Westport Fuel Systems Inc. reported its third‑quarter 2025 results on November 10, 2025, posting revenue of $1.6 million—$0.48 million, or 42%, above the consensus estimate of $1.12 million. The company’s earnings per share estimate of $‑0.89 was met, but the actual EPS was not disclosed in the release, so a definitive beat or miss cannot be confirmed.
The revenue increase was driven largely by the company’s strategic shift away from its Light‑Duty segment, which was divested earlier in the year. The divestiture removed a lower‑margin, lower‑volume business that had been dragging the top line. At the same time, the Cespira joint venture with Volvo Group generated $19.3 million in revenue, up 19% year‑over‑year, reflecting growing demand for high‑pressure direct‑injection (HPDI) technology that Westport supplies to the joint venture.
Gross margin expanded to 31% in Q3 2025 from 14% in the same quarter a year earlier. The jump is attributable to a higher mix of engineering‑services revenue, which carries a higher margin, and tighter cost management across the remaining business units. The divestiture also reduced operating expenses associated with the Light‑Duty segment, further supporting margin growth.
CEO Dan Sceli emphasized that the company is “evolving into a new, more focused Westport” that prioritizes heavy‑duty and alternative‑fuel systems. He highlighted the progress of the Cespira joint venture and the company’s commitment to deploying HPDI technology in new markets. No specific guidance for the next quarter or full year was provided in the release.
The results underscore Westport’s ongoing transformation strategy. By shedding lower‑margin legacy businesses and concentrating on high‑margin engineering services and joint‑venture growth, the company has improved liquidity and positioned itself for long‑term profitability in the alternative‑fuel space. The continued expansion of the Cespira partnership and the focus on HPDI technology suggest that Westport is targeting high‑growth segments while maintaining disciplined cost control.
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