Guidance for the Remainder of 2025
Westport Fuel Systems’ Q2 2025 release includes management’s outlook for the balance of the year. The company projects revenues of roughly US$210‑220 million for FY 2025, representing a 10‑12 % increase versus the 2022‑2023 baseline and a ~4 % rise over the 2024‑2025 first‑half run‑rate. Capital‑expenditure is expected to stay flat at about US$15 million, while the firm is targeting improved gross margins of 28‑30 % (up from 26 % in Q2) as the new hydrogen‑combustion and dual‑fuel platforms scale. The guidance therefore points to continued growth rather than a contraction in the second half of the calendar year.
Trading Implications
- Fundamentals: The upward‑biased revenue and margin outlook signals that Westport’s pipeline of alternative‑fuel contracts—particularly in heavy‑truck and off‑road segments—is materialising. The modest cap‑ex spend suggests a healthy cash‑flow profile, supporting a bullish bias for the stock through the rest of 2025.
- Technicals: Westport has been trading in a mid‑term uptrend since the low‑$5.00 region in early 2024, currently holding the 50‑day SMA near $7.30 and the 200‑day SMA around $6.80. The price is holding above both averages and has recently bounced off the 61.8% Fibonacci retracement of the March‑2024 rally, indicating momentum still intact.
- Actionable Play: For investors seeking exposure to the upside, a long position near the current pull‑back (≈ $7.20‑$7.30) with a stop just below the 50‑day SMA (~$6.90) aligns risk with the growth‑oriented guidance. If the market digests the guidance and the price breaks above the recent high of $7.80, a breakout‑biased add‑on could be justified. Conversely, a failure to sustain the margin expansion or a downward revision of the FY 2025 revenue range would warrant a defensive trim or short‑cover at the $6.80‑$6.90 support zone.
Overall, Westport’s FY 2025 guidance signals expansion, and the combination of solid fundamentals and a technically supportive price action makes the stock a bullish candidate for the remainder of 2025, pending any macro‑fuel‑price or regulatory headwinds.