CoTec Holdings (CoTec) is a resource extraction and processing company that identifies and deploys breakthrough technologies to turn undervalued assets into high-margin businesses. By combining innovation with strategic execution, the company offers a unique investment opportunity, characterized by low cost, lower capex, faster cash flow generation, and superior returns.
CoTec (TSXV:CTH,OTCQB:CTHCF) applies innovative, disruptive technology to undervalued resource assets, aiming to create a portfolio of 20 to 30 modular “mini-mines” or processing facilities. By focusing on strategic minerals — such as rare earths, copper and iron ore — critical to advanced manufacturing, defense, AI and electrification, the company transforms waste materials into valuable strategic commodities. This approach establishes the potential for high-margin revenue streams and positions CoTec for continued growth.
Through investments and efficient processing methods, CoTec targets areas like rare earth magnet recycling, green steel production and copper waste processing — sectors crucial to today’s evolving economies. For investors, this represents a straightforward opportunity to support a forward-thinking company poised for long-term appreciation.
CoTec is advancing six cutting-edge technologies and three strategic assets, with a medium-term goal of acquiring 10 technologies and 20 to 30 assets. The company’s business model is supported by partnerships, joint ventures (JVs), and a disciplined capital management strategy to unlock value across its portfolio.
CoTec is guided by a highly experienced management team and board of directors with deep expertise in mining, technology and corporate finance.
Investors looking for a high-potential opportunity with strong alignment to global trends in sustainability and technology will find CoTec an attractive choice. Here’s why:
The HPMS process enables magnet-to-magnet short-loop recycling to produce domestically sourced recycled rare earth magnets with a very low cost, and lowest CO2 footprint, bypassing the extensive chemical refining and reprocessing of traditional long-loop processes. HPMS uses 88 percent less energy, 85 percent less water and reduces CO2 by 85 percent. It eliminates complex separation stages, reduces material losses, and lowers operational risk. This streamlined approach is faster, more economical, and strategically critical for the U.S., ensuring self-sufficiency in AI, robotics, and defense, where reliance on Chinese rare earths poses a major geopolitical risk.
HyProMag USA, a US Government Minerals Security Partnership Project, leverages the Hydrogen Processing of Magnetic Scrap (HPMS) technology to recover NdFeB magnets from end-of-life electronics and industrial waste. This revolutionary hydrogen-based recycling process provides a much simpler, lower-risk, and more cost-effective alternative to conventional rare earth extraction, reducing reliance on traditional mining and imports. Over US$100 million was spent on R&D, developed by the University of Birmingham over 15 years.
A feasibility study released in November 2024, underscored the HyProMag USA project potential to become a game-changing domestic source of recycled rare earth magnets for the United States. CoTec, which owns 60.3 percent of HyProMag USA (50 percent through the US JV with Maginito, and CoTec’s 20.3 percent equity ownership in Maginito), is targeting a total annual production capacity of 1,041 tons of recycled NdFeB magnets over a 40-year operating life, post-tax net present value (NPV) of US$262 million at current market prices, increasing to US$503 million at independent forecast prices. HyProMag USA is targeting 10 percent of USA’s domestic demand for NdFeB magnets within five years of commissioning, with three plants targeting ~3,000 tons of recycled NdFeB magnets, which is three times what was contemplated in the November 2024 feasibility study.
By tapping into the United States’ push for domestically sourced critical mineral resources, HyProMag USA will position itself as a pivotal player in reshaping the permanent magnet supply chain, providing investors with an opportunity to align with a project at the intersection of sustainability, innovation and economic growth.
Located in Quebec, the Lac Jeannine Project is an advanced-stage iron tailings project with a published Preliminary Economic Assessment (PEA - preliminary economic assessment). The project involves reprocessing approximately 73 million tonnes (Mt) of tailings to produce high-purity iron concentrate. The PEA incorporated the 2023 drill-program, providing an initial Inferred Mineral Resource of approximately 73 Mt at 6.7 percent total Fe for 4.9 Mt of contained total Fe. Though the PEA is based on an initial 10-year life of mine, estimates are the life of mine could be extended by as much as a further 10 years with further drilling and resource definition during the feasibility study in 2025. Based on open-pit extraction methods and the production of a gravity concentrate via conventional processing techniques and at a discount rate of 7 percent (based solely on an initial 10-year life of mine), the PEA indicated a pre-tax NPV of US$93.6 million, and an IRR of 38 percent, and an after tax NPV of US$59.5 million, and an IRR of 30 percent.
The Independent Qualified Person as defined by NI 43-101 for the Lac Jeannine Mineral Resource, Mr. Christian Beaulieu, P.Geo., is a member of l’Ordre des géologues du Québec (#1072). The Qualified Person has reviewed and approved the scientific and technical content relating to the Lac Jeannine Mineral Resource.
MagIron focuses on restarting a brownfield iron ore concentrator in Minnesota to produce DR-grade iron concentrate for low-carbon steel production. The company is targeting production capacity of 2 to 3 Mt of concentrate annually with an operational life exceeding 20 years. MagIron is positioned to capitalize on the demand for U.S.-based green steel, with preliminary valuations showing significant uplift since CoTec’s initial investment. CoTec has a 16 percent equity interest in MagIron.
BSL’s cold agglomeration technology converts mining waste into ISO-compliant pellets or briquettes, primarily for green steel production. This process is a game-changer in the industry, offering substantial reductions in energy use and emissions. CoTec’s equity in BSL has grown significantly in value, with the most recent valuation of the company exceeding US$158 million, a 107 percent increase from CoTec’s initial investment.
Ceibo’s low-carbon, low-cost oxidative heap leaching technology enhances recovery rates for sulphide copper minerals such as chalcopyrite. The technology potentially improves copper recovery from 30 percent to 80 percent, making it a potential industry-leading solution for copper extraction. CoTec has a seat on Ceibo’s technical advisory board along with its minority equity interest, and is identifying copper assets where the technology could be applied in the form of a joint venture.
CoTec has entered into a joint collaboration and investigation agreement with McGill University, Québec, Canada. The project, WaveCrackerTM, will investigate extended applications of microwave technologies aiming to improve low-carbon, economic recovery of valuable metals from a range of mineral targets. The initial focus will be on copper recoveries, particularly in advanced sulphide leaching applications. This collaboration builds upon, and extends, domain knowledge with new learnings and, in combination with other technologies, offers the potential for the low-carbon, low cost production of “new” copper metal.
As part of the project collaboration, CoTec will leverage McGill’s considerable experience in mineral processing and depth of research knowledge in the field of applied microwave technologies over the last 30 years.
CoTec has signed a binding long-term exclusivity and collaboration agreement with Salter Cyclones Limited (“Salter”) for the application of its Multi-Gravity Separators (MGS) technology for the recovery of iron ore and manganese from both primary mining and tailings material.
Salter’s MGS technology was originally developed in the 1980s by Richard Mozley and has been in operation for many years applied to the recovery of valuable metal minerals (tin, chromium, copper, zinc etc). Its application to bulk commodities such as iron and manganese has been limited.
CoTec believes the technology could represent a step change in the bulk handling of iron and manganese tailings, offering the company the opportunity to produce high grade critical mineral iron and manganese concentrates from ultra fine tailings, material which is currently classified as waste and sent directly to tailings storage facilities.
As part of the collaboration CoTec will have an Exclusivity Period for the application of the MGS to iron ore globally and manganese in the United States, South Africa and Brazil for three (3) years. This Exclusivity Period can be extended by achieving certain milestones. CoTec and Salter will actively collaborate on an asset-by-asset basis to apply the technology to identified iron and manganese assets.
With over three decades of experience in natural resources and finance, Julian Treger is the driving force behind CoTec’s innovative approach to resource extraction. Previously the CEO of Anglo Pacific Group, Treger successfully transitioned the company from a coal-focused royalty business to a battery-metals-focused streaming company, growing its income from £3 million in 2013 to nearly £62 million in 2021. Treger also brings significant expertise from his roles at Audley Capital and various board positions across the mining sector.
A seasoned executive with more than 30 years of experience in metals and mining, Lucio Genovese has held leadership roles at Glencore and is the CEO of Nage Capital Management in Switzerland. He is also chairman at Ferrexpo and a member of the board of directors of Mantos Copper S.A. and Nevada Copper. His deep industry knowledge and expertise in value creation through joint ventures and operational excellence are pivotal to CoTec’s success.
