Earnings release
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Westport Westport Reports Second Quarter 2026 Financial Results ~ Strong demand for the LNG HPDI trucks drives 125 % Q2 revenue growth for Cespira ~ VANCOUVER , British Columbia , Aug. 11 , 2026 -- Westport Fuel Systems Inc. ( " Westport " ) ( TSX : WPRT / Nasdaq : WPRT ) today reported financial results for the second quarter ended June 30 , 2026 , and provided an update on operations . All figures are in U.S. dollars unless otherwise stated . " The second quarter marked another important step forward in Westport's transformation , with two developments that reinforce both the commercial momentum behind Cespira and our ability to fund the next phase of our strategy . Cespira , our joint venture with Volvo Group , continued to scale in the quarter , delivering significant year - over - year quarterly revenue growth , supported by increased customer orders for the HPDI ™ fuel system , with revenue up 125 % and gross profit improvement of 298 % at the joint venture level , compared to the prior - year quarter . These results reflect the growing market acceptance of HPDI as a practical , affordable , high - performance solution for heavy - duty transportation . We are encouraged by the market drivers supporting this growth . The price advantage of LNG versus diesel fuel has remained resilient in Europe despite ongoing geopolitical volatility , strengthening the economic case for fleets operating in demanding long - haul applications . At the same time , recent regulatory developments in Europe , including greater flexibility around heavy- duty vehicle CO2 credits earned before 2030 , should reward OEMs that have adopted HPDI technology . That relevance was further strengthened in June when Cespira and Volvo Trucks signed a development agreement to finalize the integration and commercialization of Cespira's HPDI fuel system technology for Volvo's 13 - litre hydrogen engine applications , with on - road testing underway and European certified commercial launch targeted before 2030. Building on the proven use of HPDI in LNG - powered heavy - duty engines , this agreement extends the same core technology platform to hydrogen , supporting a lower - carbon pathway for long - haul transport using a zero carbon fuel while preserving the performance , durability and operating characteristics fleets require . We also took a meaningful step in strengthening Westport's financial position . In June , we completed a private placement that provided initial gross proceeds of approximately US $ 10 million , with the potential for an additional US $ 10 million over the next two years through warrant exercises . This financing enhances our liquidity and provides additional flexibility as we continue advancing our core priorities : scaling Cespira and progressing our high - pressure CNG solution for the North American market . For fleet operators , the path forward must be pragmatic . It must be built on stable economics , proven performance and infrastructure that exists today . By pairing Westport's high - pressure CNG fuel storage solution with Cespira's HPDI fuel system , we believe we can help North American fleets save money , reduce emissions and address energy security issues with a natural gas and renewable natural gas powertrain system , while maintaining a pathway to hydrogen as the fuel's economics and infrastructure mature . This is the foundation of our North American CNG strategy : meeting operators where they are today while building a practical , affordable , scalable pathway to the lower - emission freight systems of tomorrow . " Dan Sceli , Chief Executive Officer Second Quarter 2026 Highlights • Revenues for the second quarter of 2026 decreased to $ 2.7 million compared to $ 12.5 million in the same quarter last year . As planned , our Heavy - Duty OEM segment ended its transitional service agreement with Cespira at the end of Q2 2025 resulting in reduction in revenue when comparing period over period . • Cespira delivered strong financial performance , driven by significant growth in product , aftermarket , and service revenue . For the three months ended June 30 , 2026 , revenue increased by $ 15.1 