WESTPORT FUEL SYSTEMS INC. (WPRT): Financial results for Q2 2026
WESTPORT FUEL SYSTEMS INC. (WPRT) furnished an SEC Form 6-K — earnings release. EXHIBIT 99.1 Westport Reports Second Quarter 2026 Financial Results ~ Strong demand for the LNG HPDI trucks drives 125% Q2 revenue growth for Cespira ~ VANCOUVER, British Columbia, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“ Westport ") (TSX:WPRT / Nasdaq:WPRT
How this was made
The 30-second read
Why it matters
The earnings release reveals a sharp revenue decline and widening losses, offset by a modest financing infusion and strong joint‑venture growth, suggesting short‑term volatility with potential for a rebound if Cespira scales.
Market read
Primary earnings disclosure for a niche clean‑transport supplier; likely to move the stock and affect related alternative‑fuel equities.
What to watch
Regulatory flexibility on CO₂ credits in Europe and upcoming Volvo integration may provide longer‑term upside not reflected in the immediate earnings miss.
Westport Reports Second Quarter 2026 Financial Results
Cespira delivered sharply higher revenue, gross-profit improvement and a lower net loss, but Westport's consolidated continuing-operations revenue fell 78%, net loss from continuing operations widened to $11.4 million, Adjusted EBITDA declined to negative $6.3 million, and management concluded that substantial doubt exists about its ability to continue as a going concern.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 2,717 | – | (78 )% |
| Gross profitGAAP | $ 133 | – | (84 )% |
| Gross marginnon-GAAP | 5 % | – | – |
| Research and development expenseGAAP | $ 1,211 | – | – |
| General and administrative expenseGAAP | $ 4,174 | – | – |
| Sales and marketing expenseGAAP | $ 224 | – | – |
| Foreign exchange loss (gain)GAAP | $ 1,693 | – | – |
| Loss from operationsGAAP | $ (7,214 ) | – | – |
| Loss from investments accounted for by the equity methodGAAP | $ (1,283 ) | – | (65 )% |
| Change in fair value of warrant liabilityGAAP | $ (1,496 ) | – | – |
| Financing transaction costsGAAP | $ (1,085 ) | – | – |
| Net loss from continuing operationsGAAP | $ (11,375 ) | – | (125 )% |
| Net loss from discontinued operationsGAAP | $ — | – | 100 % |
| Net lossGAAP | $ (11,375 ) | – | 67 % |
| Net loss per share - basic and dilutedGAAP | $ (0.64 ) | – | 68 % |
| Net loss per share from continuing operations - basic and dilutedGAAP | $ (0.64 ) | – | – |
| EBITDAnon-GAAP | $ (10,823 ) | – | 64 % |
| Adjusted EBITDAnon-GAAP | $ (6,273 ) | – | (517 )% |
| Cespira total revenueother | $ 27,071 | – | 125 % |
| Cespira product revenueother | $ 18,918 | – | 127 % |
| Cespira aftermarket revenueother | $ 5,517 | – | 108 % |
| Cespira service revenueother | $ 2,636 | – | 156 % |
| Cespira gross profitother | $ 3,814 | – | 298 % |
| Cespira gross marginnon-GAAP | 14 % | – | – |
| Cespira operating lossother | $ (2,120 ) | – | (69 )% |
| Cespira net lossother | $ (2,375 ) | – | (65 )% |
| Net cash used in operating activities from continuing operationsGAAP | $ (4,563 ) | – | – |
| Net cash used in investing activities from continuing operationsGAAP | $ (3,560 ) | – | – |
| Net cash provided by (used in) financing activities from continuing operationsGAAP | $ 8,300 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| High-Pressure ControlsThe decrease was primarily driven by lower volume of sales in the quarter compared to prior year. The company reported customer backlog awaiting fulfillment while it improves production output at its two main manufacturing plants in Canada and China. | $2.7 million | – | 6% decrease |
| Heavy-Duty OEMThe segment's transitional service agreement with Cespira ended in Q2 2025 and, as a result, the segment did not have any sales activity in the quarter. | no sales activity | – | – |
| CespiraHigher volumes of systems sold drove product revenue, higher sales volumes drove aftermarket revenue, and service revenue benefited from milestones achieved. Higher system and aftermarket volumes, material cost reductions and labor-efficiency improvements supported gross-profit improvement. | $ 27,071 | – | 125 % |
What drove it
- Cespira's product revenue growth was primarily driven by significantly higher volumes of systems sold compared to the prior-year quarter.
