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Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 9:30 a.m. ET Investor Relations - Ashley Nuell Chief Executive Officer and Director - Daniel Sceli Chief Financial Officer - Elizabeth Owens Operator: Good day, and thank you for standing by. Welcome to Westport's Second Quarter 26 Conference Call. At this time, participants are in a listen-only mode. After speakers' presentation, there will be a question and answer session. To press *11 on your telephone, You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Ashley Nuell. Please go ahead. Ashley Nuell: Thank you. Good morning, everyone. Welcome to Westport Fuel Systems conference call regarding its second quarter 2026 financial and operational results. This call is being held to coincide with the press release containing Westport's financial results issued yesterday after the markets closed. On today's call, speaking on behalf of Westport will be chief executive officer and director, Daniel Sceli, and chief financial officer, Elizabeth Owens. Attendance on this call is open to the public, but questions will be restricted to the investment community. You are reminded that certain statements made on this conference call and our responses to certain questions may constitute forward-looking statements within the meaning of U.S. and applicable Canadian securities laws. Forward-looking statements are based on current expectations and involve risks and uncertainties that could cause-- that could actually result that could cause actual results to differ materially. Please refer to Westport's filings for a more complete discussion of these risks. Before I turn the call over to Daniel, I wanted to highlight that since our first quarter release in May, Westport has continued to advance several important corporate and commercial priorities, including superior Cespira's hydrogen development agreement with Volvo and the completion of the $10 million offering. And concurrent private placement. With that, I will turn the call over to you, Daniel. Daniel Sceli: Thank you, Ashley, and good morning, everyone. Q2 was an important quarter for Westport. We continue to execute against our strategy of focusing the business around high impact scalable, clean transportation solutions, where our technology can deliver meaningful economic and emissions benefits without compromising performance. The quarter was also marked by important developments that strengthen our platform for future growth. First, Cespira, our joint venture with Volvo Group, signed an agreement with Volvo Group to complete development of a hydrogen-fueled engine. This is an important milestone because it reinforces the relevance of HPDI technology across multiple low carbon fuels, including hydrogen, natural gas, and renewable natural gas. It also further validates the role of internal combustion-engine technology as part of the practical pathway to decarbonizing heavy duty transport. Second, we completed a $10 million offering in June. This financing provided additional working capital to support our ongoing operations and strategic priorities. As we continue to advance the business, We recognize the importance of managing capital carefully, and we remain focused on balancing investment and growth opportunities with continued financial discipline. Operationally, the quarter continued to reinforce the strategic value of our core platforms. At Cespira, we remain encouraged by the commercial momentum we are seeing in LNG powered heavy duty trucks and by the broader market context, supporting adoption. The Q1 results showed a strong year over year revenue growth and in Q2, we continued building on that foundation through development work, customer engagement, and the hydrogen engine development agreement with Volvo. We have consistently indicated that 2027 would be the break-even year for Cespira, and the results we are seeing continue to build credibility behind that expectation. Since inception, Cespira has delivered quarter over quarter revenue growth with growth delivered in Q2 being particularly significant. That momentum, combined with continued operating leverage, as volumes scale reinforces our confidence that Cespira is progressing toward the financial profile we have been targeting for next year. The message is clear. Cespira is not a single fuel opportunity. It is a platform that can support multiple lower-carbon pathways for heavy duty transport while preserving the power, range, and reliability fleets require. The volume growth we are seeing is being supported by a more resilient commercial backdrop for LNG heavy duty trucking. Despite ongoing geopolitical tensions, the price differential between LNG and diesel has continued to show consistency reinforcing the economic case for fleets evaluating lower-carbon alternatives that can also support operating cost discipline. At the same time, recent regulatory developments in the European Union are increasing the strategic value of emissions reducing technologies. OEMs are now able to generate additional CO2 credits in the years leading up to 2030, which may help with the compliance from 2030 onward. That creates a stronger incentive for earlier deployment of lower-emission heavy-duty technologies such as HPDI where reduced emissions can translate into avoided compliance costs and potential emission credit value. In North America, our HPDI high pressure CNG fuel system remains an important area of focus. Following our ACT Expo showcase, we continue to build awareness around a solution designed to deliver diesel-like performance with lower fuel cost potential and reduced emissions. Over the last couple of months, we have had the opportunity to demonstrate our truck to several fleets at our Vancouver facility. Giving them the opportunity to put a driver into the truck. The level of engagement we are seeing and the feedback we are receiving reinforces that fleets are looking for practical alternatives that can work within existing operating realities rather than requiring a wholesale change in how they run the business. Our high pressure controls business also remains a key part of Westport's value proposition. With production underway at our expanded Cambridge, Ontario facility, and at GFI's China Hydrogen Innovation Center and Manufacturing facility in Jiangsu, China, we continue to believe this business is well positioned to serve growing demand across hydrogen, natural gas, and industrial applications. With that, I will ask Elizabeth to walk through the financial results in more detail. Elizabeth, over to you. Elizabeth Owens: Thank you, Daniel. Our second quarter financial results have demonstrated meaningful progress. From a capital perspective, the June financing strengthened our near term liquidity profile. Westport closed the sale of 1.6 million common shares and 3.3 million prefunded warrants in a registered direct offering. Together with private placement warrants, to purchase up to 4.8 million common shares, The combined effective purchase price was US $2.06 per common share or prefunded warrant and associated private placement warrant. Generating gross proceeds of approximately $10 million before fees and expenses. The offering proceeds are intended for working capital and general corporate purposes. In addition, if the private placement warrants are exercised in full for cash, Westport would receive additional gross proceeds of approximately US $10 million although the timing and likelihood of any exercise cannot be predicted. From an accounting perspective, the warrants contain settlement features that require us to account for these warrants as a liability Rather than equity. These liabilities will be remeasured to fair value at each reporting date. with changes recorded through earnings until the warrants are exercised or expire. As of the end of June, our cash and cash equivalents position stood at $23.9 million compared to $24.5 million at 03/31/2026. The slight net decrease in cash was primarily driven by our operating losses including certain 1-time costs relating to the financing activities and to our cyber incident in Q1. And by the funding of the Cespira JV and debt repayment. This was offset by proceeds from the financing transaction. In the quarter, our capital contributions to Cespira decreased to $3.5 million in the current quarter compared to Q2 25, reflecting the improvement of Cespira's financial performance. We anticipate this number will continue to decrease in the coming year as Cespira continues to drive volume growth. We also paid $1 million in debt repayments to EDC, and we will make our final debt repayment in Q3. Turning to our operating segments. Q2 26 revenue for our high pressure controls business was $2.7 million compared with 2.9 million for Q2 25. The decrease in revenue was primarily driven by lower sales volume in the quarter. That said, at the end of the quarter, we did see a backlog of demand from customers that are waiting to be fulfilled as we continue to improve the production output from our 2 main manufacturing plants in Canada and China. Gross profit was $100 thousand or 5% of revenue, similar to what we saw in Q2 25. We anticipate that as the manufacturing plants in Canada and China continue to work on localizing its supply-chain and improving its manufacturing processes and output. Gross profit and margin will improve. Since Cespira's beginning, we have driven quarter over quarter revenue growth with Q2 26 being the strongest. At 125% as compared to Q2 25. The broader strategic direction remains consistent with what we outlined in Q1. ZESBIRA is benefiting from demand for practical, lower-carbon heavy-duty solutions. The hydrogen development agreement signed during the quarter along with the work completed by the second OEM all add important technology pathways to the existing LNG and renewable natural gas opportunity. Product revenue was up 127%. To $18.9 million compared to $8.3 million in Q2 25. As Dan mentioned, Suspira's growth is influenced by the favorable price differential between diesel and natural gas and government regulation support in markets like Europe. Aftermarket revenue was 5.5 million compared to $2.6 million also driven by the increase in sales volumes. Service revenue was 2.6 million compared to $1 million in Q2 of 2025, primarily driven by the milestones achieved. Service revenue allocated to project milestones is weighted differently across the phases of an engineering service revenue project, 1 of Suspira's significant long term engineering service revenue projects is expected to complete in Q4 26. In advance of the anticipated launch of their Euro 7 product. Gross profit was 3.8 million compared to gross loss of 1.9 million in Q2 25. Cespira had a net loss of $2.4 million, a 65% improvement over the $6.7 million in Q2 25 as a meaningfully increase product revenue and lowered their cost base. and continued to grow and scale the business. Year to date, we have seen our capital contributions to Cespira decrease, a trend that we see continuing, as Daniel mentioned, as they move towards an expected breakeven next year. With that, I will pass the call back to Daniel. Daniel Sceli: Thank you, Elizabeth. As we look ahead, Westport is focused on disciplined execution. The developments since our Q1 release reinforced the progress we are making across the business. Cespira continues to advance to perform true heavy-duty decarbonization. The hydrogen engine development agreement with Volvo is the same with the rest of HPPI technology. Our high pressure CNG solution is gaining visibility in North America, and the June financing provided additional flexibility to continue advancing our priorities. We are operating in a market where customers are not looking for theory. They are looking for solutions that can reduce emissions, lower operating costs, and maintain the performance they need today. That is where Westport is focused. We believe our technologies are well aligned with the realities of commercial transportation, and industrial applications. And we are committed to translating that alignment into commercial traction, improved financial performance, and long term shareholder value. Thank you for your time today, and