← All companies ← WPP Manual WRD → ← TWIN Industrial Machinery WTS →

WPRT, Westport Fuel Systems Inc

Industrial Machinery capital-intensive UnprofitableDistress / turnaround

Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow.

As a supplier of affordable, alternative fuel, low-emissions transportation technologies, the Company designs, manufactures, and supplies advanced components and systems that enable the transition from traditional fuels to alternative energy solutions.

Westport's technologies support a wide range of alternative fuels including natural gas, renewable natural gas, and hydrogen enabling OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way.

Latest annual: FY2025 20-F

WPRT · Westport Fuel Systems Inc

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$23M

−42.7% YoY · −38% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $23M 5-yr avg $150M

Gross margin 11% 5-yr avg 9%

Operating margin −61.0% 5-yr avg −49.4%

ROIC −8% 5-yr avg −18%

Owner-earnings margin 19% 5-yr avg −26%

Free cash flow margin 19% 5-yr avg −26%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No meaningful revenue yet; the record is the cash on hand against the burn. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has run around −29% through the cycle on a 15% gross margin, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. Inventory runs near 20% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the capital-goods cycle and the aftermarket. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −19%, above 15% in 0 of 10 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMDec 2025
											Income statement
$167M	$230M	$270M	$305M	$252M	$312M	$306M	$68M	$41M	$23M	$23M	RevenueRevenue
20%	26%	24%	22%	16%	15%	12%	1%	7%	11%	11%	Gross marginGross mgn
($126M)	($67M)	($53M)	($21M)	($22M)	($31M)	($50M)	($46M)	($38M)	($14M)	($14M)	Operating incomeOp. inc.
−75.3%	−29.0%	−19.5%	−7.0%	−8.7%	−9.8%	−16.4%	−66.9%	−92.7%	−61.0%	−61.0%	Operating marginOp. mgn
($98M)	($10M)	($31M)	$41K	($7M)	$14M	($33M)	($50M)	($22M)	($62M)	($98M)	Net incomeNet inc.
											Cash flow & returns
($82M)	($49M)	($27M)	($16M)	($35M)	($44M)	($35M)	($13M)	$7M	($14M)	$7M	Operating cash flowOp. cash
$15M	$15M	$17M	$16M	$14M	$14M	$12M	$6M	$2M	$735K	$735K	DepreciationDeprec.
$491K	($54M)	($12M)	($32M)	($42M)	($71M)	($14M)	$31M	$27M	$47M	$104M	Working capital & otherWC & other
$9M	$25M	$10M	$9M	$7M	$14M	$14M	$6M	$4M	$3M	$3M	CapexCapex
