Westport Announces $6.5 Million Milestone Payment From Light-Duty Divestiture

Rhea-AI Summary

Westport (TSX:WPRT / Nasdaq:WPRT) received a $6.5 million (EUR 5.5 million) milestone escrow payment tied to the previously announced sale of its Light-Duty segment. The payment was triggered by a defined post-closing milestone and is non-dilutive capital.

The company said the interim payment strengthens its cash position to support operations and strategic initiatives, and that additional contingent payments are expected as remaining divestiture phases complete.

Positive

• $6.5M milestone escrow payment received
• Non-dilutive capital that strengthens cash position for operations

Negative

• Future payments remain contingent on post-closing milestones and are not yet realized

Key Figures

Milestone payment: $6.5 million Milestone payment (EUR): EUR 5.5 million

2 metrics

Milestone payment $6.5 million Cash received from Light-Duty segment sale milestone

Milestone payment (EUR) EUR 5.5 million Euro equivalent of Light-Duty divestiture milestone payment

Market Reality Check

Price: $1.87 Vol: Volume 39,953 is 0.46x th...

low vol

$1.87 Last Close

Volume Volume 39,953 is 0.46x the 20-day average of 86,115, indicating muted trading activity before this news. low

Technical Shares at $1.87 were trading below the 200-day MA of $2.54, and about 60.76% below the 52-week high of $4.765.

Peers on Argus

Peers showed mixed moves: SYPR -4.11%, PRTS +1.31%, GTEC +5.14%, WKSP -1.08%, RE...

Peers showed mixed moves: SYPR -4.11%, PRTS +1.31%, GTEC +5.14%, WKSP -1.08%, REE -4.12%. With WPRT down 1.58% pre-news, there was no clear, unified sector direction.

Historical Context

5 past events · Latest: Jan 02 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 02	Board/leadership update	Positive	+14.0%	New Chair and director with finance and capital markets expertise added.
Nov 10	Quarterly earnings	Neutral	-0.5%	Q3 2025 results showed lower revenue but higher margins and cash.
Nov 06	Product platform update	Positive	+0.0%	Announced CNG solution for HPDI platform with 2026 field testing plans.
Oct 22	Earnings announcement	Neutral	-0.5%	Scheduled Q3 2025 results release and related conference call details.
Oct 14	JV commercial trial	Positive	+7.7%	Cespira agreed to supply HPDI components for an OEM truck trial.

Pattern Detected

Recent news has often aligned with price reactions, with positive strategic or JV updates (e.g., Board changes, Cespira agreement) coinciding with gains, while routine or mixed earnings items saw flat-to-slightly-negative moves.

Recent Company History

Over the past few months, Westport has focused on strategic repositioning and partnerships. A Board update on Dec 31, 2025/Jan 1, 2026 coincided with a 14.02% gain. Q3 2025 earnings on Nov 10, 2025 highlighted lower revenues but stronger margins and cash, with a modest -0.5% move. Product and JV news, such as the CNG solution reveal and Cespira’s truck-trial supply agreement (up 7.73%), underscored the shift toward heavy-duty and advanced fuel systems. Today’s Light-Duty divestiture milestone payment fits that ongoing transition and balance-sheet focus.

Market Pulse Summary

This announcement adds a non-dilutive $6.5 million milestone payment from the Light-Duty divestiture...

Analysis

This announcement adds a non-dilutive $6.5 million milestone payment from the Light-Duty divestiture, directly bolstering Westport’s cash. It follows earlier moves highlighting a strategic pivot toward heavy-duty and advanced alternative-fuel systems. Investors may track how additional milestone payments progress and how this capital supports operations and efficiency initiatives. Historical news, including Cespira’s truck-trial agreement and governance changes, has often aligned with constructive price reactions, making future execution on this divestiture an important metric.