we appreciate your continued interest in Westport. And we will now open the call for questions. Operator: Thank you. Ladies and gentlemen, if you have a question or a comment at this time, please press 11 on your telephone. If your question has been answered, you wish to remove yourself from the queue. Our first question comes from Amit Dayal with H. C. Wainwright. Your line is open. Amit Dayal: Thank you. Good morning, guys. Daniel Sceli: Hey, good morning. Hey, Daniel. Amit Dayal: Good to see Cespira, you know, coming through in a strong way for you guys. Can you maybe give us a little bit more color on what are some of the tactical drivers? I know it is a practical solution. You know, it is available But in terms of any specific sales efforts or customer wins, is there anything that is supporting, you know, this trend? Daniel Sceli: And how should we think about, you know, future growth versus-- sure. So I will break the market for the current LNG system into 2 chunks. You have got the European Union, and then you have got the other countries around the world. The European market is moving forward with its emission credit system with their, new mandates. So the trucking companies are all in OEMs and the fleets are all looking for ways to meet the new requirements that are coming up Euro 7 is a big part of that. For the new engine from Volvo. With our HPDI 3.0. And I think that we are going to see more and more of this increased growth. The market is finding that it is no longer a question of the technology. The technology is proven. it is reliable. And the market's accepting the benefits that come with that. And now what we are seeing is the economics solutions are also becoming very prevalent and giving us the growth that we have been looking for, and then we knew would come And so we think it is going to continue. Then outside of the European Union, you know, the Volvo is moving and creating beachheads in South America and India. We are in 37 countries now, over 12 thousand trucks on the road. So that adoption is gonna continue to grow rapidly. Not just in Europe, but in those other global countries. And then, of course, you know, our plan to bring HPDI to North America is mission critical as well. That, you know, we are bringing a new storage system, a CNG system that will allow HPDI to run-in North America. For us, it is very exciting to see this significant growth. Amit Dayal: Yes. I understand. Thank you for that, Daniel. And then just to follow-up on, you know, the HPDI hydrogen efforts between Cespira and Volvo. There is no sort of requirement for Westport to maybe fund any of this. Right? This is just going to be between Cespira and Volvo, and they are gonna figure out, like, how to fund this effort, how to, you know, bring that to market. Daniel Sceli: Well, it is a development contract that Volvo is funding the development of the HPDI system. For hydrogen. So it is a customer funded development program. Amit Dayal: Okay. Understood. Yeah. that is all I have. I will get back in the queue, guys. Daniel Sceli: Thanks. So-- Great. Thanks, Amit. Operator: 1 moment for our next question. Our next question comes from Eric Stine with Craig Hallum Capital Group. Your line is open. Eric Stine: Good morning, everyone. Daniel Sceli: Hey. Good morning, Eric. How are you? Eric Stine: Doing well. You? Daniel Sceli: Doing alright. Eric Stine: Good. So maybe I will just start with the high pressure segment. You alluded to, you know, some, I guess, unfulfilled demand as your 2 locations, Canada and China, ramp up. I am just curious. I mean, is this kind of just the typical ramp up now that your equipment has been moved to both locations, or is there something else that is maybe limiting that in visibility that is near term impact? Daniel Sceli: Yeah. it is it is a bit of a combination. So, you know, the time we had to shut down, pick up the equipment, move it from Europe, to both Canada and China, install the equipment, get the facilities certified, and then up and running that is the primary issue. it is typical, you know, transferring of capital equipment. And then obviously launching it, you know, training people on this equipment and getting them hitting volume. So, you know, we are seeing a very typical changeover impact that has left us a bit behind on volume. Eric Stine: And is this something I mean, once that is rectified in both locations that you know, it means there is know, some upside to these numbers. I mean, this quarter is the highest high pressure revenue you have had in, I guess, 4. So just curious, do you view that Q2 was limited in a big way on the top line? Or how should we think about that? Daniel Sceli: Well, yeah. I think Q1, Q2 were the transition periods. As we go into Q3 and Q4, it is just ramping up volume meeting the various customer demands and so I do not I do not think we have any more roadblocks or bottlenecks that would prevent us from hitting the volumes that are in the plan. Eric Stine: Got it. Okay. And then just on, Suspira, you mentioned that, 27 is when you are targeting breakeven. I know you have now had 2 consecutive quarters of positive gross margin in that joint venture. Just curious how we should think about that. And once you do get to breakeven, curious what that does, or could you remind us what that does in terms of reducing your capital contribution to the joint venture? Daniel Sceli: Yeah. I mean, the moment they flip over to breakeven and do not need a cash contribution, that is a huge step in the right direction for, both Westport and Volvo. You know, as we have said in the talk, you know, volumes are up 125% over the same period last year. it is fantastic. And we see that continued strong growth in all 37 countries that are that are buying the system today. And with Volvo launching the new Euro 7 engine, which is a much, much improved engine. They have done a fantastic job on that engine. From all aspects. Combined with our new HPDI 3.0, you know, we think that the market pull is going to be even stronger. So you know, we are very excited that we are crossing over that period. We figured it would be, you know, 3 or 4 years before we could get there. And with the volumes, we are getting there, maybe even cheaper than we thought. So we are pretty happy about it. We think it is going to continue. Now it is a question of, you know, getting the HPDI system into North America and adding volume to that. Eric Stine: Yep. And so just to be clear, the contributions to the joint venture, those are not necessarily dictated over a period of time. that is really dictated by getting to that breakeven mark. And then once that is done, know, by and large, those contributions end. Daniel Sceli: Yeah. it is really a cash need. It was not any fixed--you know, fixed numbers that were written into the agreement. It was a case of, you know, year by year, quarter by quarter, evaluating the cash needs of the business. Recall that you know, to start the business up back in 24, to be a certified tier 1, we needed a fully built out company. All disciplines, all so from day 1, we had the full overhead cost. And as volumes go up, we are not adding--I mean, that is in place. We do not have to add more of that. And so we are gonna continue to take advantage of that volume and we will not have the cash calls as we have seen for the last or 2.5 years. Eric Stine: Okay. Thank you very much. Daniel Sceli: Alright. Take care, Eric. Operator: And I am not showing any further questions at this time. I would like to turn the call back to Daniel for any further remarks. Daniel Sceli: Well, I would like to thank everybody for joining today. I hope you find our talk-- sorry. I am sorry. I did not mean to interrupt. Operator: We just-- we just did have someone queue up. Did you want to go and take the question? Daniel Sceli: Absolutely. Sure. Operator: 1 moment. Our next question comes from Christopher Dendrinos with RBC Capital Markets. Your line is open. Christopher Dendrinos: Hi. Yes. Thanks for fitting me in. I apologize. No worries, Christopher. Daniel Sceli: No worries. Christopher Dendrinos: Steven [ph], but I missed it. Maybe just to start here and follow-up on a couple of the prior questions. But, you know, following on the on the Cespira commentary here, and you mentioned some additional work with that second potential OEM customer. Can you just you know, expand on that a little bit, where you all are at with them and you know, possible timing related to I guess, call it additional milestones or additional advancements? Daniel Sceli: In that agreement? Yep. Yep. So that second OEM did the original. I think it was a 200-truck trial. And we are at the stage now where they are planning out the second phase of their field trials, which would be much larger than the original field trial. And we are imminently awaiting to hear their planning for that. And so it is probably going to be, you know, another month at least before we hear what their next their next phase is. But, you know, what we have heard so far is that phase 1, the initial field trials went extremely well. Got it. Christopher Dendrinos: Thank you. Then maybe just to follow-up on Eric's question. In regards to the high pressure systems. Trying to nail you down on something here. So, you know, if you all were not kind of call it, bottlenecks on the manufacturing side of things, would you anticipate revenue growth in the in the back half of this year? Thanks. Daniel Sceli: I think that, the revenue growth is going to come. We are-- you know, as I said, we, you know, we lost about 6 months in picking up the equipment, moving it, installing it. Getting the facilities recertified to the industrial and automotive standards. And so there is gonna be a bit of-- there is still a bit of backlog that we are filling. So, you know, the market itself, the hydrogen market itself is not growing at the rate we thought it would a year ago. I think we have all acknowledged that. But I think that we are going to see specifically in China, as the government continues to push for the rapid growth of hydrogen across their markets, their mobility markets. We are gonna see some volume increases. In North America and Europe. I think we are gonna get right back to plan and we expect to beat our plan this year on volume. Christopher Dendrinos: Got it. Thank you very much. Daniel Sceli: Alright. Operator: And that was our last question. Back to you, Daniel. Daniel Sceli: Alright. Well, thank you, everybody for joining the call. I hope you leave as excited as we are about the growing business of Cespira. it is finally coming, to where we all thought it would. So, have a great day. Thank you. Operator: Ladies and gentlemen, this does conclude today's presentation. We thank you for your participation. You may now disconnect, and have a wonderful day. Thank you. Good day, and thank you for standing by. Welcome to Westport's Second Quarter 26 Conference Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. Press 11 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised, today's conference is being recorded. I would now like to turn the conference over to your speaker today, Ashley Nuell. Please go ahead. Thank you. Good morning, everyone. Welcome to Westport Fuel Systems conference call regarding its second quarter 2026 financial and operational results. This call is being held to coincide with the press release containing Westport's financial results issued yesterday after market close. On today's call, speaking on behalf of Westport will be chief executive officer and director, Daniel Sceli, and chief financial officer, Elizabeth Owens. Attendance on this call is open to the public, but questions will be restricted to the investment community. You are reminded that certain statements made on this conference call and our responses to certain questions may constitute forward-looking statements within the meaning of U.S. and applicable Canadian securities laws. Forward-looking statements are based on current expectations and involve risks and uncertainties that could cause-- that could actually result that could cause actual results to differ materially. Please refer to Westport's filings for a more complete discussion of these risks. Before