Mining & Metals
Westport Fuel Systems Up 0.25% In US Even As It Reminds on Being a Going Concern and Q1 Net Loss Doubles YoY
Westport Fuel Systems (WPRT.TO, WPRT), which reported financial results for the fourth quarter only last month, after trade Thursday again raised concerns about its ability to continue as a going concerns while reporting its net loss for the first quarter of fiscal 2006 had doubled from the year-prior period, although not by as much as expected, even with lower revenues.On liquidity and being a going concern, as at March 31, the company said it had cash and cash equivalents of US$24.5 million and long-term debt of $1.9 million from Export Development Canada, of which all is current."Based on our projected capital expenditures, debt servicing obligations and operating requirements under our current business plan, we are projecting that our cash and cash equivalents will not be sufficient to fund our operations through the next twelve months from the date of the issuance of this MD&A. These conditions raise substantial doubt about Westport's ability continue as a going concern within one year after the date of this MD&A is issued," the company said."Management is currently evaluating several different options to improve Westport's liquidity position, including raising funds from the public markets and borrowing debt or other financing alternatives. These plans are not final and are subject to market and other conditions not within our control. As such, there can be no assurances that Westport will be successful in obtaining sufficient funding. Accordingly, we concluded under the accounting standards that these plans do not alleviate the substantial doubt about Westport's ability to continue as a going concern," it added.For Q1, Westport reported a loss from continuing operations of US$5.7 million, or US$0.33 per share, compared to a loss of US$5.3 million, or $0.14, for the same quarter last year. The consensus forecast at FactSet was for a loss of $0.41.Revenues for the first quarter of 2026 fell to $2.3 million compared to $7.3 million a year ago. As planned, the Heavy-Duty OEM segment ended its transitional service agreement with Cespira at the end of Q2 2025 resulting in reduction in revenue when comparing period over period, the company said."We are seeing continued momentum in our Cespira joint venture with Volvo Group reflected in a 33% increase in revenue compared to the same quarter in 2025. This performance, includes incremental volumes delivered to a second OEM for a truck trial, is becoming increasingly material to our overall results and reinforces the growing market acceptance of Cespira's HPDITM fuel system technology. Favorable LNG pricing dynamics in Europe and other existing markets are also supporting increased demand, providing a solid foundation for continued growth through 2026," said Dan Sceli, Chief Executive Officer, in a statement.Sceli added: "The European LNG heavy-duty truck market is anticipated to show strong annual growth. Cognitive Market Research highlights a 30% global LNG heavy-duty truck market share for Europe, and projects a 12.5% compound annual growth rate through 2031. Tightening emissions regulations, expanding LNG refueling infrastructure, strong fleet economics and technology improvements all reinforce the use of LNG for long-haul trucking in Europe.""At the same time," Sceli said, "we are advancing our high-pressure CNG storage solutions into the North American market, as demonstrated by our participation at ACT Expo. As we showcased this platform, we demonstrated what sets us apart -- not just innovation, but the ability to bring it to market where it matters most, and fleets and OEMs are starting to notice. It was clear from the volume of interactions this year compared to previous years that it is an exciting time for Westport. We are making clear steps forward in expanding our technology reach, where we see growing demand for high-performance, lower-emission alternatives. The show's success was a clear signal that we are advancing our high-pressure CNG storage solution into a North American market with real momentum, positioning Westport to capture long-term growth opportunities in the global heavy-duty transportation market."Our High-Pressure Controls business is seeing momentum increasing following the opening of our expanded product development and manufacturing facility in Cambridge, Ontario and our new China Hydrogen Innovation Center and Manufacturing facility in Changzhou, China. We have demonstrated improved results for first quarter of 2026 with a 21% increase in revenue in this business, compared with the same period last year."Shares in WPRT rose $0.04 or 1.5% to $2.75 today in Canada. It also rose 1.5% in regular U.S. trade today.
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