Westport Cespira Revenue Jumps 125% on LNG Truck Demand

Westport Fuel Systems reported second-quarter results Thursday that showed its Cespira joint venture with Volvo Group scaling fast on LNG truck orders and a new development deal for hydrogen engines.

Cespira revenue rose 125% year over year, driven by increased orders for the HPDI fuel system used in LNG-powered heavy-duty trucks. Gross profit at the joint venture climbed 298% compared with the same quarter last year. The gains reflect growing fleet adoption of LNG as a diesel alternative in Europe, where the fuel's price advantage over diesel has held despite volatile energy markets, the company said.

Westport also said Cespira and Volvo Trucks signed a development agreement in June to integrate HPDI technology into Volvo's 13-liter hydrogen engine. On-road testing is underway. The companies target European certified commercial launch before 2030. The deal extends the same core injection platform from LNG to hydrogen, preserving the performance and operating range that long-haul fleets require, Westport said.

On the financing side, Westport completed a private placement in June that raised $10 million in initial gross proceeds, with the potential for an additional $10 million over two years through warrant exercises. The company said the capital strengthens liquidity as it scales Cespira and advances a high-pressure compressed natural gas solution for the North American market.

Westport's stand-alone revenue for the quarter was $2.7 million, down from $2.9 million a year earlier, reflecting lower sales volume. The company attributed the decline to production constraints at its two main manufacturing plants in Canada and China. Gross margin was 5% of revenue, up slightly from 4% in the prior-year period. Westport said it expects margin improvement as the plants continue localizing supply chains and ramping output.

The transitional service agreement between Westport and Cespira ended in Q2 2025, so the segment recorded no sales activity in the latest quarter.

CEO Dan Sceli framed the quarter around two themes: commercial momentum and financial flexibility. "These results reflect the growing market acceptance of HPDI as a practical, affordable, high-performance solution for heavy-duty transportation," he said in the earnings release. He also pointed to recent European regulatory changes that offer greater flexibility around heavy-duty vehicle CO₂ credits earned before 2030, which he said should reward OEMs that have adopted HPDI technology.

Sceli outlined the North American CNG strategy as a bridge to hydrogen. "By pairing Westport's high-pressure CNG fuel storage solution with Cespira's HPDI fuel system, we believe we can help North American fleets save money, reduce emissions and address energy security issues with a natural gas and renewable natural gas powertrain system, while maintaining a pathway to hydrogen as the fuel's economics and infrastructure mature," he said.

Westport shares trade on the Toronto Stock Exchange and Nasdaq under the ticker WPRT.