I turn the call over to Daniel, I wanted to highlight that since our first quarter release in May, Westport has continued to advance several important corporate and commercial priorities, including Cespira's hydrogen development agreement with Volvo and the completion of the $10 million offering. And concurrent private placement. With that, I will turn the call over to you, Daniel. Thank you, Ashley, and good morning, everyone. Q2 was an important quarter for Westport. We continue to execute against our strategy of focusing the business around high impact scalable, clean transportation solutions, where our technology can deliver meaningful economic and emissions benefits without compromising performance. The quarter was also marked by important developments that strengthen our platform for future growth. First, Cespira, our joint venture with Volvo Group, signed an agreement with Volvo Group to complete development of a hydrogen-fueled engine. This is an important milestone because it reinforces the relevance of HPDI technology across multiple low carbon fuels including hydrogen, natural gas, and renewable natural gas. It also further validates the role of internal combustion-engine technology as part of the practical pathway to decarbonizing heavy duty transport. Second, we completed a $10 million offering in June. This financing provided additional working capital to support our ongoing operations and strategic priorities. As we continue to advance the business, We recognize the importance of managing capital carefully, and we remain on balancing investment and growth opportunities with continued financial discipline. Operationally, the quarter continued to reinforce the strategic value of our core platforms. At Suspira, we remain encouraged by the commercial momentum we are seeing in LNG powered heavy duty trucks and by the broader market context, supporting adoption. The Q1 results showed a strong year over year revenue growth and in Q2, we continued building on that foundation through development work, customer engagement, and the hydrogen engine development agreement with Volvo. We have consistently indicated that 2027 would be the break-even year for Cespira, and the results we are seeing continue to build credibility behind that expectation. Since inception, Cespira has delivered quarter over quarter revenue growth with growth delivered in Q2 being particularly significant. That momentum, with continued operating leverage, as volumes scale reinforces our confidence that Spirit is progressing toward the financial profile we have been targeting for next year. The message is clear. Cespira is not a single fuel opportunity. It is a platform that can support multiple lower-carbon pathways heavy duty transport while preserving the power, range, and reliability fleets require. The volume growth we are seeing is being supported by a more resilient commercial backdrop for LNG heavy duty trucking. Despite ongoing geopolitical tensions, the price differential between LNG and diesel has continued to show consistency reinforcing the economic case for fleets evaluating lower-carbon alternatives that can also support operating cost discipline. At the same time, recent regulatory developments in the European Union are increasing the strategic value of emissions reducing technologies. OEMs are now able to generate additional CO2 credits in the years leading up to 2030, may help with the compliance from 2030 onward. That creates a stronger incentive for earlier deployment of lower-emission heavy-duty technologies such as HPDI reduced emissions can translate into avoided compliance costs and potential emission credit value. In North America, our HPDI high pressure CNG fuel system remains an important area of focus. Following our ACT Expo showcase, we continue to build awareness around a solution designed to deliver diesel-like performance with lower fuel cost potential and reduced emissions. Over the last couple of months, we have had the opportunity to our truck to several fleets at our Vancouver facility, giving them the opportunity to put a driver into the truck. The level of engagement we are seeing and the feedback we are receiving reinforce that fleets are looking for practical alternatives that can work within existing operating realities rather than requiring a wholesale change in how they run the business. Our high pressure controls business also remains a key part of Westport's value proposition. With production underway at our expanded Cambridge, Ontario facility, and at GFI's China Hydrogen Innovation Center and Manufacturing, facility in Jiangsu, China, we continue to believe this business is well positioned to serve growing demand across hydrogen, natural gas, and industrial applications. With that, I will ask Elizabeth to walk through the financial results in more detail over to you. Thank you, Daniel. Our second quarter financial results have demonstrated meaningful progress. From a capital perspective, the June financing strengthened our near term liquidity profile. Westport closed the sale of 1.6 million common shares and 3.3 million prefunded warrants in a registered direct offering. Together with private placement warrants, to purchase up to 4.8 million common shares, The combined effective purchase price was US $2.06 per common share or prefunded warrant and associated private placement warrant. Generating gross proceeds of approximately $10 million before fees and expenses. The offering proceeds are intended for working capital and general corporate purposes. In addition, if the private placement warrants are exercised in full for cash, Westport would receive additional gross proceeds of approximately US $10 million. Although the timing and likelihood of any exercise cannot be predicted. From an accounting perspective, the warrants contain settlement features that require us to account for these warrants as a liability Rather than equity. These liabilities will be remeasured to fair value at each reporting date with changes recorded through earnings until the warrants are exercised or expire. As of the end of June, our cash and cash equivalents position stood at $23.9 million compared to $24.5 million at 03/31/2026. The slight net decrease in cash was primarily driven by our operating losses including certain 1-time costs relating to the financing activities and to our cyber incident in Q1. And by the funding of the Cespira JV and debt repayment. This was offset by proceeds from the financing transaction. In the quarter, our capital contributions to Cespira decreased to $3.5 million in the current quarter compared to Q2 25, reflecting the improvement of Cespira's financial performance. We anticipate this number will continue to decrease in the coming year as Cespira continues to drive volume growth. We also paid $1 million in debt repayments to EDC, and we will make our final debt repayment in Q3. Turning to our operating segments, Q2 26 revenue for our high pressure controls business was $2.7 million compared with $2.9 million for Q2 25. The decrease in revenue was primarily driven by lower sales volume in the quarter. That said, at the end of the quarter, we did see a backlog of demand from customers that are waiting to be fulfilled as we continue to improve the production output from our 2 main manufacturing plants in Canada and China. Gross profit was $100 thousand or 5% of revenue, similar to what we saw in Q2 25. We anticipate that as the manufacturing plants in Canada and China continue to work on localizing its supply-chain and improving its manufacturing processes and output. Gross profit and margin will improve. Since Cespira's beginning, we have driven quarter over quarter revenue growth with Q2 26 being the strongest. At 125% as compared to Q2 25. The broader strategic direction remains consistent with what we outlined in Q1. Cespira is benefiting from demand for practical, lower-carbon heavy-duty solutions. The hydrogen development agreement signed during the quarter along with the work completed by the second OEM all add important technology pathways to the existing LNG and renewable natural gas opportunity. Product revenue was up 127% to $18.9 million compared to $8.3 million in Q2 25. As Dan mentioned, Suspira's growth is influenced by the favorable price differential between diesel and natural gas and government regulation support in markets like Europe. Aftermarket revenue was $5.5 million compared to $2 million also driven by the increase in sales volumes. Service revenue was 2.6 million compared to 01/2025, primarily driven by the milestones achieved. Service revenue allocated to project are weighted differently across the phases of an engineering service revenue 1 of Suspira's significant long term engineering service revenue projects is expected to complete in Q4 26. In advance of the anticipated launch of their Euro 7 product. Gross profit was 3.8 million compared to gross loss of 1.9 million in Q2 25. Cespira had a net loss of $2.4 million, a 65% improvement over the $6.7 million in Q2 25. as it meaningfully increased product revenue and lowered their cost base. and continued to grow and scale the business. Year to date, we have seen our capital contributions to Cespira decrease, a trend that we see continuing, as Daniel mentioned, as they move towards an expected breakeven next year. With that, I will pass the call back to Daniel. Thank you, Elizabeth. As we look ahead, Westport is focused on disciplined execution. The developments since our Q1 release reinforced the progress we are making across the business. Cespira continues to advance to perform true heavy-duty decarbonization. The hydrogen engine development agreement with Volvo is the same with the rest of HPPI technology. Our high pressure CNG solution is gaining visibility in North America, and the June financing provided additional flexibility to continue advancing our priorities. We are operating in a market where customers are not looking for theory. They are looking for solutions that can reduce emissions, lower operating costs, and maintain the performance they need today. That is where Westport is focused. We believe our technologies are well aligned with the realities of commercial transportation and industrial applications. And we are committed to translating that alignment into commercial traction, improved financial performance, and long term shareholder value. Thank you for your time today, and we appreciate your continued in Westport, and we will now open the call for questions. Thank you. Ladies and gentlemen, if you have a question or a comment at this time, please press 11 on your telephone. If your question has been answered, Our first question comes from Amit Dayal with H. C. Wainwright. Your line is open. Hey, Daniel. Good to see Cespira, you know, coming through in a strong way for you guys. Can you maybe give us a little bit more color on what are the some of tactical drivers? I know it is a practical solution. You know, it is available But in terms of any specific sales efforts or customer wins, is there anything that is supporting, you know, this trend? And how should we think about, you know, future growth versus-- sure. So I will break the market for the current LNG system into 2 chunks. You have got the European Union, and then you have got the other countries around the world. The European market is moving forward with its emission credit system with their new mandates. So the trucking companies are all in OEMs and the fleets are all looking for ways to meet the new requirements that are coming up Euro 7 is a big part of that. For the new engine from Volvo. With our HPDI 3.0. And I think that we are going to see more and more of this increased growth. The market is finding that it is no longer a question of the technology. The technology is proven. it is reliable. And the market's accepting the benefits that come with that. And now what we are seeing is the economic solutions are also becoming very prevalent and giving us the growth that we have been looking for, and we knew would come And so we think it is going to continue. Then outside of the European Union, you know, the Volvo is moving and creating beachheads in South America and India. We are in 37 countries now, over 