Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q3 2024 Earnings Presentation
17 slides from Westport Fuel Systems's earnings presentation, Nov 13, 2024
Slide 1: Driving Cleaner Performance: Q3 2024 Results
Driving Cleaner Performance Q3 2024 Results November 13, 2024 NASDAQ: WPRT, TSX: WPRT
Slide 2: Disclaimer and Forward-Looking Statements
NASDAQ: WPRT, TSX: WPRT Westport Fuel Systems Disclaimer and Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding, future revenue expectations, future growth in markets, future of our development programs (including those relating to HPDI a
Slide 3: Speaking Today...
Speaking Today... NASDAQ: WPRT, TSX: WPRT Dan Sceli Bill Larkin Chief Executive Officer Chief Financial Officer Nasdaq/TSX: WPRT 3
Slide 4: YoY Gross Margin & Adj. EBITDA Wins
YoY Gross Margin & Adj. EBITDA Wins NASDAQ: WPRT, TSX: WPRT Highlights: Revenue Adjusted EBITDA[1] • 3Q24 revenue of $66.2 million, a 14% decrease over the $77.4 (Millions) + Cespira earned (Millions) million reported in 3Q23, primarily driven by the transition of $16.2 million in revenue Heavy-duty
Slide 5: Cespira: Westport's HPDI Joint Venture with Volvo Group
Cespira Westport's HPDI Joint Venture with Volvo Group Cespira is accelerating the decarbonization of heavy transport. With carbon neutral fuels like hydrogen and natural gas as the propellants, the HPDI fuel system technology is proof that internal combustion engines have a long future in on and of
Slide 6: Executing Against Our Priorities: HPDI Joint Venture
Executing Against NASDAQ: WPRT, TSX: WPRT Our Priorities 1 Driving Success via the ✓ Closed the HPDI joint venture transaction in June of 2024 HPDI Joint Venture Accelerating the commercialization of Westport’s ✓ Introduced the joint venture with Volvo HPDI fuel system technology; reducing CO2 Group
Slide 7: Executing Against Our Priorities: Operational Excellence
Executing Against NASDAQ: WPRT, TSX: WPRT Our Priorities ✓ Restructured executive team, resulting in annual G&A savings of ~$3 million ✓ Closed the amended Westport Minda JV in 2 2Q24; broader restructuring in India is Improving Operational expected to transition business to generate positive cash f
Slide 8: Executing Against Our Priorities: Alternative Fueled Future
Executing Against NASDAQ: WPRT, TSX: WPRT Our Priorities ✓ Westport’s clean mobility solutions are engineered for a diverse set of zero-emission vehicles (ZEVs) with hydrogen fuel systems and components for both internal 3 combustion engines (ICE) and fuel cell Reimagining an applications Alternativ
Slide 9: More Innovation from the Light Duty Segment
More Innovation from the Light Duty Segment Introduced the Kia Niro Tri-Fuel in Italy – Globally Available Prins VSI-3 DI LPG Innovation Meets Efficiency! System for the RAM 1500 Hurricane 3.0 DI Twin Turbo Engine • Born from Westport’s partnership with Kia Italia • First-ever OEM hybrid vehicle pow
Slide 10: Revenue Story: Stability via Cespira
Revenue Story: Stability via Cespira Cespira HPDI JV earned $16.2 million in Q3 2024 Revenue ($ millions) + Cespira earned $16.2 million in revenue Q3 23 Light-Duty High-Pressure Heavy-Duty OEM Q3 24 Controls and Systems + Increase in sales in the IAM business + Euro 6 Light-Duty business gains more
Slide 11: Adjusted EBITDA Year Over Year
Adjusted EBITDA Year Over Year (1) NASDAQ: WPRT, TSX: WPRT Adjusted EBITDA ($ millions) Pluses: + $2.2 million improvement in Adj. EBITDA + Gross margin improvement + Significant progress made to reduce expenses and/or shift costs to the Cespira JV Minuses: • Negative equity income was driven by a n
Slide 12: Financial Performance – Light-Duty
Financial Performance – Light-Duty NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) $13.9 Gross margin 1% of revenue 16% Gross margin 2% Gross margin 23% of $60.2 $61.5 14% of revenue $12.0 revenue Gross margin 9% of Gross margin revenue 20% of revenue Q3 23 Q3 24 Q3 23 Q3 2
Slide 13: Financial Performance – High-Pressure Controls and Systems
Financial Performance NASDAQ: WPRT, TSX: WPRT High-Pressure Controls and Systems Revenue Gross Margin(1) ($ Millions) ($ Millions) $1.0 -60% Gross margin $3.7 -57% Grossmargin Gross margin Gross of margin 25% $0.4 Gross margin 27%ofof 18% 28% of revenue 20% of revenue revenue Gross margin revenue $1
Slide 14: Financial Performance – Heavy-Duty OEM
Financial Performance – Heavy-Duty OEM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) $0.2 $0.2 Gross margin $13.5 -77% Gross margin Gross 25% margin of Gross Grossmargin margin Gross margin 1% of 18% of revenue 28% revenue 6% of revenue of 20% of revenue revenue revenue $
Slide 15: Liquidity
Liquidity NASDAQ: WPRT, TSX: WPRT Debt Repayments & Inventory Optimization Cash Debt (Millions) (Millions) $41.5 $44.2 $33.3 $38.7 Q2 24 Q3 24 Q2 24 Q3 24 • Cash used in operating activities of $9.9 million, primarily from • Debt repayments of $7.0 million an increase in working capital of $11.4 mil
Slide 16: In Closing…
In Closing… NASDAQ: WPRT, TSX: WPRT Enhancing Company Value By: 1 Driving Success via the Cespira Joint Venture 2 Improving Operational Excellence and Reducing Costs 3 Reimagining an Alternative Fueled Future Delivering practical applications today, to help lead the energy transition in transport 16
Slide 17: Appendix – Recast Historical Segment Results
Appendix – Recast Historical Segment Results NASDAQ: WPRT, TSX: WPRT Historical Segment Results (expressed in millions of U.S. dollars) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Three months ended Light-Duty Revenue $ 62.0 $ 63.8 $ 57.5 $ 64.0 $ 66.4 $ 73.7 $ 60.2 $ 63.4 $ 63.2 $ 69.5 $
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