Q4 2025 Westport Fuel Systems Inc Earnings Call

April 24, 2026

Operator: All participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone keypad. As a reminder, this conference call is being recorded. At this time, I would like to turn the conference over to Ms. Ashley Newell. Ma'am, please begin.

Operator: All participants are in a listen-only mode. After the speaker's presentation, there will be a question-and answer session. To ask a question during the session, you will need to press star one one on your telephone keypad. As a reminder, this conference call is being recorded. At this time, I would like to turn the conference over to Ms. Ashley Newell. Ma'am, please begin.

Speaker #1: Participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone keypad.

Speaker #1: As a reminder, this conference call is being recorded. At this time, I would like to turn the conference over to Ms. Ashley Nuell, ma'am, please begin.

Speaker #2: Thank you. Good morning, everyone. Welcome to WESTPORT FUEL SYSTEMS CONFERENCE CALL regarding its fourth quarter and full year 2025 financial and operating results. This call is being held to coincide with the press release containing WESTPORT's financial results that were issued yesterday after market close.

Ashley Newell: Thank you. Good morning, everyone. Welcome to Westport Fuel Systems' conference call regarding its Q4 and full year 2025 financial and operating results. This call is being held to coincide with the press release containing Westport's financial results that were issued yesterday after market close. On today's call, speaking on behalf of Westport will be Chief Executive Officer and Director, Dan Sceli, and Chief Financial Officer, Elizabeth Owens. You are reminded that certain statements made on this conference call and our responses to certain questions may constitute forward-looking statements within the meaning of the US and applicable Canadian securities laws. As such, forward-looking statements are made based on our current expectations and involve certain risks and uncertainties. With that, I'll turn the call over to you, Dan.

Operator: Good day, ladies and gentlemen, and thank you for standing by. Welcome to Westport's Q4 2025 Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone keypad. As a reminder, this conference call is being recorded. At this time, I would like to turn the conference over to Ms. Ashley Newell. Ma'am, please begin.

Speaker #2: On today's call, speaking on behalf of WESTPORT will be Chief Executive Officer and Director Dan Sceli, and Chief Financial Officer Elizabeth Owens. You are reminded that certain statements made on this conference call are not responses to certain questions may constitute forward-looking statements within the meaning of the U.S.

Ashley Newell: Thank you. Good morning, everyone. Welcome to Westport Fuel Systems' conference call regarding its Q4 2025 and full year 2025 financial and operating results. This call is being held to coincide with the press release containing Westport's financial results that were issued yesterday after market close. On today's call, speaking on behalf of Westport will be Chief Executive Officer and Director, Dan Sceli, and Chief Financial Officer, Elizabeth Owens. You are reminded that certain statements made on this conference call, and our responses to certain questions may constitute forward-looking statements within the meaning of the US and applicable Canadian securities laws. As such, forward-looking statements are made based on our current expectations and involve certain risks and uncertainties. With that, I'll turn the call over to you, Dan.

Speaker #2: and applicable Canadian securities laws and as such forward-looking statements are made based on our current expectations and involve certain risks and uncertainties. With that, I'll turn the call over to you, Dan.

Speaker #3: Thank you, Ashley, and good morning, everyone. I want to begin by addressing recent events. We appreciate the patience and support of our shareholders as we work through our recent cybersecurity incident.

Dan Sceli: Thank you, Ashley, and good morning, everyone. I want to begin by addressing recent events. We appreciate the patience and support of our shareholders as we worked through our recent cybersecurity incident. Our priority was to ensure the integrity of our IT systems, business continuity, and financial reporting, and we are pleased to confirm that this review has been successfully completed. With this behind us, we're looking forward to executing on our strategy and delivering on the next phase of our business objectives. Turning to our financial results, the past year has been a defining one for Westport, marked by the successful divestiture of our light duty business, the recent receipt of a $6.5 million payment, and further strengthened by Cespira's agreement with a leading OEM to manufacture and deliver HPDI components for a truck trial assessing the future commercialization.

Speaker #3: Our priority was to ensure the integrity of our IT systems, business continuity, and financial reporting, and we are pleased to confirm that this review has been successfully completed.

Speaker #3: With this behind us, we're looking forward to executing on our strategy and delivering on the next phase of our business objectives. Turning to our financial results, the past year has been a defining one for WESTPORT.

Dan Sceli: Thank you, Ashley, and good morning, everyone. I want to begin by addressing recent events. We appreciate the patience and support of our shareholders as we work through our recent cybersecurity incident. Our priority was to ensure the integrity of our IT systems, business continuity, and financial reporting, and we are pleased to confirm that this review has been successfully completed. With this behind us, we're looking forward to executing on our strategy and delivering on the next phase of our business objectives. Turning to our financial results, the past year has been a defining one for Westport, marked by the successful divestiture of our light duty business, the recent receipt of a $6.5 million payment, and further strengthened by Cespira's agreement with a leading OEM to manufacture and deliver HPDI components for a truck trial assessing the future commercialization.

Speaker #3: Marked by the successful divestiture of our light-duty business, the recent receipt of a $6.5 million payment, and further strengthened by Sospira's agreement with a leading OEM to manufacture and deliver HPDI components for a truck trial assessing the future commercialization.

Speaker #3: These accomplishments combined with ending the year with over $27 million in cash and very low debt reflect the meaningful progress we have made in sharpening our strategic focus and building a stronger company.

Dan Sceli: These accomplishments, combined with ending the year with over $27 million in cash and very low debt, reflect the meaningful progress we have made in sharpening our strategic focus and building a stronger company. The global heavy duty transportation market is increasingly recognizing natural gas as a practical, lower emission solution available today. This is evidenced by Volvo's recent milestone of delivering more than 10,000 natural gas trucks on the road, underscoring the accelerating adoption of Cespira's HPDI fuel system technology and validates the strategic direction we have taken. From a market perspective, the UK leads the adoption of HPDI-powered LNG trucks, followed by Germany, Sweden, the Netherlands, Norway, and France. Emerging gas markets such as India and Latin America are also gaining momentum, with volume seeing steady growth.

Speaker #3: The global heavy-duty transportation market is increasingly recognizing natural gas as a practical, lower-emission solution available today. This is evidenced by Volvo's recent milestone of delivering more than 10,000 natural gas trucks on the road, underscoring the accelerating adoption of Sospira's HPDI fuel system technology and validates the strategic direction we have taken.

Dan Sceli: These accomplishments, combined with ending the year with over $27 million in cash and very low debt, reflect the meaningful progress we have made in sharpening our strategic focus and building a stronger company. The global heavy-duty transportation market is increasingly recognizing natural gas as a practical lower emission solution available today. This is evidenced by Volvo's recent milestone of delivering more than 10,000 natural gas trucks on the road, underscoring the accelerating adoption of Westport's HPDI fuel system technology, and validates the strategic direction we have taken. From a market perspective, the UK leads the adoption of HPDI powered LNG trucks, followed by Germany, Sweden, the Netherlands, Norway, and France. Emerging gas markets such as India and Latin America are also gaining momentum, with volume seeing steady growth.

And further strengthened by suspira agreement with a leading, OEM to manufacture and deliver. Hpdi components for a truck trial, assessing the future. Commercialization

Speaker #3: From a market perspective, the UK leads the adoption of HPDI-powered LNG trucks, followed by Germany, Sweden, the Netherlands, Norway, and France. Emerging gas markets such as India and Latin America are also gaining momentum, with volume seeing steady growth.

These accomplishments combined, with ending the year with over $27 million in cash, and very low debt, reflect the meaningful progress we have made in sharpening our strategic focus and building a stronger company.

The global heavy duty Transportation Market is increasingly recognizing natural gas as a practical lower emission solution available today.

Speaker #3: When we introduced our proprietary CNG fuel storage and delivery system several months ago, we emphasized its potential to significantly expand our addressable market, particularly in North America.

Dan Sceli: When we introduced our proprietary CNG fuel storage and delivery system several months ago, we emphasized its potential to significantly expand our addressable market, particularly in North America. Development has progressed well, and our confidence in the commercial opportunity continues to build. We look forward to showcasing this solution at the upcoming Advanced Clean Transportation Expo, ACT, where we will have the opportunity to show off our technology to industry partners and customers. By integrating advanced high pressure CNG storage with Cespira's field proven HPDI fuel system, we match or exceed the performance and efficiency expected from diesel engines with compelling economics in markets where CNG is the natural choice, like North America. We believe this innovation meaningfully enables Westport and Cespira to capture new opportunities as we move into field testing. Our GFI brand, through our high pressure controls business, has also delivered important operational milestones.