12 thousand trucks on the road. So that adoption is gonna continue to grow rapidly. Not just in Europe, but in those other global countries. And then, of course, you know, our plan to bring H to North America is mission critical as well. That, you know, we are bringing a new storage system, a CNG system that will allow each PDI to run-in North America. For us, it is very exciting to see this significant growth Yes. I understand. Thank you for that, Daniel. And then just to follow-up on, you know, the HPDI hydrogen efforts between Cespira and Volvo. There is no sort of requirement for Westport to maybe fund any of this. Right? This is just going to be between Cespira and Volvo, and they are gonna figure out, like, how to fund this effort, how to, you know, bring that to market. Well, it is a development contract that Volvo is funding the development of the HPDI system. For hydrogen. So it is a customer funded development program. Okay. Understood. Yeah. that is all I have. I will get back in the queue, guys. Thanks so much. Great. Thanks, Amit. 1 moment for our next question. Our next question comes from Eric Stine with Craig Hallum Capital Group. Your line is open. Good morning, everyone. Hey. Good morning, Eric. How are you? Doing well. You? Doing alright. Good. So maybe I will just start with the high pressure segment. You alluded to, you know, some, I guess, unfulfilled demand as your 2 locations, Canada and China, ramp up. I am just curious. I mean, is this kind of just the typical ramp up now that your equipment has been moved to both locations, or is there something else that is maybe limiting that in visibility that is near term impact? Yeah. it is it is a bit of a combination. So you know, the time we had to shut down, pick up the equipment, move it from Europe to both Canada and China, install the equipment, get the facilities certified, and then up and running that is the primary issue. it is typical, you know, transferring of capital equipment. And then obviously launching it, you know, training people on this equipment and getting them hitting volume. So, you know, we are seeing a very typical changeover impact that has left us a bit behind on volume. And is this something I mean, once that is rectified in both locations that you know, it means there is know, some upside to these numbers. I mean, this quarter is the highest high pressure revenue you have had in, I guess, 4. So just curious, do you view that Q2 was limited in a big way on the top line? Or how should we think about that? Well, yes. I think Q1, Q2 were transition periods. As we go into Q3 and Q4, it is just ramping up volume meeting the various customer demands and so I do not I do not think we have any more roadblocks or bottlenecks that we would end up of hitting the volumes that are in the plan. Got it. Okay. And then just on, Suspira, you mentioned that, 27 is when you are targeting breakeven. I know you have now had 2 consecutive quarters of positive gross margin in that joint venture. Just curious how we should think about that. And once you do get to breakeven, curious what that does, or could you remind us what that does in terms of reducing your capital contribution to the joint venture? Yeah. I mean, the moment they flip over to breakeven and do not need, cash contributions, that is a huge, a huge, step in the right direction for, both Westport and Volvo. You know, as we have said in the talk, you know, volumes are up 125% over the same period last year. it is fantastic. And we see that continued strong growth in all 37 countries that are that are buying the system today. And with Volvo launching the new Euro 7 engine, which is a much improved engine. They have done a fantastic job on that engine. From all aspects. Combined with our new HPDI 3.0, you know, we think that the market pull is going to be even stronger. So know, we are very excited that we are crossing over that period. We figured it would be, you know, 3 or 4 years before we could get there. And with the volumes we are getting there, than we thought. So we are pretty happy about it. We think it is going to continue. Now it is a question of getting the, HPDI system into North America and adding volume to that. Yep. And so just to be clear, the contributions to the joint venture, those are not necessarily dictated over a period of time. that is really dictated by getting to that breakeven mark. And then once that is done, know, by and large, those contributions end. Yeah. it is really a cash need. It was not any fixed--you know, fixed numbers that were written into the agreement. It was a case of you know, year by year, quarter by quarter, evaluating the cash needs of the business. Recall that you know, to start the business up back in 24, to be a certified tier 1, we needed a fully built out company. All disciplines, all so from day 1, we had the full overhead cost. And as volumes go up, we are not adding--I mean, that is in place. We do not have to add more of that. And so we are gonna continue to take advantage of that volume and we will not have the cash calls as we have seen for the last or 2.5 years. Okay. Thank you very much. Alright. Take care, Eric. And I am not showing any further questions at this time. I would like to turn the call back to Daniel for any further remarks. Well, I would like to thank everybody for joining today. I hope you find our me there. I am sorry. I did not mean to interrupt. We just-- we just did have someone queue up. Did you want to go and take the question? Absolutely. Sure. 1 moment. Our next question comes from Christopher Dendrinos with RBC Capital Markets. Your line is open. Hi. Yes. Thanks for fitting me in. I apologize. No worries, Christopher. No worries. Steven [ph], but I missed it. Maybe just to start here and follow-up on a couple of the prior questions. But, you know, following on the on the Cespira commentary here, and you mentioned some additional work with that second potential OEM customer. Can you just you know, expand on that a little bit, where you all are at with them and you know, possible timing related to I guess, call it additional milestones or additional advancements? In that agreement? Yep. Yep. So that second OEM did the original. I think it was a 200-truck trial. And we are we are up the stage now where they are planning out the second phase of their field trials, which would be much larger than the original field trial. And we are imminently awaiting to hear their planning for that. And so it is probably going to be, you know, another month at least before we hear what their next their next phase is. The know, what we have heard so far is that phase 1, the initial field trials went extremely well. Got it. Thank you. Then maybe just to follow-up on Eric's question. In regards to the high pressure systems. Trying to nail you down on something here. So Yeah. You know, if you all were not kind of call it, bottlenecks on the manufacturing side of things, would you anticipate revenue growth in the in the back half of this year? Thanks. I think that, the revenue growth is going to come. We are-- you know, as I said, we, you know, we lost about 6 months in picking up the equipment, moving it, installing it. Getting the facilities recertified to the industrial and automotive standards. And so there is gonna be a bit of-- there is still a bit of backlog that we are filling. So, you know, the market itself, the hydrogen market itself is not growing at the rate we thought it would a year ago. I think we have all acknowledged that. But I think that we are going to see specifically in China, as the government continues to push for the, the rapid growth hydrogen across their markets, their mobility markets. We are gonna see some volume increases And in North America and Europe, I think we are gonna get right back to plan and we expect to beat our plan this year on volume. Got it. Thank you very much. Alright. And that was our last question. Back to you, Daniel. Alright. Well, thank you, everybody for the call. I hope you leave as excited as we are about the growing business of Cespira. it is finally coming, to where we all thought it would. So, have a great day. Thank you. Ladies and gentlemen, this does conclude today's presentation. We thank for your participation. You may now disconnect, and have a wonderful day. Before you buy stock in Westport Fuel Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Westport Fuel Systems wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!* That performance is why people listen. 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Westport Fuel Systems (WPRT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 125% year-over-year revenue growth at Cespira to a resilient commercial backdrop for LNG heavy-duty trucking and a consistent price differential between LNG and diesel. The Cespira joint venture is positioned as a multi-fuel platform, reinforced by a new agreement with Volvo Group to develop a hydrogen-fueled engine using HPDI technology. Regulatory tailwinds in the European Union, specifically the ability for OEMs to generate CO2 credits ahead of 2030 mandates, are driving earlier adoption of emissions-reducing technologies. Operational performance in the high-pressure controls business was impacted by a six-month transition period involving moving equipment from Europe to Canada and China and subsequent facility recertification. Strategic focus remains on providing practical, diesel-like performance solutions that integrate into existing fleet operations without requiring wholesale business model changes. Management highlighted that Cespira's financial improvement has already led to a reduction in required capital contributions, down to $3.5 million in Q2 2026. Management reiterated the expectation for Cespira to reach break-even in 2027, driven by continued operating leverage as volumes scale. A significant long-term engineering service project at Cespira is expected to conclude in Q4 2026 ahead of a customer's Euro 7 product launch. The high-pressure controls segment is expected to ramp up production in the second half of the year to fulfill a backlog of demand as manufacturing processes stabilize in Canada and China. Future growth in North America is dependent on the successful introduction of a new high-pressure CNG storage system that enables HPDI technology to operate in that market. Management anticipates beating their original volume plan for the year in North America and Europe despite acknowledging that the global hydrogen market is not growing at previously expected rates. The June financing included warrants that must be accounted for as liabilities rather than equity due to specific settlement features, requiring fair value remeasurement each reporting period. Cash position was impacted by one-time costs related to financing activities and a cyber incident that occurred in Q1. The company expects to make its final debt repayment to EDC in Q3 2026, further cleaning up the balance sheet. A second potential OEM customer has completed a 200-truck trial, with management awaiting planning for a significantly larger second phase of field trials. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that Volvo is creating 'beachheads' in South America and India, with over 12,000 HPDI trucks now on the road across 37 countries. The transition from technology validation to economic validation is driving broader market acceptance beyond just regulatory compliance. Daniel Sceli clarified that the hydrogen engine development is a customer-funded program, meaning Volvo is funding the development of the HPDI system for hydrogen. The revenue lag was described as a 'typical changeover impact' from moving capital equipment across continents and training new staff. Management stated they do not foresee further roadblocks or bottlenecks preventing them from hitting planned volumes in Q3 and Q4. Capital contributions are dictated by cash needs rather than fixed contractual amounts; once break-even is reached, cash calls from partners are expected to end. Management explained that the JV had high initial overhead to be a certified Tier 1 supplier, and current volume growth is now providing significant operating leverage against that fixed cost base.

