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Investor Presentation Q3 2025 Results NASDAQ: WPRT / TSX: WPRT November 11, 2025
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Westport Fuel Systems 2 Disclaimer and Forward-Looking Statements This presentation contains forward-looking statements that are based on the beliefs of management and reflects our current expectations as contemplated under the safe harbor provisions of Section 21E of the United States Securities Act of 1934, as amended. Such forward-looking statements include, but are not limited to, future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen), our expectations for 2025 and beyond, including the global demand for our products or our HPDI joint venture's products (including the HPDI 2.0TM fuel systems), our ability to successfully realize the benefits of the divestiture of our Light-Duty business (including potential earnout payments), the future success of our business and technology strategies, opportunities available to sell and supply our products in North America, consumer confidence levels, our ability to strengthen our liquidity, growth in our HPDI joint venture, improved aftermarket revenues, our capital expenditures, our investments, cash and capital requirements, the intentions of our partners and potential customers, the performance of our products, our future market opportunities, our ability to continue our business as a going concern and generate sufficient cash flows to fund operations, the availability of funding and funding requirements, our future cash flows, our estimates and assumptions used in our accounting policies, our accruals, including warranty accruals, our financial condition, the timing of when we will adopt or meet certain accounting and regulatory standards and the alignment of our business segments. These forward-looking statements are neither promises nor guarantees but involve known and unknown risks and uncertainties 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 include risks related to revenue growth, operating results, liquidity, our industry and products, the general economy, conditions of the capital and debt markets, government or accounting policies and regulations, regulatory investigations, climate change legislation or regulations, technology innovations, as well as other factors discussed below and elsewhere in this report, including the risk factors contained in the Company’s most recent AIF filed on SEDAR+ at www.sedarplus.ca. The forward-looking statements contained in this MD&A are based upon a number of material factors and assumptions which include, without limitation, market acceptance of our products, product development delays in contractual commitments, the ability to attract and retain business partners, competition from other technologies, conditions or events affecting cash flows or our ability to continue as a going concern, price differential between compressed natural gas, liquefied natural gas, and liquefied petroleum gas relative to petroleum-based fuels, unforeseen claims, exposure to factors beyond our control as well as the additional factors referenced in our AIF. Readers should not place undue reliance on any such forward-looking statements, which are pertinent only as of the date they were made. For a detailed discussion of these and other risk factors that could affect the Corporation's future performance, please refer to the Corporation's most recent Annual Information Form filed on SEDAR+ at www.sedarplus.ca. 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.
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Dan Sceli Chief Executive Officer Nasdaq/TSX: WPRT 3 Elizabeth Owens Chief Financial Officer Speaking Today...
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Financial Highlights: • Revenue for Q3 2025 was $1.6 million, as compared to $4.9 million in the same quarter of last year reflecting change. • Cespira revenue up 19% to $19.3 million of revenue in Q3 2025 in comparison to the same quarter last year. • Gross profit of $0.5 million (31% of revenue) in Q3 2025, compared to $0.7 million (14% of revenue) in the same period of the prior year. • Adjusted EBITDA of negative $5.9 million during the period ended September 30, 2025, as compared to negative $0.8 million in the same period of the prior year. • The Net loss from continuing operations of $10.4 million compared to a net loss of $6.0 million for the same quarter last year contained some extraneous items. Primarily the result of an increase in operating expenditures in research & development and SG&A, a decrease in gross profit of $0.2 million compared to the prior year, and a negative impact from a swing in foreign exchange impact by $3.0 million. • The FX loss recognized in the current period primarily relates to unrealized foreign exchange losses resulting from the translation of previous U.S. dollar denominated debt in our Canadian legal entities. • Additionally, this quarter we incurred one-time costs of $0.8 million for severance and $0.3 million for restructuring. Setting the Stage for a New Beginning 1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation. 4