This is evidenced by Volvo's recent Milestone of delivering more than 10,000 natural gas trucks.

On the road, underscoring the accelerating adoption of Sapphira's HPDI fuel system technology.

Speaker #3: Development has progressed well, and our confidence in the commercial opportunity continues to build. We look forward to showcasing this solution at the upcoming Advanced Clean Transportation Expo, ACT, where we will have the opportunity to show off our technology to industry partners and customers.

Dan Sceli: When we introduced our proprietary CNG fuel storage and delivery system several months ago, we emphasized its potential to significantly expand our addressable market, particularly in North America. Development has progressed well, and our confidence in the commercial opportunity continues to build. We look forward to showcasing this solution at the upcoming Advanced Clean Transportation (ACT) Expo, where we will have the opportunity to show off our technology to industry partners and customers. By integrating advanced high pressure CNG storage with Cespira's field proven HPDI fuel system, we match or exceed the performance and efficiency expected from diesel engines with compelling economics in markets where CNG is the natural choice, like North America. We believe this innovation meaningfully enables Westport and Cespira to capture new opportunities as we move into field testing. Our GFI brand, through our high pressure controls business, has also delivered important operational milestones.

Are also gaining momentum with volume seeing steady growth.

Speaker #3: By integrating advanced high-pressure CNG storage with Sospira's field-proven HPDI fuel system, we match or exceed the performance and efficiency expected from diesel engines with compelling economics in markets where CNG is the natural choice, like North America.

When we introduced our proprietary CNG fuel storage and delivery system several months ago, we emphasized its potential to significantly expand our addressable market, particularly in North America.

Speaker #3: We believe this innovation meaningfully enables WESTPORT and Sospira to capture new opportunities as we move into field testing. Our GFI brand, through our high-pressure controls business, has also delivered important operational milestones.

Development has progressed well, and our confidence in the commercial opportunity continues to build.

We look forward to showcasing this solution at the upcoming Advanced Clean Transportation Expo.

Act where we will have the opportunity to show off our technology to Industry partners and customers.

Speaker #3: The opening of our is one of the world's fastest-growing hydrogen markets and in Canada represents a step in localizing manufacturing, reducing costs, and improving competitiveness.

Dan Sceli: The opening of one of the world's fastest-growing hydrogen markets in Canada represents our success in localizing manufacturing, reducing costs, and improving competitiveness. As the transportation industry continues to balance economic realities with sustainability objectives, we are confident that alternative fuel systems, including Cespira's HPDI technology and our high-pressure components, provide real-world solutions that deliver both performance and affordability. With the completion of our strategic transition and only a few milestones remaining, a growing market validation of Cespira's expansion, a path to address the North American market, and a clear strategic focus, Westport is excited to drive into this next phase. Now I'll have Elizabeth run through some financial details and then come back afterwards. Over to you, Elizabeth.

Speaker #3: As the transportation industry continues to balance economic realities, with sustainability objectives, we are confident that alternative fuel systems, including Sospira's HPDI technology, and our high-pressure components, provide real-world solutions that deliver both performance and affordability.

By integrating advanced high-pressure CG storage with Suspira Field, and our proven HPDI fuel system, we match or exceed the performance and efficiency expected from diesel engines, with compelling economics in markets where CNG is the natural choice—like North America.

We believe this innovation meaningfully enables Westport and Sapphira to capture new opportunities. As we move into field testing,

Dan Sceli: The opening of one of the world's fastest growing hydrogen markets in Canada represents a step in localizing manufacturing, reducing costs, and improving competitiveness. As the transportation industry continues to balance economic realities with sustainability objectives, we are confident that alternative fuel systems, including Cespira's HPDI technology and our high pressure components, provide real world solutions that deliver both performance and affordability. With the completion of our strategic transition and only a few milestones remaining, a growing market validation of Cespira's expansion, a path to address the North American market, and a clear strategic focus, Westport is excited to drive into this next phase. Now I'll have Elizabeth run through some financial details and then come back afterwards. Over to you, Elizabeth.

Our GFI brand through our high-pressure. Controls business has ALS delivered important. Operational milestones.

The opening of.

Speaker #3: With the completion of our strategic transition and only a few milestones remaining, a growing market validation of Sospira's expansion, a path to address the North American market, and a clear strategic focus, WESTPORT is excited to drive into this next phase.

The fastest growing hydrogen markets, and in Canada, represents a step in localizing manufacturing, reducing costs, and improving competitiveness.

Speaker #3: Now I'll have Elizabeth run through some financial details and then come back afterwards. Over to you, Elizabeth.

Speaker #4: Thank you, Dan. Before I dive into the details, I'll just touch on a few key milestones that we're just achieved. The first of which is our strong cash position, reflective of the successful divestiture of the light-duty segment.

Elizabeth Owens: Thank you, Dan. Before I dive into the details, I'll just touch on a few key milestones that were just achieved. The first of which is our strong cash position, reflective of a successful divestiture of the light duty segment. As of 31 December 2025, our cash and cash equivalents position increased by $12.4 million to $27.2 million, compared to $14.8 million at 31 December 2024. The increase in cash was primarily driven by the sale of our light duty segment, as I mentioned, partially offset by cash used in our operating activities and debt repayments. Exiting 2025, with the proceeds from the disposition of Westport's light duty segment, our long-term debt, including the current portion, reflected a 57% reduction to $2.9 million as at 31 December 2025.

Speaker #4: As of December 31, 2025, our cash and cash equivalents position increased by $12.4 million, to $27.2 million, compared to $14.8 million, at December 31, 2024.

As the transportation industry, continues to balance economic realities with sustainability objectives. We are confident that alternative fuel systems including sapphira's hpdi technology, and our high-pressure components provide real world solutions that deliver both performance and affordability with the completion of our strategic transition, and only a few Milestones, remaining a growing Market validation of sapphira's expansion, a path to address the North American market and a clear strategic Focus. Westport is excited to drive into this next phase.

Elizabeth Owens: Thank you, Dan. Before I dive into the details, I'll just touch on a few key milestones that were just achieved. The first of which is our strong cash position, reflective of the successful divestiture of the light duty segment. As of 31 December 2025, our cash and cash equivalents position increased by $12.4 million to $27.2 million, compared to $14.8 million at 31 December 2024. The increase in cash was primarily driven by the sale of our light duty segment, as I mentioned, partially offset by cash used in our operating activities and debt repayments. Exiting 2025, with the proceeds from the disposition of Westport's light duty segment, our long-term debt, including the current portion, reflected a 57% reduction to $2.9 million as at 31 December 2025. This was compared to $6.8 million in the prior year period.

Now, I'll have Elizabeth run through some financial details, and then come back afterwards over to you, Elizabeth.

Speaker #4: The increase in cash was primarily driven by the sale of our light-duty segment, as I mentioned, partially offset by cash used in our operating activities and debt repayments.

Thank you, Dan.

Speaker #4: Exiting 2025 with the proceeds from the disposition of WESTPORT's light-duty segment, our long-term debt, including the current portion, reflected a $57% reduction to $2.9 million, as at December 31, 2025.

Before I dive into the details, I'll just touch on a few key milestones for just achieved. The first of, which is our strong cash position, reflective of the successful destitute of the light duty segment.

as of December 31st 2025

Speaker #4: This was compared to $6.8 million in the prior year period. Including the long-term debt from discontinued operations, the reduction was more than 90%. This improved financial position provides WESTPORT with greater flexibility to concentrate on markets that are best suited to our current strategy.

Elizabeth Owens: This was compared to $6.8 million in the prior year period. Including the long-term debt from discontinued operations, the reduction was more than 90%. This improved financial position provides Westport with greater flexibility to concentrate on markets that are best suited to our current strategy. Cespira continues to drive meaningful improvements in our results. In Q4 2025, total revenue was $29.3 million, compared to $22.9 million in the same period last year, representing an increase of 28%. This progress is supported by strong market adoption, including Volvo reaching a milestone of more than 10,000 natural gas trucks on the road equipped with Cespira's HPDI fuel systems. We are also encouraged by the continued progress of a second OEM that is currently conducting truck trials. We are excited about the opportunities ahead as we target an improvement in Cespira's capital requirements.

Our cash and cash equivalents position increased by 12.4 million to 27.2 million compared to 14.8 million at December, 31st 2024.

