VOLAF - Westport Fuel Systems - Uninspiring Quarter And Uncertain Outlook - Hold

2024-03-26 17:56:50 ET

Summary

• Westport Fuel Systems Inc. reported another set of uninspiring quarterly results with meaningful cash burn and profitability being impacted by large inventory write-downs.
• Liquidity benefited from the addition of new term loan facilities in Italy.
• The company signed definitive agreements with AB Volvo for the formation of a new HPDI joint venture which should materially benefit financial results and liquidity going forward.
• New management's performance on the conference call was nothing to write home about. Even after a number of analyst questions, no color on the company's anticipated trajectory over the next 12-18 months was provided.
• At this point, I don't see any reason to initiate or add to existing positions but given the apparent benefits from the upcoming HPDI joint venture with Volvo, I am reiterating my "Hold" rating on the shares.

Note:

I have covered Westport Fuel Systems Inc. ( WPRT ) previously, so investors should view this as an update to my earlier articles on the company. ...

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