A Westport Fuel Systems Volvo truck. (Westport Fuel Systems)
Westport Fuel Systems posted declines in fourth-quarter and full-year net income as the equipment maker advanced its joint venture with Volvo Group and announced the sale of its light-duty business.
Vancouver, British Columbia-based Westport on March 31 posted a Q4 net loss of $10.1 million, or 59 cents per share, down 27% from a loss of $13.9 million, 81 cents, in the same period in 2023. Westport posted Q4 revenue of $75.1 million, down 14% from $87.2 million in the year-ago period.
For 2024, the company posted a net loss of $21.8 million, $1.27, compared with a net loss of $49.7 million, or $2.90, in 2023. The company attributed the decline in part to expense reductions across its heavy-duty truck operations. The company’s revenue for the full year totaled $302.3 million, down 9% from $331.8 million in 2023.
Westport over the past 12 months transferred its hydrogen ICE technology operations to the Cespira joint venture, part of a tighter focus on its heavy-duty truck and industrial sectors, the company said. Cespira posted $22.8 million in revenue for the three months ending Dec. 31 and $43.1 million between June 3 — the date the JV was completed — and the end of 2024.
Westport on March 31 also announced the $73.1 million sale of its Westport Fuel Systems Italia light-duty operations to a unit of Heliaca Investments Coöperatief, a Dutch investment firm.
“The past year has been transformative for Westport as we sharpened our strategic focus, advanced our clean transportation technologies, and enhanced operational efficiencies,” Westport CEO Dan Sceli said in remarks accompanying the results.
“We have made significant strides in aligning our operations with our competitive strengths, improving margins and reinforcing our commitment to delivering cost-effective solutions that drive decarbonization in the transportation sector,” he said.
Westport said that while its HPDI technology is well-established in Europe, growth opportunities exist in North America. This is particularly true should use of natural gas and renewable natural gas expand in the heavy-duty transportation market. “We are taking bold steps to streamline our operations and strengthen our financial footing, allowing us to focus on areas with the highest growth potential,” Sceli said.
The sale of the light-duty unit — which also includes Westport’s independent aftermarket businesses — could earn an additional $6.5 million on top of the $73.1 million base price as certain “earnouts” are achieved, the company said. The deal is expected to close later in the second quarter of 2025.
Westport expects to stabilize its finances with the sale. At the end of 2024, the company had $37.65 million in cash on hand, compared with $54.85 million a year earlier.
Heliaca Investments is backed by Dutch private equity firm Ramphastos Investments Management.
Looking forward, following the light-duty segment exit, Westport will also consider merger and acquisition opportunities in the heavy-duty and industrial fuel systems arena.