The increase in cash was primarily driven by the sale of our late Duty segment. As I mentioned,

Partially offset by cash used in our operating activities and debt repayments.

Speaker #4: Sospira continues to drive meaningful improvement in our results. In the fourth quarter of 2025, total revenue was $29.3 million, compared to $22.9 million in the same period last year.

exiting 2025 with the proceeds from the disposition of westport's Lotte Duty, segment, our long-term debt, including the current portion reflected a 57% reduction to 2.9 Million as that December 31st 2025

Elizabeth Owens: Including the long-term debt from discontinued operations, the reduction was more than 90%. This improved financial position provides Westport with greater flexibility to concentrate on markets that are best suited to our current strategy. Cespira continues to drive meaningful improvement in our results. In Q4 2025, total revenue was $29.3 million, compared to $22.9 million in the same period last year. Representing an increase of 28%. This progress is supported by strong market adoption, including Volvo reaching the milestone of more than 10,000 natural gas trucks on the road equipped with Cespira's HPDI fuel systems. We are also encouraged by the continued progress of a second OEM that is currently conducting truck trials. We are excited about the opportunities ahead as we target an improvement in Cespira's capital requirements.

This was compared to 6.8 million in the prior year period.

Speaker #4: Representing an increase of 28%. This progress is supported by strong market adoption including Volvo reaching the milestone of more than 10,000 natural gas trucks on the road, equipped with Sospira's HPDI fuel systems.

Including the long-term debt from discontinuing operations, the reduction was more than 90%.

This improved financial position provides Westport with greater flexibility. We can concentrate on markets that are best suited to our current strategy.

Speaker #4: We are also encouraged by the continued progress of a second OEM that is currently conducting truck trials. We are excited about the opportunities ahead as we target an improvement in Sospira's capital requirements.

Suspira continues to drive, meaningful improvements in our results.

Speaker #4: Turning to the details of our 2025 results, WESTPORT reported revenue of $23.3 million for the year ended 2025. Compared to $40.7 million in 2024.

Elizabeth Owens: Turning to the details of our 2025 results, Westport reported revenue of $23.3 million for the year ended 2025, compared to $40.7 million in 2024. The 43% decrease in revenue was primarily due to the end of the transitional service agreement for inventory and contract manufacturing between Westport and Cespira. Our adjusted EBITDA for 2025 was -$17.3 million as compared to the -$11.4 million reported for 2024. We reported a net loss from continuing operations in 2025 of $29.6 million, compared to a net loss from continuing operations of $31.3 million for the prior year, with the decrease in net loss attributed to lower operating expenditures across R&D and SG&A, and a favorable change in foreign exchange rates, partially offset by a full-year pickup of Cespira's operating results in 2025 compared to the seven months in 2024.

In the fourth quarter of 2025, total revenue was $29.3 million compared to $22.9 million in the same period last year, representing an increase of 28%.

Speaker #4: The $43% decrease in revenue was primarily due to the end of the transitional service agreement for inventory and contract manufacturing between WESTPORT and Sospira.

This progress is supported by strong market, adoption, including Volvo, reaching the Milestone of more than 10,000 natural gas trucks on the road equipped with spheres, hpdi fuel systems.

We are also encouraged by the continued progress of a second OEM that is currently conducting truck trials.

Speaker #4: Our adjusted EBITDA for 2025 was negative $17.3 million, as compared to the negative $11.4 million reported for 2024. We reported a net loss from continuing operations in 2025 of $29.6 million, compared to a net loss from continuing operations of $31.3 million for the prior year, with the decrease in net loss attributed to lower operating expenditures across R&D and SG&A, and a favorable change in foreign exchange rates.

We are excited about the opportunities ahead as we target an improvement in spera's capital requirements.

Elizabeth Owens: Turning to the details of our 2025 results, Westport reported revenue of $23.3 million for the year ended 2025, compared to $40.7 million in 2024. The 43% decrease in revenue was primarily due to the end of the transitional service agreement for inventory and contract manufacturing between Westport and Cespira. Our adjusted EBITDA for 2025 was -$17.3 million, as compared to -$11.4 million reported for 2024. We reported a net loss from continuing operations in 2025 of $29.6 million, compared to a net loss from continuing operations of $31.3 million for the prior year, with the decrease in net loss attributed to lower operating expenditures across R&D and SG&A, and a favorable change in foreign exchange rates, partially offset by a full-year pickup of Cespira's operating results in 2025 compared to the seven months in 2024.

Turning to the details of our 2025 results. Westport recorded revenue of 23.3 million for the year ended 2025.

Compared to 4 0. 7, 2 4.

The 43% decrease in Revenue was primarily due to the end of the transitional service agreement for inventory and contract manufacturing between Westport and Suspiria.

Speaker #4: Partially offset by a full-year pickup of Sospira's operating results in 2025, compared to the seven months in 2024. Looking at our specific business units, high-pressure controls revenue for the fourth quarter of 2025 increased 20% to $1.9 million, compared with $1.6 million in the prior year quarter.

Our adjusted EBITDA for 2025 was negative $7.33 million, as compared to the negative $11.4 million reported for 2024.

Elizabeth Owens: Looking at our specific business units, high-pressure controls revenue for Q4 2025 increased 20% to $1.9 million, compared with $1.6 million in the prior year quarter. Decreased to $8.3 million for the year ended December 31, 2025, from $9.4 million for the prior year. The decrease in year-over-year revenue for the period ending December 31 was primarily driven by the general slowdown in the hydrogen infrastructure development, leading to a slower adoption of automotive and industrial applications powered by hydrogen. In Q3 2025, we kicked off the move of our manufacturing capacity from Italy to our new facilities in Canada and China, which required shutting down our operations. In late Q4 2025, we resumed selling products to our customers to meet the backlogged demand from the aforementioned shutdown.

Speaker #4: And decreased to $8.3 million for the year ended December 31, 2025, from $9.4 million for the prior year. The decrease in year-over-year revenue for the period ending December 31 was primarily driven by the general slowdown in the hydrogen infrastructure development, leading to a slower adoption of automotive and industrial applications powered by hydrogen.

New operations in 2025 of 29.6 million compared to a net loss from continuing operations of 31.3 million for the prior year. With the decrease. In net loss, attributed to lower operating expenditures across R&D and sgna and a favorable change in foreign exchange rates.

Partially offset by a full year pick-up of Suspiria operating results in 2025, compared to the seven months in 2024.

Elizabeth Owens: Looking at our specific business units, High Pressure Controls revenue for Q4 2025 increased 20% to $1.9 million, compared with $1.6 million in the prior year quarter, and decreased to $8.3 million for the year ended 31 December 2025, from $9.4 million for the prior year. The decrease in year-over-year revenue for the period ending 31 December 2025 was primarily driven by the general slowdown in the hydrogen infrastructure development, leading to a slower adoption of automotive and industrial applications powered by hydrogen. In Q3 2025, we kicked off the move of our manufacturing capacity from Italy to our new facilities in Canada and China, which required shutting down our operations. In late Q4 2025, we resumed selling products to our customers to meet the backlogged demand from the aforementioned shutdown.

Looking at our specific business units.

Speaker #4: In Q3 2025, we kicked off the move of our manufacturing capacity from Italy to our new facilities in Canada and China, which required shutting down our operations.

High-pressure controls revenue for the fourth quarter of 2025 increased 20%, to $1.9 million compared with $1.6 million in the prior year quarter, and decreased to $8.3 million for the year ended December 31, 2025, from $9.4 million for the prior year.

Speaker #4: In late Q4 2025, we resumed selling products to our customers to meet the backlogged demand from the aforementioned shutdown. Gross profit for the year ended December 31, 2025, decreased by $1.3 million to $0.9 million, or 11% of revenue.

Elizabeth Owens: Gross profit for the year ended 31 December 2025 decreased by $1.3 million to $0.9 million, or 11% of revenue, compared to $2.2 million or 23% of revenue for the prior year. Moving on to Cespira. Total revenue generated in Q4 2025 was $29.3 million, compared to $22.9 million in the same period last year, an increase of 28%. Cespira product revenue of $23.4 million increased 30% compared to Q4 2024, driven by higher volumes. Gross profit was -$1.1 million for Q4 2025, compared to $0.5 million in Q4 2024, with the negative variance driven primarily by an obsolete inventory provision of $1.7 million, and a recognized loss on one of our contracts valued at $2.8 million. As I previously mentioned, we had a cash and cash equivalents balance of $27.2 million as of 31 December 2025.

