue Surge
Cespira delivered the strongest quarter since inception with revenue up 125% year-over-year in Q2 2026 versus Q2 2025; product revenue increased 127% to $18.9 million (from $8.3 million).
Read all positive updates
Company Guidance
Management guided to a path of disciplined execution with Cespira targeted to reach breakeven in 2027 and Westport materially reducing its cash funding: Q2 capital contributions to Cespira dropped to $3.5M, the company made a $1M EDC repayment with a final repayment due in Q3, and corporate cash was $23.9M at June 30 (vs. $24.5M at 3/31/2026). Key operating metrics underpinning that guidance included Cespira’s 125% year‑over‑year revenue growth in Q2 2026 (product revenue +127% to $18.9M from $8.3M; aftermarket ~$5.5M vs ~$2.6M; service revenue $2.6M vs $1.0M), Cespira gross profit of $3.8M (vs. a $1.9M gross loss prior year) and a net loss of $2.4M (a 65% improvement from $6.7M), while the high‑pressure controls segment generated $2.7M revenue (vs. $2.9M) with $0.1M gross profit (5%). Management expects manufacturing ramps in Cambridge and Jiangsu to fill a backlog and improve margins in H2, and noted the June financing that raised approximately $10M (sale of 1.6M common shares and 3.3M prefunded warrants at an effective $2.06/unit, plus private placement warrants to buy up to 4.8M shares) could yield another ~ $10M if those warrants are exercised.Westport Fuel Systems Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
56
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.42M | 23.73M | 302.30M | 331.80M | 305.70M | 312.41M |
| Gross Profit | 628.09K | 2.20M | 57.59M | 48.94M | 36.20M | 48.15M |
| EBITDA | -14.97M | -18.64M | -5.40M | -33.24M | -28.81M | -18.18M |
| Net Income | -39.62M | -24.74M | -21.84M | -49.72M | -32.70M | 13.66M |
Balance Sheet | ||||||
| Total Assets | 84.87M | 94.14M | 291.62M | 355.75M | 407.45M | 471.31M |
| Cash, Cash Equivalents and Short-Term Investments | 23.91M | 27.11M | 37.24M | 54.75M | 86.18M | 124.89M |
| Total Debt | 2.54M | 4.70M | 52.78M | 82.83M | 76.42M | 97.92M |
| Total Liabilities | 32.68M | 25.45M | 154.60M | 195.30M | 203.49M | 234.89M |
| Stockholders Equity | 52.19M | 68.69M | 137.03M | 160.45M | 203.97M | 236.42M |
Cash Flow | ||||||
| Free Cash Flow | -13.58M | -18.11M | -9.74M | -28.77M | -46.11M | -57.95M |
| Operating Cash Flow | -11.80M | -15.37M | 7.18M | -13.19M | -31.58M | -43.79M |
| Investing Cash Flow | 14.44M | 12.81M | 4.47M | -15.41M | 17.65M | 2.29M |
| Financing Cash Flow | 4.98M | -10.34M | -25.21M | -2.22M | -22.46M | 104.73M |
Westport Fuel Systems Technical Analysis
Neutral
2.55
Price Trends
2.69
Negative
2.73
Negative
2.68
Negative
Market Momentum
>-0.01
Negative
54.28
Neutral
87.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WPRT, the sentiment is Neutral. The current price of 2.55 is above the 20-day moving average (MA) of 2.55, below the 50-day MA of 2.69, and below the 200-day MA of 2.68, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 87.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WPRT.
Westport Fuel Systems Risk Analysis
Westport Fuel Systems disclosed 33 risk factors in its most recent earnings report. Westport Fuel Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westport Fuel Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
47 Neutral | C$49.96M | -0.80 | -63.29% | ― | -96.27% | 32.55% | |
47 Neutral | C$35.69M | -14.98 | 46.27% | ― | ― | 58.73% | |
42 Neutral | C$9.76M | -2.89 | -152.14% | ― | -28.76% | 38.21% | |
41 Neutral | C$754.31K | -0.88 | 287.95% | ― | ― | -12.87% |
* Consumer Cyclical Sector Average
TSE:WPRT
Westport Fuel Systems
2.63
-0.66
-20.06%
TSE:ATHR
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0.01
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TSE:FHYD
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0.40
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-13.98%
TSE:HC
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0.07
-0.02
-22.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.