Tom Albanese served as chief executive officer of Rio Tinto from 2007 to 2013 and as chief executive officer and director of Vedanta Resources and Vedanta Limited from 2014 to 2017. He currently serves as lead independent director of Nevada Copper and non-executive director of Franco-Nevada, and was previously on the board of directors of Ivanhoe Mines, Palabora Mining Company and Turquoise Hill Resources. He holds a Master of Science degree in mining engineering and a Bachelor of Science degree in mineral economics both from the University of Alaska Fairbanks.
Robert Harward is a retired United States Navy vice admiral (SEAL) and a former deputy commander of the United States Central Command. He served on the US National Security Council in The White House and led several multi-national special forces commands in Afghanistan and Iraq. He joined Lockheed Martin in 2014 as their chief executive in the UAE and expanded his responsibilities to cover the Middle East, leaving to join Shield AI as executive vice-president for international business development and strategy based in the UAE.
A global investment industry leader with more than 35 years of experience, Sharon Fay has extensive expertise in corporate responsibility and strategic evaluation, making her instrumental in CoTec’s ESG initiatives and governance.
Magot Naudie is a seasoned capital markets professional with 25 years of experience as senior portfolio manager for North American and global natural resource portfolios. She has held senior roles at leading multi-billion-dollar asset management firms including TD Asset Management, Marret Asset Management and CPP Investment Board. Naudie is the president of Elephant Capital, and the co-founder of Abaxx Technologies. She sits on a number of public and private company boards. Naudie holds an MBA from Ivey Business School and a BA from McGill University. She is also a chartered financial analyst.
With a background in mining, technology and project investments, Erez Ichilov has driven multiple ventures in battery materials, critical minerals and sustainable exploration, aligning well with CoTec’s strategic goals.
John Singleton has more than 25 years of experience in the mining industry, including senior roles at Rio Tinto, De Beers Consolidated Mines and Centamin. His background in corporate development, strategy project evaluation, operations and project development equips CoTec with the expertise necessary for scaling its portfolio of assets and technologies. He is a Fellow of the Royal Geological Society and holds a BSc from the University of Bristol and a MSc in Engineering Geology from Imperial College London.
Abraham Jonker brings 30 years of financial leadership in the mining industry, with a focus on corporate transactions, equity and debt financing, and strategic growth. He has played a pivotal role in raising over $750 million for mining ventures and has served on the boards of other prominent mining companies.
*Forward-Looking Statements
The information above regarding the Company and its investments which are not historical facts are "forward-looking statements" which involve risks and uncertainties. Since forward- looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to known and unknown risks and uncertainties affecting the Company, including, but not limited to: resource and reserve risks; environmental risks and costs; labor costs and shortages; uncertain supply and price fluctuations in materials; increases in energy costs; labor disputes and work stoppages; leasing costs and the availability of equipment; heavy equipment demand and availability; contractor and subcontractor performance issues; worksite safety issues; project delays and cost overruns; extreme weather conditions; and social and transport disruptions. For further details regarding risks and uncertainties facing the Company, please refer to “Risk Factors” in the Company’s filing statement dated April 6, 2022, a copy of which may be found under the Company’s SEDAR+ profile at www.sedarplus.com, and its other public filings. The Company assumes no responsibility to update forward- looking statements in this news release except as required by law. Readers should not place undue reliance on the forward-looking statements and information contained in this news release and are encouraged to read the Company’s continuous disclosure documents which are available on SEDAR+ at www.sedarplus.com.
Unlocking value with disruptive resource technologies
(TheNewswire)
VANCOUVER, Canada June 1 1, 2025 TheNewswire The Investing News Network (INN) has published a new sponsored INNspired article titled " Recycling Rare Earths: Path to Securing North American Supply Chains ," highlighting how technological innovation is reshaping the rare earth sector through sustainable recycling solutions.
As global demand for rare earth magnets accelerates—driven by electric vehicles, renewable energy systems, and high-performance computing—the need for secure, domestic sources of these critical materials has become a strategic priority for the United States. The article explores how rare earth recycling is emerging as a viable and scalable response to supply chain risks and environmental concerns.
Featured in the article is CoTec Holdings Corp. (TSXV: CTH | OTCQB: CTHCF) , a Vancouver-based company advancing a low-emission, high-efficiency rare earth magnet recycling technology through its U.S. joint venture with HyProMag USA. The company's process—developed by researchers at the University of Birmingham—uses hydrogen to extract high-purity magnet powder from end-of-life products, eliminating the need for high-temperature smelting or chemical leaching.
"This story is bigger than just critical minerals—it's about energy security, technological resilience, and building clean supply chains right here in North America," said Chris Hogg, Chief Revenue Officer at INN. "We're proud to spotlight companies like CoTec that are innovating practical solutions with real economic and strategic value."
CoTec, which owns a majority interest in HyProMag USA, is developing a rare earth magnet recycling facility in the Dallas–Fort Worth region, positioning it to serve U.S. manufacturing and defense industries with domestically sourced materials.
This INNspired article is part of CoTec Holdings' investor awareness campaign and is considered sponsored content. INNspired articles are produced in collaboration with sponsoring companies to help investors understand the macro trends, technologies, and corporate strategies shaping emerging sectors.
Read the full article here:
https://investingnews.com/recycling-rare-earths-path-to-securing-north-american-supply-chains/
About CoTec
CoTec is a publicly traded investment issuer listed on the TSXV and the OTCQB and trades under the symbols CTH and CTHCF respectively. CoTec is a forward-thinking resource extraction company committed to revolutionizing the global metals and minerals industry through innovative, environmentally sustainable technologies and strategic asset acquisitions. With a mission to drive the sector toward a low-carbon future, CoTec employs a dual approach: investing in disruptive mineral extraction technologies that enhance efficiency and sustainability while applying these technologies to undervalued mining assets to unlock their full potential. By focusing on recycling, waste mining, and scalable solutions, the Company accelerates the production of critical minerals, shortens development timelines, and reduces environmental impact. CoTec's strategic model delivers low capital requirements, rapid revenue generation, and high barriers to entry, positioning it as a leading mid-tier disruptor in the commodities sector.
For more information, please visit www.cotec.ca.
About the Investing News Network
The Investing News Network is a trusted destination for independent news and education for investors in the resource, tech, and life science sectors. Through sponsored content, digital campaigns, and lead generation programs, INN connects high-conviction investors with public companies across North America , Australi a and Europe.
For more information, please visit www.investingnews.com
Media Contact:
Chris Hogg
Chief Revenue Officer
Investing News Network
Copyright (c) 2025 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
(TheNewswire)
VANCOUVER, Canada June 1 0 2025 TheNewswire - The Investing News Network (INN) has published a new sponsored INNspired article titled " Recycling Rare Earths: Path to Securing North American Supply Chains ," highlighting how technological innovation is reshaping the rare earth sector through sustainable recycling solutions.
As global demand for rare earth magnets accelerates—driven by electric vehicles, renewable energy systems, and high-performance computing—the need for secure, domestic sources of these critical materials has become a strategic priority for the United States. The article explores how rare earth recycling is emerging as a viable and scalable response to supply chain risks and environmental concerns.
Featured in the article is CoTec Holdings Corp. (TSXV: CTH | OTCQB: CTHCF) , a Vancouver-based company advancing a low-emission, high-efficiency rare earth magnet recycling technology through its U.S. joint venture with HyProMag USA. The company's process—developed by researchers at the University of Birmingham—uses hydrogen to extract high-purity magnet powder from end-of-life products, eliminating the need for high-temperature smelting or chemical leaching.
"This story is bigger than just critical minerals—it's about energy security, technological resilience, and building clean supply chains right here in North America," said Chris Hogg, Chief Revenue Officer at INN. "We're proud to spotlight companies like CoTec that are innovating practical solutions with real economic and strategic value."
CoTec, which owns a majority interest in HyProMag USA, is developing a rare earth magnet recycling facility in the Dallas–Fort Worth region, positioning it to serve U.S. manufacturing and defense industries with domestically sourced materials.
This INNspired article is part of CoTec Holdings' investor awareness campaign and is considered sponsored content. INNspired articles are produced in collaboration with sponsoring companies to help investors understand the macro trends, technologies, and corporate strategies shaping emerging sectors.