The decrease in year-over-year revenue for the period ending December 31st was primarily driven by the general slowdown in the hydrogen infrastructure development, leading to a slower adoption of the automotive and industrial applications powered by hydrogen.

Speaker #4: Compared to $2.2 million, or 23% of revenue for the prior year. Moving on to Sospira. Total revenue generated in Q4 2024—pardon me, 2025—was $29.3 million, compared to $22.9 million in the same period last year, an increase of 28%.

In Q3 2025, we kicked off the move of our manufacturing capacity from Italy to our new facilities, in Canada and China, which required shutting down our operations.

Elizabeth Owens: Gross profit for the year ended December 31, 2025, decreased by $1.3 million to $0.9 million, or 11% of revenue, compared to $2.2 million or 23% of revenue for the prior year. Moving on to Cespira. Total revenue generated in Q4 2025 was $29.3 million, compared to $22.9 million in the same period last year, an increase of 28%. Cespira product revenue of $23.4 million increased 30% compared to Q4 2024, driven by higher volumes. Gross profit was -$1.1 million for Q4 2025, compared to $0.5 million in Q4 2024, with the negative variance driven primarily by an obsolete inventory provision of $1.7 million and a recognized loss on one of our contracts valued at $2.8 million. As I previously mentioned, we had a cash and cash equivalents balance of $27.2 million as at December 31, 2025.

In late Q4 2025, we resumed selling products to our customers, to meet the backlogged demand from the aforementioned shutdown.

Speaker #4: Sospira product revenue of $23.4 million increased 30%, compared to Q4 2024, driven by higher volumes. Gross profit was negative $1.1 million for Q4 2025, compared to $0.5 million in Q4 2024, with a negative variance driven primarily by an obsolete inventory provision of $1.7 million and a recognized loss on one of our contracts valued at $2.8 million.

Gross profit for the year ended December 31, 2025, decreased by $1.3 million to $0.9 million, or 11% of revenue.

Compared to $2.2 million, or 23% of revenue, for the prior year.

Moving on to cyber.

Total of revenue generated in Q4 2024.

Our new 2025 was $29.3 million compared to 22.9% in the same period last year, an increase of 28%.

Speaker #4: As I previously mentioned, we had a cash and cash equivalents balance of $27.2 million as at December 31, 2025. Net cash used in operating activities from continuing operations was $14.2 million for the year ended December 31, 2025.

Sparrow product revenue was $23.4 million, an increase of 30% compared to Q4 2024, driven by higher volumes.

Elizabeth Owens: Net cash used in operating activities from continuing operations was $14.2 million for the year ended 31 December 2025, compared to $5.8 million in the prior year, an increase of $8.4 million. The decrease in net cash provided by investing activities was mainly driven by $21.7 million in capital contributions to Cespira and purchases of property, plant, and equipment of $2.7 million, partially offset by proceeds from the sale of the light-duty segment. As noted, we also strengthened our balance sheet with total outstanding debt of $2.9 million, down from $6.8 million, while reducing the complexity of our corporate structure in 2025. Our business is focused on the right markets for us, and we are continually looking at ways to streamline our operations. With that, I'll pass it back to you, Dan.

Speaker #4: Compared to $5.8 million in the prior year, an increase of 8.4 million. The decrease in net cash provided by investing activities was mainly driven by $21.7 million in capital contributions to Sospira, and purchases of property, plants, and equipment of $2.7 million, partially offset by proceeds from the sale of the light-duty segment.

Gross profit was negative 1.1 million for Q4 2025 compared to 0.5 million. Eq4 2024 with a negative variance driven primarily by an obsolete inventory, provision of 1.7 million and a recognized loss on 1 of our contracts valued at 2.8 million.

As a previously mentioned, we had a cash and cash equivalents balance of 27.2 million as at December 31st 2025.

Speaker #4: As noted, we also strengthened our balance sheet with total outstanding debt of $2.9 million down from $6.8 million, while reducing the complexity of our corporate structure in 2025.

Net cash used in operating activities from continuing operations was 14.2 million for the year. Ended December 31st 2025.

Compared to $5.8 million in the prior year, an increase of $8.4 million.

Speaker #4: Our business is focused on the right markets for us, and we are continually looking at ways to streamline our operations. With that, though, I will pass it back to you, Dan.

Speaker #1: Thank you, Elizabeth. As we look to 2026, we see a transportation market increasingly grounded in economic reality. Operators are seeking solutions that deliver measurable emission reductions without sacrificing durability or operating economics.

Dan Sceli: Thank you, Elizabeth. As we look to 2026, we see a transportation market increasingly grounded in economic reality. Operators are seeking solutions that deliver measurable emission reductions without sacrificing durability or operating economics. Natural gas is playing a larger role in that equation, not as a transitional concept, but as a fuel that can compete on performance and cost today. The HPDI platform delivered through Cespira is central to that opportunity by pairing compression ignition performance with the advantages of natural gas, including the potential to incorporate hydrogen blends over time. We are providing OEMs and fleets with a pathway that aligns emission reductions with commercial expectations. As I mentioned earlier, Volvo's milestone of more than 10,000 natural gas trucks on the road in over 30 countries, featuring Cespira's HPDI fuel systems, highlights our combined success in helping drive this path of success.

The decrease in net cash provided by investing activities was mainly driven by $21.7 million in capital contributions due to Spira and purchases of property, plant, and equipment of $2.7 million, partially offset by proceeds from the sale of the light-duty segment.

As noted, we also strengthened our balance sheet, with total outstanding debt of $2.9 million, down from $6.8 million.

Speaker #1: Natural gas is playing a larger role in that equation, not as a transitional concept, but as a fuel that can compete on performance and cost today.

While reducing the complexity of our corporate structure in 2025.

Speaker #1: The HPDI platform delivered through Sospira is centric to that opportunity by pairing compression ignition performance with the advantages of natural gas, including the potential to incorporate hydrogen blends over time; we are providing OEMs and fleets with a pathway that aligns emission reductions with commercial expectations.

Our business is focused on the right markets for us, and we are continually looking at ways to streamline our operations.

Dan Sceli: Thank you, Elizabeth. As we look to 2026, we see a transportation market increasingly grounded in economic reality. Operators are seeking solutions that deliver measurable emission reductions without sacrificing durability or operating economics. Natural gas is playing a larger role in that equation, not as a transitional concept, but as a fuel that can compete on performance and cost today. The HPDI platform delivered through Cespira is central to that opportunity. By pairing compression ignition performance with the advantages of natural gas, including the potential to incorporate hydrogen blends over time, we are providing OEMs and fleets with a pathway that aligns emission reductions with commercial expectations. I mentioned earlier, Volvo's milestone of more than 10,000 natural gas trucks on the road in over 30 countries, featuring Cespira's HPDI fuel systems, highlights our combined success in helping drive this path of success.

With that, I want to pass it back to you, Dan. Thank you, Elizabeth.

As we looked at 2026, we see a transportation market increasingly grounded in economic reality. Operators are seeking solutions that deliver measurable emission reductions without sacrificing durability or operating economics.

Speaker #1: As I mentioned earlier, Volvo's milestone of more than 10,000 natural gas trucks on their road in over 30 countries, featuring Sospira's HPDI fuel systems, highlights our combined success in helping drive this path of success.

Natural gas is playing a larger role in that equation—not as a transitional concept, but as a fuel that can compete on performance and costs today.

Speaker #1: We are encouraged by the progress of a second OEM conducting a full truck trial throughout 2026, which we further believe validates additional commercial potential.

Dan Sceli: We are encouraged by the progress of a second OEM conducting a full truck trial throughout 2026, which we further believe validates additional commercial potential. 2026 will be a pivotal year as we advance demonstrations and fleet trials, present this exciting new platform at the ACT conference this spring, and follow with targeted show-and-tell sessions with Canadian fleets through the spring and summer. Together, these initiatives position us to build momentum across our portfolio and translate technology progress into tangible commercial interest. I can appreciate the investment community's interest in our 2026 outlook. We are focused on delivering disciplined execution, continued advancement of OEM programs, and converting technical validation into new commercial opportunities. In our high-pressure control segment, we're optimistic that volumes can increase as customers' facilities ramp up production, while we actively pursue cost reduction opportunities in China through greater total sourcing and supply chain optimization.