5.2%	11.0%	3.8%	2.9%	2.8%	4.5%	4.7%	9.5%	9.4%	11.5%	11.5%	Capex / revenueCapex/rev
($90M)	($75M)	($38M)	($25M)	($42M)	($58M)	($49M)	($20M)	$3M	($17M)	$4M	Owner earningsOwner earn.
−54.1%	−32.5%	−14.0%	−8.0%	−16.7%	−18.5%	−16.0%	−28.9%	8.3%	−72.6%	19.3%	Owner earnings marginOE mgn
($90M)	($75M)	($38M)	($25M)	($42M)	($58M)	($49M)	($20M)	$3M	($17M)	$4M	Free cash flowFCF
−54.1%	−32.5%	−14.0%	−8.0%	−16.7%	−18.5%	−16.0%	−28.9%	8.3%	−72.6%	19.3%	Free cash flow marginFCF mgn
-406%	-114%	-39%	-7%	-7%	-13%	-19%	-19%	-22%	-16%	-8%	ROICROIC
-114%	-8%	-35%	0%	-7%	6%	-16%	-31%	-16%	-90%	-142%	Return on equityROE
−114%	−8%	−35%	0%	−7%	6%	−16%	−31%	−16%	−90%	−142%	Retained to equityRetained/eq
											Balance sheet
$62M	$72M	$61M	—	—	—	—	—	—	—	$62M	Cash & investmentsCash+inv
$67M	$62M	$57M	$67M	$90M	$102M	$102M	$88M	$19M	$10M	$10M	ReceivablesReceiv.
$53M	$46M	$46M	$48M	$51M	$83M	$82M	$68M	$7M	$3M	$3M	InventoryInvent.
$120M	$108M	$103M	$115M	$142M	$185M	$183M	$156M	$25M	$13M	$13M	Operating working capitalOper. WC
$214M	$201M	$169M	$168M	$229M	$339M	$277M	$217M	$170M	$42M	$42M	Current assetsCur. assets
$160M	$120M	$105M	$115M	$147M	$146M	$136M	$135M	$108M	$22M	$22M	Current liabilitiesCur. liab.
1.3×	1.7×	1.6×	1.5×	1.6×	2.3×	2.0×	1.6×	1.6×	1.9×	1.9×	Current ratioCurr. ratio
$3M	$3M	$3M	$3M	$3M	$3M	$3M	$3M	$3M	—	$3M	GoodwillGoodwill
$331M	$314M	$270M	$280M	$346M	$471M	$407M	$356M	$292M	$94M	$94M	Total assetsAssets
—	—	$76M	$67M	$141M	—	—	$29M	—	—	$131M	Total debtDebt
—	—	$15M	$67M	$141M	—	—	$29M	—	—	$69M	Net debt / (cash)Net debt
-11.7×	-4.6×	-5.8×	-2.9×	-2.8×	-6.2×	-15.0×	-15.3×	—	—	-4.8×	Interest coverageInt. cov.
$85M	$118M	$91M	$89M	$104M	$236M	$204M	$160M	$137M	$69M	$69M	Shareholders’ equityEquity
											Per share
91.0M	120M	132M	144M	137M	162M	17.1M	17.2M	17.2M	17.3M	17.4M	Shares out (diluted)Shares
$1.84	$1.92	$2.04	$2.12	$1.84	$1.93	$17.85	$3.97	$2.36	$1.34	$1.34	Revenue / shareRev/sh
$-1.07	$-0.08	$-0.24	$0.00	$-0.05	$0.08	$-1.91	$-2.90	$-1.27	$-3.55	$-5.62	EPS (diluted)EPS
$-0.99	$-0.63	$-0.28	$-0.17	$-0.31	$-0.36	$-2.85	$-1.15	$0.20	$-0.98	$0.26	Owner earnings / shareOE/sh
$-0.99	$-0.63	$-0.28	$-0.17	$-0.31	$-0.36	$-2.85	$-1.15	$0.20	$-0.98	$0.26	Free cash flow / shareFCF/sh
$0.10	$0.21	$0.08	$0.06	$0.05	$0.09	$0.83	$0.38	$0.22	$0.16	$0.15	Cap. spending / shareCapex/sh
$0.94	$0.99	$0.69	$0.62	$0.76	$1.46	$11.91	$9.34	$7.94	$3.97	$3.96	Book value / shareBVPS

