WPRT Stock Forecast & Price Target

Westport Fuel Systems Inc's third-quarter 2025 results surpassed expectations, showcasing higher-margin engineering service revenue, particularly within the High Pressure Controls & Systems segment, which bodes well for future market share gains. The company is expected to achieve significant growth, with projected revenue rising to $92.7 million by 2036, translating to a ten-year compound annual growth rate (CAGR) of approximately 22.1%. Additionally, Westport's strategic positioning in hydrogen and natural gas heavy-duty transport markets, combined with its innovative LNG-HPDI technology and favorable macro trends toward emissions reduction, reinforces its potential for sustainable growth despite current challenges related to fuel price differentials.

Westport Fuel Systems reported a consolidated revenue of $12.5 million in its 2Q25 results, reflecting an 11% year-over-year decline, attributed to a transition in manufacturing operations. The company also recorded a substantial net loss of $34.3 million for the quarter, significantly deteriorating from a net income of $5.8 million in the same period last year, indicating ongoing financial distress. Additionally, the organization's lack of consistent positive free cash flow and potential need for capital raising, combined with regulatory challenges and increasing competition from battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs), further contribute to a negative outlook on Westport's stock.