Westport Fuel Systems Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024, highlighting a transformative year. For the full year 2024, the company achieved positive net cash from operations of $7.2 million, marking the first time it generated positive operating cash flow. Gross margin for the full year increased to 19% ($57.6 million) from 15% ($48.9 million) in 2023.
Despite these improvements, the company's interim financial statements continued to include a "going concern" disclosure. To address this and sharpen its strategic focus, Westport announced a binding agreement to sell its Light-Duty segment, including Westport Fuel Systems Italia S.r.l., to Heliaca Investments for a base purchase price of $73.1 million (€67.7 million), with potential earnouts up to an estimated $6.5 million (€6.0 million). This transaction is expected to close in late Q2 2025.
The Light-Duty segment's full-year 2024 revenue was $262.2 million, a slight decrease from $263.6 million in 2023, but gross profit increased to $55.4 million, or 21% of revenue. Cespira, the HPDI joint venture, generated $22.8 million in revenue for Q4 2024, with a gross profit of $1.4 million, but incurred operating losses of $4.8 million. The company also noted that significant orders for HPDI fuel system components from Weichai were not received prior to year-end 2024.
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