WPRT

Corporate and Strategic Milestones

• Westport closed a $10 million registered direct offering and concurrent private placement in June 2026, generating gross proceeds to strengthen near-term liquidity for working capital and general corporate purposes; an additional $10 million in gross proceeds could be raised if all outstanding private placement warrants are exercised.
• Suspira, Westport's joint venture with Volvo Group, signed a customer-funded hydrogen-fueled engine development agreement with Volvo Group, validating the versatility of HPDI technology across multiple low-carbon fuels including hydrogen, natural gas, and renewable natural gas.
• The company reaffirmed its core strategic focus on high-impact, scalable clean transportation solutions that deliver emissions reductions and economic benefits without compromising vehicle performance.

Operational Progress

• Suspira has delivered consecutive quarter-over-quarter revenue growth, with Q2 2026 marking the strongest growth to date, supported by favorable LNG-diesel price differentials and new EU emissions regulations that create incentives for early adoption of low-emission HPDI technology.
• The expanded high pressure controls manufacturing facility in Cambridge, Ontario (Canada) and the GFI China Hydrogen Innovation Centre and manufacturing facility in Jiangsu (China) are in production ramp-up, with unmet backlogged customer demand waiting to be fulfilled as output increases.
• North American high-pressure CNG fuel system development continues, with increased customer engagement and fleet demonstrations following the ACT Expo showcase, highlighting the solution's ability to deliver diesel-like performance without requiring full overhauls of fleet operations.

Financial Updates

• End-of-quarter cash and cash equivalents totaled $23.9 million, a slight decrease from $24.5 million at the end of Q1 2026, driven by operating losses, one-time financing costs, Q1 cyber incident costs, Suspira funding, and debt repayment, partially offset by financing proceeds.
• Capital contributions to Suspira decreased to $3.5 million in Q2 2026 compared to Q2 2025, reflecting improved operating performance at the joint venture.

• Management reaffirms prior guidance that Suspira will reach break-even in 2027, and notes the joint venture is progressing ahead of initial expectations on this timeline. Capital contributions from Westport to Suspira are expected to continue decreasing in 2027 and cease entirely once Suspira reaches break-even, as the joint venture will no longer require external cash infusions.
• For the high pressure controls segment, management expects gross profit and margin to improve as manufacturing facilities in Canada and China complete supply chain localization, process improvements, and production ramp-up. The manufacturing transition bottlenecks that reduced Q2 2026 volume are expected to be resolved by the second half of 2026, allowing the segment to meet or beat full-year 2026 volume plans.
• Management expects sustained revenue growth for Suspira through the second half of 2026, driven by EU regulatory incentives, growing adoption outside of Europe, and the upcoming launch of the new Volvo Euro 7 engine paired with HPDI 3.0 technology.

1. High Pressure Controls: Q2 2026 revenue was $2.7 million, down from $2.9 million in Q2 2025, driven by lower sales volume during the manufacturing transition period. Gross profit was $0.1 million, representing a 5% gross margin, consistent with Q2 2025. Revenue contribution for the segment was 10.4% of total consolidated revenue.
2. Suspira (Joint Venture): Q2 2026 total revenue grew 125% year-over-year compared to Q2 2025. Product revenue was $18.9 million, up 127% YoY from $8.3 million; aftermarket revenue was $5.5 million, up from $2.6 million YoY; service revenue was $2.6 million, up from $1 million YoY. Gross profit reached $3.8 million, an improvement from a $1.9 million gross loss in Q2 2025. Net loss was $2.4 million, a 65% improvement from the $6.7 million net loss in Q2 2025. Total revenue for the segment was $27 million, representing 89.6% of total consolidated revenue.

• Forward-looking statements related to growth, break-even timelines, and production ramp-up are subject to risks and uncertainties that could cause actual results to differ materially from current expectations, as detailed in Westport's regulatory filings.
• Private placement warrants are accounted for as liabilities that require remeasurement to fair value at each reporting date, with fair value changes recorded through earnings until the warrants are exercised or expired.
• Hydrogen market growth has been slower than management previously expected, which could near-term impact high pressure controls segment volume growth.
• Manufacturing transition delays created temporary volume bottlenecks for the high pressure controls segment in the first half of 2026, limiting near-term revenue performance.

Q: What specific drivers are behind Suspira's strong growth, and what should investors expect for future growth? / A: Dan Sceli explained that EU emissions mandates and CO2 credit systems are creating strong demand from OEMs and fleets for low-emission proven technology like HPDI. Outside the EU, Volvo is establishing market footholds in South America and India, with Suspira technology already deployed across 37 countries with more than 12,000 trucks on the road. Future growth will be supported by ongoing adoption in existing markets and the planned expansion of HPDI into the North American market.

Q: Is the hydrogen development agreement with Volvo funded by Westport? / A: Dan Sceli clarified this is a fully customer-funded development contract, with Volvo covering all development costs for the hydrogen HPDI system. No additional capital contributions from Westport are required for this program.

Q: What is causing the unfulfilled demand in the high pressure controls segment, and when will the bottleneck be resolved? / A: The bottleneck stems from the required transition of manufacturing equipment from Europe to the new Canadian and Chinese facilities, including installation, certification, and workforce training. This is a typical changeover impact. Management expects the transition to be fully complete by H2 2026, with no remaining bottlenecks to meet planned volume after that.

Q: What is the status of the second OEM customer engagement with Suspira, and will high pressure controls grow in H2 2026? / A: Phase 1 field trials for the second OEM were completed successfully, and the OEM is now planning a larger second phase of trials, with details expected within the next month. While overall hydrogen market growth has been slower than projected, the segment has a backlog of unmet demand to fill, and expects strong volume growth in H2 2026, particularly driven by hydrogen policy support in China, and expects to beat full-year 2026 volume plans.