Westport Trims Q4 Loss, Renews Heavy-Duty Truck Focus

Westport Fuel Systems reported a decline in net income for the fourth quarter and the entire year, alongside progress in its joint venture with Volvo Group and the announcement of the sale of its light-duty operations. The company's Q4 net loss was $10.1 million, an improvement from a loss of $13.9 million in the previous year, while annual losses decreased to $21.8 million from $49.7 million in 2023. Revenue also fell for both periods, with Q4 revenue at $75.1 million and full-year revenue at $302.3 million. As part of a strategic shift, Westport transferred its hydrogen ICE technology to the Cespira joint venture, focusing on heavy-duty and industrial sectors. The company announced the $73.1 million sale of its light-duty unit to Heliaca Investments, with the potential for an additional $6.5 million based on performance milestones. This transaction, expected to finalize in mid-2025, aims to improve Westport's financial stability, allowing for a cash reserve of $37.65 million by the end of 2024. Westport's CEO emphasized the company's transformative year, highlighting the focus on enhancing operational efficiency and aligning with competitive strengths to support decarbonization in transportation. There is optimism about growth prospects for HPDI technology in the North American heavy-duty transport market, particularly as natural gas usage expands. Post-sale, Westport plans to explore merger and acquisition opportunities in the heavy-duty fuel systems sector. An expert opinion in the transportation field suggests that Westport's shift appears to be aligned with global decarbonization trends and an increasing demand for sustainable transport solutions. The focus on heavy-duty trucks utilizing natural gas and renewable sources aligns with evolving regulations and consumer preferences, potentially positioning Westport for future growth amid a changing energy landscape. The financial restructuring following the divestiture should enable Westport to innovate and expand further into high-demand markets.