Read the full article here:
https://investingnews.com/recycling-rare-earths-path-to-securing-north-american-supply-chains/
About CoTec
CoTec is a publicly traded investment issuer listed on the TSXV and the OTCQB and trades under the symbols CTH and CTHCF respectively. CoTec is a forward-thinking resource extraction company committed to revolutionizing the global metals and minerals industry through innovative, environmentally sustainable technologies and strategic asset acquisitions. With a mission to drive the sector toward a low-carbon future, CoTec employs a dual approach: investing in disruptive mineral extraction technologies that enhance efficiency and sustainability while applying these technologies to undervalued mining assets to unlock their full potential. By focusing on recycling, waste mining, and scalable solutions, the Company accelerates the production of critical minerals, shortens development timelines, and reduces environmental impact. CoTec's strategic model delivers low capital requirements, rapid revenue generation, and high barriers to entry, positioning it as a leading mid-tier disruptor in the commodities sector.
For more information, please visit www.cotec.ca.
About the Investing News Network
The Investing News Network is a trusted destination for independent news and education for investors in the resource, tech, and life science sectors. Through sponsored content, digital campaigns, and lead generation programs, INN connects high-conviction investors with public companies across North America , Australi a and Europe.
For more information, please visit www.investingnews.com
Media Contact:
Chris Hogg
Chief Revenue Officer
Investing News Network
Copyright (c) 2025 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Troy Minerals Inc. ("Troy" or the "Company") (CSE:TROY)(OTCQB:TROYF)(FSE:VJ3) is pleased to provide notice that a National Instrument 43-101 technical report ("NI 43101" or "Technical Report") on the maiden Inferred Mineral Resource Estimate ("MRE" announced on June 30, 2025) for high-purity silica at its 100%-owned Table Mountain Project ("Table Mountain" or the "Project"), located (Figure 1) near Golden, British Columbia, has now been filed.
The Technical Report, "NI 43-101 TECHNICAL REPORT ON THE TABLE MOUNTAIN PROJECT, Golden Mining Division, British Columbia, Canada" has an Effective Date of June 30, 2025 and is available on SEDAR+ and on corporate web site www.troyminerals.com.
Key Highlights (as announced on June 30, 2025 and presented in the Technical Report):
Yannis Tsitos, President of Troy, said "We are delighted to file the Technical Report in support of the previously disclosed maiden MRE for our Table Mountain high-purity silica project in BC, which marks another significant step for the Company. The size and quality of the Inferred geological resources, as well as the excellent local infrastructure with the Trans-Canada highway crossing the Project and the main railway being only 4 km away provide the foundation for our management to look after our next exploration and development steps for Table Mountain."
This maiden MRE, prepared in accordance with NI 43-101 standards, consists of an Inferred Resource of 56,945,602 tonnes of quartzite grading an average of 98.91% SiO₂. The results establish Table Mountain as a significant high-purity silica deposit in British Columbia and mark a major milestone in Troy's development of this critical mineral asset. The resource is comprised of an extensive quartzite (silica) bed of the Ordovician Mount Wilson Formation and remains open for expansion along strike and at depth with further exploration.
MRE Overview
The initial MRE (Table 1) was prepared by Ray GeoConsulting Corporation ("RGC") in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards and Canadian National Instrument 43-101 ("NI 43-101"). RGC is independent of Troy Minerals Inc.
Figure 1. Location of the Table Mountain High-Purity Silica Project
The following is the current Mineral Resource Estimate as at June 30, 2025 (the "Effective Date").
Table 1. Mineral Resource Estimate (MRE) Summary
Zone | Category | Tonnage (t) | Grade (% SiO₂) |
Table Mountain | Inferred | 56,945,602 | 98.91 |
Notes:
Following the completion of this encouraging maiden resource, Troy Minerals is moving swiftly to advance the Table Mountain Project toward further development and the Company is outlining the necessary work program to maximize the project's value.
Next Steps
About the Table Mountain Project
The Table Mountain Silica Project is located approximately 4 kilometres east of Golden, B.C., Canada, with excellent year-round road access and proximity to the Canadian Pacific Railway's Golden rail yard (Figure 2). The property covers roughly 2,304 hectares, encompassing up to 10 kilometres of regionally mapped strike length of the Mount Wilson Formation quartzite, with widths ranging from 300 to 1,400 metres at surface. Table Mountain is strategically situated near two established high-purity silica operations - the Moberly Silica Mine and the Sinova Quartz Quarry - both of which demonstrate silica purity greater than 99.6% SiO₂. This advantageous location highlights the project's potential to become a significant source of high-purity silica in a region known for hosting premium-quality silica deposits.
Figure 2. Property Boundary and Access
Qualified Person
Technical information in this news release has been reviewed and approved by Brian Ray, P.Geo., who is independent of Troy and a "Qualified Person" as defined under NI 43-101 Standards of Disclosure for Mineral Projects.
About Troy Minerals
Troy Minerals is a Canadian based publicly listed mining company focused on building shareholder value through acquisition, exploration, and development of strategically located "critical" mineral assets. Troy is aggressively advancing its projects within the silica (silicon), scandium, vanadium, and rare earths industries within regions that exhibit high and growing demand for such commodities, in both North America and Central-East Asia. The Company's primary objective is the near-term prospect of production with a vision of becoming a cash-flowing mining company to deliver tangible monetary value to shareholders, state, and local communities.
ON BEHALF OF THE BOARD,
Rana Vig | President and Director
Telephone: 604-218-4766
Email: rana@ranavig.com
Forward-Looking Statements
Statement Regarding Forward-Looking Information: This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Troy Resources Inc. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include results of exploration activities may not show quality and quantity necessary for further exploration or future exploitation of minerals deposits, volatility of commodity prices, and continued availability of capital and financing, permitting and other approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.
Westport Fuel Systems Inc. (" Westport ") (TSX:WPRT Nasdaq:WPRT), a supplier of alternative fuel systems and components for the global transportation industry, reported financial results for the second quarter ended June 30, 2025, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.
"We made significant progress in advancing our strategic transformation this quarter, culminating in the recent successful divestiture of our Light-Duty Segment on July 29, 2025. This transaction strengthens our balance sheet and sharpens our strategic focus on high-impact opportunities in commercial transportation and industrial applications — sectors with few alternatives to affordably decarbonize and where Westport is uniquely positioned to provide affordable solutions that create the greatest potential for long-term growth. Beyond reinforcing our financial position, the divestiture provides us with greater flexibility to invest in innovation and evaluate select strategic acquisitions that can enhance our capabilities or expand our presence in prioritized markets.
Moving forward, our attention is centered on two core pillars of growth: Cespira and our High-Pressure Controls & Systems business. Cespira continues to build momentum, supported by increased demand in Europe for trucks equipped with the Cespira fuel system — where Volvo has publicly noted rising adoption. Our High-Pressure Controls & Systems segment is delivering OEMs with critical components for fuel-agnostic platforms. Together, these businesses position Westport as a significant driver of the shift to affordable clean commercial transport and industrial power solutions.
We remain firm in our belief that the path to decarbonizing commercial transport will involve multiple fuels and multiple technologies. Westport is uniquely positioned to lead in this space through our differentiated capabilities, global partnerships, and now, a more streamlined and focused organization. With a reinforced foundation, we are confident in our ability to deliver innovation, performance, and value — for our customers, our partners, and our shareholders."
Dan Sceli, Chief Executive Officer
Q2 2025 Highlights
In the second quarter of 2025, year-to-date results from the Light-Duty segment have been presented in discontinued operations and all related assets and liabilities have been presented as held-for-sale in the balance sheet.
__________________
1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to NON-GAAP FINANCIAL MEASURES in Westport's Management Discussion and Analysis for the reconciliation.
Subsequent to Quarter-End
The New Westport
As noted in Westport's recent news release, the Company will leverage its core competencies in heavy-duty transportation for CNG and LNG platforms and fuel-agnostic, high-pressure control systems that each offer compelling reductions in total cost of ownership for customers and end users as compared to incumbent technologies and reduce or even eliminate GHG emissions. Westport has recognized and prioritized key initiatives along this path including: Cespira featuring industry-leading HPDI TM fuel system technology, the Company's High Pressure Controls & Systems, and the Company's Financial Initiatives.
