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Analogy 1: Bosch for alternative fuel systems in commercial vehicles.

Analogy 2: Hyliion for natural gas and hydrogen commercial truck systems.

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• HPDI 2.0 Fuel Systems: Proprietary technology enabling heavy-duty engines to operate primarily on natural gas with diesel-like performance and efficiency.
• CNG/LPG Fuel System Components: Individual components such as injectors, regulators, and ECUs used in light- and medium-duty vehicle conversions and OEM applications for compressed natural gas and liquefied petroleum gas.
• Hydrogen Fuel Systems: Developing and supplying components and complete systems for hydrogen internal combustion engines (H2-ICE) and fuel cell applications.
• Integrated Fuel Systems for OEMs: Complete, customized clean fuel systems, including storage, delivery, and control, designed for integration into vehicles by original equipment manufacturers.

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Westport Fuel Systems (WPRT) primarily operates as a business-to-business (B2B) company, supplying advanced clean fuel systems, components, and solutions to original equipment manufacturers (OEMs) and engine manufacturers in the transportation sector.

Its major customers and partners include:

• Volvo Group (Symbol: VOLV-B.ST)
• Cummins Inc. (Symbol: CMI)
• Ford Motor Company (Symbol: F)

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Daniel Sceli, Chief Executive Officer

Daniel Sceli was appointed Chief Executive Officer in January 2024. He previously served as Board Member and CEO of Cadillac Products Automotive Company, an international leader in the plastics converting industry, where he diversified the product portfolio and expanded into new markets. Prior to that, he spent 12 years as CEO at Peterson American Corporation, which is the largest privately held spring manufacturer in North America, leading the company through strategic overhauls resulting in significant growth. Mr. Sceli also spent 22 years in various leadership roles at The Woodbridge Group, a provider of material technologies, including several years running their European business.

Elizabeth Owens, Chief Financial Officer

Elizabeth Owens was appointed Chief Financial Officer in August 2025. She has been with Westport Fuel Systems for 10 years, most recently as Vice President, Finance and Tax. Ms. Owens has over 20 years of experience in management and leadership roles across diverse multinational corporate environments and various industries, including automotive, telecommunications, aviation, and chemical manufacturing. She began her career as a CPA, CA with Deloitte.

Lance Follett, Chief Legal Officer and Executive Vice President

Lance Follett oversees Corporate Development, Legal, Government Relations, and Intellectual Property, having joined Westport Fuel Systems in 2001 as intellectual property counsel. His background includes extensive experience in market development, intellectual property protection and licensing, mergers and acquisitions, and structuring and negotiating international technology deals in the energy, high tech, alternative energy, and automotive sectors.

Scott Baker, Vice President, Engineering and General Manager, Vancouver Operations

Scott Baker is Vice President of the Global Engineering organization and General Manager, Vancouver Operations. He joined Westport Fuel Systems in 1998 as Application Engineering Leader and has held various roles including Product Planning, Product Management, Chief Engineer, Senior Director Purchasing and Supplier Quality, and Vice President HD Business. His more than 20 years of experience in the heavy-duty commercial vehicle industry includes a multi-year secondment to the Cummins Westport joint venture.

Bart van Aerle, Executive Vice President, Independent Aftermarket and Light Duty Original Equipment Manufacturing

Bart van Aerle is responsible for strategic planning, the development of the corporation's technology and product roadmaps, and identifying new market and industry partnerships. He has successfully led Westport Fuel Systems Netherlands (formerly Prins, part of Westport Fuel Systems since 2014) since 2000, managing expanding partnerships and sales of innovative alternative fuel systems. From January 2018 to December 2019, Mr. van Aerle served as president of Cummins Westport in the USA.

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The key risks to Westport Fuel Systems (WPRT) are primarily centered around its ongoing strategic transformation and the broader market dynamics of alternative fuel technologies.

1. Achieving Profitability and Successful Strategic Pivot: Westport Fuel Systems is currently unprofitable and undergoing a significant strategic transition. The company has divested its Light-Duty segment to focus on its High-Pressure Direct Injection (HPDI) technology for heavy-duty trucking and the Cespira joint venture with Volvo Group. This pivot has resulted in substantial reductions in revenue from continuing operations and ongoing net losses. The success of this aggressive shift toward the high-potential heavy-duty market and the Cespira joint venture is critical for the company to achieve profitability and sustain its operations.
2. Slowdown in Hydrogen Infrastructure Development: The company faces challenges due to a slowdown in the development of hydrogen infrastructure. This directly impacts the adoption of hydrogen-powered automotive and industrial applications, leading to decreased demand and revenue for Westport's High-Pressure Controls & Systems segment, which includes its hydrogen-related offerings.
3. Market Volatility and Macroeconomic Headwinds: Westport Fuel Systems is susceptible to macroeconomic headwinds, including fluctuating natural gas prices and regulatory uncertainty, which could dampen demand for its alternative fuel solutions. The company's stock has also exhibited high volatility.

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The primary clear emerging threat for Westport Fuel Systems (WPRT) is the rapid and accelerating global shift towards Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs) as the preferred zero-emission solutions across light-duty, medium-duty, and heavy-duty commercial vehicle segments.