- Cespira cited a resilient favorable price differential between diesel and natural gas and government regulatory support in markets such as Europe as influences on growth.
- Cespira and Volvo Trucks signed a development agreement in June to finalize integration and commercialization of Cespira's HPDI fuel-system technology for Volvo's 13-litre hydrogen engine applications.
- Westport stated that on-road testing of the hydrogen application is underway, with European certified commercial launch targeted before 2030.
- High-Pressure Controls has demand backlog as the company works to improve production output and localize supply chains at Canadian and Chinese manufacturing plants.
Concerns
- Westport projected that cash and cash equivalents will not be sufficient to fund operations through the next twelve months from the issuance date of its Q2 2026 MD&A.
- Management concluded that substantial doubt exists about Westport's ability to continue as a going concern within one year after issuance of its Q2 2026 MD&A.
- Management's liquidity plans, including public-market fundraising, debt or other financing alternatives, are not final and are subject to market and other conditions outside its control.
- Consolidated revenue declined because the Heavy-Duty OEM segment's transitional service agreement with Cespira ended in Q2 2025.
- The quarterly continuing-operations loss included a loss from the change in fair value of warrant liabilities, financing transaction costs and a foreign exchange loss; the prior-year quarter had a foreign exchange gain of $4.2 million.
- Adjusted EBITDA included discontinued operations performance in the prior-year quarter, including operating profit of $3.1 million for the three months ended June 30, 2025.
What to watch
- Whether Westport obtains sufficient additional funding to address the going-concern condition.
- Cespira's ability to sustain system, aftermarket and service revenue growth while improving gross profit and reducing operating losses.
- Completion in Q4 2026 of Cespira's significant long-term engineering service revenue project ahead of the anticipated launch of its Euro 7 product.
- Production-output improvement, supply-chain localization and gross-margin progression at High-Pressure Controls' Canadian and Chinese plants.
- Progress of North American high-pressure CNG commercialization and the HPDI hydrogen-engine development program with Volvo Trucks.
Balance sheet and cash flow
- Cash and cash equivalents (including restricted cash) were $ 23,946 as at June 30, 2026, compared to $ 27,158 at December 31, 2025.
- Long-term debt, including the current portion, was $1.0 million as at June 30, 2026, compared to $2.9 million at December 31, 2025.
- Current portion of long-term debt was $ 972 as at June 30, 2026; the company stated that all of its $1.0 million long-term debt was current.
- The June private placement provided initial gross proceeds of approximately US$10 million, with potential for an additional US$10 million over the next two years through warrant exercises.
- Capital contributions to investments accounted for by the equity method were $ (3,512 ) in Q2 2026, compared to $ (4,185 ) in Q2 2025.
- Repayments of operating lines of credit and long-term facilities were $ (1,000 ) in Q2 2026.
- Net decrease in cash and cash equivalents was $ (557 ) in Q2 2026, compared to $ (11,254 ) in Q2 2025.
Analysis
Westport's reported continuing-operations business contracted in the second quarter. Revenue was $ 2,717 versus $ 12,498 in the prior-year quarter, and gross profit was $ 133 versus $ 842. The company attributed the revenue reduction principally to the end of the Heavy-Duty OEM transitional service agreement with Cespira at the end of Q2 2025. High-Pressure Controls revenue was $2.7 million, down 6%, due primarily to lower sales volume.
