Westport Fuel Systems (WPRT.TO and Nasdaq:WPRT) on Monday reported a narrower net loss for the fourth quarter on better-than-forecast revenue, and moved to divest its Light-Duty business.

For Q4, Westport reported a net Loss of US$10.1 million versus a loss of $13.9 million a year earlier.
Net Loss per share basic and diluted was $0.59 compared to $0.81. This missed the forecast at FactSet of a $0.28 loss based on the estimates of four analysts

Revenue was $75.1 million, down from $87.2 million a year earlier, but it beat a FactSet forecast of $70.3 million based on estimates from five analysts.

Westport said the launch of Cespira, its joint venture with Volvo Group, was a "key milestone for us" in 2024. It noted Cespira is committed to accelerating the commercialization of HPDITM technology with carbon-neutral fuels like hydrogen and renewable natural gas. "This partnership underscores the industry's recognition of HPDI as a leading solution to enable affordable, sustainable heavy transport," the company added.

Meanwhile, Westport Fuel has entered into a binding agreement to sell its interest in Westport Fuel Systems Italia, which includes the Light-Duty segment, including the light-duty OEM, delayed OEM, and independent aftermarket businesses, to a wholly-owned investment vehicle of Heliaca, a Netherlands based investment firm supported by a prominent Dutch venture capital and private equity firm. The transaction provides for a base purchase price of US$73.1 million (67.7 million euros), subject to certain adjustments, and potential earnouts of up to an estimated $6.5 million (6.0 million euro) if certain conditions are achieved, in accordance with terms of the agreement.

Moving forward, Westport said it intends to concentrate fully on providing "affordable solutions for hard-to-decarbonize mobility and industrial applications, centered around the "unique opportunities" created by HPDI technology and its Cespira JV. It added the transaction also strengthens its balance sheet and enables it to consider strategic acquisition opportunities consistent with the above strategic focus and extend its runway to fund near-term growth.

The transaction is subject to shareholder approval and other customary closing conditions and is expected to close in late Q2 of 2025.

WPRT was down more than 7% in Canada and U.S. trade last Friday.