million or 125 % compared to the prior year quarter . Cespira reduced its net loss by $ 4.4 million and reliance on funding from its partners in the quarter . Westport reduced its capital contributions to Cespira in the quarter from $ 4.2 million to $ 3.5 million . • For the three months ended June 30 , 2026 , our High - Pressure Controls segment decreased its revenue by $ 0.2 million or 6 % compared to the prior year quarter . • Net loss from continuing operations of $ 11.4 million for the quarter compared to a net loss from continuing operations of $ 5.1 million for the same quarter last year . The increase in net loss in the current quarter was primarily driven by the loss recognized for the change in fair value of the warrant liabilities , financing transaction costs , and foreign exchange loss . In the prior year quarter , we had a foreign exchange gain of $ 4.2 million . • Adjusted EBITDA¹ of negative $ 6.3 million compared to negative $ 1.0 million for the same period in 2025. The increase in negative adjusted EBITDA was primarily driven by an increase in operating loss for the quarter partially offset by a decrease in the loss from investments accounted for by the equity method . Included in the prior year quarter's adjusted EBITDA was our discontinued operations ' performance , which included an operating profit of $ 3.1 million for the three months ended June 30 , 2025 . • Cash and cash equivalents were $ 23.9 million for the second quarter of 2026. Cash used in operating activities from continuing operations was $ 4.6 million , primarily driven by operating losses in the quarter and changes in working
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capital. Cash used in investing activities from continuing operations primarily consisted of capital contributions to Cespira of $3.5 million. Cash provided by financing activities from continuing operations were primarily driven by the financing transaction partially offset by debt repayments of $1.0 million in the quarter. • Long term debt, including the current portion, was $1.0 million as at June 30, 2026, compared to $2.9 million at December 31, 2025. ______________________ 1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation. CONSOLIDATED RESULTS ($ in thousands, except per share amounts)   Increase / (Decrease) %   Increase / (Decrease) % 2Q26 2Q25 1H26 1H25 Revenues $ 2,717 $ 12,498 (78)% $ 5,002 $ 19,821 (75)% Gross Profit  133  842 (84)%  649  2,377 (73)% Gross Margin %(2)  5%  7%  13%  12% Loss from Investments Accounted for by the Equity Method(1)  (1,283)  (3,686) (65)%  (2,664)  (7,570) (65)% Net Loss from Continuing Operations (11,375)  (5,053) (125)%  (17,082)  (10,348) (65)% Net Loss from Discontinued Operations —   (29,291) 100%  —   (26,447) 100% Net Loss  (11,375)  (34,344) 67%  (17,082)  (36,795) 54% Net Loss per Share - Basic & Diluted$ (0.64) $ (1.98) 68% $ (0.97) $ (2.12) 54% EBITDA(2) $ (10,823) $ (30,049) 64% $ (16,857) $ (30,184) 44% Adjusted EBITDA(2) $ (6,273) $ (1,017) (517)% $ (11,132) $ (1,024) (987)% (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 Revenue for the three months ended June 30, 2026 was $2.7 million, compared with $2.9 million for the three months ended June 30, 2025. The decrease in revenue was primarily driven by lower volume of sales in the quarter compared to prior year. As at June 30, 2026, we have a backlog of demand from customers that are waiting to be fulfilled as we continue to improve the production output from our two main manufacturing plants in Canada and China. Gross profit was $0.1 million or 5% of revenue, for the three months ended June 30, 2026 compared to $0.1 million or 4% of revenue, for the three months ended June 30, 2025. We anticipate that as the manufacturing plants in Canada and China continue to work on localizing its supply chain and improving its manufacturing processes and output, its gross profit and margin will improve. Heavy-Duty OEM The segment's transitional service agreement with Cespira ended in Q2 2025 and, as a result, the segment did not have any sales activity in the quarter. Selected Cespira Statements of Operations Data We account for Cespira using the equity method of accounting. However, due to its