Speaker #1: 2026 will be a pivotal year as we advance demonstrations and fleet trials. Present this exciting new platform at the ACT conference this spring, and follow with targeted show-and-tell sessions with Canadian fleets through the spring and summer.

The HPDI platform delivered through Suspira is centered to that opportunity by pairing compression ignition performance with the advantages of natural gas, including the potential to incorporate hydrogen blends over time. We are providing OEMs and fleets with a pathway that aligns emission reductions with commercial expectations.

Speaker #1: Together, these initiatives position us to build momentum across our portfolio and translate technology progress into tangible commercial interest. I can appreciate the investment community's interest in our 2026 outlook.

More than 10,000 natural gas trucks are on the road in over 30 countries, featuring Spheris HPDI fuel systems.

Dan Sceli: We are encouraged by the progress of a second OEM conducting a full truck trial throughout 2026, which we further believe validates additional commercial potential. 2026 will be a pivotal year as we advance demonstrations and fleet trials, present this exciting new platform at the ACT conference this spring, and follow with targeted show and tell sessions with Canadian fleets through the spring and summer. Together, these initiatives position us to build momentum across our portfolio and translate technology progress into tangible commercial interest. I can appreciate the investment community's interest in our 2026 outlook. We are focused on delivering disciplined execution, continued advancement of OEM programs, and converting technical validation into new commercial opportunities. In our high-pressure control segment, we're optimistic that volumes can increase as customers' facilities ramp up production, while we actively pursue cost reduction opportunities in China through greater total sourcing and supply chain optimization.

Speaker #1: We are focused on delivering disciplined execution, continued advancement of OEM programs, and converting technical validation into new commercial opportunities. In our high-pressure control segment, we're optimistic that volumes can increase as customers' facilities ramp up production, while we actively pursue cost reduction opportunities in China through greater total sourcing and supply chain optimization.

Highlights are combined success and helping drive this path of success. We are encouraged by the progress of a second. OEM conducting a full truck trial throughout 2026, which we further believed validates additional commercial potential.

2026 will be a pivotal year as we advance demonstrations and fleet trials.

Speaker #1: With a focused organization and technologies aligned with market demand, we believe 2026 represents an important step forward, and we intend to deliver. Thank you.

Present this exciting new platform at the ACT conference this spring, and follow with targeted Show and Tell sessions with Canadian fleets through the spring and summer together. These initiatives position us to build momentum across our portfolio and translate technology progress into tangible commercial interests.

Dan Sceli: With a focused organization and technologies aligned with market demand, we believe 2026 represents an important step forward, and we intend to deliver. Thank you.

Speaker #2: Ladies and gentlemen, at this time, if you have a question or comment, please press star 11 on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star 11 again.

Operator: Ladies and gentlemen, at this time, if you have a question or comment, please press star one one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star one one again. Again, if you have a question or comment, please press star one one on your telephone keypad. Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of Amit Dayal from H.C. Wainwright. Your line is open, sir.

I can appreciate the investment community in communities interests. In our 2026 Outlook, we are focused on delivering disciplined execution, continued advancement of OEM programs and converting technical validation into new commercial opportunities.

Speaker #2: Again, if you have a question or comment, please press star 11 on your telephone keypad. Please stand by while we compile the Q&A roster.

Dan Sceli: With a focused organization and technologies aligned with market demand, we believe 2026 represents an important step forward, and we intend to deliver. Thank you.

Speaker #2: Our first question or comment comes from the line of Amit Dayal from HC Wainwright. Your line is open.

In our high-pressure control segment, we're optimistic that volumes can increase as customers facilities, ramp up, production while we actively pursue cost reduction opportunities in China through greater total sourcing and supply. Chain optimization with a focused organization and Technologies aligned. With market demand, We Believe 2026 represents an important step forward and we intend to deliver

Thank you.

Operator: Our first question or comment comes from the line of Amit Dayal from H.C. Wainwright. Your line is open.

Speaker #3: Hey, good morning, everyone. Thank you for taking my questions.

Amit Dayal: Hey, good morning, everyone. Thanks for taking my questions.

Speaker #1: Hey. Good morning, Amit.

Dan Sceli: Hey. Good morning, Amit.

Speaker #3: So, Dan, just on the margin side of things, it looks like inventory issues and relocation issues were sort of pressuring margins in the fourth quarter.

Amit Dayal: Just on the margin side of things, it looks like inventory issues and relocation issues were sort of pressuring margins in Q4. Do you think we see some bounce back in Q1 and the rest of 2026 on the margin side?

Ladies and gentlemen, at this time, if you have a question or comment, please press star 1, 1 on your telephone keypad. If your question has been answered, or you wish to remove yourself from the queue simply press 1 star 1, 1 again.

Speaker #3: Do you think we see some bounce back in one queue and the rest of 2026 on the margin side?

Again, if you have a question or comment, please press star 1 1 on your telephone keypad, please stand by while we compile the Q&A roster.

Speaker #1: Yeah, for sure. I think this transition—I'll start with the high-pressure controls transition from Italy to Canada and China—launching the two new production facilities and moving the equipment over, managing the inventory transfers, starting up getting the plants certified, which is quite an extensive process.

Dan Sceli: Yeah, for sure. I think this transition, I'll start with the high pressure controls transition from Italy to Canada and China. Launching the two new production facilities, moving the equipment over, managing the inventory transfers, starting up getting the plants certified, which is quite an extensive process. Yeah, that put a lot of pressure on margins, and we do expect margins to improve and volumes as well. We're already seeing some pickup in volumes as we move through the year.

Our first question to comment comes from the line of Amit Dial.

Amit Dayal: Hey, good morning, everyone. Thank you for taking my questions.

HC. Wayne Wright? Your line is open.

Dan Sceli: Hey. Good morning, Amit.

Speaker #1: That put a lot of pressure on margins, and we do expect margins to improve. And volumes as well. We're already seeing some pickup in volumes as we move through the year.

Dan Sceli: Yeah, for sure. I think this transition, I'll start with the high pressure controls transition from Italy to Canada and China, launching the two new production facilities, moving the equipment over, managing the inventory transfers, starting up, getting the plant certified, which is quite an extensive process. Yeah, that put a lot of pressure on margins, and we do expect margins to improve, and volumes as well. We're already seeing some pickup in volumes as we move through the year.

Good morning everyone. Thank you for taking my questions. Good morning Amit. So then um just you know, on the margin side of things, it looks like you know, inventory issues and you know relocation issues were sort of pushing margins in the fourth quarter. Do you think we see some bounce back in 1 q and the rest of 2026 on the margin side?

Speaker #2: Understood.

Amit Dayal: Understood. For the high pressure control segment, can you talk a little bit about how maybe the China market or the Indian market, et cetera, the international opportunities you highlighted could start ramping for you? What should we expect in terms of go-to market strategy in these geographies?

Speaker #3: For the high-pressure control segment, can you talk a little bit about sort of how maybe the China market or the Indian market, etc., the international opportunities you highlighted could start ramping fuel?

Speaker #3: What should we expect in terms of go-to-market sort of strategy in these geographies?

Yeah, for sure. I think, you know, this transition, um uh, I'll start with the uh, the high-pressure controls transition. Um, from Italy, to Canada and China. Um, you know, launching the 2, new production, uh, facilities. Uh, moving the equipment over managing the inventory transfers starting up, uh, getting the plants certified, um, which is quite an extensive process. Um, you know, that put a lot of pressure on on uh, margins. And we do expect margins to improve and volumes as well. We're already seeing some pickup in.

Speaker #1: Sure. So I'll start with China. I think everybody knows that China is the fastest-growing hydrogen market. The government goals that they set out are driving volume increases.

Dan Sceli: Sure. I'll start with China. I think everybody knows that China is the fastest growing hydrogen market. The government goals that they set out are driving volume increases. We're in a bit of a lull right now where volumes globally have slowed down on hydrogen, but we expect them to begin to pick up again at some point here in China. Having our plant there allowed us to compete locally. It allowed us to have local costs, source local suppliers. For us, it's the right strategy to compete in China for the Chinese market. Shipping from Italy or from Canada just didn't make sense. The comment on India. India is really a huge opportunity for Cespira in the long-haul trucking market. India has now put in a multi-state highway system. They're investing in clean fuel stations.

Volumes as we move through the year.

Understood. Um,

um,

For the Hyper Pressure Control segment, um, you know,

Speaker #1: We're in a bit of a lull right now where volumes globally have slowed down on hydrogen, but we expect them to begin to pick up again at some point here in China.

