WPRT Stock Forecast & Price Target

Westport Fuel Systems Inc. has reported strong 3Q25 results, exceeding expectations in revenue and margins, largely due to an increase in higher-margin engineering service revenue from its High Pressure Controls & Systems segment. The company is forecasted to achieve significant revenue growth, projected to reach $92.7 million by 2036 at a ten-year compound annual growth rate (CAGR) of approximately 22.1%. Additionally, Westport is expected to benefit from lower-cost production initiatives and is strategically positioned in key markets for hydrogen and natural gas heavy-duty transport, thereby capitalizing on tightening environmental regulations and growing demand for emissions-reduction solutions.

Westport Fuel Systems reported a significant decline in its consolidated revenues, falling 11% year-over-year to $12.5 million in the second quarter of 2025, primarily due to challenges associated with transitioning manufacturing operations. The company experienced a substantial net loss of $34.3 million for the quarter, reflecting an ongoing struggle to generate consistent positive free cash flows and indicating a potential need for future capital raises. Additionally, increasing regulatory pressures and competitive disadvantages arising from shifts towards carbon-neutral fuels and electric vehicle technologies pose serious risks that could further impact Westport's market demand and growth prospects.