significance to our long-term strategy and operating results, we disclose selected Cespira financial information in our interim financial statements for the three and six months ended June 30, 2026. The following table sets forth a summary of the financial results of Cespira for the three and six months ended June 30, 2026. Three months ended June 30,  Change Six months ended June 30, Change (in thousands of U.S. dollars)  2026   2025  $  %   2026   2025  $  % Product revenue  $18,918  $ 8,344  $10,574  127%  $34,049  $18,450  $15,599  85% Aftermarket revenue  $ 5,517  $ 2,647  $ 2,870  108%   9,878   5,719  $ 4,159  73% Service revenue  $ 2,636  $ 1,029   1,607  156%   5,393   4,650   743  16% Total revenue  $27,071  $12,020   15,051  125%   49,320   28,819   20,501  71% Gross profit1  $ 3,814  $(1,926)   5,740  298%   5,390   (1,411)   6,801  482% Gross margin %   14% (16)%      11% (5)%
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Research & development $ 1,182  $ 1,888   (706) (37)%  2,662   4,890   (2,228) (46)% Selling, general, & administrative $ 3,590  $ 3,014   576  19%   6,114   6,037   77  1% Operating loss  $(2,120)  $(6,843)   4,723  (69)%  (4,710)   (13,840)   9,130  (66)% Net loss  $(2,375)  $(6,746)   4,371  (65)%  (4,897)   (13,744)   8,847  (64)% (1)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. Product Revenue for the three and six months ended June 30, 2026 was $18.9 million and $34.0 million compared to $8.3 million and $18.5 million for the three and six months ended June 30, 2025. The increase in revenue of 127% in the current quarter was primarily driven by significantly higher volumes of systems sold compared to the prior year quarter. The increase in revenue year to date is primarily driven by back to back quarters in Q1 and Q2 having significant increases in systems sold compared to the prior year. Cespira's growth is influenced by the resilient favorable price differential between diesel and natural gas and government regulation support in markets like Europe. Aftermarket Revenue for the three and six months ended June 30, 2026 was $5.5 million and $9.9 million compared to $2.6 million and $5.7 million for the three and six months ended June 30, 2025. The increase in revenue of aftermarket products sold is primarily driven by increase in sales volumes. Service Revenue for the three and six months ended June 30, 2026 was $2.6 million and $5.4 million compared to $1.0 million and $4.7 million for the three and six months ended June 30, 2025. The increase in service revenue in the current quarter was primarily driven by the milestones achieved. Service revenue allocated to project milestones are weighted differently across the phases of an engineering service revenue project. One of Cespira's significant long-term engineering service revenue project is expected to complete in Q4 2026 in advance of the anticipated launch of their Euro 7 product. Gross profit was $3.8 million and $5.4 million for the three and six months ended June 30, 2026 compared to gross loss of $1.9 million and $1.4 million for the three and six months ended June 30, 2025. The increase in gross profit was primarily driven by the increase in higher volumes of systems and aftermarket products sold along with cost reductions in materials and improvements in labor efficiency. Cespira had an operating loss of $2.1 million and $4.7 million for the three and six months ended June 30, 2026 compared to $6.8 million and $13.8 million for the three and six months ended June 30, 2025. Cespira significantly reduced its operating loss compared to the prior year quarter by meaningfully increasing its product revenue, gross margin and lowering its cost base as it continues to grow and scale the business. Liquidity and Going Concern As at June 30, 2026, we had cash and cash equivalents of $23.9 million and long-term debt of $1.0 million from Export Development Canada ("EDC"), of which all is current. Based on our projected capital expenditures, debt servicing obligations and operating requirements under our current business plan, we are projecting that our cash and cash equivalents will not be sufficient to fund our operations through the next twelve months from the date of