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Westport Fuel Systems Inc (NASDAQ:WPRT) reported strong revenue growth at its joint venture, with Q2 2026 product revenue up 127% year-over-year, driven by increased LNG truck adoption. The company signed a hydrogen engine development agreement with Volvo Group, which is customer-funded and validates the HPDI technology's relevance across multiple low-carbon fuels. Westport Fuel Systems Inc (NASDAQ:WPRT) completed a $10 million offering in June, strengthening its near-term liquidity and providing working capital for ongoing operations. The company's joint venture, Suspira, is progressing toward its 2027 breakeven target, with capital contributions decreasing and net loss improving by 65% year-over-year. Westport Fuel Systems Inc (NASDAQ:WPRT) is seeing growing market interest in its high-pressure CNG solution in North America, with positive fleet feedback and demonstrations at its Vancouver facility. Regulatory developments in the EU, such as the ability to generate additional CO2 credits, are creating stronger incentives for early adoption of HPDI technology, potentially boosting future demand. Westport Fuel Systems Inc (NASDAQ:WPRT)'s high-pressure controls business saw a revenue decline in Q2 2026, down to $2.7 million from $2.9 million in Q2 2025, due to lower sales volumes. The company's cash position slightly decreased to $23.9 million from $24.5 million at the end of Q1, impacted by operating losses, one-time costs, and JV funding. The high-pressure controls segment faced production bottlenecks from relocating equipment from Europe to Canada and China, leading to a backlog of unfulfilled demand and a temporary impact on volumes. The hydrogen market is not growing at the rate previously expected, which could limit near-term growth opportunities for Westport Fuel Systems Inc (NASDAQ:WPRT)'s high-pressure controls business. The company's warrants are accounted for as liabilities, which will be remeasured to fair value each reporting period, potentially causing earnings volatility until they are exercised or expire. Westport Fuel Systems Inc (NASDAQ:WPRT) continues to incur operating losses, and the timing of additional warrant exercise proceeds is uncertain, adding financial risk. Warning! GuruFocus has detected 7 Warning Signs with WPRT. Is WPRT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the tactical drivers behind the strong performance at the Suspira JV, and how should we think about future growth?A: Dan Clay (CEO): The market for the current LNG system can be broken into two chunks: the European Union and other countries. In Europe, the market is moving forward with its emission commission credit system and new mandates, with EUR7 being a big part of that for the new Volvo engine with our HPDI 3.0. The technology is proven and reliable, and now the economic solutions are becoming prevalent, driving the growth we expected. Outside the EU, Volvo is creating beachheads in South America and India. We are in 37 countries with over 12,000 trucks on the road, so adoption will continue to grow rapidly. Our plan to bring HPDI to North America with a new CNG storage system is also mission-critical. Q: Regarding the HPDI hydrogen efforts between Suspira and Volvo, is there any requirement for Westport to fund this, or is it just between Suspira and Volvo?A: Dan Clay (CEO): It is a development contract that Volvo is funding for the development of the HPDI system for hydrogen. It is a customer-funded development program. Q: In the high-pressure segment, you alluded to unfulfilled demand as your two locations in Canada and China ramp up. Is this just the typical ramp-up now that equipment has been moved, or is something else limiting near-term impact?A: Dan Clay (CEO): It's a combination of factors. The primary issue was the time needed to shut down, pick up the equipment, move it from Europe to Canada and China, install it, get the facilities certified, and then ramp up production. This is a typical changeover impact from transferring capital equipment, launching it, and training people, which has left us a bit behind on volume. Q1 and Q2 were transition periods, and as we go into Q3 and Q4, we are just ramping up volume to meet customer demands. We don't foresee any more roadblocks or bottlenecks to hitting the volumes in our plan. Q: You mentioned 2027 as the target for Suspira's breakeven, and you've had two consecutive quarters of positive gross margin. Once you get to breakeven, what does that do in terms of reducing your capital contribution to the joint venture?A: Dan Clay (CEO): The moment they flip over to breakeven and don't need cash contributions, it's a huge step in the right direction for both Westport and Volvo. Volumes are up 125% over the same period last year, with strong growth in all 37 countries. With Volvo launching the new EUR7 engine combined with our new HPDI 3.0, we think the market pull will be even stronger. We originally thought it would take 3 or 4 years to get there, but with the volumes we're seeing, we're getting there sooner than expected. The contributions are really based on cash need, not fixed numbers in the agreement. Since we built out the full overhead cost structure from day one as a certified tier one, we don't need to add more as volumes scale, so we will not have the cash calls we've seen for the last 2.5 years. Q: Can you expand on the additional work with the second potential OEM customer at Suspira and the possible timing of additional milestones?A: Dan Clay (CEO): The second OEM completed the original field trial of about 200 trucks. We are now at the stage where they are planning the second phase of their field trials, which would be much larger than the original. We are imminently awaiting to hear their planning for that, which will probably take at least another month. What we've heard so far is that phase one, the initial field trials, went extremely well. Q: If you weren't bottlenecked on the manufacturing side for high-pressure systems, would you anticipate revenue growth in the back half of this year?A: Dan Clay (CEO): Revenue growth is going to come. We lost about 6 months in picking up the equipment, moving it, installing it, and getting the facilities recertified, so there is still a bit of backlog we're filling. The hydrogen market itself is not growing at the rate we thought a year ago, but specifically in China, as the government continues to push for rapid growth of hydrogen across mobility markets, we're going to see volume increases. In North America and Europe, we expect to get right back to plan and beat our plan this year on volume. Q: What were the key financial highlights for the second quarter of 2026?A: Elizabeth Owen (CFO): The June financing strengthened our near-term liquidity profile. We closed the sale of 1.6 million common shares and 3.3 million pre-funded warrants in a registered direct offering, along with private placement warrants, generating gross proceeds of approximately $10 million. If the private placement warrants are exercised in full, we would receive an additional $10 million. Cash and cash equivalents stood at $23.9 million at the end of June, compared to $24.5 million at March 31, 2026. Capital contributions to Suspira decreased to $3.5 million in Q2 2026 from Q2 2025, reflecting improved financial performance. We also paid $1.0 million in debt repayments to EDC and will make our final debt repayment in Q3. Q: How did the Suspira JV perform financially in Q2 2026?A: Elizabeth Owen (CFO): Since Suspira's beginning, we have driven quarter-over-quarter revenue growth, with Q2 2026 being the strongest at 125% compared to Q2 2025. Product revenue was up 127% to $18.9 million, aftermarket revenue was $5.5 million, and service revenue was $2.6 million. Gross profit was $3.8 million compared to a gross loss of $1.9 million in Q2 2025. Suspira had a net loss of $2.4 million, a 65% improvement over the $6.7 million loss in Q2 2025, as they meaningfully increased product revenue and lowered their cost base. One of Suspira's significant long-term engineering service revenue projects is expected to complete in Q4 2026 in advance of the anticipated launch of their EUR7 product. Q: What were the results for the high-pressure controls business segment in Q2 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

~ 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) today reported financial results for the second quarter ended June 30, 2026, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated. “The second quarter marked another important step forward in Westport’s transformation, with two developments that reinforce both the commercial momentum behind Cespira and our ability to fund the next phase of our strategy. 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. These results reflect the growing market acceptance of HPDI as a practical, affordable, high-performance solution for heavy-duty transportation. We are encouraged by the market drivers supporting this growth. The price advantage of LNG versus diesel fuel has remained resilient in Europe despite ongoing geopolitical volatility, strengthening the economic case for fleets operating in demanding long-haul applications. At the same time, recent regulatory developments in Europe, including greater flexibility around heavy-duty vehicle CO₂ credits earned before 2030, should reward OEMs that have adopted HPDI technology. That relevance was further strengthened in June when Cespira and Volvo Trucks signed a development agreement to finalize the integration and commercialization of Cespira’s HPDI fuel system technology for Volvo's 13-litre hydrogen engine applications, with on-road testing underway and European certified commercial launch targeted before 2030. Building on the proven use of HPDI in LNG-powered heavy-duty engines, this agreement extends the same core technology platform to hydrogen, supporting a lower-carbon pathway for long-haul transport using a zero carbon fuel while preserving the performance, durability and operating characteristics fleets require. We also took a meaningful step in strengthening Westport’s financial position. In June, we completed a private placement that provided initial gross proceeds of approximately US$10 million, with the potential for an additional US$10 million over the next two years through warrant exercises. This financing enhances our liquidity and provides additional flexibility as we continue advancing our core priorities: scaling Cespira and progressing our high-pressure CNG solution for the North American market. For fleet operators, the path forward must be pragmatic. It must be built on stable economics, proven performance and infrastructure that exists today. By pairing Westport’s high-pressure CNG fuel storage solution with Cespira’s HPDI fuel system, we believe we can help North American fleets save money, reduce emissions and address energy security issues with a natural gas and renewable natural gas powertrain system, while maintaining a pathway to hydrogen as the fuel's economics and infrastructure mature. 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 Second Quarter 2026 Highlights Revenues for the second quarter of 2026 decreased to $2.7 million compared to $12.5 million in the same quarter last year. As planned, our 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. Cespira delivered strong financial performance, driven by significant growth in product, aftermarket, and service revenue. For the three months ended June 30, 2026, revenue increased by $15.1 million or 125% compared to the prior year quarter. Cespira reduced its net loss by $4.4 million and reliance on funding from its partners in the quarter. Westport reduced its capital contributions to Cespira in the quarter from $4.2 million to $3.5 million. For the three months ended June 30, 2026, our High-Pressure Controls segment decreased its revenue by $0.2 million or 6% compared to the prior year quarter. Net loss from continuing operations of $11.4 million for the quarter compared to a net loss from continuing operations of $5.1 million for the same quarter last year. The increase in net loss in the current quarter was primarily driven by the loss recognized for the change in fair value of the warrant liabilities, financing transaction costs, and foreign exchange loss. In the prior year quarter, we had a foreign exchange gain of $4.2 million. Adjusted EBITDA1 of negative $6.3 million compared to negative $1.0 million for the same period in 2025. The increase in negative adjusted EBITDA was primarily driven by an increase in operating loss for the quarter partially offset by a decrease in the loss from investments accounted for by the equity method. Included in the prior year quarter's adjusted EBITDA was our discontinued operations' performance, which included an operating profit of $3.1 million for the three months ended June 30, 2025. Cash and cash equivalents were $23.9 million for the second quarter of 2026. Cash used in operating activities from continuing operations was $4.6 million, primarily driven by operating losses in the quarter and changes in working capital. Cash used in investing activities from continuing operations primarily consisted of capital contributions to Cespira of $3.5 million. Cash provided by financing activities from continuing operations were primarily driven by the financing transaction partially offset by debt repayments of $1.0 million in the quarter. 