WPRT Stock Forecast & Price Target

Westport Fuel Systems Inc. reported strong third-quarter results, exceeding expectations in both revenue and margins, primarily due to increased high-margin engineering service revenue in its High Pressure Controls & Systems segment. Projections indicate substantial revenue growth, with estimates reaching $92.7 million by 2036 at a compound annual growth rate (CAGR) of approximately 22.1%, driven by lower-cost production and market positioning in hydrogen and natural gas heavy-duty transport sectors. The company’s LNG-HPDI technology presents competitive advantages amid tightening environmental regulations, positioning Westport to benefit from global trends favoring emissions-reduction solutions and improvements in fuel price differentials.

Westport Fuel Systems reported a 2Q25 revenue of $12.5 million, marking an 11% year-over-year decline, while experiencing challenges related to transitioning manufacturing operations from Italy to new facilities in China and Canada. The company incurred a significant net loss of $34.3 million for the quarter, primarily influenced by the discontinued Light-Duty business, contrasting sharply with a net income of $5.8 million in the same quarter of the previous year. Furthermore, Westport is grappling with factors such as inconsistent positive free cash flows, potential capital raising needs, and increased competition from battery electric and fuel cell electric vehicle technologies, which could negatively affect its future financial performance.