the issuance of our Q2 2026 MD&A. These conditions raise substantial doubt about Westport's ability continue as a going concern within one year after the date that our Q2 2026 MD&A is issued. Management is currently evaluating several different options to improve Westport's liquidity position, including raising funds from the public markets and borrowing debt or other financing alternatives. These plans are not final and are subject to market and other conditions not within our control. As such, there can be no assurances that Westport will be successful in obtaining sufficient funding. Accordingly, we concluded under the accounting standards that these plans do not alleviate the substantial doubt about Westport's ability to continue as a going concern. Conference call Westport has scheduled a conference call for Wednesday, August 12, 2026, at 6:30 am Pacific Time (9:30 am Eastern Time) to discuss these results. To access the conference call please register at https://register-conf.media- server.com/register/BI19d4aa4064ee4de6ac427edb5c169871 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 full financials for the second quarter ended June 30, 2026, please visit https://investors.westport.com/financials/ About Westport Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a
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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 alternative 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 is headquartered in Vancouver, Canada. For more information, visit www.westport.com. 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. Segment 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 U.S. 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 this press release.  Three months ended June 30, 2026 High-Pressure Controls  Cespira  Total Segment Revenue $ 2,717  $ 27,071  $ 29,788 Cost of revenue  2,584   23,257   25,841 Gross profit  133   3,814   3,947 Operating expenses: Research & development  790   1,182   1,972 General & administrative  561   2,969   3,530 Sales & marketing  131   621   752 Depreciation & amortization  11   899   910   1,493   5,671   7,164 Add back: Depreciation & amortization  221   986   1,207 Segment EBITDA $ (1,139) $ (871) $ (2,010)
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Three months ended June 30, 2025 High-Pressure Controls & Systems Heavy-Duty OEM  Cespira  Total Segment Revenue $ 2,896  $ 9,602 $ 12,020  $ 24,518 Cost of revenue  2,791   8,865  13,946   25,602 Gross profit  105   737  (1,926)  (1,084) Operating expenses: Research & development  1,552   22  1,888   3,462 General & administrative  386   34  2,692   3,112 Sales & marketing  23   3  322   348 Depreciation & amortization  59   —   860   919   2,020   59  5,762   7,841 Add back: Depreciation & amortization  172   —   772   944 Segment EBITDA $ (1,743) $ 678 $ (6,916) $ (7,981)  Six months ended June 30, 2026 High-Pressure Controls  Cespira  Total Segment Revenue $ 5,002  $ 49,320  $ 54,322 Cost of revenue  4,353   43,930   48,283 Gross profit  649   5,390   6,039 Operating expenses: Research and development  1,738   2,662   4,400 General and administrative  1,112   5,232   6,344 Sales and marketing  226   882   1,108 Depreciation and amortization  96   1,773   1,869   3,172   10,549   13,721 Add back: Depreciation and amortization1  408   1,935   2,343 Segment EBITDA $ (2,115) $ (3,224) $ (5,339)  Six months ended June 30, 2025 High-Pressure Controls Heavy-Duty OEM  Cespira  Total Segment Revenue $ 4,786  $ 15,035 $ 28,819  $ 48,640 Cost of revenue  4,168   13,276  30,230   47,674 Gross profit  618   1,759  (1,411)  966 Operating expenses: Research and development  2,734   133  4,890   7,757 General and administrative  705   99  5,419   6,223 Sales and marketing  150   23  618   791 Depreciation and amortization  115   —   1,590   1,705   3,704   255  12,517   16,476 Add back: Depreciation and amortization1  298   —   2,392   2,690 Segment EBITDA $ (2,788) $ 1,504 $ (11,536) $ (12,820)  Three months ended June 30, 2026  Total Segment Less: Cespira Add: Corporate & unallocated Total Consolidated Revenue $ 29,788 $ 27,071 $ —   $ 2,717 Cost of revenue  25,841  23,257  —    2,584 Gross profit  3,947  3,814  —    133 Operating expenses: Research & development  1,972  1,182  421   1,211