Cespira: Strategic Market Expansion and Technology Leadership in Heavy-Duty Transportation Through HPDI
Westport's joint venture with the Volvo Group, Cespira, continues to advance its position as a leader in low-carbon and net-zero carbon transportation solutions, with a strong focus on markets where HPDI-based systems deliver immediate economic value over the incumbent products. Currently, HPDI fuel systems are commercially viable and on the road in Europe and more recently in India, South America, Africa and East Asia, generating interest in markets that favor LNG and permit the use of the Euro certified engines with volumes that grew by 25% in 2024.
In North America, CNG remains a dominant choice for fleets seeking lower operating costs and reduced emissions. Actively looking to expand Cespira's presence in these regions, Westport continues to drive innovation through the testing of a CNG storage and fuel supply solution, which would enable CNG HPDI trucks.
The Company's goal for Cespira over the coming 12 months is to deliver demonstrated volume growth. With a backdrop of renewed industry focus on CNG, LNG and RNG for heavy duty transportation and favorable and more stable CNG, LNG and RNG fuel pricing economics, Westport is also aiming to increase the OEM presence and related new market activity for Cespira. The opportunity for Cespira increases significantly through geographic expansion.
High Pressure Controls & Systems: Complementing the Energy Transition Regardless of the Powertrain
With our High-Pressure Controls & Systems business, we are developing high-pressure components that are critical to performance and reliability. The High-Pressure Controls & Systems business is currently selling into three primary markets, China, Europe and North America. Historically, the market in China accounts for approximately 50% of this segment's revenue, almost exclusively focused on hydrogen component sales. Backed by multi-layered government support, spanning from comprehensive national strategies to targeted regional incentives, funding mechanisms, infrastructure mandates, and industry collaboration, the Chinese market is the fastest growing hydrogen market globally and is anticipated to continue to drive growth for Westport.
To position Westport at the forefront of this hydrogen revolution in China, the Company plans to open its state-of-the-art Hydrogen Innovation Center and manufacturing facility in late 2025. This pioneering facility will serve as a hub for research, development, and collaboration to meet the increasing demand for hydrogen transportation solutions in the region. The dedicated manufacturing facility in China will cater to the growing markets for hydrogen technologies. With China emerging as a global leader in hydrogen adoption, the new facility will enable Westport to better serve local customers and partners, driving clean energy advancements in one of the world's largest economies.
As part of Westport's global restructuring, the Company is relocating its European manufacturing operations to our existing technology center in Canada, aligning the manufacturing facility with our innovation hub in North America. This move enables flexibility in product design, increased speed to market and a bolstered commitment to delivering top-tier clean transportation solutions to global markets while also reinvigorating our expansion of CNG/RNG products and leadership in a market that is clearly becoming the focus of the energy shift in heavier duty commercial transportation, creating incremental growth avenues that allow the Company to strategically refocus on the North American transportation market, where the near-term focus has shifted away from hydrogen.
Financial Initiatives
Westport's key focus going forward recognizes both the opportunities and challenges in overall market conditions. As noted in the Company's previous news release, we have initiated a comprehensive internal process to review additional ways to maximize our economic benefit from this recent transaction and make some critical decisions to extend our ability to establish new OEM partnerships and drive underlying business results.
As part of this process, Westport's mission will be to help Cespira and our High-Pressure Controls & Systems business focus on growth and improving financial results and capturing market share. Westport's overall drive for market expansion and move towards generating positive cash flow will have its challenges and may not be a smooth path, but we believe we are uniquely positioned to take advantage of a more pragmatic moment globally where governments, commercial transport companies and industrial power providers require more affordable solution than those that exist today and ideally, solutions that can decarbonize at that same time. We believe we have those solutions. In the near term, Cespira will continue to require cash contributions from its owners.
Market Overview
Cespira's flagship LNG HPDI fuel system technology continues to gain traction in Europe, now entering its second generation. With approximately 9,000 trucks currently on the road, the platform delivered an impressive 25% year-over-year growth in 2024. The latest 500 hp iteration, featured in the new Volvo FH Aero cab, achieves fuel economy of 10 mpg —far surpassing traditional spark-ignited competitors that typically operate in the mid-6 mpg range. This performance gap has cemented HPDI's reputation as the high-efficiency choice for long-haul transport applications.
The momentum behind LNG HPDI adoption is accelerating, fueled by stringent EU decarbonization mandates and original equipment manufacturer (OEM) commitments to reducing carbon emissions. OEMs remain focused on preparing for Euro VII regulations. Meanwhile, Cespira's hydrogen HPDI platform is advancing in parallel. Classified as a Zero Emissions Vehicle (ZEV) under European Union guidelines, hydrogen HPDI positions the company for long-term relevance as global hydrogen infrastructure develops. Active discussions with additional global OEMs signal a broader opportunity to extend HPDI's value across geographies, markets and fuel platforms over the long-term.
Globally, natural gas is experiencing a resurgence in transportation markets. In Europe, LNG and RNG adoption for trucking is rebounding sharply, with LNG emerging as the preferred fuel due to its decarbonization potential and superior fuel economy and, in recent years, stable and competitive price. In North America, CNG and RNG are gaining momentum as fleet operators encounter rising skepticism around electrification in heavier duty commercial applications—citing much higher-than-expected energy costs (in excess of $0.50 - $0.60/kWh vs. projected $0.15/kWh) and persistent distribution challenges. At the same time, key regulations are shifting; for example, California has paused or rolled back mandates like Advanced Clean Fleets, signaling greater flexibility for alternative fuels. CNG, in particular, is emerging as a reliable and cost-effective solution, offering fleets a stable and scalable pathway forward. In China—the world's largest LNG truck market—adoption remains robust, underscoring the global relevance of HPDI and natural gas–powered transport solutions.
Q2 2025 Results
| CONSOLIDATED RESULTS | ||||||||||||||||
| ($ in millions, except per share amounts) | Over / (Under) % | Over / (Under) % | ||||||||||||||
| 2Q25 | 2Q24 | 1H25 | 1H24 | |||||||||||||
| Revenues | $ | 12.5 | $ | 14.1 | (11)% | $ | 19.8 | $ | 28.5 | (31)% | ||||||
| Gross Margin (2) | 0.8 | 2.4 | (66)% | 2.3 | 1.8 | 29 | % | |||||||||
| Gross Margin % | 6 | % | 17 | % | 12 | % | 6 | % | ||||||||
| Loss from Investments Accounted for by the Equity Method (1) | (3.7 | ) | (1.1 | ) | 230 | % | (7.6 | ) | (1.1 | ) | 590 | % | ||||
| Net Income (Loss) from continuing operations | (5.1 | ) | 4.1 | 222 | % | (10.3 | ) | (11.9 | ) | 13 | % | |||||
| Net Income (Loss) from discontinued operations | (29.3 | ) | 1.7 | 1,853 | % | (26.4 | ) | 4.0 | 754 | % | ||||||
| Net Income (Loss) for the period | (34.3 | ) | 5.8 | 690 | % | (36.8 | ) | (7.8 | ) | (370)% | ||||||
| Net Income (Loss) per Share - Basic | $ | (1.98 | ) | $ | 0.34 | 682 | % | $ | (2.12 | ) | $ | (0.69 | ) | (207)% | ||
| Net Income (Loss) per Share - Diluted | $ | (1.98 | ) | $ | 0.33 | 700 | % | $ | (2.13 | ) | $ | (0.45 | ) | (373)% | ||
| EBITDA (2) | $ | (30.0 | ) | $ | 9.0 | 433 | % | $ | (30.1 | ) | $ | (0.2 | ) | (14,950)% | ||
| Adjusted EBITDA (2) | $ | (1.0 | ) | $ | (2.0 | ) | 50 | % | $ | (1.0 | ) | $ | (8.6 | ) | 88 | % |
(1) This includes income or loss from our investments in Cespira joint ventures.
(2) Gross margin, EBITDA and Adjusted EBITDA are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures.
Segment Information
High-Pressure Controls & Systems Segment
Revenue for the three and six months ended June 30, 2025 was $2.9 million and $4.8 million, respectively, compared with $3.6 million and $6.0 million for the three and six months ended June 30, 2024. The decrease in revenue for the three months ended June 30, 2025 compared to the prior year quarter was primarily driven by the hydrogen industry slowdown impacting demand for hydrogen components.