• Major original equipment manufacturers (OEMs) are committing substantial resources and production capacity to BEV and FCEV powertrains for trucks, buses, and off-highway vehicles, driven by increasingly stringent global emissions regulations (e.g., California's Advanced Clean Trucks rule, EU CO2 standards for heavy-duty vehicles) and a push for absolute zero tailpipe emissions.
• While Westport Fuel Systems focuses on alternative fuel internal combustion engines (natural gas, propane, and hydrogen ICE), these solutions, even hydrogen ICE, face competition from BEV and FCEV which are often positioned as truly "zero-emission" at the tailpipe, particularly for applications requiring long range or high power. If the adoption rate of BEVs and FCEVs in these segments outpaces the market penetration of Westport's alternative fuel ICE technologies, it could significantly constrain their addressable market and growth opportunities.
• Additionally, within the hydrogen ecosystem, the accelerated maturity and increasing industry preference for hydrogen fuel cell electric vehicles (FCEVs) over hydrogen internal combustion engines (ICE) represent a specific competitive threat. FCEVs typically offer higher energy efficiency and emit only water, whereas hydrogen ICE, while carbon-free with green hydrogen, still produces NOx emissions during combustion. If FCEV technology becomes more cost-effective, widely adopted, and better supported by infrastructure than hydrogen ICE, it could limit the market for Westport's hydrogen ICE offerings.

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Westport Fuel Systems (WPRT) operates in several addressable markets related to alternative fuel systems and components for transportation and industrial applications, primarily focusing on natural gas, renewable natural gas, and hydrogen technologies. The main products and services include High-Pressure Direct Injection (HPDI) fuel systems, high-pressure controls and systems, and advanced engine management controllers and software that enable vehicles to run on alternative fuels.

The addressable market sizes for Westport Fuel Systems' main products and services are as follows:

• Automotive Natural Gas Vehicle (NGV) Market (Global): The global automotive natural gas vehicle market was estimated to be between USD 12.85 billion and USD 34.5 billion in 2025, with projections to reach between USD 16.62 billion by 2029 and USD 40.9 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) ranging from 2.8% to 7.1% during the respective forecast periods. The Asia-Pacific region held the largest share of this market, accounting for 54.0% in 2024.
• Renewable Natural Gas (RNG) Market (Global): The global renewable natural gas market is estimated to be valued between USD 15.20 billion and USD 15.72 billion in 2025. It is projected to reach between USD 26.57 billion by 2032 and USD 32.51 billion by 2034, with CAGRs ranging from 8.0% to 8.41% over the forecast periods. North America dominated this market in 2024, holding approximately 35% to 45% of the global share. The transportation fuel segment constituted the largest application share in the global RNG industry in 2024, at approximately 56%.
• Hydrogen Internal Combustion Engines / Hydrogen Combustion Engine Market (Global): The global market for hydrogen internal combustion engines and hydrogen combustion engines is estimated to be valued between USD 3.6 million and USD 54.16 billion in 2025. It is forecasted to reach between USD 51.76 billion by 2034 and USD 105.61 billion by 2032, with CAGRs ranging from 9.94% to 142.9%. Europe is expected to account for a significant portion, around 40.5% by 2036, while the Asia-Pacific region is projected to dominate with a 35.3% share in 2025 and is considered the fastest-growing region.

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Westport Fuel Systems (WPRT) anticipates several key drivers for future revenue growth over the next two to three years, primarily stemming from its strategic focus on heavy-duty and alternative fuel systems following the divestiture of its Light-Duty segment in July 2025.

1. Increased volumes and market penetration of the Cespira joint venture's High-Pressure Direct Injection (HPDI) systems: The Cespira joint venture (also referred to as Sospira) is consistently highlighted as a significant growth area, having seen a 19% increase in revenue in both Q3 2025 and Q2 2025 compared to the prior year. Westport's strategy for Cespira involves delivering demonstrated volume growth, increasing its OEM presence, and expanding geographically, particularly in regions like Europe, India, and South America, where there's rising adoption and market opportunities for HPDI trucks.
2. Growth in the High-Pressure Controls & Systems business: This segment is considered a core pillar of Westport's growth strategy, focusing on providing critical components for fuel-agnostic platforms. While this segment experienced some revenue decline in Q2 and Q3 2025 due to a slowdown in the hydrogen industry and the relocation of production facilities, the company expects manufacturing facilities in Canada and China to be online by year-end, which should support future growth and capture market opportunities.
3. Development and commercialization of new alternative fuel solutions: Westport is committed to technological leadership and developing new solutions for cleaner energy. A specific driver mentioned is the development of a new Compressed Natural Gas (CNG) solution for the North American market. The company's expertise in natural gas, renewable natural gas, and hydrogen systems positions it to capitalize on the broader trend towards decarbonizing commercial transport.

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Share Issuance

• Westport Fuel Systems completed a public offering of common shares in June 2021, raising US $115,115,000.
• This offering involved the issuance of 20,930,000 shares at US $5.50 per share, which included shares from an over-allotment option.

Inbound Investments

• Westport Fuel Systems completed the sale of its Light-Duty segment to Heliaca Investments Coöperatief U.A. on July 29, 2025.
• The transaction provided $62.5 million (€53.6 million) in net proceeds, including $41.2 million (€35.3 million) in initial cash proceeds.
• The total consideration for this divestiture was approximately $79.5 million (€67.7 million), with potential earnouts of up to $3.9 million (€3.3 million).

Outbound Investments

• Westport Fuel Systems made cash capital contributions to Cespira, a joint venture with Volvo Group, amounting to $4.7 million in Q1 2025, $4.2 million in Q2 2025, and $11.0 million in Q3 2025.

Capital Expenditures

• Capital asset purchases amounted to $3.1 million in Q1 2025 and $0.8 million in Q2 2025.
• Proceeds from a June 2021 share offering were primarily allocated to expand production capacity for HPDI products and advance research and development in decarbonizing transportation, including hydrogen fuel.
• Westport plans a 60% reduction in capital expenditures for 2026.