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General & administrative  3,530  2,969  3,613   4,174 Sales & marketing  752  621  93   224 Depreciation & amortization  910  899  34   45   7,164  5,671  4,161   5,654 Equity loss  —   —   (1,283)  (1,283)  Three months ended June 30, 2025  Total Segment Less: Cespira Add: Corporate & unallocated Total Consolidated Revenue $ 24,518  $ 12,020  $ —   $ 12,498 Cost of revenue  25,602   13,946   —    11,656 Gross profit  (1,084)  (1,926)  —    842 Operating expenses: Research & development  3,462   1,888   —    1,574 General & administrative  3,112   2,692   3,686   4,106 Sales & marketing  348   322   264   290 Depreciation & amortization  919   860   47   106   7,841   5,762   3,997   6,076 Equity loss  —    —    (3,686)  (3,686)  Six months ended June 30, 2026  Total Segment Less: Cespira Add: Corporate & unallocated Total Consolidated Revenue $ 54,322 $ 49,320 $ —   $ 5,002 Cost of revenue  48,283  43,930  —    4,353 Gross profit  6,039  5,390  —    649 Operating expenses: Research and development  4,400  2,662  696   2,434 General and administrative  6,344  5,232  5,896   7,008 Sales and marketing  1,108  882  205   431 Depreciation and amortization  1,869  1,773  59   155   13,721  10,549  6,856   10,028 Equity loss  —   —   (2,664)  (2,664)  Six months ended June 30, 2025  Total Segment Less: Cespira Add: Corporate & unallocated Total Consolidated Revenue $ 48,640 $ 28,819  $ —   $ 19,821 Cost of revenue  47,674  30,230   —    17,444 Gross profit  966  (1,411)  —    2,377 Operating expenses: Research and development  7,757  4,890   —    2,867 General and administrative  6,223  5,419   5,974   6,778 Sales and marketing  791  618   560   733 Depreciation and amortization  1,705  1,590   99   214   16,476  12,517   6,633   10,592 Equity loss  —   —    (7,570)  (7,570) Reconciliation of Segment EBITDA to Loss before income taxes  Three months ended June 30, Six months ended June 30,    2026    2025    2026    2025 Total Segment EBITDA  $ (2,010) $ (7,981) $ (5,339) $ (12,820) Adjustments: Depreciation and amortization1   255   219   467   397 Cespira's Segment EBITDA   (871)  (6,916)  (3,224)  (11,536)
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Loss on investments accounted for under the equity method (note 8)   1,283   3,686   2,664   7,570 Corporate and unallocated operating expenses  4,127   3,950   6,797   6,534 Foreign exchange gain (loss)   1,693   (4,224)  2,700   (5,427) Change in fair value of warrant liability   1,496   —    1,496   — Financing transaction costs   1,085   —    1,085   — Interest on long-term debt   68   166   158   358 Interest and other income, net of bank charges  6   147   (736)  (502) Loss before income taxes in continuing operations $ (11,152) $ (5,009) $ (16,746) $ (10,214) Gross Profit and Gross Margin (expressed in thousands of U.S. dollars) 2Q26  2Q25  1Q26  1Q25Three months ended Revenue  $ 2,717  $ 12,498  $ 2,285  $ 7,323 Less: Cost of revenue   2,584   11,656   1,769   5,788 Gross profit   133   842   516   1,535 Gross margin %   5%  7%  23%  21% EBITDA and Adjusted EBITDA (expressed in thousands of U.S. dollars) 2Q26 2Q25 1Q26 1Q25Three months ended Income (Loss) before income taxes  $ (11,152) $ (32,671) $ (5,594) $ (1,872) Interest expense (income), net   74   571   (652)  (193) Depreciation and amortization   255   2,051   212   1,930 EBITDA   (10,823)  (30,049)  (6,034)  (135) Stock based compensation   276   451   168   285 Unrealized foreign exchange (gain) loss   1,693   (2,362)  1,007   (456) Severance costs   —    96   —    299 Loss on disposal of operations   —    30,183   —    — Impairment of long-term investments and long-term assets  —    664   —    — Change in fair value of warrant liability   1,496   —    —    — Financing transaction costs   1,085   —    —    — Adjusted EBITDA  $ (6,273) $ (1,017) $ (4,859) $ (7) Cautionary Note Regarding Forward Looking Statements This press release contains forward-looking statements, including statements regarding future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen) including testing to the HPDI fuel system, timing of engineering milestones and product launch schedules, scaling our alternative fuel-based solutions, our expectations for 2026 and beyond, including growth expectations, market growth and the demand for our products, the future success of our business and technology strategies, our ability to bolster our balance sheet, fund organic growth and raise additional capital as well as, a shift to operating as a smaller, more efficient organization. 