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. ______________________ 1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation. (1) This includes income or loss from our investments in Cespira joint ventures. (2) Gross margin, EBITDA and Adjusted EBITDA are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures. Segment Information High-Pressure Controls Revenue for the three months ended June 30, 2026 was $2.7 million, compared with $2.9 million for the three months ended June 30, 2025. The decrease in revenue was primarily driven by lower volume of sales in the quarter compared to prior year. As at June 30, 2026, we have a backlog of demand from customers that are waiting to be fulfilled as we continue to improve the production output from our two main manufacturing plants in Canada and China. Gross profit was $0.1 million or 5% of revenue, for the three months ended June 30, 2026 compared to $0.1 million or 4% of revenue, for the three months ended June 30, 2025. We anticipate that as the manufacturing plants in Canada and China continue to work on localizing its supply chain and improving its manufacturing processes and output, its gross profit and margin will improve. Heavy-Duty OEM The 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. Selected Cespira Statements of Operations Data We account for Cespira using the equity method of accounting. However, due to its significance to our long-term strategy and operating results, we disclose selected Cespira financial information in our interim financial statements for the three and six months ended June 30, 2026. The following table sets forth a summary of the financial results of Cespira for the three and six months ended June 30, 2026. (1)Gross margin are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures. Product Revenue for the three and six months ended June 30, 2026 was $18.9 million and $34.0 million compared to $8.3 million and $18.5 million for the three and six months ended June 30, 2025. The increase in revenue of 127% in the current quarter was primarily driven by significantly higher volumes of systems sold compared to the prior year quarter. The increase in revenue year to date is primarily driven by back to back quarters in Q1 and Q2 having significant increases in systems sold compared to the prior year. Cespira's growth is influenced by the resilient favorable price differential between diesel and natural gas and government regulation support in markets like Europe. Aftermarket Revenue for the three and six months ended June 30, 2026 was $5.5 million and $9.9 million compared to $2.6 million and $5.7 million for the three and six months ended June 30, 2025. The increase in revenue of aftermarket products sold is primarily driven by increase in sales volumes. Service Revenue for the three and six months ended June 30, 2026 was $2.6 million and $5.4 million compared to $1.0 million and $4.7 million for the three and six months ended June 30, 2025. The increase in service revenue in the current quarter was primarily driven by the milestones achieved. Service revenue allocated to project milestones are weighted differently across the phases of an engineering service revenue project. One of Cespira's significant long-term engineering service revenue project is expected to complete in Q4 2026 in advance of the anticipated launch of their Euro 7 product. Gross profit was $3.8 million and $5.4 million for the three and six months ended June 30, 2026 compared to gross loss of $1.9 million and $1.4 million for the three and six months ended June 30, 2025. The increase in gross profit was primarily driven by the increase in higher volumes of systems and aftermarket products sold along with cost reductions in materials and improvements in labor efficiency. Cespira had an operating loss of $2.1 million and $4.7 million for the three and six months ended June 30, 2026 compared to $6.8 million and $13.8 million for the three and six months ended June 30, 2025. Cespira significantly reduced its operating loss compared to the prior year quarter by meaningfully increasing its product revenue, gross margin and lowering its cost base as it continues to grow and scale the business. Liquidity and Going Concern As at June 30, 2026, we had cash and cash equivalents of $23.9 million and long-term debt of $1.0 million from Export Development Canada ("EDC"), 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 our Q2 2026 MD&A. These conditions raise substantial doubt about Westport's ability continue as a going concern within one year after the date that our Q2 2026 MD&A is issued. 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. Conference call Westport has scheduled a conference call for Wednesday, August 12, 2026, at 6:30 am Pacific Time (9:30 am Eastern Time) to discuss these results. To access the conference call please register at https://register-conf.media-server.com/register/BI19d4aa4064ee4de6ac427edb5c169871 The live webcast of the conference call can be accessed through the Westport website at https://investors.westport.com/. Participants may register up to 60 minutes before the event by clicking on the call link and completing the online registration form. Upon registration, the user will receive dial-in info and a unique PIN, along with an email confirming the details. The webcast will be archived on Westport’s website at https://investors.westport.com. Financial Statements and Management's Discussion and Analysis To view Westport full financials for the second quarter ended June 30, 2026, please visit https://investors.westport.com/financials/ About Westport Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a leading supplier of affordable, alternative fuel, low-emissions transportation technologies, we design, manufacture, and supply advanced components and systems that enable the transition from traditional fuels to cleaner energy solutions. Our proven technologies support a wide range of alternative fuels – including natural gas, renewable natural gas, and hydrogen – empowering OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way. With decades of expertise and a commitment to engineering excellence, Westport is helping our partners achieve sustainability goals—without compromising performance or cost-efficiency – making clean, scalable transport solutions a reality. Westport is headquartered in Vancouver, Canada. For more information, visit www.westport.com. GAAP and NON-GAAP FINANCIAL MEASURES Our financial statements are prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These U.S. GAAP financial statements include non-cash charges and other charges and benefits that may be unusual or infrequent in nature or that we believe may make comparisons to our prior or future performance difficult. In addition to conventional measures prepared in accordance with U.S. GAAP, Westport and certain investors use EBITDA and Adjusted EBITDA as an indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. Management also uses these non-GAAP measures in its review and evaluation of the financial performance of Westport. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or "EBITDA multiple" that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. We believe that these non-GAAP financial measures also provide additional insight to investors and securities analysts as supplemental information to our U.S. GAAP results and as a basis to compare our financial performance period-over-period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by, in the case of EBITDA, removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt and debt facilities), asset base (depreciation and amortization) and tax consequences. Adjusted EBITDA provides this same indicator of Westport's EBITDA from continuing operations and removing such effects of our capital structure, asset base and tax consequences, but additionally excludes any unrealized foreign exchange gains or losses, stock-based compensation charges and other one-time impairments and costs which are not expected to be repeated in order to provide greater insight into the cash flow being produced from our operating business, without the influence of extraneous events. Segment Information EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under U.S. GAAP, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA exclude the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under U.S. GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently. Segment earnings or losses before income taxes, interest, depreciation, and amortization ("Segment EBITDA") is the measure of segment profitability used by the Company. The accounting policies of our reportable segments are the same as those applied in our consolidated financial statements. Management prepared the financial results of the Company's reportable segments on basis that is consistent with the manner in which Management internally disaggregates financial information to assist in making internal operating decisions. Certain common costs and expenses, primarily corporate functions, among segments differently than we would for stand-alone financial information prepared in accordance with GAAP. These include certain costs and expenses of shared services, such as IT, human resources, legal, finance and supply chain management. Segment EBITDA is not defined under U.S. GAAP and may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP. Reconciliations of reportable segment information to consolidated statement of operations can be found in section "Non-GAAP Measure & Reconciliations" within this this press release. Cautionary Note Regarding Forward Looking Statements This press release contains forward-looking statements, including statements regarding future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen) including testing to the HPDI fuel system, timing of engineering milestones and product launch schedules, scaling our alternative fuel-based solutions, our expectations for 2026 and beyond, including growth expectations, market growth and the demand for our products, the future success of our business and technology strategies, our ability to bolster our balance sheet, fund organic growth and raise additional capital as well as, a shift to operating as a smaller, more efficient organization. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward-looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, sufficiency of cash resources, industry and products, changes in business strategy, shifts in market demand, the general economy including impacts due to inflation, the effects of competition and pricing pressures, conditions of and access to the capital and debt markets, solvency, governmental policies, trade restrictions or other changes to international trade agreements, sanctions and regulation including the imposition of tariffs, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, the performance of our joint venture, the availability and price of natural gas, new environmental regulations, the acceptance of and shift to natural gas and hydrogen vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, supply chain disruptions, commodity price expectations as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent annual report, Form 20-F and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward-looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein. Contact InformationWestport Investor RelationsT: +1 604-718-2046