Gross profit decreased by $1.0 million to $0.1 million, or 3% of revenue, for the three months ended June 30, 2025 compared to $1.1 million or 31% of revenue, for the three months ended June 30, 2024. The decrease in gross profit was primarily driven by lower revenue and an increase in material costs in the quarter. We are moving our manufacturing operations from Italy to Canada and China in Q3 2025 to be closer to our customers and to simplify our supply chain operations.
Gross margin decreased by $1.0 million to $0.6 million, or 13% of revenue, for the six months ended June 30, 2025 compared to $1.6 million, or 27% of revenue, for the six months ended June 30, 2024. The decrease in gross margin was primarily related to lower revenue and an increase in material costs.
Heavy-Duty OEM Segment
Revenues for the three and six months ended June 30, 2024 includes revenue until the closing of the transaction to form Cespira, which occurred June 3, 2024. Revenue for the three and six months ended June 30, 2025 was $9.6 million and $15.0 million, respectively, compared with $10.5 million and $22.5 million for the three and six months ended June 30, 2024. The decrease in revenue for the three months ended June 30, 2025 primarily relates to the slowdown of our manufacturing support to Cespira. The JV will operate without manufacturing support from Westport under the transitional service agreement starting in Q3 2025.
Gross margin decreased by $0.6 million to $0.7 million, or 7% of revenue, for the three months ended June 30, 2025 compared to $1.3 million or 12% of revenue, for the three months ended June 30, 2024. Included in the prior year three months ended June 30, 2024 were two months of HPDI business activity in our results.
Gross margin increased by $1.6 million to $1.8 million, or 12% of revenue, for the six months ended June 30, 2025 compared to $0.2 million, or 1% of revenue, for the six months ended June 30, 2024. The Heavy-Duty OEM segment received $1.5 million in credits from component suppliers for inventory sold in the period.
Light-Duty Segment (Discontinued Operations)
| Three months ended June 30, | Change | Six months ended June 30, | Change | |||||||||||||||||||||||||||
| (in millions of U.S. dollars) | 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Total revenue | $ | 76.4 | $ | 69.3 | $ | 7.1 | 10 | % | $ | 140.0 | $ | 132.4 | $ | 7.6 | 6 | % | ||||||||||||||
| Gross profit 1 | $ | 15.1 | $ | 14.7 | $ | 0.4 | 3 | % | $ | 28.8 | $ | 27.0 | $ | 1.8 | 7 | % | ||||||||||||||
| Gross margin % | 20 | % | 21 | % | 21 | % | 20 | % | ||||||||||||||||||||||
| Income (loss) before income taxes 2 | $ | (27.7 | ) | $ | 2.5 | $ | (30.2 | ) | (1208)% | $ | (24.3 | ) | $ | 5.5 | $ | (29.8 | ) | (542)% | ||||||||||||
(1) Gross profit and gross margin are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures.
(2) Income (loss) before income taxes for the three and six months ended June 30, 2025 includes a write-down loss of $30.2 million for the classification of the Light-Duty segment as discontinued operations and held-for-sale (refer to Note 5 in our interim financial statements for details).
Revenue for the three and six months ended June 30, 2025 was $76.4 million and $140.0 million, respectively, compared with $69.3 million and $132.4 million for the three and six months ended June 30, 2024.
Light-Duty revenue increased by $7.1 million for the three months ended June 30, 2025 compared to the prior year quarter and increased by $7.6 million for the six months ended June 30, 2025 compared to the prior year period. The increases were primarily driven by our delayed OEM and OEM businesses, partially offset by a decrease in sales in our independent aftermarket business.
Gross profit increased by $0.4 million to $15.1 million, or 20% of revenue, for the three months ended June 30, 2025 compared to $14.7 million, or 21% of revenue, for the three months ended June 30, 2024. This was primarily driven by a change in sales mix, with increases in sales to European customers and a reduction in sales to developing regions.
Gross profit increased by $1.8 million to $28.8 million, or 21% of revenue, for the six months ended June 30, 2025 compared to $27.0 million, or 20% of revenue, for the six months ended June 30, 2024.
Selected Cespira Statements of Operations Data
We account for Cespira using the equity method of accounting for investments. The following table sets forth a summary of the financial results of Cespira for the three and six months ended June 30, 2025:
| Three months ended June 30, | Change | Six months ended June 30, | Change | |||||||||||||||||||||||||||
| (in millions of U.S. dollars) | 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Total revenue | $ | 12.0 | $ | 4.1 | $ | 7.9 | 193 | % | $ | 28.8 | $ | 4.1 | $ | 24.7 | 602 | % | ||||||||||||||
| Gross profit 1 | $ | (1.9 | ) | $ | 0.2 | $ | (2.1 | ) | (1050)% | $ | (1.4 | ) | $ | 0.2 | $ | (1.6 | ) | (800)% | ||||||||||||
| Gross margin % | (16)% | 5 | % | (5)% | 5 | % | ||||||||||||||||||||||||
| Loss before income taxes | $ | (6.7 | ) | $ | (2.0 | ) | $ | (4.7 | ) | 235 | % | $ | (13.7 | ) | $ | (2.0 | ) | $ | (11.7 | ) | 585 | % | ||||||||
| Net loss attributable to the Company | $ | (3.7 | ) | $ | (1.1 | ) | $ | (2.6 | ) | 236 | % | $ | (7.6 | ) | $ | (1.1 | ) | $ | (6.5 | ) | 591 | % | ||||||||
(1) Gross profit and gross margin are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures.
GAAP and NON-GAAP FINANCIAL MEASURES
Our financial statements are prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These U.S. GAAP financial statements include non-cash charges and other charges and benefits that may be unusual or infrequent in nature or that we believe may make comparisons to our prior or future performance difficult. In addition to conventional measures prepared in accordance with U.S. GAAP, Westport and certain investors use EBITDA and Adjusted EBITDA as an indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. Management also uses these non-GAAP measures in its review and evaluation of the financial performance of Westport. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or "EBITDA multiple" that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. We believe that these non-GAAP financial measures also provide additional insight to investors and securities analysts as supplemental information to our U.S. GAAP results and as a basis to compare our financial performance period-over-period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by, in the case of EBITDA, removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt and debt facilities), asset base (depreciation and amortization) and tax consequences. Adjusted EBITDA provides this same indicator of Westport's EBITDA from continuing operations and removing such effects of our capital structure, asset base and tax consequences, but additionally excludes any unrealized foreign exchange gains or losses, stock-based compensation charges and other one-time impairments and costs which are not expected to be repeated in order to provide greater insight into the cash flow being produced from our operating business, without the influence of extraneous events.
| Gross Profit and Gross Margin | ||||||||||||||||
| (expressed in millions of U.S. dollars) | 2Q25 | 2Q24 | 1Q25 | 1Q24 | ||||||||||||
| Three months ended | ||||||||||||||||
| Revenue | $ | 88.8 | $ | 83.4 | $ | 71.0 | $ | 77.6 | ||||||||
| Less: Cost of revenue | 72.8 | 66.3 | 55.8 | 65.9 | ||||||||||||
| Gross profit | 16.0 | 17.1 | 15.2 | 11.7 | ||||||||||||
| Gross margin % | 18.0 | % | 20.5 | % | 21.4 | % | 15.1 | % | ||||||||
| EBITDA and Adjusted EBITDA | |||||||||||||||
| (expressed in millions of U.S. dollars) | |||||||||||||||
| Three months ended | 2Q25 | 2Q24 | 1Q25 | 1Q24 | |||||||||||
| Income (Loss) before income taxes | $ | (32.6 | ) | $ | 6.8 | $ | (1.9 | ) | $ | (12.9 | ) | ||||
| Interest expense (income), net | 0.6 | 0.5 | (0.2 | ) | 0.5 | ||||||||||
| Depreciation and amortization | 2.0 | 1.7 | 2.0 | 3.2 | |||||||||||
| EBITDA | (30.0 | ) | 9.0 | (0.1 | ) | (9.2 | ) | ||||||||
| Stock based compensation | 0.4 | 1.2 | 0.3 | 0.3 | |||||||||||
| Unrealized foreign exchange (gain) loss | (2.4 | ) | 0.1 | (0.5 | ) | 1.8 | |||||||||
| Severance costs | — | 0.2 | — | 0.5 | |||||||||||
| Loss from classifying discontinued operations as held-for-sale | 30.2 | — | — | — | |||||||||||
| Gain on deconsolidation | — | (13.3 | ) | — | — | ||||||||||
| Restructuring costs | 0.1 | 0.8 | 0.3 | — | |||||||||||
| Impairment of long-term investments and long-term assets | 0.7 | — | — | — | |||||||||||
| Adjusted EBITDA | $ | (1.0 | ) | $ | (2.0 | ) | $ | — | $ | (6.6 | ) | ||||
Q2 2025 Conference Call
Westport has scheduled a conference call on August 12, 2025, at 7:00 am Pacific Time (10:00 am Eastern Time) to discuss these results. To access the conference call please register at https://register-conf.media-server.com/register/BI842f3b76bd5b44c7aee3e609a6cc77b3 . The live webcast of the conference call can be accessed through the Westport website at https://investors.westport.com/ .