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 activities, 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, sufficiency of cash resources, industry and products, changes in business strategy, shifts in market demand, the general economy including impacts due to inflation, the effects of competition and pricing pressures, conditions of and access to the capital and debt markets, solvency, governmental policies, trade restrictions or other changes to international trade agreements, sanctions and regulation including the imposition of tariffs, 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, new environmental regulations, the acceptance of and shift to natural gas and hydrogen vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, supply chain disruptions, commodity price expectations 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 report, Form 20-F 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
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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 Westport Investor Relations 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, 2026 and December 31, 2025   June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents (including restricted cash)  $ 23,946  $ 27,158 Accounts receivable   6,146   10,177 Inventories   2,745   3,037 Prepaid expenses   632   1,182 Total current assets   33,469   41,554 Long-term investments   44,028   42,714 Property, plant and equipment   5,552   5,605 Operating lease right-of-use assets   1,537   1,756 Other long-term assets   421   2,380 Total assets  $ 85,007  $ 94,009 Liabilities and shareholders’ equity Current liabilities: Accounts payable and accrued liabilities  $ 16,416  $ 17,933 Warrant liabilities   11,337   — Current portion of operating lease liabilities   491   493 Current portion of long-term debt   972   2,924 Current portion of warranty liability   113   199 Total current liabilities   29,329   21,549 Long-term operating lease liabilities   1,082   1,292 Warranty liability   937   966 Other long-term liabilities   1,388   1,389 Total liabilities   32,736   25,196 Shareholders’ equity: Share capital: Unlimited common and preferred shares, no par value 18,995,734 (2025 - 17,351,005) common shares issued and outstanding  1,247,185   1,246,793 Other equity instruments   8,898   8,968 Additional paid in capital   11,516   11,516 Accumulated deficit   (1,174,983)  (1,157,901) Accumulated other comprehensive loss   (40,345)  (40,563) Total shareholders' equity   52,271   68,813 Total liabilities and shareholders' equity  $ 85,007  $ 94,009 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 months ended June 30, 2026 and 2025   Three months ended June 30, Six months ended June 30,    2026   2025   2026   2025 Revenue  $ 2,717  $ 12,498  $ 5,002  $ 19,821 Cost of revenue   2,584   11,656   4,353   17,444 Gross profit   133   842   649   2,377
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Operating expenses: Research and development   1,211   1,574   2,434   2,867 General and administrative   4,174   4,106   7,008   6,778 Sales and marketing   224   290   431   733 Foreign exchange loss (gain)   1,693   (4,224)  2,700   (5,427) Depreciation and amortization   45   106   155   214    7,347   1,852   12,728   5,165 Loss from operations   (7,214)   (1,010)  (12,079)  (2,788) Loss from investments accounted for by the equity method  (1,283)   (3,686)  (2,664)  (7,570) Change in fair value of warrant liability   (1,496)   —    (1,496)  — Financing transaction costs   (1,085)   —    (1,085)  — Interest on long-term debt   (68)   (166)  (158)  (358) Interest and other income, net of bank charges  (6)   (147)  736   502 Loss before income taxes   (11,152)   (5,009)  (16,746)  (10,214) Income tax expense   223   44   