WPRT Stock Forecast & Price Target

Westport Fuel Systems Inc. reported strong 3Q25 results, exceeding expectations in revenue and margins, primarily driven by higher-margin engineering service revenue in the High-Pressure Controls & Systems segment, suggesting continued market share gains. The company is projected to see revenue increase to $92.7 million by 2036, with an impressive ten-year compounded annual growth rate (CAGR) of approximately 22.1%, indicating robust growth potential. Additionally, Westport's LNG-HPDI technology is positioned to benefit from tightening environmental regulations and improving fuel price differentials, supporting enhanced demand and profitability in key markets for hydrogen and natural gas heavy-duty transport.

Westport Fuel Systems Inc. reported a consolidated revenue decline of 11% year-over-year, totaling $12.5 million in its second quarter of 2025, largely due to a transition in manufacturing from Italy to new facilities in China and Canada. The company faced a significant net loss of $34.3 million, or $1.98 per share, driven by challenges in the discontinued Light-Duty business, contrasting sharply with a net income of $5.8 million in the same quarter the previous year. Furthermore, ongoing risks such as unfavorable price differentials, tightening emissions regulations, and a lack of positive free cash flows create a challenging outlook for Westport's market position and future capital needs.