Key Terms

divestiture, non-dilutive capital

2 terms

divestiture financial

"continued progress in the post-closing steps of our Light-Duty business divestiture"

Divestiture is the process of selling or getting rid of a part of a company, such as a division or asset. It often happens when a business wants to focus on its core activities or improve its finances. For investors, divestitures can signal strategic shifts or influence the company's value, affecting investment decisions.

non-dilutive capital financial

"Light-Duty divestiture providing non-dilutive capital that strengthens Westport’s cash position"

Funding that does not require a company to issue new shares or reduce existing owners’ percentage of ownership, such as grants, certain loans, licensing deals, or customer prepayments. It matters to investors because it preserves each shareholder’s stake and per-share value—like getting a loan or a gift instead of selling part of the company—while still carrying obligations (repayment, milestones, or restrictions) that can affect future cash flow and growth.

AI-generated analysis. Not financial advice.

~ Previously announced Light-Duty divestiture providing non-dilutive capital that strengthens Westport’s cash position~

VANCOUVER, British Columbia, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport") (TSX:WPRT / Nasdaq: WPRT), a supplier of alternative fuel systems and components for the global transportation industry, today announced that it has received $6.5 million (Euro 5.5 million) as part of its previously announced sale of the Light-Duty segment. The escrow payment was triggered under the terms of the sale agreement following the achievement of a defined post-closing milestone.

“This milestone payment reflects continued progress in the post-closing steps of our Light-Duty business divestiture,” said Elizabeth Owens, Chief Financial Officer at Westport. “While additional payments are expected as the transaction phases are completed, this interim payment strengthens our cash position today to support ongoing operations and our strategic initiatives. We remain disciplined in executing the remaining elements of the divestiture process along with our ongoing operational efficiency improvements.”

Additional information relating to the Light-Duty divestiture can be found in news releases posted on Westport’s website HERE.

About Westport
Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a leading supplier of affordable, alternative fuel, low-emissions transportation technologies, we design, manufacture, and supply advanced components and systems that enable the transition from traditional fuels to cleaner energy solutions.

Our proven technologies support a wide range of clean fuels – including natural gas, renewable natural gas, and hydrogen – empowering OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way. With decades of expertise and a commitment to engineering excellence, Westport is helping our partners achieve sustainability goals—without compromising performance or cost-efficiency – making clean, scalable transport solutions a reality.

Westport is headquartered in Vancouver, Canada. For more information, visit Westport.com.

Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding the receipt and timing of additional milestone-based payments related to the divestiture of our Light-Duty business, the impact of the Euro 5.5 million escrow release disclosed herein, expectations regarding our cash position, and our ongoing operational and strategic initiatives, including efficiency improvements. These forward-looking statements are neither promises nor guarantees but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause actual results to differ materially from those expressed or implied. These risks, uncertainties and assumptions include those related to the completion of remaining post-closing obligations connected to the Light-Duty divestiture, the timing and satisfaction of conditions required for any additional milestone payments, general economic conditions of and access to the capital and debt markets, solvency, governmental policies and regulation, foreign exchange rate fluctuations, supply-chain factors and other risks and assumptions described in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date of publication. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein.

Contact Information
Westport Investor Relations
T: +1 604-718-2046

        

FAQ

What did Westport (WPRT) announce on February 4, 2026 about the Light-Duty divestiture?

Westport announced receipt of a $6.5 million escrow milestone payment from the Light-Duty sale. According to Westport, the payment was triggered by a defined post-closing milestone and is part of the previously announced divestiture consideration.

How does the $6.5 million payment affect Westport's (WPRT) cash position and operations?

The payment provides immediate non-dilutive cash to support operations and initiatives. According to Westport, the interim funds strengthen liquidity while the company completes remaining divestiture phases and operational efficiency efforts.

Are more payments expected from Westport's (WPRT) Light-Duty divestiture and when might they occur?

Yes, additional contingent payments are expected as transaction phases complete and milestones are met. According to Westport, timing depends on post-closing milestones specified in the sale agreement and remaining phase completion.

Was the $6.5 million payment from Westport (WPRT) dilutive to shareholders?

No, the $6.5 million payment was described as non-dilutive capital from the Light-Duty divestiture. According to Westport, the funds came via escrow under the sale agreement and did not involve issuing new shares.

Where can investors find more details about Westport's (WPRT) Light-Duty divestiture disclosures?

Investors can review additional disclosure and past announcements on the company's investor communications channel. According to Westport, further information and earlier news releases relating to the divestiture are available on its website.