Westport Fuel Systems Inc.

Westport did not provide consolidated company revenue or EPS in the prepared remarks. Segment data showed high-pressure controls revenue of $2.7 million versus $2.9 million in Q2 2025, with gross profit of $100 thousand or 5% of revenue, and Cespira product revenue of $18.9 million versus $8.3 million year over year, aftermarket revenue of $5.5 million versus $2.6 million, and service revenue of $2.6 million versus $1 million. Cespira gross profit was $3.8 million versus a $1.9 million gross loss in Q2 2025, and net loss improved to $2.4 million from $6.7 million. Cash and cash equivalents were $23.9 million at June 30, 2026 versus $24.5 million at March 31, 2026. Management reiterated that Cespira is targeting breakeven in 2027, that the June financing generated about $10 million of gross proceeds, and that the final EDC debt repayment will be made in Q3.

Daniel Sceli framed the quarter as validation of Westport’s strategy to focus on scalable clean transportation solutions that preserve performance while reducing emissions and fuel cost. He emphasized that Cespira is broader than one fuel pathway, pointing to LNG, renewable natural gas, and hydrogen, and said the Volvo hydrogen development agreement validates HPDI’s relevance across multiple low-carbon fuels. His tone was confident and constructive, but still disciplined, repeatedly stressing capital management and practical customer demand over theory.

Elizabeth Owens focused on liquidity, financing, and segment performance. She said Westport raised about $10 million gross from the June offering at an effective purchase price of US $2.06 per common share or prefunded warrant and associated private placement warrant, with another approximately US $10 million possible if the private placement warrants are exercised. She also noted cash of $23.9 million at quarter-end, Cespira capital contributions of $3.5 million in the quarter versus Q2 2025, and $1 million in debt repayments to EDC with the final payment due in Q3. On operations, she highlighted high-pressure controls gross profit of $100 thousand and said margins should improve as manufacturing processes and supply-chain localization improve, while Cespira’s lower net loss reflected higher product revenue and a lower cost base.

Analysts pressed on what is driving Cespira momentum, whether Westport must fund the hydrogen engine program, and when the second OEM could advance its next phase. Management said European emissions credits and Euro 7 are supporting adoption, that the Volvo hydrogen development contract is customer-funded, and that the second OEM’s initial 200-truck trial went extremely well, with the next phase expected to be planned within about a month. On high-pressure controls, management said the weak top line was mainly a temporary ramp issue from moving equipment from Europe to Canada and China and recertifying plants, and they expect to beat the volume plan this year as backlogs are filled.