XPEL, Inc. (XPEL) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.48%. A quarter ago, it was expected that this company would post earnings of $0.33 per share when it actually produced earnings of $0.37, delivering a surprise of +12.12%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. XPEL, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $143.05 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.15%. This compares to year-ago revenues of $124.71 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. XPEL shares have lost about 8% since the beginning of the year versus the S&P 500's gain of 13%. While XPEL has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for XPEL was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.59 on $141.49 million in revenues for the coming quarter and $1.92 on $522.45 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Westport Innovations (WPRT), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This maker of natural-gas engine technology is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -55.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Westport Innovations' revenues are expected to be $1.88 million, down 97.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report XPEL, Inc. (XPEL) : Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

VANCOUVER, British Columbia, July 28, 2026 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport") (TSX:WPRT / Nasdaq: WPRT), announces that the Company will release Q2 2026 financial results on Tuesday, August 11, 2026, after market close. A conference call and webcast to discuss the financial results and other corporate developments will be held on Wednesday, August 12, 2026. Time: 9:30 a.m. ET (6:30 a.m. PT)Call Link: https://register-conf.media-server.com/register/BI19d4aa4064ee4de6ac427edb5c169871Webcast: https://investors.westport.com Participants may register up to 60 minutes before the event by clicking on the call link and completing the online registration form. Upon registration, the user will receive dial-in info and a unique PIN, along with an email confirming the details. The webcast will be archived on Westport’s website and a replay will be available at https://investors.westport.com. About Westport Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a leading supplier of affordable, alternative fuel, low-emissions transportation technologies, we design, manufacture, and supply advanced components and systems that enable the transition from traditional fuels to cleaner energy solutions. Our proven technologies support a wide range of alternative fuels – including natural gas, renewable natural gas, and hydrogen – empowering OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way. With decades of expertise and a commitment to engineering excellence, Westport is helping our partners achieve sustainability goals—without compromising performance or cost-efficiency – making clean, scalable transport solutions a reality. Westport is headquartered in Vancouver, Canada. For more information, visit www.westport.com. Cautionary Note Regarding Forward Looking Statements This press release contains forward-looking statements within the meaning of applicable securities laws, including statements regarding the expected timing of Westport’s release of its second quarter 2026 financial results and the planned conference call and webcast to discuss those results and other corporate developments. These statements are based on Westport’s current expectations and are subject to risks and uncertainties that could cause actual events or results to differ materially. Westport undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law. Contact Information Westport Investor RelationsT: +1 604-718-2046

Westport Fuel Systems Inc. WPRT reported a first-quarter 2026 loss of 33 cents per share, narrower than the Zacks Consensus Estimate of a loss of 44 cents. The loss widened from 14 cents in the year-ago quarter, reflecting a tougher consolidated revenue base after the prior-year period included activity that is no longer in continuing operations. Revenues in the quarter came in at $2.29 million, down 68.8% year over year, but above the Zacks Consensus Estimate of $1.9 million, delivering a 20.3% surprise. Operationally, Westport pointed to continued momentum in Cespira, its HPDI joint venture with Volvo Group, which lifted revenues 33% from a year ago. The company incurred an adjusted EBITDA loss of $4.86 million compared with a loss of $7,000 recorded in the year-ago period. Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote While the per-share result topped expectations, WPRT still posted a net loss from continuing operations of $5.7 million compared with a $5.3 million loss in the first quarter of 2025. The quarter also included a $1 million foreign exchange loss versus a gain in the year-ago period, which added pressure to bottom-line performance. Below operating income, the company recorded a $1.38 million loss from investments accounted for under the equity method, down from $3.88 million a year earlier. Interest and other income, net of bank charges, totaled $0.74 million, partially offsetting the quarter’s operating and equity-method losses. Cespira remained the key operational bright spot. The joint venture generated total revenues of $22.25 million, up 33% year over year, supported by stronger demand for LNG HPDI trucks and higher systems volumes. Product revenues climbed 48% to $19.49 million, showing that shipments, rather than milestone-based service work, drove the step-up. The mix shift showed up in profitability. Cespira’s gross profit rose to $1.58 million from $0.45 million a year ago, while gross margin improved to 7% from 3%. Net loss at Cespira narrowed to $2.52 million from $7.11 million, reflecting higher product volume and a cost base. On the consolidated reporting side, WPRT’s High-Pressure Controls segment posted revenues of $2.29 million, up 21% from $1.89 million in the first quarter of 2025. Westport attributed the increase primarily to higher service revenues tied to product testing provided to an OEM customer, while product revenues were described as consistent with the year-ago quarter. Gross profit for the segment was $0.52 million, essentially flat year over year, but gross margin declined to 23% from 27%. Engineering service revenues drove gross profit in the current quarter, while the prior-year quarter leaned more on products sold, suggesting a different profitability profile within the segment’s revenue mix. With the Heavy-Duty OEM transitional service agreement with Cespira having ended in the second quarter of 2025, the year-over-year comparison reflects a smaller continuing-operations revenue base. Against that backdrop, Westport’s operating expenses were mixed. Research and development expenses were $1.22 million compared with $1.29 million a year ago, while sales and marketing expenses fell to $0.21 million from $0.44 million. General and administrative expenses increased to $2.83 million from $2.67 million in the prior-year quarter. Depreciation and amortization were $0.11 million, largely steady year over year, underscoring that the near-term earnings trajectory is being shaped more by revenue composition and operating cost discipline than changes in the depreciation profile. As of March 31, 2026, WPRT’s cash and cash equivalents were $24.5 million, down from $27.2 million at the end of 2025. Cash used in operating activities from continuing operations was $3.34 million, due to operating losses and working-capital changes. Investing activities provided $2.56 million, led by $5.84 million of proceeds from a holdback receivable, partially offset by $2.85 million of capital contributions to equity-method investments. The company estimates that the cash and cash equivalents will not be sufficient to fund operations through the next 12 months, and it is evaluating funding alternatives, a disclosure that raises the stakes around capital access as Westport works to translate Cespira’s growth into improved consolidated results. WPRT currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year. Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation. Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition. Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents per share a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features. Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million. PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes. On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report Gentex Corporation (GNTX) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Westport Fuel Systems Inc (NASDAQ:WPRT) reported a 33% year-over-year increase in revenue for Q1 2026, driven by stronger volumes and broader market adoption of HPDI technology. The company's high-pressure controls business saw a 21% increase in revenue compared to the same period last year, indicating improved performance. Westport Fuel Systems Inc (NASDAQ:WPRT) has reduced its capital contributions to the Saspira Joint Venture, reflecting improved financial performance and capital efficiency. The company showcased a fully integrated platform at the ACT conference, demonstrating its ability to deliver diesel performance with cleaner, more cost-effective fuel, which garnered strong interest from fleets and OEMs. Westport Fuel Systems Inc (NASDAQ:WPRT) is expanding its technology reach into new markets, including North America, India, and Brazil, positioning itself for long-term growth opportunities in the global heavy-duty transportation market. Despite improvements, Westport Fuel Systems Inc (NASDAQ:WPRT) reported a net loss of $2.5 million in Q1 2026, although this was a reduction from the previous year's loss. The company's cash and cash equivalents decreased from $27.2 million at the end of 2025 to $24.5 million by March 31, 2026. There is still uncertainty regarding the timeline and outcome of the second OEM truck trial, which is crucial for future growth. The high-pressure controls business requires increased volume to improve margins, and there is a pause in hydrogen developments in China, which could impact future growth. Westport Fuel Systems Inc (NASDAQ:WPRT) faces ongoing challenges with tightening emissions regulations and the need for practical, lower-emission solutions, which require continuous innovation and adaptation. Warning! GuruFocus has detected 6 Warning Signs with WPRT. Is WPRT fairly valued? Test your thesis with our free DCF calculator. Q: The second truck trial seems to be progressing well. Can you provide more details on the next steps and timeline for this project? A: Yes, the truck trial is going well, and we are optimistic. Discussions and negotiations are ongoing for the next phase, which involves higher volumes. The initial trial was around 200 trucks, and we are now moving towards larger volumes and commercialization. We expect a decision on this project by the end of the year. - Dan Seli, CEO Q: Are there any new markets contributing to Q1 results that are worth highlighting? A: We are seeing strong interest in India and Brazil, which are massive markets. There are already trucks in Peru and Chile, and we are excited about the opportunities in these regions as they move towards alternative fuels. - Dan Seli, CEO Q: With the joint venture's momentum, what are the current thoughts on contributions needed going forward? A: Contributions are decreasing steadily as volumes increase. We expect this trend to continue, with a significant reduction in contributions by mid-2027. - Dan Seli, CEO Q: How do you see gross margins evolving for the remainder of the year, especially with deliveries to the test OEM? A: Margins are expected to grow as volumes increase. We have built out the business to be a tier 1 supplier to an automotive OEM like Volvo, with full certifications. The groundwork is laid, and we are now building forward. - Dan Seli, CEO Q: What are the next steps for the North American market following the ACT Expo? A: The interest at the ACT Expo was overwhelming. We are planning more fleet-driven demos and working on EPA certification. Discussions with fleets, dealers, and OEMs are ongoing, and we are excited about the interest from multiple large fleets. - Dan Seli, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