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Financial Highlights Cont’d: • Specific Business Units: • High-Pressure Controls & Systems revenue for Q3 of 2025 was $1.6 million, a slight decrease over Q3 of 2024. • Gross profit for this business was largely unchanged, increasing slightly as a percent of revenue driven by higher margin engineering services revenue. • Cespira, it generated $19.3 million in Q3 2025, up 19% from the same period last year, driven by higher volumes. Gross profit was negative $1.1 million for Q3 2025, as compared to negative $0.2 million in Q3 2024. Gross profit continues to be negative as Cespira needs higher volumes to achieve a positive margin on a per-unit basis for its systems sold. • Liquidity: As of September 30, 2025, Westport’s cash and cash equivalents totaled $33.1 million • Net cash used in operating activities from continuing operations was $4.5 million, a significant improvement over $11.7 million used in operations in the same quarter last year. • Proceeds from the sale of the Light-Duty business drove improvements in net cash provided by investing activities of continuing operations. We reported $14.5 million in Q3 2025 as compared to $9.4 million in Q3 2024. • Capital contributions to the Cespira JV of $11.0 million were also made in the quarter. As a reminder, in Q4 2024 we received proceeds of $9.6 million from sale of shares to Volvo related to the formation of Cespira and sale of our investment in Weichai Westport Inc. • Net cash used in financing activities of continuing operations was $1.0 million compared to $4.4 million in Q3 2024. • Our outstanding debt currently sits at $3.9 million with a maturity date of September 2026. Setting the Stage for a New Beginning 5
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6 Gross margin 28% of revenue Gross margin 25% of revenue • Q3 revenue of $1.6 Million • Cash balance increased to $33.1 million, debt decreased to $3.9 million • Gross margin improved to 31% compared to 14% in Q3 2024 • Adjusted EBITDA results reflect additional effects from the Light-Duty divestiture partially offset by decreased operating expenditures providing a more efficient and focused underlying business • Cespira revenue increase of 19% in Q3 2025 compared to Q3 2024 driven by higher unit volumes 1. As at December 31, 2024 for 2024 results. 2. Excluding Cespira. 3. Gross margin and Adjusted EBITDA are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation. Financial Profile – Q3 2025 Strengthened balance sheet and margin improvement $14.8 $33.1 Q4 2024 Q3 2025 Cash (US$ Millions) $6.8 $3.9 14% 31% Gross Margin(3) (%) Debt (US$ Millions) Q4 2024 Q3 2025 Q3 2024 Q3 2025 US$ millions Q3 2025 Q3 2024 Cash(1) $33.1 $14.8 Debt(1) $3.9 $6.8 Revenue(2) $1.6 $4.9 Gross Margin(2)(3) $0.5 $0.7 Gross Margin(3) % 31% 14% Adjusted EBITDA(3) $(5.9) $(0.8) Cespira Revenue $19.3 $16.2 Cespira Gross Margin(3) $(1.1) $(0.2) Cespira Gross Margin(3) % (6)% (1)%
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7 High-Pressure Controls & Systems business • Delivering revenue growth of almost 20% in the third quarter • Recently announced 2nd OEM purchase orders and HPDITM evaluation Cespira Success in 2025: Cespira goal is to deliver demonstrated volume growth BUSINESS DRIVEN Focused on Key Drivers: • Developing components that are critical to performance and reliability. • Selling into three primary markets – China, Europe and North America. • Focused on moving our manufacturing to Canada and China. • On-Engine: Cespira is pursuing strategic market expansion • Off-Engine: High Pressure Controls & Systems • Variety of financial initiatives
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8 OUR OUTLOOK: POSITIONED TO CAPTURE THE TRANSITION • Our adaptive strategy allows us to drive business and technology success 1. Global Heavy-Duty truck market is growing and expected to reach 1.95 million units in 2025 2. The sector has been unsuccessful to date in decarbonizing. 3. Customers are prioritizing total cost of ownership over emissions reductions. 4. Natural gas is affordable; infrastructure is abundant and RNG production is growing. 2025 2030 2035 Heavy Duty & Industrial Applications Natural Gas H2 Demand uncertainty Cryogenic + High Pressure Systems (LNG & CNG) High Pressure Systems + Cryogenic Source: S&P RNG/CNG/H2 Blends? NEW: Blending hydrogen in natural gas pipelines most practical use of hydrogen
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9 • We have recently strengthened our balance sheet through the sale of our LD Business • We’ve made a strategic return to the Company’s roots, with a focus on providing solutions for hard-to- decarbonize transportation and industrial applications • Cespira is driving for increased revenue streams and new market opportunities • We’re developing compelling new technology to revolutionize the heavy-duty OEM marketplace • We’ve increased focus on the higher growth High- Pressure Controls & Systems along with HPDI • In addition to new growth opportunities, we’re making tough economic choices to drive future shareholder value • 60% reduction planned in Capex in 2026 • 15% in SG&A reduction planned in 2026 INVESTOR HIGHLIGHTS
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10 Thank you