Westport Fuel Systems (NASDAQ:WPRT), now known as Aetherion Technologies, reported a narrower third-quarter loss as its Cespira joint venture increased product sales and moved closer to break-even.
CEO and Director Dan Sceli said the company’s new name reflects a sharper focus on heavy-duty transportation. He said Aetherion trades under the ticker AETR on both Nasdaq and the Toronto Stock Exchange.
Cespira’s third-quarter product revenue rose 85% to $20.7 million, while its net loss narrowed to $0.3 million from $6 million a year earlier, Chief Financial Officer Elizabeth Owens said. Management expects the venture to reach break-even in 2027, although Sceli cautioned that results could fluctuate as it launches its next-generation fuel system.
Cespira Plans Capacity Expansion
Sceli said Cespira plans to double its capacity this year and expects to fund the investment with cash generated by the venture, without additional parent-company contributions for that purpose. Cespira is approaching, but has not reached, full utilization of its existing capacity, he said.
“The cash calls are reduced dramatically, and so we are quite pleased about that growth,” Sceli told analysts.
Aetherion’s capital contributions to Cespira fell to $2.8 million in the third quarter from $11 million a year earlier, Owens said. She expects contributions to continue declining as volumes grow.
Sceli attributed demand for liquefied natural gas heavy-duty trucks partly to favorable fuel prices relative to diesel and emissions regulations. He cited an order by Reinert Logistics for 500 Volvo LNG trucks, with deliveries beginning in 2027, and an order by Polish carrier SIS Trans for 100 Volvo bio-LNG trucks.
Sceli said Cespira’s products were used in more than 12,000 trucks and that demand was broad-based across approximately 35 or 36 countries. A truck trial with a second original equipment manufacturer remains underway, and Cespira is also speaking with other manufacturers, he said.
HPDI Launch and North American Opportunity
Cespira’s HPDI 3.0 fuel system is scheduled to enter production in the fourth quarter of 2026, with the first equipped vehicles expected on the road in early 2027. Sceli said Volvo is rolling out a new engine with the system, while noting that launches can bring startup issues.
Aetherion is also developing a high-pressure compressed natural gas solution for North America. Sceli said the company is building the technology and working on additional demonstration models, while Volvo conducts its business-case analysis for the opportunity.
High-Pressure Controls technology will be important to the proposed CNG storage system, Sceli said. The segment currently generates a significant portion of its revenue from industrial applications, including controls for fuel cells used in forklifts, and also develops products for the light-duty market.
Loss Narrows as Cash Declines
Aetherion’s net loss per share improved to $0.13 in the third quarter from $0.60 a year earlier. Owens said the improvement primarily reflected Cespira’s higher product revenue and lower cost base, which reduced Aetherion’s share of the venture’s losses.
Cespira’s aftermarket revenue rose to $4.9 million from $3.6 million, while service revenue declined to $2.7 million from $4.6 million. Owens said service revenue is recognized as project milestones are achieved and that a significant engineering project is expected to be substantially completed in the fourth quarter.
Gross profit at Cespira was $3.7 million, compared with a gross loss of $1 million a year earlier. Aetherion’s High-Pressure Controls revenue increased to $2.6 million from $1.6 million as production and shipments normalized following a transition of operations, Owens said.
Cash and cash equivalents stood at $14.5 million at the end of September, down from $23.9 million at June 30. Owens attributed the decline primarily to operating losses, Cespira funding and debt repayments. The company made a $1 million payment that completed its debt repayments to EDC.
After the quarter, Aetherion received approximately $2.4 million in escrow funds related to its 2025 light-duty transaction, earlier than anticipated, Owens said. The company also entered a committed equity facility of up to $25 million with Roth Principal Investments to provide financing flexibility.
About Westport Fuel Systems (NASDAQ:WPRT)
Westport Fuel Systems Inc. (NASDAQ: WPRT) develops and supplies alternative-fuel systems and components for transportation and industrial applications. The company focuses on technologies that enable internal combustion engines to operate on fuels such as natural gas, renewable natural gas, hydrogen and other low-carbon fuels. Its product portfolio includes high-pressure direct injection (HPDI) systems for heavy-duty commercial vehicles, as well as fuel-system components, regulators, injectors, electronic controls and related technologies for compressed natural gas, liquefied natural gas and hydrogen applications.
