• Total Revenue: $66.2 million, a 14% decrease compared to the prior year period.

• Cespira Revenue: $16.2 million, up from $13.5 million in the same quarter last year.

• Gross Margin: $14.5 million or 22% of revenue, up from $13.2 million or 17% of revenue in Q3 2023.

• Adjusted EBITDA Loss: $800,000, improved from a $3 million loss in the prior year period.

• Light-Duty Revenue: $61.5 million, up from $60.2 million in Q3 2023.

• Light-Duty Gross Margin: $13.9 million or 23% of revenue, compared to $12 million or 20% of revenue in Q3 2023.

• High Pressure Gas Controls Revenue: $1.6 million, down from $3.7 million in Q3 2023.

• Heavy-Duty OEM Revenue: $3.1 million, down $10.4 million compared to the same quarter last year.

• Cash and Cash Equivalents: $33.3 million as of September 30, 2024, a decrease of $8.2 million from the end of Q2 2024.

• Net Cash Used by Operating Activities: $9.9 million.

• Warning! GuruFocus has detected 4 Warning Signs with WPRT.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Westport Fuel Systems Inc (NASDAQ:WPRT) successfully reduced research and development as well as sales, general, and administrative expenses by approximately 40% compared to the same period last year.

• The joint venture Cespira generated $16.2 million in revenue during its first full operational quarter, offsetting the decline in consolidated revenue.

• Gross margin improved to $14.5 million or 22% of revenue, up from $13.2 million or 17% of revenue in Q3 2023.

• The light-duty segment performed well, with revenue increasing to $61.5 million, driven by increased sales in the light-duty OEM and independent aftermarket businesses.

• Westport Fuel Systems Inc (NASDAQ:WPRT) is seeing increased customer demand for its Euro 6 LPG program and anticipates exceeding delivery expectations for 2024.

Negative Points

• Total revenue for the third quarter of 2024 decreased by 14% compared to the prior year period, primarily due to the transition of the heavy-duty OEM business to Cespira.

• There has been no significant order from Weichai under the existing technology development and supply agreement, and no significant orders are anticipated by the end of 2024.

• The high-pressure Gas Controls revenue decreased to $1.6 million from $3.7 million in Q3 2023, primarily due to a slowdown in the hydrogen market.

• Cash and cash equivalents decreased by $8.2 million from the end of Q2 2024, with net cash used by operating activities amounting to $9.9 million.

• The company acknowledges a slowdown in hydrogen infrastructure development, which could delay the adoption of hydrogen-powered automotive and industrial applications by several years.