WPRT Stock Forecast & Price Target

Westport Fuel Systems Inc. reported 3Q25 results that surpassed expectations, showcasing higher revenue and improved margins attributed to increased engineering service revenue in its High Pressure Controls & Systems segment. Projected revenues are set to rise to $92.7 million by 2036, reflecting a robust ten-year compound annual growth rate (CAGR) of approximately 22.1%, driven by lower-cost production and strategic positioning in key markets for hydrogen and natural gas heavy-duty transport. The company's LNG-HPDI technology stands to gain market share due to its performance advantages and the growing emphasis on emissions reduction, which aligns with tightening environmental regulations and favorable macro trends.

Westport Fuel Systems Inc. reported a consolidated revenue decline of 11% year-over-year in 2Q25, generating only $12.5 million, attributed primarily to a temporary slowdown in growth as the company transitions its manufacturing operations. The firm also faced a significant net loss of $34.3 million or $1.98 per share for the quarter, a stark contrast to a net income of $5.8 million or $0.34 per share in the same period the previous year, indicating underlying financial struggles. Further complicating the outlook, the company is not consistently generating positive free cash flow and may need to seek additional capital, while looming competition from battery electric and fuel cell electric vehicles, coupled with tightening emissions regulations, could adversely affect demand for its products.