Speaker #1: Having our plant there allowed us to compete locally. It allowed us to have local costs source local suppliers. It's for us, it's the right strategy to compete in China for the Chinese market.

Dan Sceli: Sure. I'll start with China. I think everybody knows that China is the fastest growing hydrogen market. The government goals that they set out are driving volume increases. We're in a bit of a lull right now where volumes globally have slowed down on hydrogen, but we expect them to begin to pick up again at some point here in China. Having our plant there allowed us to compete locally. It allowed us to have local costs, source local suppliers. For us, it's the right strategy to compete in China for the Chinese market. Shipping from Italy or from Canada just didn't make sense. The comment on India is really a huge opportunity for Cespira in the long-haul trucking market. India has now put in a multi-state highway system. They're investing in clean fuel stations.

Like can you talk a little bit about sort of, you know, how maybe the China Market um, or the Indian market Etc? You know, the international opportunities, you highlighted uh, could uh, you know, start ramping for you like what should we expect in terms of, you know, like um, go to market, sort of strategy and these in these geographies?

Speaker #1: Shipping from Italy or from Canada just didn't make sense. The comment on India: India is really a huge opportunity for Sospira in the long-haul trucking market.

Speaker #1: India has now put in a multi-state highway system. They're investing in clean fuel stations. And we see that a number of trucking OEMs look at India as a beachhead for growth.

Sure, so I'll start with China. I think everybody knows that China is the fastest growing hydrogen Market. The, the government, uh, goals that they set out are driving volume increases. We're in a bit of a lull right now, where volumes globally have slowed down on hydrogen. But, uh, we expect them to begin to pick up again at some point here, in China, uh, having our plant there.

Dan Sceli: We see that a number of trucking OEMs look at India as a beachhead for growth and that market's going to pick up, we believe, pretty significantly.

Speaker #1: And that market's going to pick up, we believe, pretty significantly.

Amit Dayal: Understood. Just last one from me. Any opportunities or possibilities in the power gen or backup power space for you guys?

Speaker #2: Understood. Just last one from me. Any opportunities or possibilities in the power gen or backup power space for you guys?

Uh, it allowed us to compete locally. It allowed us to, um, have local costs, um, source, uh, local suppliers. Um, it's, it's, you know, for us, it's the right strategy to compete in China for the Chinese market. Uh, shipping from Italy or from Canada just didn't make sense. Um, the comment on India—India is really, um, a huge opportunity for Sapira in the long-haul trucking market.

Dan Sceli: Well, it's interesting you ask. We've been looking into power gen. We currently supply into power gen today. We have a customer that used to be Kohler, Rehlko, that we supply out of our high pressure controls business. We see that opportunity growing with the investments going into power gen across North America and, of course, globally. We think that there's an opportunity to build out that business, and we are expected to grow there.

Speaker #1: Well, interesting you asked. So we've been looking into power gen. We currently supply into power gen today. We have a customer that used to be Kohler, Rocco, that we supply out of our high-pressure controls business.

Dan Sceli: We see that a number of trucking OEMs look at India as a beachhead for growth, and that market's going to pick up, we believe, pretty significantly.

Speaker #1: We see that opportunity growing. With the investments going into power gen, across North America and, of course, globally, we think that there's an opportunity to build out that business.

Amit Dayal: Understood. Just last one from me. Any opportunities or possibilities in the power gen or backup power space for you guys?

You know, India has now, you know, put in a multi-state, uh, highway system. They're investing in, uh, clean fuel stations. Um, and uh, we see that uh, a number of trucking oems, look at India as as a beach head for growth and uh that Market's going to pick up. We Believe pretty significantly.

Speaker #1: And our expected to grow there.

Understood just lasts 1 for me. Um, any any opportunities or possibilities in the power gen or backup power space for you guys?

Amit Dayal: Understood. That's all I have, guys. I'll take my other questions offline. Thank you.

Speaker #2: Understood.

Speaker #3: That's all I have, guys. I'll take my other questions offline. Thank you.

Dan Sceli: Great. Thanks, Amit.

Speaker #1: Great. Thanks, Amit.

Operator: Second, this question or comment comes from the line of Rob Brown from Lake Street Capital Markets. Mr. Brown, your line is open.

Speaker #2: Second, next question or comment comes from the line of Rob Brown from Lake Street Capital Markets. Mr. Brown, your line is open.

Rob Brown: Hi, good morning.

Dan Sceli: Hey, good morning, Rob.

Speaker #4: Hi, good morning. Good morning, Rob.

Apply into powergen today. Uh, we have a customer that used to be Cooler—real Cool—that we supply out of our High Pressure Controls business. We see that opportunity growing, you know, with the investments going into powergen,

Speaker #1: Hey. My first question's on the OEM trial. At Sospira, the second OEM, I know you can't give a lot of detail, but I think you said this year is sort of when the trial's happening.

Rob Brown: First question's on the OEM trial at Cespira, the second OEM. I know you can't give a lot of detail, but I think you said this year is sort of when the trial's happening. What's sort of the decision point on that? Is it sort of work this year and then just make decisions and then start potentially ramping into a production model or just sort of the outlines of the process would be helpful?

Amit Dayal: Understood. That's all I have, guys. I'll take my other questions offline. Thank you.

Uh, across North America and, of course, globally. Uh, we think that there's an opportunity to build out that business, um, and are expected to, uh, um, grow their—

Speaker #1: What's sort of the decision point on that? Is it sort of work this year and then just make decisions and then start potentially ramping into a production model or just sort of the outlines of the process would be helpful?

Dan Sceli: Great. Thanks, Amit.

That's all I have, so I'll take one other question offline. Thank you—great, thanks so much.

Operator: Second. Next question or comment comes from the line of Rob Brown from Lake Street Capital Markets. Mr. Brown, your line is open.

Dan Sceli: Sure. I wish I could say who it was, but in this commercial truck world, they're very careful about their commercial information. The trial's ongoing right now, right? There's trucks on the road, running. There's discussions about expanding it, but we believe decisions will be made in H2 of the year at some point. We don't know the exact timing. It depends when they get the miles on the trucks. Our expectation is that in H2 of the year, we're going to start getting feedback. Of course, if it all goes well, we're hoping this is going to lead to a commercial launch.

Speaker #4: Sure. Sure. I wish I could say who it was, but in this commercial truck world, there are very, very careful about their commercial information.

Rob Brown: Good morning.

Executive next question, or comment comes from the line of Rob Brown from Lake Street Capital markets, Mr. Brown, your line is open.

Dan Sceli: Hey, good morning, Rob.

Rob Brown: First question's on the OEM trial at Cespira, the second OEM. I know you can't give a lot of detail, but I think you said this year is sort of when the trial's happening. What's sort of the decision point on that? Is it sort of work this year and then just make decisions and then start potentially ramping into a production model, or just sort of the outlines of the process would be helpful.

Good morning. Good morning, Rob.

Speaker #4: But the trial's ongoing right now, right? There's trucks on the road running; there's discussions about expanding it. But we believe decisions will be made in the second half of the year at some point.

Speaker #4: We don't know the exact timing. It depends when they get the miles on the trucks. But our expectation is that in the second half of the year, we're going to start getting feedback and, of course, if it all goes well, we're hoping this is going to lead to a commercial launch.

Dan Sceli: Sure. I wish I could say who it was, but in this commercial truck world, they're very, very careful about their commercial information. The trial's ongoing right now, right? There's trucks on the road running. There's discussions about expanding it, but we believe decisions will be made in H2 at some point. We don't know the exact timing. It depends when they get the miles on the trucks. Our expectation is that in H2, we're going to start getting feedback. Of course, if it all goes well, we're hoping this is going to lead to a commercial launch.

First question is on the, uh, the OEM trial, uh, at the spare. The second OEM, um, I know you can't give a lot of detail, but um, I think you said this year is sort of when the trial is happening. Um, you know, what, sort of the, uh, the, uh, decision point on that? Is it sort of work this year and then just make a decision and then start potentially ramping into a production model, or just sort of the outlines of the, of the, uh, process would be helpful.

Rob Brown: Okay. Got it. Circling back to the high-pressure controls business run rate, can we just get a sense of what's the sort of revenue run rate now that you've gotten the production transitioned? Is it sort of growing off the Q4 run rate? I guess, how much of the Q4 run rate was depressed from that, I guess? Just a sense of the run rate in that business.