Participants may register up to 60 minutes before the event by clicking on the call link and completing the online registration form. Upon registration, the user will receive dial-in info and a unique PIN, along with an email confirming the details.
The webcast will be archived on Westport's website at https://investors.westport.com .
Financial Statements and Management's Discussion and Analysis
To view Westport financials for the second quarter ended June 30th, 2025, please visit https://investors.westport.com/financials/
About Westport Fuel Systems
Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a leading supplier of affordable, alternative fuel, low-emissions transportation technologies, we design, manufacture, and supply advanced components and systems that enable the transition from traditional fuels to cleaner energy solutions.
Our proven technologies support a wide range of clean fuels – including natural gas, renewable natural gas, and hydrogen – empowering OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way. With decades of expertise and a commitment to engineering excellence, Westport is helping our partners achieve sustainability goals—without compromising performance or cost-efficiency – making clean, scalable transport solutions a reality.
Westport Fuel Systems is headquartered in Vancouver, Canada. For more information, visit www.westport.com .
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding revenue and cash usage expectations; Westport's strategic transformation and its expected outcomes; the anticipated benefits of the divestiture of our Light-Duty Segment, including balance sheet strength, strategic focus, and investment flexibility; future investments in innovation and strategic acquisitions; future strategic initiatives and future growth; future of our development programs; the demand for our products; the future success of our business and technology strategies, including the future performance and market momentum of Cespira; the intentions of partners and potential customers; the performance and competitiveness of Westport's products and expansion of product coverage; future market opportunities; the speed of adoption of natural gas and hydrogen for transportation; the Company's plans to relocate its European manufacturing operations to its Canadian technology center and the benefits resulting therefrom; future development and opening of the Hydrogen Innovation Center and manufacturing facility in China; and Westport's ability to generate innovation, performance and value for its customers, partners and shareholders. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed in or implied by these forward looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, industry and products, the general economy, conditions of and access to the capital and debt markets, solvency, governmental policies and regulation, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, the performance of our joint venture, the availability and price of natural gas and hydrogen, global government stimulus packages and new environmental regulations, the acceptance of and shift to natural gas and/or hydrogen fueled vehicles, the relaxation or waiver of fuel emission standards, the ability of fleets to access capital or government funding to purchase natural gas or hydrogen vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, our ability to execute on manufacturing consolidation in Canada without material disruption, the successful completion and opening of our Hydrogen Innovation Center in China, the actions and determinations of our joint venture and development partners, ongoing supply chain challenges as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein.
Contact Information
Investor Relations
Westport Fuel Systems
T: +1 604-718-2046
| Westport Fuel Systems Inc. Condensed Consolidated Interim Balance Sheets (unaudited) (Expressed in thousands of United States dollars, except share amounts) June 30, 2025 and December 31, 2024 | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (including restricted cash) | $ | 6,064 | $ | 14,754 | ||||
| Accounts receivable | 16,580 | 18,738 | ||||||
| Inventories | 2,856 | 6,668 | ||||||
| Prepaid expenses | 800 | 1,328 | ||||||
| Current assets held for sale | 201,719 | 128,398 | ||||||
| Total current assets | 228,019 | 169,886 | ||||||
| Long-term investments | 37,122 | 36,866 | ||||||
| Property, plant and equipment | 4,444 | 3,120 | ||||||
| Operating lease right-of-use assets | 1,942 | 823 | ||||||
| Other long-term assets | 527 | 1,431 | ||||||
| Non-current assets held for sale | — | 79,495 | ||||||
| Total assets | $ | 272,054 | $ | 291,621 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 17,594 | $ | 19,435 | ||||
| Current portion of operating lease liabilities | 633 | 288 | ||||||
| Current portion of long-term debt | 3,905 | 3,905 | ||||||
| Current portion of warranty liability | 1,155 | 1,152 | ||||||
| Current liabilities held for sale | 136,177 | 84,488 | ||||||
| Total current liabilities | 159,464 | 109,268 | ||||||
| Long-term operating lease liabilities | 1,332 | 548 | ||||||
| Long-term debt | 977 | 2,932 | ||||||
| Other long-term liabilities | 1,389 | 1,388 | ||||||
| Long-term liabilities held for sale | — | 40,460 | ||||||
| Total liabilities | 163,162 | 154,596 | ||||||
| Shareholders' equity: | ||||||||
| Share capital: | ||||||||
| Unlimited common and preferred shares, no par value | ||||||||
| 17,351,005 (2024 - 17,282,934) common shares issued and outstanding | 1,246,643 | 1,245,805 | ||||||
| Other equity instruments | 9,027 | 9,472 | ||||||
| Additional paid in capital | 11,516 | 11,516 | ||||||
| Accumulated deficit | (1,133,070 | ) | (1,096,275 | ) | ||||
| Accumulated other comprehensive loss | (25,224 | ) | (33,493 | ) | ||||
| Total shareholders' equity | 108,892 | 137,025 | ||||||
| Total liabilities and shareholders' equity | $ | 272,054 | $ | 291,621 | ||||
| Westport Fuel Systems Inc. Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) (unaudited) (Expressed in thousands of United States dollars, except share and per share amounts) Three and six months ended June 30, 2025 and 2024 | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 12,498 | $ | 14,109 | $ | 19,821 | $ | 28,537 | ||||||||
| Cost of revenue | 11,656 | 11,750 | 17,444 | 26,720 | ||||||||||||
| Gross profit | 842 | 2,359 | 2,377 | 1,817 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,574 | 3,460 | 2,867 | 7,809 | ||||||||||||
| General and administrative | 4,106 | 5,720 | 6,778 | 12,915 | ||||||||||||
| Sales and marketing | 290 | 962 | 733 | 2,083 | ||||||||||||
| Foreign exchange (gain) loss | (4,224 | ) | (141 | ) | (5,427 | ) | 1,795 | |||||||||
| Depreciation and amortization | 106 | 98 | 214 | 456 | ||||||||||||
| 1,852 | 10,099 | 5,165 | 25,058 | |||||||||||||
| Loss from continuing operations | (1,010 | ) | (7,740 | ) | (2,788 | ) | (23,241 | ) | ||||||||
| Loss from investments accounted for by the equity method | (3,686 | ) | (1,102 | ) | (7,570 | ) | (1,102 | ) | ||||||||
