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VANCOUVER - Westport Fuel Systems Inc. (TSX:WPRT / Nasdaq:WPRT), currently valued at $66 million in market capitalization, announced Tuesday the completion of its previously announced sale of its Light-Duty Segment to Heliaca Investments Coöperatief U.A., a Netherlands-based investment firm backed by Ramphastos Investments Management B.V.
The transaction, initially announced on March 31, involves the divestiture of Westport Fuel Systems Italia S.r.l., which includes the Light-Duty OEM, delayed OEM, and independent aftermarket businesses. The deal closed with a base price of approximately $79.5 million (€67.7 million), subject to adjustments, plus potential earnouts of up to $3.9 million (€3.3 million) based on future performance milestones. According to InvestingPro data, this transaction value exceeds the company’s current market capitalization, while the stock trades at a modest 0.48 times book value.
"The successful completion of the disposition of our Light-Duty Segment marks a pivotal step in strengthening our balance sheet," said Dan Sceli, Chief Executive Officer of Westport Fuel Systems, in a press release statement.
Following this divestiture, Westport plans to focus on what it describes as larger, higher-growth opportunities in heavier duty and high horsepower commercial mobility and industrial applications. The company intends to concentrate on three key areas: Cespira for heavy-duty transportation and off-road high horsepower mobility; High Pressure Controls and Systems supporting multiple powertrain platforms; and financial initiatives balancing opportunity scale and execution performance. InvestingPro analysis indicates the company faces near-term challenges, with analysts anticipating a sales decline this year, though its liquid assets currently exceed short-term obligations.
Westport designs, manufactures, and supplies components and systems for alternative fuel transportation technologies, including natural gas, renewable natural gas, and hydrogen solutions.
The company is scheduled to report its Q2 2025 financial results on Monday, August 11, after market close, where additional details about the transaction and future strategy will be discussed. For deeper insights into Westport’s financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s performance indicators and growth prospects.
In other recent news, Westport Fuel Systems reported a 9% decline in revenue for the first quarter of 2025, totaling $71 million. Despite the decrease in revenue, the company experienced improvements in net loss and gross profit. These financial results have been part of a broader market analysis regarding Westport Fuel’s strategic adjustments and overall financial health. Additionally, analysts have been closely monitoring the company’s performance, although there have been no reported upgrades or downgrades from major firms recently. The company’s financial results and strategic shifts continue to be a focal point for investors. These developments are crucial for understanding Westport Fuel’s current market position and future prospects.
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