Speaker #1: Okay. Got it. And then turn back to the high-pressure controls business run rate. Get a sense of what's the sort of revenue run rate now that you've gotten the production transitioned.

Speaker #1: Is it sort of growing off the Q4 run rate, or is it, I guess, how much of the Q4 run rate was depressed from that, I guess?

Sure. Sure. You know, I wish I could say who it was but you know, in this commercial truck world, they're very very um, careful about their commercial information. Um but the the trial is ongoing right now, right. There's trucks in the road running, um, there's uh, you know, discussions about expanding it and but we we believe decisions will be made uh um you know, in the second half of the year at some point. We don't know the exact timing. It depends when they get the miles on the, on the trucks. Um, but uh,

Dan Sceli: Sure. The Q4 run rate was depressed. Number one, the market has slowed down somewhat, but also with shutting down the equipment in Italy, moving it all to the two new plants. Obviously, we weren't producing for some time while that transition happened. Yeah, we do see that market starting to grow. We see volumes increasing over what we expected for 2026 already. It's on a good path, and we believe that, I think specifically the Chinese market is the one that will take off first as the Chinese government puts those goals in place for hydrogen transition in both automotive and in the industrial markets.

Speaker #1: Just a sense of the run rate in that business.

Speaker #4: Sure. The Q4 run rate was depressed: number one, the market has slowed down somewhat. But also with shutting down the equipment in Italy, moving it all to the two new plants, obviously, we weren't producing for some time while that transition happened.

You know, um, our expectation is that in the second half of the year we're going to start getting feedback and, of course, if it all goes well, we're hoping this is going to lead to a commercial launch.

Rob Brown: Okay. Got it. Back to the high-pressure controls business run rate. Can I just get a sense of what's the sort of revenue run rate now that you've gotten the production transitioned? Is it sort of growing off the Q4 run rate? I guess, how much of the Q4 run rate was depressed from that, I guess? Just a sense of the run rate in that business.

Speaker #4: But yeah, we do see that market starting to grow; we see volumes increasing over what we expected for 2026 already. So it's on a good path, and we believe that the—I think specifically the Chinese market is the one that will take off first.

Okay, got it. Uh, and then and then talk back to the high, pressure controls business, run rate, um, and just get a sense of what's the, the sort of Revenue around right now that you've gotten, um, the production transition? Is it is it, uh, sort of growing off the Q4 run rate, or is it, um,

Speaker #4: As the Chinese government puts those goals in place for hydrogen transition, in both automotive and in the industrial markets.

Rob Brown: Okay, thank you. I'll turn it over.

Dan Sceli: Thank you.

Speaker #1: Okay. Thank you. I'll turn it over.

Operator: Thank you. Again, ladies and gentlemen, if you have a question or comment at this time, please press star one one on your telephone keypad. Our next question or comment comes from the line of Mr. Eric Stine from Craig-Hallum Capital Group. Mr. Stine, your line is open.

you know, I guess how much of the Q4 run rate was depressed from that, I guess just just a sense of the Run rate in that business. Sure. The Q4 run rate was depressed. Um, number 1, you know, the market has slowed down somewhat but uh, also with, um, shutting down the equipment and that'll be moving at all to the 2, new plants. Obviously we weren't producing for some time while that transition happened, but yeah, we do. See that market starting to grow, you know, we see volumes increasing over, what? We expected for 2026 all

Speaker #4: Thank you.

Speaker #2: Thank you. Again, ladies and gentlemen, if you have a question or comment at this time, please press star 11. Are your telephone keypad? Our next question or comment comes from the line of Mr. Eric Stine from Craig Hallam Capital Group.

Eric Stine: Hi, Dan. Hi, Elizabeth. Good morning.

Speaker #2: Mr. Stine, your line is open.

Dan Sceli: Hey, good morning, Eric.

Speaker #5: Hi, Dan. Hi, Elizabeth. Good morning.

Eric Stine: Dan, you touched on HPDI in India and in your prepared remarks, Latin America and some other markets. But in terms of North America, I know that's a very high priority. You did mention some trials that you are planning or that the joint venture is planning in Canada. Could you maybe go into that a little bit? Anything you can share?

Speaker #1: Hey, good morning, Eric.

Speaker #5: Dan, you touched on HPDI in India, and in your prepared remarks, Latin America, and some other markets. But in terms of in North America, I mean, I know that's a very high priority.

Already. So, um, you know, it's on a good path. And, uh, we, we believe that, uh, you know, the, the I think specifically the Chinese market is the 1 that will take off first, um, as the Chinese. Um, government puts those goals in place for hydrogen transition, and in in both, uh, automotive and in the industrial markets,

Rob Brown: Okay, thank you. I'll turn it over.

Dan Sceli: Thank you.

Okay, thank you. I'll turn it over.

Thank you.

Speaker #5: You did mention some trials that you are planning or that the joint venture is planning. In Canada, could you maybe go into that a little bit?

Eric Stine: Hi, Dan. Hi, Elizabeth. Good morning.

Dan Sceli: Sure

Eric Stine: Should we assume then that Canada is kind of the initial spot in North America that you would target?

Dan Sceli: Hey. Good morning, Eric.

Thank you again, ladies and gentlemen, if you have a question or comment at this time, please press star 1. 1 on your telephone keypad. Our, next question to comment comes from the line of Mr. Eric Stein from Craig Callum Capital group Mr. Stalin. Your line is open.

Speaker #5: Anything you can share? And should we assume then that Canada is kind of the initial spot in North America that you would target?

Eric Stine: Dan, you touched on HPDI in India and in your prepared remarks, Latin America and some other markets. In terms of in North America, I know that's a very high priority. You did mention some trials that you are planning or that the joint venture is planning in Canada. Could you maybe go into that a little bit? Anything you can share?

Hi Dan, hi Elizabeth, good morning. Hey, good morning, Eric.

Dan Sceli: I think it is a Westport product, not a Cespira product. Obviously Cespira has the on-engine HPDI technology that will be part of the solution, but the back-of-cab high-pressure storage, smart storage system is a Westport product. We have already got the first truck. Volvo got us a truck, and we've already put the back-of-cab system on it. It's been running miles developing data. The reason that is that we're not having to redevelop any of these systems. It's a matter of putting these systems together. It's not a huge development project. It's more of a market development that's required. The truck, as I said, is on the road. The truck will be on its way shortly to Las Vegas for the ACT show. I hope you're gonna be there, Eric, and see it. We have a booth right next to Volvo there.

Speaker #1: I think a WestPort product, not a Sospira product. Obviously, Sospira has the on-engine HPDI technology that will be part of the solution. But the backup cab, high-pressure storage, smart storage, system is a WestPort product.

Um, Dan you touched on, hpdi in India and in in in your prepared, remarks Latin, America and some other markets, but in terms of in North America I mean, I know that's a, a very high priority. You did mention some

Dan Sceli: Sure

Eric Stine: Should we assume then that Canada is kind of the initial spot in North America that you would target?

Speaker #1: We have already got the first truck—well, got us a truck, and we've already put the backup cab system on it. It's been running miles developing data.

Dan Sceli: I think it is a Westport product, not a Cespira product. Obviously, Cespira has the on-engine HPDI technology that will be part of the solution, but the back-of-cab high-pressure storage, smart storage system is a Westport product. We have already got the first truck. Volvo got us a truck, and we've already put the back-of-cab system on it. It's been running miles, developing data. The reason that is that we're not having to redevelop any of these systems. It's a matter of putting these systems together. It's not a huge development project. It's more of a market development that's required. The truck, as I said, is on the road. The truck will be on its way shortly to Las Vegas for the ACT show. I hope you're gonna be there, Eric, and see it. We have a booth right next to Volvo there.

Trials that you are planning, or that the joint venture is planning in Canada—could you maybe go into that a little bit, anything you can share? And should we assume then that Canada is kind of the initial spot in North America that you would target?

Speaker #1: And the reason that is is that we're not having to redevelop any of these systems. It's a matter of putting these systems together so it's not a huge development project.

Speaker #1: It's more of a market development that's required. The truck, as I said, is on the road. The truck will be on its way shortly to Las Vegas for the ACT show.

Speaker #1: I hope you're going to be there, Eric, and see it. We have a booth right next to Volvo there. And the, as you know, this CNG storage system is primarily focused on the North American market.

Dan Sceli: As you know, this CNG storage system is primarily focused on the North American market. We will be doing the initial trials in Canada. We will, at some point here, be moving to the US for trials as well.