The diluted share count moved ×1/9.47 into 2022 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	−3.4%/yr	−6.1%/yr
Capital spending / share	+5.6%/yr	+24.5%/yr
Book value / share	+17.4%/yr	+39.2%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

17Mpeak FY2021

ROIC

−16%low FY2016

Gross margin

11%low FY2023

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($17M)owner earningsvs.($62M)net incomelow FY2016

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $62M loss into ($17M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($62M)	($22M)	($50M)	($33M)	$14M
Depreciation & amortizationnon-cash charge added back	+$735K	+$2M	+$6M	+$12M	+$14M
Working capital & othertiming of cash in and out, other non-cash items	+$47M	+$27M	+$31M	−$14M	−$71M
Cash from operations	($14M)	$7M	($13M)	($35M)	($44M)
Capital expenditurecash put back in to keep running and to grow	−$3M	−$4M	−$6M	−$14M	−$14M
Owner earnings	($17M)	$3M	($20M)	($49M)	($58M)
Owner-earnings marginowner earnings ÷ revenue	-73%	8%	-29%	-16%	-19%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -4.8×

Does not cover its interest

Operating income ($14M) ÷ interest expense $3M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $69M

Net debt against an operating loss

Cash $61M + ST investments $848K − debt $131M

What this means
Netting $62M of cash and short-term investments against $131M of debt leaves $69M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital -19%

Below average through the cycle

10-yr median, range -406%–-7%; -8% latest = NOPAT ($11M) ÷ invested capital $138M

Industry peers: median -74%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran -8% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 19%

Positive this year, negative across the cycle

latest $4M = operating cash $7M − maintenance capex $3M (positive this year), after an earlier loss stretch (10-yr median -19%)

Industry peers: median -19%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 19% of revenue this year, a -19% median across 10 years.
Are earnings backed by cash? $7M

Loss, but cash-generative

Net income ($98M) · cash from operations $7M

In the filing’s words And the filing leans heavily on adjusted, non-GAAP earnings — steering you off the GAAP figure just where the cash is not backing it. Read the reconciliation in the notes before taking the adjusted number.

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 3.66×

Expanding

Capex $3M ÷ depreciation $735K

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 0 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $23M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.93×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $131M vs $20M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 8 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-2.56/share (latest year $-5.62), the averaged base the calculator's gate runs on, and book value is $3.96/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 10

What this means
Lost money in 8 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 4 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −41% → −74% (3-yr avg ends)

What this means
Through the cycle the operating margin slipped — about −41% early to −74% lately, median −29% — competition or costs are biting in.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2024 · −92.7% op. margin

What this means
Operations went underwater in 2024, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$42M

Cash & short-term investments$62M
Receivables$10M
Inventory$3M

Current liabilities$22M

Debt due within a year$29M

Current ratio1.93×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.79×stricter: inventory excluded

Cash ratio2.88×strictest: cash alone against what's due

Working capital$20Mthe cushion left after near-term bills

Debt due this year vs. cash$29M due · $62M cash covered by cash on hand, no refinancing forced · both figures from the Dec 31, 2025 balance sheet

Deeper floors

Tangible book value$61Mequity stripped of goodwill & intangibles

Net current asset value$16MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$131M$493K of it operating leases

Deferred revenue$471Kcustomer cash collected before delivery; operating float

From the company's latest filing.

Peers, Industrial Machinery

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
PSIXPower Solutions International Inc.	$722M	16%	-0.6%	15%	0%
OUSTOuster Inc.	$169M	27%	-297.0%	-101%	-224%
ERIIEnergy Recovery Inc.	$135M	69%	13.5%	13%	8%
CEPLCapstone Energy Plus Inc.	$106M	14%	-23.2%	-74%	-19%
ASYSAmtech Systems Inc.	$79M	37%	1.8%	1%	-4%
VELOVelo3D Inc.	$46M	-5%	-153.6%	-147%	-140%
WPRTWestport Fuel Systems Inc	$23M	16%	-24.3%	-19%	-18%
CHRNChronoScale Holdings Corporation	$13M	50%	-120.5%	-139%	-100%
Group median	—	21%	-23.7%	-47%	-18%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the home-market price, not the US ADR quote. Westport Fuel Systems Inc reports in USD, and every figure here (owner earnings, book value, the share count) is on that ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share. A US ADR price in dollars bundles the ADR-to-ordinary ratio, so it will not reconcile with these figures and would throw the multiple off.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Westport Fuel Systems Inc has delivered.

Today’s price $

Base Normalize · through-cycle (($11M)) Net of stock comp

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $4M on 17M shares outstanding, per the 20-F cover, as of 2025-12-31; net debt $69M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh WPRT against another business →

Cite: Owner Scorecard, "Westport Fuel Systems Inc (WPRT), the owner's record," https://ownerscorecard.com/c/WPRT, data as of 2026-07-09.

Manual order: ← WPP its page in the Manual WRD →

Industry order: ← TWIN the Industrial Machinery chapter WTS →