Westport (WPRT) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Fri, May 15, 2026 at 10:16 PM GMT+7 18 min read Image source: The Motley Fool. Chief Financial Officer — Elizabeth Owens Need a quote from a Motley Fool analyst? Email pr@fool.com Daniel Sceli: Thank you, Ashley, and good morning, everyone. I want to begin by addressing recent events, and we appreciate the patience and support of our shareholders as we work through our recent cybersecurity incident. Our priority was to ensure the integrity of our IT systems, business continuity and financial reporting, and we are pleased to confirm that this review has been successfully completed. With this behind us, we re looking forward to executing on our strategy and delivering on the next phase of our business objectives. Turning to our financial results. The past year has been a defining one for Westport, marked by the successful divestiture of our light-duty business, the recent receipt of a $6.5 million payment and further strengthened by Cespira s agreement with a leading OEM to manufacture and deliver HPDI components for a truck trial assessing the future commercialization. These accomplishments, combined with ending the year with over $27 million in cash and very low debt reflect the meaningful progress we have made in sharpening our strategic focus and building a stronger company. The global heavy-duty transportation market is increasingly recognizing natural gas as a practical lower emission solution available today. This is evidenced by Volvo s recent milestone of delivering more than 10,000 natural gas trucks on the road, underscoring the accelerating adoption of Cespira s HPDI fuel system technology and validates the strategic direction we have taken. From a market perspective, the U.K. leads the adoption of HPDI powered LNG trucks, followed by Germany, Sweden, the Netherlands, Norway and France. Emerging gas markets such as India and Latin America are also gaining momentum with volumes seeing steady growth. When we introduced our proprietary CNG fuel storage and delivery system several months ago, we emphasized its potential to significantly expand our addressable market, particularly in North America. Development has progressed well, and our confidence in the commercial opportunity continues to build. We look forward to showcasing this solution at the upcoming Advanced Clean Transportation Expo, ACT, where we will have the opportunity to show off our technology to industry partners and customers. By integrating advanced high-pressure CNG storage with Cespira s field-proven HPDI fuel system, we match or exceed the performance and efficiency expected from diesel engines with compelling economics in markets where CNG is the natural choice like North America. We believe this innovation meaningfully enables Westport and Cespira to capture new opportunities as we move into field testing. Our GFI brand through our high-pressure controls business has also delivered important operational milestones. The opening of [ our China facility is one ] of the fastest growing hydrogen markets, and in Canada represents a step in localizing manufacturing, reducing costs and improving competitiveness. As the transportation industry continues to balance economic realities with sustainability objectives, we are confident that alternative fuel systems, including Cespira s HPDI technology and our high-pressure components provide real-world solutions that deliver both performance and affordability. With the completion of our strategic transition and only a few milestones remaining, a growing market validation of Cespira s expansion, a path to address the North American market and a clear strategic focus. Westport is excited to drive into this next phase. Now I ll have Elizabeth run through some financial details and then come back afterwards. Over to you, Elizabeth. Elizabeth Owens: Thank you, Dan. Before I dive into the details, I ll just touch on a few key milestones that we have achieved. The first of which is our strong cash position, reflective of the successful divestiture of the Light-Duty segment. As of December 31, 2025, our cash and cash equivalents position increased by $12.4 million to $27.2 million compared to $14.8 million at December 31, 2024. The increase in cash was primarily driven by the sale of our Light-Duty segment, as I mentioned, partially offset by cash used in our operating activities and debt repayments. Exiting 2025 with the proceeds from the disposition of Westport s Light-Duty segment, our long-term debt, including the current portion, reflected a 57% reduction to $2.9 million as at December 31, 2025. This was compared to $6.8 million in the prior year period. Including the long-term debt from discontinued operations, reduction was more than 90%. This improved financial position provides Westport with greater flexibility to concentrate on markets that are best suited to our current strategy. Cespira continues to drive meaningful improvement in our res

Westport (WPRT) Q4 2025 Earnings Transcript

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Westport (WPRT) Q4 2025 Earnings Transcript

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