| Gain on deconsolidation | — | 13,266 | — | 13,266 | ||||||||||||
| Interest on long-term debt | (166 | ) | (288 | ) | (358 | ) | (603 | ) | ||||||||
| Interest and other income (loss), net of bank charges | (147 | ) | 95 | 502 | 21 | |||||||||||
| Income (loss) before income taxes | (5,009 | ) | 4,231 | (10,214 | ) | (11,659 | ) | |||||||||
| Income tax expense | 44 | 85 | 134 | 216 | ||||||||||||
| Net income (loss) from continuing operations | (5,053 | ) | 4,146 | (10,348 | ) | (11,875 | ) | |||||||||
| Net income (loss) from discontinued operations | (29,291 | ) | 1,671 | (26,447 | ) | 4,044 | ||||||||||
| Net income (loss) for the period | (34,344 | ) | 5,817 | (36,795 | ) | (7,831 | ) | |||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Cumulative translation adjustment | 6,921 | (1,212 | ) | 10,562 | (1,642 | ) | ||||||||||
| Ownership share of equity method investments' other comprehensive loss | (1,464 | ) | (83 | ) | (2,293 | ) | $ | (83 | ) | |||||||
| 5,457 | (1,295 | ) | 8,269 | (1,725 | ) | |||||||||||
| Comprehensive income (loss) | $ | (28,887 | ) | $ | 4,522 | $ | (28,526 | ) | $ | (9,556 | ) | |||||
| Net income (loss) per share: | ||||||||||||||||
| From continuing operations - basic | $ | (0.29 | ) | $ | 0.24 | $ | (0.60 | ) | $ | (0.69 | ) | |||||
| From discontinued operations - basic | (1.69 | ) | 0.10 | (1.53 | ) | 0.23 | ||||||||||
| From continuing operations - diluted | $ | (0.29 | ) | $ | 0.24 | $ | (0.60 | ) | $ | (0.69 | ) | |||||
| From discontinued operations - diluted | $ | (1.69 | ) | $ | 0.10 | $ | (1.53 | ) | $ | 0.23 | ||||||
| Net income (loss) per share | $ | (1.98 | ) | $ | 0.34 | $ | (2.12 | ) | $ | (0.45 | ) | |||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 17,338,288 | 17,239,460 | 17,330,527 | 17,230,000 | ||||||||||||
| Diluted | 17,338,288 | 17,488,070 | 17,330,527 | 17,230,000 | ||||||||||||
| Westport Fuel Systems Inc. Condensed Consolidated Interim Statements of Cash Flows (unaudited) (Expressed in thousands of United States dollars) Three and six months ended June 30, 2025 and 2024 | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating activities: | ||||||||||||||||
| Net income (loss) for the period from continuing operations | $ | (5,053 | ) | $ | 4,146 | $ | (10,348 | ) | $ | (11,875 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash used in continuing operating activities: | ||||||||||||||||
| Depreciation and amortization | 219 | 169 | 397 | 1,867 | ||||||||||||
| Stock-based compensation expense | 126 | 222 | 304 | 471 | ||||||||||||
| Unrealized foreign exchange loss | (4,224 | ) | (141 | ) | (5,427 | ) | 1,795 | |||||||||
| Deferred income tax (recovery) | (6 | ) | 9 | (9 | ) | 20 | ||||||||||
| Loss from investments accounted for by the equity method | 3,686 | 1,102 | 7,570 | 1,102 | ||||||||||||
| Interest on long-term debt | 23 | 12 | 45 | 34 | ||||||||||||
| Change in inventory write-downs | 140 | 307 | 110 | 503 | ||||||||||||
| Gain on deconsolidation | — | (13,266 | ) | — | (13,266 | ) | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (8,160 | ) | (605 | ) | (8,324 | ) | 16,663 | |||||||||
| Inventories | 5,879 | 5,679 | 3,770 | 5,951 | ||||||||||||
| Prepaid expenses | 600 | 177 | 920 | 157 | ||||||||||||
| Accounts payable and accrued liabilities | 1,056 | 4,250 | (3,240 | ) | (4,532 | ) | ||||||||||
| Warranty liability | 92 | (537 | ) | 5 | (1,098 | ) | ||||||||||
| Net cash provided by (used in) operating activities of continuing operations | (5,622 | ) | 1,524 | (14,227 | ) | (2,208 | ) | |||||||||
| Net cash provided by (used in) operating activities of discontinued operations | (582 | ) | (25 | ) | 3,125 | 3,849 | ||||||||||
| Investing activities: | ||||||||||||||||
| Purchase of property, plant and equipment | (822 | ) | (1,262 | ) | (1,395 | ) | (2,006 | ) | ||||||||
| Proceeds from sale of investments | — | 18,888 | — | 18,888 | ||||||||||||
| Proceeds from holdback receivable | — | — | 10,450 | — | ||||||||||||
| Capital contributions to investments accounted for by the equity method | (4,185 | ) | (9,900 | ) | (8,871 | ) | (9,900 | ) | ||||||||
| Net cash provided by (used in) investing activities of continuing operations | (5,007 | ) | 7,726 | 184 | 6,982 | |||||||||||
| Net cash used in investing activities of discontinued operations | (460 | ) | (1,902 | ) | (2,947 | ) | (5,916 | ) | ||||||||
| Financing activities: | ||||||||||||||||
| Repayments of operating lines of credit and long-term facilities | (1,000 | ) | (13,700 | ) | (2,000 | ) | (29,043 | ) | ||||||||
| Drawings on operating lines of credit and long-term facilities | — | 7,504 | — | 15,550 | ||||||||||||
| Net cash used in financing activities of continuing operations | (1,000 | ) | (6,196 | ) | (2,000 | ) | (13,493 | ) | ||||||||
| Net cash used in financing activities of discontinued operations | (3,176 | ) | (2,704 | ) | (6,094 | ) | (1,248 | ) | ||||||||
| Effect of foreign exchange on cash and cash equivalents | 4,593 | (803 | ) | 5,696 | (1,297 | ) | ||||||||||
| Net decrease in cash and cash equivalents | (11,254 | ) | (2,380 | ) | (16,263 | ) | (13,331 | ) | ||||||||
| Cash and cash equivalents, beginning of period (including restricted cash) | 32,637 | 43,902 | 37,646 | 54,853 | ||||||||||||
| Cash and cash equivalents, end of period (including restricted cash) | $ | 21,383 | $ | 41,522 | $ | 21,383 | $ | 41,522 | ||||||||
| Less: cash and cash equivalents from discontinued operations, end of period (including restricted cash) | $ | 15,319 | $ | 28,048 | $ | 15,319 | $ | 28,048 | ||||||||
| Cash and cash equivalents from continuing operations, end of period (including restricted cash) | $ | 6,064 | $ | 13,474 | $ | 6,064 | $ | 13,474 | ||||||||
S egment Information
EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under U.S. GAAP, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA exclude the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under U.S. GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently.
Segment earnings or losses before income taxes, interest, depreciation, and amortization ("Segment EBITDA") is the measure of segment profitability used by the Company. The accounting policies of our reportable segments are the same as those applied in our consolidated financial statements. Management prepared the financial results of the Company's reportable segments on basis that is consistent with the manner in which Management internally disaggregates financial information to assist in making internal operating decisions. Certain common costs and expenses, primarily corporate functions, among segments differently than we would for stand-alone financial information prepared in accordance with GAAP. These include certain costs and expenses of shared services, such as IT, human resources, legal, finance and supply chain management. Segment EBITDA is not defined under US GAAP and may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP. Reconciliations of reportable segment information to consolidated statement of operations can be found in section "Non-GAAP Measure & Reconciliations" within this press release.