Um, you know, I think if somebody is a Westport product, not a suspira product, obviously it's a Spira, has the on engine hpdi technology that will be part of the solution. But the, um, the back of cab, um, high-pressure storage. Smart storage system is a Westport product. Um, we have already got the first truck. Well, got us a truck and we've already put the back of cab system on it. It's been running. Uh, miles.

Speaker #1: We will be doing the initial trials in Canada. And but we will at some point here be moving to the US for trials as well.

Eric Stine: Got it. Okay. I misunderstood that. Thank you for the clarification. I guess, the follow-up then would be just about bringing HPDI, the joint venture, and since you just talked about back of cab, but HPDI to North America.

Speaker #5: Got it. Okay. I misunderstood that. Thank you for the clarification. So then I guess the follow-up then would be just about bringing HPDI, the joint venture, since you just talked about backup cab.

Speaker #5: But HPDI to North America.

Dan Sceli: Yeah. That's

Eric Stine: I would assume that that would be Volvo, right?

Dan Sceli: Yes. Well, as a starting point, for sure. This whole CNG, HPDI is growing fast globally. The difference is that all the growth of 10,000 trucks are on LNG because that's how those countries receive their natural gas. Natural gas in North America is primarily delivered through compressed, right? It's a CNG market. Our on-engine system really doesn't care whether it's compressed or liquid. The system adapts to that. The storage system is the big difference, going from a liquid storage to a compressed storage. That's what we're bringing, and the first truck on the road is a Volvo truck. It's their new truck, and we're very excited to have it showing up at ACT. Yeah, this is pretty exciting for us. We're finally getting to execute on this strategy, and any growth we have on this back-of-cab system obviously pulls through HPDI for Cespira.

Speaker #1: Yeah. And that's.

Speaker #5: I would assume that that would be Volvo, right?

Speaker #1: Yeah. Well, as a starting point, for sure, but this whole CNG, I mean, HPDI is growing fast globally. The difference is that all the growth, the 10,000 trucks are on LNG because that's how those countries receive their natural gas.

To, uh, Las Vegas for the ACT show. Um, I hope you're going to be there, Eric, and see it. Uh, we have a booth right next to Bovo there. Um, and, uh, as you know, this, uh, um, CNG storage system is primarily focused on the North American market. We will be doing the initial trials in Canada. Um, and, uh, um, but we will, at some point here, be moving to the U.S. for trials as well.

Got it. Okay, I misunderstood that. Thank you for the clarification. So then,

Speaker #1: Natural gas in North America is primarily delivered through compressed, right? It's a CNG market. So our on-engine system really doesn't care whether it's compressed or liquid.

Dan Sceli: Yeah.

Eric Stine: I would assume that that would be Volvo, right?

I guess, um the follow-up then would be just about each bringing hpdi the joint venture. Um, and since you just talked about back a cab but um hpdi to North America

Dan Sceli: Yes. Well, as a starting point, for sure.

Um, yeah, I would assume that that would be Volvo, right? Um, yeah.

Eric Stine: Yeah.

Dan Sceli: This whole CNG—HPDI is growing fast globally. The difference is that all the growth to 10,000 trucks are on LNG because that's how those countries receive their natural gas. Natural gas in North America is primarily delivered through compressed, right? It's a CNG market. Our on-engine system really doesn't care whether it's compressed or liquid. The system adapts to that. The storage system is the big difference, going from a liquid storage to a compressed storage, and that's what we're bringing in, and the first truck on the road is a Volvo truck. It's their new truck, and we're very excited to have it showing up at ACT, and this is pretty exciting for us. We're finally getting to execute on this strategy, and any growth we have on this back of cab system obviously pulls through HPDI for Cespira.

Speaker #1: The system adapts to that. The storage system is the big difference going from a liquid storage to a compressed storage. And that's what we're bringing and the first truck on the road is a Volvo truck.

Speaker #1: It's their new truck, and we're very excited to have it showing up at ACT. And yeah, this is pretty exciting for us. We're finally getting to execute on this strategy.

Speaker #1: And any growth we have on this backup cab system obviously pulls through HPDI for Sospira.

Well, as a starting point, um, for sure. Uh, um, but, uh, you know, this whole CNG I mean hpdi is, is, is growing fast globally. Um, the difference is that, um, you know, all the growth to 10,000 trucks are on LG because that's how those countries, um, uh, received their their natural gas natural gas in North. America is primarily delivered through compressed, right? It's a CNG market. So what are are on engine system? Really doesn't care, whether it's compressed or liquid, you know, the system uh adapts to uh to that.

Eric Stine: Yep. Nope, absolutely. Okay, thanks for that. Just housekeeping for my last question or questions. I might have missed it, but did you quantify or estimate what you think the move did in terms of limiting Q4 for the high-pressure segment?

Speaker #5: Yep. Nope. Absolutely. Okay. Thanks for that. And just housekeeping for my last question or questions, just I might have missed it, but did you quantify or estimate what you think the move did in terms of limiting Q4 for the high-pressure segment?

Dan Sceli: Oh, sure. I think we lost probably a couple of months of production. We had built up some inventory, but when you lose a couple of months' production, you got to play catch-up. That coincides with a bit of the market pause that had happened. We've launched both plants. Both plants are up and running and shipping product. We've gotten through that transition hump, through the launch hump, and we're pretty excited about where that's going to go. We have the control in our hands.

Speaker #1: Oh, sure. I mean, I think we lost probably a couple of months of production and we had built up some inventory. But when you lose a couple of months' production, you got to play catch-up.

Eric Stine: Yep. Nope. Absolutely. Okay. Thanks for that. Just housekeeping for my last question or questions. Just, I might have missed it, but did you quantify or estimate what you think the move did in terms of limiting Q4 for the high-pressure segment?

The storage system is the big difference going from a liquid storage to a compressed storage, and that's what we're bringing. Um and and uh um the first truck on the road is a Volvo truck. It's their new new truck and we're very excited to to have it showing up at act and uh um yeah this is this is pretty exciting for us. We're you know, we're finally getting to execute on this uh this strategy and any growth we have on this back of cab system, obviously pulls through hpdi for suspira.

Speaker #1: And that coincides with a bit of the market pause that had happened. But we've launched both plants. Both plants are up and running. And shipping product.

Dan Sceli: Oh, sure. I think we lost probably a couple of months of production. We had built up some inventory, but when you lose a couple of months production, you got to play catch up. That coincides with a bit of the market pause that had happened. We've launched both plants. Both plants are up and running, and shipping product. We've gotten through that transition hump, through the launch hump, and we're pretty excited about where that's going to go. We have the control in our hands.

Yep. Nope absolutely. Um okay, thanks for that. Um and just housekeeping for my last question or questions just um I might have missed it but did you quantify you know, or estimate what you think. Um, the move did in terms of limiting Q4 uh for the high pressure segment.

Speaker #1: So we've gotten through that transition hump through the launch hump. And we're pretty excited about where that's going to go. We haven't the control in our hands.

Eric Stine: Okay. Thank you.

Dan Sceli: Perfect. All right. Thanks, Eric. Well, that's all the questions we have for today. I want to thank you for your time, everyone, and have a great, wonderful weekend.

Speaker #5: Okay. Thank you.

Speaker #1: Perfect. All right. Thanks, Eric. Well, that's all the questions we have for today. I want to thank you for your time. Everyone. And have a great, wonderful weekend.

Oh sure. I mean we I think we lost probably a couple of months of production. Um, and uh, you know, we had built up some inventory. But, uh, when you lose a couple of months production, you got to play catch-up and, uh, con, you know, that coincides with a bit of the market. Pause that had happened. Um, but we've launched both plants.

Operator: Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.

Eric Stine: Okay. Thank you.

Uh, both plants are up and running, um, and uh, and shipping product. So, you know, we've gotten through that transition, hump through the, you know, the uh, launch hump and, uh, you know, we're we're pretty excited about where that's going to go. We have the control in our hands.

Dan Sceli: Perfect. All right. Thanks, Eric. Well, that's all the questions we have for today. I want to thank you for your time, everyone. Have a great, wonderful weekend.

Okay, thank you.

Perfect. All right. Thanks Eric. Well, that's uh, that's all the questions we have for today. I want to thank you for your time. Uh, everyone and um, uh,

Operator: Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day. Speakers, stand by.

Have a great, wonderful, uh, weekend.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. Give me now. Disconnect everyone have a wonderful day speaker, stand by

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