336   134 Net loss from continuing operations   (11,375)   (5,053)  (17,082)  (10,348) Net income from discontinued operations   —    (29,291)  —    (26,447) Net loss for the period   (11,375)   (34,344)  (17,082)  (36,795) Other comprehensive income (loss): Cumulative translation adjustment   863   6,921   2,737   10,562 Ownership share of equity method investments' other comprehensive loss   (337)   (1,464)  (2,519) $ (2,293)    526   5,457   218   8,269 Comprehensive loss  $ (10,849)  $ (28,887) $ (16,864) $ (28,526) Net loss per share: From continuing operations - basic and diluted $ (0.64)  $ (0.29) $ (0.97) $ (0.60) From discontinued operations - basic and diluted $ —    (1.69) $ —    (1.53) Net loss per share - basic and diluted  $ (0.64)  $ (1.98)  $ (0.97) $ (2.12) Weighted average common shares outstanding: Basic and diluted   17,822,491   17,338,288   17,609,725   17,330,527 WESTPORT FUEL SYSTEMS INC. Condensed Consolidated Interim Statements of Cash Flows (unaudited) (Expressed in thousands of United States dollars) Three months ended June 30, 2026 and 2025   Three months ended June 30, Six months ended June 30,    2026   2025   2026   2025 Operating activities: Net loss for the period from continuing operations $ (11,375)  $ (5,053) $ (17,082) $ (10,348) Adjustments to reconcile net income (loss) to net cash used in continuing operating activities: Depreciation and amortization   255   219   467   397 Stock-based compensation expense   110   126   196   304 Unrealized foreign exchange loss (gain)   1,693   (4,224)  2,700   (5,427) Deferred income tax (recovery)   —    (6)  —    (9) Loss from investments accounted for by the equity method   1,283   3,686   2,664   7,570 Interest on long-term debt   23   23   47   45 Inventory write-downs   54   140   54   110 Bad debt expense   14   —    2   — Change in fair value of warrant liability   1,496   —    1,496   — Financing transaction costs   1,085   —    1,085   — Warranty provision   (124)   —    (124)  — Net cash used before working capital changes  (5,486)   (5,089)  (8,495)  (7,358) Changes in working capital: Accounts receivable   (393)   (8,160)  505   (8,324) Inventories   159   5,879   197   3,770 Prepaid expenses   498   600   524   920
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Accounts payable and accrued liabilities   647   1,056   (675)  (3,240) Warranty liability   12   92   43   5 Net cash used in operating activities from continuing operations   (4,563)   (5,622)  (7,901)  (14,227) Net cash provided by (used in) operating activities from discontinued operations   —    (582)  —    3,125 Investing activities: Purchase of property, plant and equipment  (48)   (822)  (480)  (1,395) Proceeds from holdback receivable   —    —    5,844   10,450 Capital contributions to investments accounted for by the equity method   (3,512)   (4,185)  (6,364)  (8,871) Net cash provided by (used in) investing activities from continuing operations   (3,560)   (5,007)  (1,000)  184 Net cash used in investing activities from discontinued operations   —    (460)  —    (2,947) Financing activities: Repayments of operating lines of credit and long-term facilities   (1,000)   (1,000)  (2,000)  (2,000) Proceeds from issuance of common share, warrants, and pre-funded warrants   10,000   —    10,000   — Payment of shares and warrants issuance costs  (700)   0   (700)   — Net cash provided by (used in) financing activities from continuing operations   8,300   (1,000)  7,300   (2,000) Net cash used in financing activities from discontinued operations   —    (3,176)  —    (6,094) Effect of foreign exchange on cash and cash equivalents  (734)   4,593   (1,611)  5,696 Net decrease in cash and cash equivalents  (557)   (11,254)  (3,212)  (16,263) Cash and cash equivalents, beginning of period (including restricted cash)   24,503   32,637   27,158   37,646 Cash and cash equivalents, end of period (including restricted cash)  $ 23,946  $ 21,383  $ 23,946  $ 21,383 Less: cash and cash equivalents from discontinued operations, end of period (including restricted cash) $ —   $ 15,319  $ —   $ 15,319 Cash and cash equivalents from continuing operations, end of period (including restricted cash) $ 23,946  $ 6,064  $ 23,946  $ 6,064