Cespira was the clear operating bright spot, although Westport accounts for the joint venture under the equity method rather than consolidating its revenue. Cespira total revenue was $ 27,071, up 125%, with product, aftermarket and service revenue all increasing. Its gross profit was $ 3,814 compared with a gross loss of $ (1,926 ), while gross margin reached 14 % from (16 )%. Management tied the improvement to higher systems and aftermarket volume, material-cost reductions and better labor efficiency. Cespira's operating loss narrowed to $ (2,120 ) from $ (6,843 ).
Consolidated profitability remained under considerable pressure. Loss from operations was $ (7,214 ) and net loss from continuing operations was $ (11,375 ), compared with $ (1,010 ) and $ (5,053 ), respectively, a year earlier. The release identified the loss on the change in fair value of warrant liabilities, financing transaction costs and foreign exchange loss as primary reasons for the wider continuing-operations loss. Adjusted EBITDA was $ (6,273 ), compared with $ (1,017 ); the company also noted that the prior-year figure included discontinued operations performance, including an operating profit of $3.1 million.
Liquidity is the central issue. Cash and cash equivalents were $ 23,946 at June 30, 2026, while long-term debt was $1.0 million and all was current. The company raised initial gross proceeds of approximately US$10 million through a June private placement, but reported $ (4,563 ) of operating cash use and $ (3,560 ) of investing cash use from continuing operations in the quarter. Investing cash use included $ (3,512 ) of capital contributions to Cespira.
Management explicitly stated that projected cash and cash equivalents will not be sufficient to fund operations through the next twelve months from issuance of the Q2 2026 MD&A and that substantial doubt exists about the company's ability to continue as a going concern. Its strategic priorities are scaling Cespira and progressing a high-pressure CNG solution for North America. Near-term execution points include fulfilling High-Pressure Controls backlog, completing Cespira's significant engineering service project expected in Q4 2026, and securing additional capital.
Management, verbatim
Cespira, our joint venture with Volvo Group, continued to scale in the quarter, delivering significant year-over-year quarterly revenue growth, supported by increased customer orders for the HPDI™ fuel system, with revenue up 125% and gross profit improvement of 298% at the joint venture level, compared to the prior-year quarter.
Dan Sceli, Chief Executive Officer
We also took a meaningful step in strengthening Westport’s financial position.
Dan Sceli, Chief Executive Officer
This is the foundation of our North American CNG strategy: meeting operators where they are today while building a practical, affordable, scalable pathway to the lower-emission freight systems of tomorrow.
Dan Sceli, Chief Executive Officer
Not in the filing
stated, not guessed- Numerical forward revenue guidance
- Numerical gross-margin guidance
- Numerical operating-expense guidance
- Numerical tax-rate guidance
- Formal guidance for Adjusted EBITDA or cash flow
- Previous-release outlook or prior guidance for comparison
- Free cash flow
- Share repurchases
- Dividend declaration or dividend amount
- Quantified High-Pressure Controls backlog
- Detailed debt maturity schedule beyond the statement that all $1.0 million of long-term debt is current
- Cash runway amount beyond management's statement that available cash is insufficient for the next twelve months
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Westport Fuel Systems (TSX:WPRT / Nasdaq:WPRT) is a provider of LNG and HPDI fuel systems for heavy‑duty trucks, operating a joint venture (Cespira) with Volvo Group.
Ticker impact
Westport Fuel Systems reported Q2 2026 results with revenue down 78% YoY, net loss widening and a $10M private placement, indicating heightened financial pressure.
Potential price decline of 5‑10% over the next few days as investors digest weaker revenue and larger loss.
The primary earnings release shows material deterioration in revenue and profitability, but the fresh capital raise and joint‑venture growth could limit the sell‑off.
Market effects
Highlights challenges for the heavy‑duty LNG/HPDI market and may pressure other alternative‑fuel players.
North American and European alternative‑fuel sectors could see heightened scrutiny.
Limited to niche fuel‑system and clean‑transport segments.
Counterpoint
The $10M private placement and 125% revenue growth at Cespira could signal a turnaround catalyst if execution improves.
Key entities
- Joint VentureCespira
Westport's JV with Volvo, showing 125% revenue growth YoY.
- PartnerVolvo Group
Signed a development agreement to integrate HPDI technology for hydrogen engines.
