We remain confident in the role that alternative fuels will play in driving sustainability in the future of the transportation and industrial application space. Regarding hydrogen, we acknowledge the slowdown in infrastructure development in the global market, which has tapered the adoption of automotive and industrial applications powered by hydrogen. The success of this market depends on the installation of infrastructure and the production of clean hydrogen, both of which have been slow to materialize. However, we are steadfast in our belief that hydrogen as a fuel will prevail – although gradual as opposed to immediate – and become a clean fuel source that is adopted worldwide. In the meantime, Westport currently delivers a suite of proven and innovative components and systems for a wide range of affordable alternative low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen. We are driving cleaner performance by addressing lower emissions regulations with practical applications using innovation available today.
As we navigate the next quarter, and the next year, Westport is strongly committed to driving operational excellence, nurturing innovation, and supporting Cespira, all to position the Company for sustainable growth in an evolving landscape. We are focused and dedicated to the present and our future.”
Dan Sceli, Chief Executive Officer, Westport Fuel Systems
Q3 2024 Highlights
- Revenues decreased by 14% to $66.2 million compared to $77.4 million in the same quarter last year, primarily driven by the transition of the Heavy-Duty OEM revenues now being reflected in the results of Cespira, of which Westport accounts for as an equity investment.
- Net loss of $3.9 million for the quarter, an improvement over the net loss of $11.9 million for the same quarter last year. This was primarily the result of an improvement in gross margin by $1.3 million compared to the prior year quarter, a significant decrease in operating expenditures and depreciation and amortization as costs previously associated with our HPDI business are now accrued by Cespira, cost reductions in Westport and a net foreign exchange gain of $1.1 million.
- Continued improvement in Adjusted EBITDA [2] achieving negative $0.8 million compared to negative $3.0 million for the same period in 2023.
- Cash and cash equivalents were $33.3 million at the end of the third quarter of 2024. Cash used in operating activities was $9.9 million primarily from an increase in working capital of $11.4 million. Cash provided by investing activities included the sale of investments for $9.6 million related to the collection of $8.4 million from the formation of the HPDI JV and sale of our ownership interest in Westport Weichai Inc. (“Weichai”), partially offset by the purchase of capital assets of $2.1 million. Cash used in financing activities represented debt repayments of $7.0 million in the quarter.
- In September 2024, HPDI Technology, the joint…
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