| Three months ended June 30, 2025 | ||||||||||||||
| High-Pressure Controls & Systems | Heavy-Duty OEM | Cespira | Total Segment | |||||||||||
| Revenue | $ | 2.9 | $ | 9.6 | $ | 12.0 | $ | 24.5 | ||||||
| Cost of revenue | 2.8 | 8.9 | 13.9 | 25.6 | ||||||||||
| Gross profit | 0.1 | 0.7 | (1.9 | ) | (1.1 | ) | ||||||||
| Operating expenses: | ||||||||||||||
| Research & development | 1.6 | — | 1.9 | 3.5 | ||||||||||
| General & administrative | 0.4 | — | 2.7 | 3.1 | ||||||||||
| Sales & marketing | — | — | 0.3 | 0.3 | ||||||||||
| Depreciation & amortization | 0.1 | — | 0.9 | 1.0 | ||||||||||
| 2.1 | — | 5.8 | 7.9 | |||||||||||
| Add back: Depreciation & amortization | 0.2 | — | 0.8 | 1.0 | ||||||||||
| Segment EBITDA | $ | (1.8 | ) | $ | 0.7 | $ | (6.9 | ) | $ | (8.0 | ) | |||
| Three months ended June 30, 2024 | |||||||||||||||
| High-Pressure Controls & Systems | Heavy-Duty OEM | Cespira | Total Segment | ||||||||||||
| Revenue | $ | 3.6 | $ | 10.5 | $ | 4.1 | $ | 18.2 | |||||||
| Cost of revenue | 2.5 | 9.3 | 3.9 | 15.7 | |||||||||||
| Gross profit | 1.1 | 1.3 | 0.2 | 2.6 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research & development | 1.4 | 2.0 | 1.1 | 4.5 | |||||||||||
| General & administrative | 0.3 | 1.2 | 0.7 | 2.2 | |||||||||||
| Sales & marketing | 0.1 | 0.4 | 0.1 | 0.6 | |||||||||||
| Depreciation & amortization | — | — | 0.3 | 0.3 | |||||||||||
| 1.8 | 3.6 | 2.2 | 7.6 | ||||||||||||
| Add back: Depreciation & amortization | 0.1 | — | 0.5 | 0.6 | |||||||||||
| Segment EBITDA | $ | (0.6 | ) | $ | (2.3 | ) | $ | (1.5 | ) | $ | (4.4 | ) | |||
| Six months ended June 30, 2025 | ||||||||||||||
| High-Pressure Controls & Systems | Heavy-Duty OEM | Cespira | Total Segment | |||||||||||
| Revenue | $ | 4.8 | $ | 15.0 | $ | 28.8 | $ | 48.6 | ||||||
| Cost of revenue | 4.2 | 13.3 | 30.2 | 47.7 | ||||||||||
| Gross profit | 0.6 | 1.7 | (1.4 | ) | 0.9 | |||||||||
| Operating expenses: | ||||||||||||||
| Research & development | 2.7 | 0.1 | 4.9 | 7.7 | ||||||||||
| General & administrative | 0.7 | 0.1 | 5.4 | 6.2 | ||||||||||
| Sales & marketing | 0.2 | — | 0.6 | 0.8 | ||||||||||
| Depreciation & amortization | 0.1 | — | 1.6 | 1.7 | ||||||||||
| 3.7 | 0.2 | 12.5 | 16.4 | |||||||||||
| Add back: Depreciation & amortization | 0.3 | — | 2.4 | 2.7 | ||||||||||
| Segment EBITDA | $ | (2.8 | ) | $ | 1.5 | $ | (11.5 | ) | $ | (12.8 | ) | |||
| Six months ended June 30, 2024 | |||||||||||||||
| High-Pressure Controls & Systems | Heavy-Duty OEM | Cespira | Total Segment | ||||||||||||
| Revenue | $ | 6.0 | $ | 22.5 | $ | 4.1 | $ | 32.6 | |||||||
| Cost of revenue | 4.4 | 22.3 | 3.9 | 30.6 | |||||||||||
| Gross profit | 1.6 | 0.2 | 0.2 | 2.0 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research & development | 3.0 | 4.9 | 1.1 | 9.0 | |||||||||||
| General & administrative | 0.5 | 2.9 | 0.7 | 4.1 | |||||||||||
| Sales & marketing | 0.3 | 0.8 | 0.1 | 1.2 | |||||||||||
| Depreciation & amortization | 0.1 | 0.1 | 0.3 | 0.5 | |||||||||||
| 3.9 | 8.7 | 2.2 | 14.8 | ||||||||||||
| Add back: Depreciation & amortization | 0.2 | 1.4 | 0.5 | 2.1 | |||||||||||
| Segment EBITDA | $ | (2.1 | ) | $ | (7.1 | ) | $ | (1.5 | ) | $ | (10.7 | ) | |||
| Three months ended June 30, 2025 | |||||||||||||||
| Total Segment | Less: Cespira | Add: Corporate & unallocated | Total Consolidated | ||||||||||||
| Revenue | $ | 24.5 | $ | 12.0 | $ | — | $ | 12.5 | |||||||
| Cost of revenue | 25.6 | 13.9 | — | 11.7 | |||||||||||
| Gross profit | (1.1 | ) | (1.9 | ) | — | 0.8 | |||||||||
| Operating expenses: | |||||||||||||||
| Research & development | 3.5 | 1.9 | — | 1.6 | |||||||||||
| General & administrative | 3.1 | 2.7 | 3.7 | 4.1 | |||||||||||
| Sales & marketing | 0.3 | 0.3 | 0.3 | 0.3 | |||||||||||
| Depreciation & amortization | 1.0 | 0.9 | — | 0.1 | |||||||||||
| 7.9 | 5.8 | 4.0 | 6.1 | ||||||||||||
| Equity loss | — | — | (3.7 | ) | (3.7 | ) | |||||||||
| Three months ended June 30, 2024 | |||||||||||||
| Total Segment | Less: Cespira | Add: Corporate & unallocated | Total Consolidated | ||||||||||
| Revenue | $ | 18.2 | $ | 4.1 | $ | — | $ | 14.1 | |||||
| Cost of revenue | 15.7 | 3.9 | — | 11.8 | |||||||||
| Gross profit | 2.6 | 0.2 | — | 2.4 | |||||||||
| Operating expenses: | |||||||||||||
| Research & development | 4.5 | 1.1 | — | 3.4 | |||||||||
| General & administrative | 2.2 | 0.7 | 4.3 | 5.8 | |||||||||
| Sales & marketing | 0.6 | 0.1 | 0.5 | 1.0 | |||||||||
| Depreciation & amortization | 0.3 | 0.3 | — | — | |||||||||
| 7.6 | 2.2 | 4.8 | 10.2 | ||||||||||
| Equity loss | — | — | (1.1 | ) | (1.1 | ) | |||||||
| Six months ended June 30, 2025 | ||||||||||||||
| Total Segment | Less: Cespira | Add: Corporate & unallocated | Total Consolidated | |||||||||||
| Revenue | $ | 48.6 | $ | 28.8 | $ | — | $ | 19.8 | ||||||
| Cost of revenue | 47.7 | 30.2 | — | 17.5 | ||||||||||
| Gross profit | 0.9 | (1.4 | ) | — | 2.3 | |||||||||
| Operating expenses: | ||||||||||||||
| Research & development | 7.7 | 4.9 | — | 2.8 | ||||||||||
| General & administrative | 6.2 | 5.4 | 6.0 | 6.8 | ||||||||||
| Sales & marketing | 0.8 | 0.6 | 0.6 | 0.8 | ||||||||||
| Depreciation & amortization | 1.7 | 1.6 | 0.1 | 0.2 | ||||||||||
| 16.4 | 12.5 | 6.7 | 10.6 | |||||||||||
| Equity loss | — | — | (7.6 | ) | (7.6 | ) | ||||||||
| Six months ended June 30, 2024 | |||||||||||||
| Total Segment | Less: Cespira | Add: Corporate & unallocated | Total Consolidated | ||||||||||
| Revenue | $ | 32.6 | $ | 4.1 | $ | — | $ | 28.5 | |||||
| Cost of revenue | 30.6 | 3.9 | — | 26.7 | |||||||||
| Gross profit | 2.0 | 0.2 | — | 1.8 | |||||||||
| Operating expenses: | |||||||||||||
| Research & development | 9.0 | 1.1 | — | 7.9 | |||||||||
| General & administrative | 4.1 | 0.7 | 9.5 | 12.9 | |||||||||
| Sales & marketing | 1.2 | 0.1 | 0.9 | 2.0 | |||||||||
| Depreciation & amortization | 0.5 | 0.3 | 0.3 | 0.5 | |||||||||
| 14.8 | 2.2 | 10.7 | 23.3 | ||||||||||
| Equity loss | — | — | (1.1 | ) | (1.1 | ) | |||||||
| Reconciliation of Segment EBITDA to Loss before income taxes | Three months ended March 31, | Six months ended March 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Total Segment EBITDA | $ | (8.0 | ) | $ | (4.4 | ) | $ | (12.8 | ) | $ | (10.7 | ) | ||||
| Adjustments: | ||||||||||||||||
| Depreciation & amortization | 0.2 | 0.2 | 0.4 | 1.9 | ||||||||||||
| Cespira's Segment EBITDA | (6.9 | ) | (1.5 | ) | (11.5 | ) | (1.5 | ) | ||||||||
| Loss on investments accounted for under the equity method | 3.7 | 1.1 | 7.6 | 1.1 | ||||||||||||
| Corporate and unallocated operating expenses | 4.0 | 4.8 | 6.5 | 10.4 | ||||||||||||
| Foreign exchange (loss) gain | (4.2 | ) | (0.1 | ) | (5.4 | ) | 1.8 | |||||||||
| Gain on deconsolidation | — | (13.3 | ) | — | (13.3 | ) | ||||||||||
| Interest on long-term debt | 0.2 | 0.3 | 0.3 | 0.6 | ||||||||||||
| Interest and other income, net of bank charges | 0.1 | (0.1 | ) | (0.5 | ) | — | ||||||||||
| Loss before income taxes in continuing operations | $ | (5.1 | ) | $ | 4.2 | $ | (10.2 | ) | $ | (11.7 | ) | |||||
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