Westport Fuel Systems declines 11% despite a surge in Q4 topline

Computer key - 4th quarter

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Westport Fuel Systems (NASDAQ:WPRT) stock price dropped 10.6% on Tuesday during pre-market hours of trading as the company released its Q4 results.

Q4 revenue was $87.2M, an increase of 12% Y/Y.

Segment wise, OEM revenue in Q4 was $61.2M vs. $47.8M last year. The increase was primarily driven by higher sales volumes in the light-duty OEM and electronics businesses and higher engineering service revenue from the heavy-duty OEM business. Independent Aftermarket segment revenue dropped 14%.

Cash and cash equivalents were $54.9M for the year ended December 31, 2023.

The company added $11.5M of new term loans to improve financial flexibility in 2023, with an additional $3.9M added after year-end.

Q4 Adjusted EBITDA loss of $10M, vs. $12.9M loss last year.

Net loss for the year ended December 31, 2023 was $49.7M, GAAP EPS of $2.90.

Providing an outlook, the company commented, “..Our efforts in 2024 will be guided towards three essential pillars: harnessing the potential of our HPDI joint venture to drive success, enhancing operational excellence, and continuous innovation to shape the world’s hydrogen-powered future. Our success relies on these three essential pillars over the near-, medium- and long-term, respectively..”

Roy Walsh

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