~Strong demand for the LNG HPDI trucks drives significant Q1 revenue growth for Cespira; Showcasing the high-pressure CNG storage solution at ACT Expo a defining step towards the North American market ~ VANCOUVER, British Columbia, May 14, 2026 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport") (TSX:WPRT / Nasdaq:WPRT) today reported financial results for the first quarter ended March 31, 2026, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated. “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 HPDI™ 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. 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, 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." Dan Sceli, Chief Executive Officer First Quarter 2026 Financial Highlights Revenues for the first quarter of 2026 decreased to $2.3 million compared to $7.3 million in the same quarter last year. As planned, our 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. For the three months ended March 31, 2026, Cespira, our joint venture with Volvo Group, increased its revenue by $5.6 million or 33% compared to the prior year quarter. Cespira reduced its net loss by $4.6 million and reliance on funding from its partners in the quarter. Westport reduced its capital contributions to Cespira in the quarter from $4.7 million to $2.9 million. For the three months ended March 31, 2026, our High-Pressure Controls segment increased its revenue by $0.4 million or 21% compared to the prior year quarter. Net loss from continuing operations of $5.7 million for the quarter compared to a net loss from continuing operations of $5.3 million for the same quarter last year. Adjusted EBITDA1 of negative $4.9 million compared to nil for the same period in 2025. The increase in negative adjusted EBITDA was primarily driven by a decrease in gross profit, partially offset by lower operating expenditures and loss from investments accounted for by the equity method. Included in the prior year quarter's adjusted EBITDA was our discontinued operations' performance, which had a net profit of $2.8 million for the three months ended March 31, 2025. Cash and cash equivalents were $24.5 million for the quarter ended March 31, 2026. Cash used in operating activities was $3.3 million, primarily driven by operating losses in the quarter and changes in working capital. Cash provided by investing activities from continuing operations primarily consisted of proceeds received from holdback receivables, partially offset by capital contributions in Cespira of $2.9 million Cash used in financing activities from continuing operations was debt repayments of $1.0 million in the quarter. Long term debt, including the current portion, was $1.9 million as at March 31, 2026, compared to $2.9 million at December 31, 2025. ______________________ 1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation.  (1) This includes income or loss from our investments in Cespira joint ventures. (2) Gross margin, EBITDA and Adjusted EBITDA are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures. Segment Information High-Pressure Controls Revenue for the three months ended March 31, 2026 was $2.3 million, compared with $1.9 million for the three months ended March 31, 2025. The increase in revenue for the three months ended March 31, 2026 was primarily driven by higher service revenue in the quarter for product testing provided to an OEM customer. Product revenue was consistent compared to prior year quarter. Gross profit was $0.5 million or 23% of revenue, for the three months ended March 31, 2026 compared to $0.5 million or 27% of revenue, for the three months ended March 31, 2025. Gross profit in the quarter was primarily driven by engineering service revenue. In the prior year quarter, the gross profit was primarily from products sold. Heavy-Duty OEM The 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. Selected Cespira Statements of Operations Data We account for Cespira using the equity method of accounting. However, due to its significance to our long-term strategy and operating results, we disclose selected Cespira financial information in our interim financial statements for the three months ended March 31, 2026. The following table sets forth a summary of the financial results of Cespira for the three months ended March 31, 2026. (1)Gross margin are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures. Cespira's product revenue for the three months ended March 31, 2026 was $19.5 million compared to $13.2 million in the prior year quarter. The increase in revenue of 48% in the current quarter was primarily driven by higher volumes of systems sold compared to the prior year quarter. Cespira's service revenue was $2.8 million for the quarter ended March 31, 2026 compared to $3.5 million in the prior year quarter. The decrease in service revenue in the current quarter was primarily driven by the milestones achieved. Service revenue allocated to project milestones are weighted differently across the phases of an engineering service revenue project. One of Cespira's significant long-term engineering service revenue project is expected to complete in Q4 2026 in advance of the anticipated launch of their Euro 7 product. Gross profit was $1.6 million for the three months ended March 31, 2026., compared to $0.4 million for the three months ended March 31, 2025. The increase in gross profit was primarily driven by the increase in higher volumes of systems sold. Cespira incurred losses of $2.5 million for the three months ended March 31, 2026. Cespira significantly reduced its operating loss compared to the prior year quarter by meaningfully increasing its product revenue and adjusting its cost base as it continues to grow and scale the business. Liquidity and Going Concern As at March 31, 2026, we had cash and cash equivalents of $24.5 million and long-term debt of $1.9 million from Export Development Canada ("EDC"), 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. 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. Conference call Westport has scheduled a conference call for Friday, May 15, 2026, at 7:00 am Pacific Time (10:00 am Eastern Time) to discuss these results. To access the conference call please register at https://register-conf.media-server.com/register/BI3e720c77c229442a996fb016347da48e The live webcast of the conference call can be accessed through the Westport website at https://investors.westport.com/. Participants may register up to 60 minutes before the event by clicking on the call link and completing the online registration form. Upon registration, the user will receive dial-in info and a unique PIN, along with an email confirming the details. The webcast will be archived on Westport’s website at https://investors.westport.com. Financial Statements and Management's Discussion and Analysis To view Westport full financials for the first quarter ended March 31, 2026, please visit https://investors.westport.com/financials/ About Westport Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a leading supplier of affordable, alternative fuel, low-emissions transportation technologies, we design, manufacture, and supply advanced components and systems that enable the transition from traditional fuels to cleaner energy solutions. Our proven technologies support a wide range of clean fuels – including natural gas, renewable natural gas, and hydrogen – empowering OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way. With decades of expertise and a commitment to engineering excellence, Westport is helping our partners achieve sustainability goals—without compromising performance or cost-efficiency – making clean, scalable transport solutions a reality. Westport is headquartered in Vancouver, Canada. For more information, visit www.westport.com. GAAP and NON-GAAP FINANCIAL MEASURES Our financial statements are prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These U.S. GAAP financial statements include non-cash charges and other charges and benefits that may be unusual or infrequent in nature or that we believe may make comparisons to our prior or future performance difficult. In addition to conventional measures prepared in accordance with U.S. GAAP, Westport and certain investors use EBITDA and Adjusted EBITDA as an indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. Management also uses these non-GAAP measures in its review and evaluation of the financial performance of Westport. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or "EBITDA multiple" that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. We believe that these non-GAAP financial measures also provide additional insight to investors and securities analysts as supplemental information to our U.S. GAAP results and as a basis to compare our financial performance period-over-period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by, in the case of EBITDA, removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt and debt facilities), asset base (depreciation and amortization) and tax consequences. Adjusted EBITDA provides this same indicator of Westport's EBITDA from continuing operations and removing such effects of our capital structure, asset base and tax consequences, but additionally excludes any unrealized foreign exchange gains or losses, stock-based compensation charges and other one-time impairments and costs which are not expected to be repeated in order to provide greater insight into the cash flow being produced from our operating business, without the influence of extraneous events. Segment Information EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under U.S. GAAP, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA exclude the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under U.S. GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently. Segment earnings or losses before income taxes, interest, depreciation, and amortization ("Segment EBITDA") is the measure of segment profitability used by the Company. The accounting policies of our reportable segments are the same as those applied in our consolidated financial statements. Management prepared the financial results of the Company's reportable segments on basis that is consistent with the manner in which Management internally disaggregates financial information to assist in making internal operating decisions. Certain common costs and expenses, primarily corporate functions, among segments differently than we would for stand-alone financial information prepared in accordance with GAAP. These include certain costs and expenses of shared services, such as IT, human resources, legal, finance and supply chain management. Segment EBITDA is not defined under U.S. GAAP and may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP. Reconciliations of reportable segment information to consolidated statement of operations can be found in section "Non-GAAP Measure & Reconciliations" within this this press release. Cautionary Note Regarding Forward Looking Statements This press release contains forward-looking statements, including statements regarding future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen) including testing to the HPDI fuel system, timing of engineering milestones and product launch schedules, scaling our alternative fuel-based solutions, our expectations for 2026 and beyond, including growth expectations, market growth and the demand for our products, the future success of our business and technology strategies, our ability to bolster our balance sheet, fund organic growth and raise additional capital as well as, a shift to operating as a smaller, more efficient organization. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward-looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, sufficiency of cash resources, industry and products, changes in business strategy, shifts in market demand, the general economy including impacts due to inflation, the effects of competition and pricing pressures, conditions of and access to the capital and debt markets, solvency, governmental policies, trade restrictions or other changes to international trade agreements, sanctions and regulation including the imposition of tariffs, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, the performance of our joint venture, the availability and price of natural gas, new environmental regulations, the acceptance of and shift to natural gas and hydrogen vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, supply chain disruptions, commodity price expectations as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent annual report, Form 20-F and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward-looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein. Contact InformationWestport Investor RelationsT: +1 604-718-2046 WESTPORT FUEL SYSTEMS INC.Condensed Consolidated Interim Balance Sheets (unaudited)(Expressed in thousands of United States dollars, except share amounts)March 31, 2026 and December 31, 2025 WESTPORT FUEL SYSTEMS INC.Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) (unaudited)(Expressed in thousands of United States dollars, except share and per share amounts) Three months ended March 31, 2026 and 2025 WESTPORT FUEL SYSTEMS INC.Condensed Consolidated Interim Statements of Cash Flows (unaudited)(Expressed in thousands of United States dollars) Three months ended March 31, 2026 and 2025