Westport Fuel Systems Inc

Westport Fuel Systems shares rose 6.7% after the company reported a wider-than-expected second-quarter 2026 loss of 53 cents per share, compared with the Zacks Consensus Estimate of a 45-cent loss. Revenues fell 78.3% year over year to $2.72 million but beat the consensus estimate of $2 million by 44.5%. The company said projected cash resources are not sufficient to fund operations through the next 12 months, raising substantial doubt about its ability to continue as a going concern. Westport reiterated its expectation that its Cespira joint venture can reach break-even in 2027.

Westport Fuel Systems announced that its joint venture with Volvo Group, Cespira, has signed a development agreement with Volvo to complete integration and commercialization of Cespira's High Pressure Direct Injection fuel system technology for Volvo's 13-litre hydrogen-powered engine platform. Volvo Trucks is already conducting on-road testing, with a European-certified commercial launch targeted before 2030. The HPDI system enables direct injection of hydrogen at high pressures into internal combustion engines, providing diesel-like performance while using a zero-carbon fuel source. Westport also reported first-quarter revenue of $2.29 million, exceeding analyst expectations of $2.2 million, and noted a 33% year-over-year revenue increase in the Cespira joint venture driven by additional volumes supplied to a second original equipment manufacturer for truck trials.

Westport Fuel Systems has closed a US$10 million registered direct offering and concurrent private placement. The offering consisted of 1,600,000 common shares and 3,254,369 pre-funded warrants in the registered direct offering, along with warrants to purchase up to 4,854,369 common shares in the private placement, with a combined effective purchase price of US$2.06 per share or pre-funded warrant and associated warrant. The private placement warrants have an exercise price of US$2.06 per share, are immediately exercisable, and expire in two years. Craig-Hallum acted as sole placement agent. Westport intends to use the net proceeds for working capital and general corporate purposes, and if the private placement warrants are fully exercised for cash, the company could receive an additional US$10 million in gross proceeds.