Westport Fuel Systems GAAP EPS of -$0.10 misses by $0.04, revenue of $78M beats by $3.27M
Mar. 13, 2023 5:08 PM ETWestport Fuel Systems Inc. (WPRT), WPRT:CABy: Pranav Ghumatkar, SA News Editor1 Comment
- Westport Fuel Systems press release (NASDAQ:WPRT): Q4 GAAP EPS of -$0.10 misses by $0.04.
- Revenue of $78M (-5.7% Y/Y) beats by $3.27M.
- Adjusted EBITDA1 of $(27.8) million, compared to $17.5 million in the prior year. Adjusted EBITDA for the fourth quarter was $(12.9) million.
- Cash and cash equivalents were $86.2 million for the year ended December 31, 2022. Cash used in operating activities during the year was $31.6 million.
- Outlook: 2023 is a year of change for Westport, as we continue to deliver sustainably in our existing markets while unlocking new and emerging markets through the delivery of our cleaner, affordable transportation solutions. Though headwinds still remain for our industry, including the Russia/Ukraine conflict, supply chain issues, and inflationary concerns, we remain confident in our ability to execute on our plans for 2023, focusing on what we can control, driving margin and revenue expansion and developing technology for the future.
- Effecting change in our cost structure is a priority in 2023. New customer supply agreements have been secured and work is underway to enhance top line revenue further with additional volume expansion throughout the business which has the added benefit of driving economies of scale. On the cost side, a slate of efficiency improvements will be put in place throughout the year focused on optimizing various business units and improving financial performance, while working constantly to lower and mitigate input costs.
- We remain prudent in our liquidity management. The capital program in place for 2023 of $12-$15 million is focused on advancing our work with hydrogen and adding test cell capacity.
- In 2024 and beyond, we expected improved profitability and growth as we begin to benefit from the changes made in 2023, in addition to demonstrated growth in our core business. Adoption of alternative fuels for transportation applications continues to accelerate and is expected to experience a step change increase as the regulatory requirements become increasingly more stringent beginning in 2025 in many of our key markets, including Europe, India and China. Our HPDI fuel system solution using Bio LNG or hydrogen is one of Westport's clean, affordable products that addresses these regulatory requirements now and into the future.
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