Westport has stood strong on its commitment to hydrogen market of China with a late 2025 launch of a hydrogen innovation center and manufacturing hub. The company has trimmed its focus and booked $62.5 million in light-duty sale proceeds. However, the Q2 revenues have fallen 11% to $12.5 million with a net loss of $5.1 million.
Apparently, the move to support the hydrogen market of China with innovation center and manufacturing hub can be seen as anchoring Westport’s position in the fastest-growing hydrogen market in the world.
Apparently, Westport Fuel Systems is sharpening its focus on China by way of announcing the establishment of a hydrogen innovation and manufacturing hub before 2025 ends. The move capitalizes on what the company calls a government-backed rollout in China – a stark contrast to the pause within the adoption of hydrogen, as seen across North America as well as Europe.
Interestingly, the Vancouver-based company is going to use this facility as both a dedicated production site for hydrogen transport solutions as well as a research and development hub, thereby making utmost use of the deep government support from China and also growing demand for fuel cell and hydrogen-powered vehicles. The center is going to work closely with local partners in order to serve OEMs with high-pressure hydrogen elements, which, by the way, already make up for the company’s bulk sales in the country.
According to the company, China is emerging as a worldwide leader when it comes to hydrogen adoption, and this facility is going to enable Westport to better serve the local customers as well as partners by driving clean energy advancements across one of the largest economies of the world.
The Financial Performance
As per the quarter ended June 30, 2025, Westport has gone on to report revenue of $12.5 million, which is down 11% from the $14.1 billion in quarter 2 of 2024. The net loss from the continuing operations is $5.1 million as against net income of $4.1 million in 2024. The adjusted EBIDTA is $1 million, thereby improving from $2 million in Q2 of 2024. As for the cash, the company has $6.1 million in hand at quarter’s end, with $5.6 million already used in operations.
Notably, the revenue dip was driven by softer sales in high-pressure controls and systems in which hydrogen industry headwinds cut the Chinese demand and also in heavy-duty OEM supply to Cespira, which is the LNG and hydrogen HDPI joint venture of Westport with Volvo.
In addition to this, the gross margin from high-pressure controls and systems dipped to 3% from 31% in 2024, while the segment revenue dropped 19% to $2.9 million. Westport is shifting manufacturing from Italy to Canada and also China in Q3 in order to cut costs and also enhance efficiency in the supply chain.
The strategic repositioning as well as the cash boost
On July 29, 2025, Westport closed the sale of its light-duty segment by way of generating $62.5 million in net proceeds, which includes $41 million in upfront cash, $12.8 million held in escrow for staged release all through 2027, and $8.5 million due in September. The deal also eradicated $24.3 million in debt.
Dan Sceli, the CEO, said that the divestiture sharpens the focus on heavy-duty transport, high-pressure hydrogen, and natural gas systems, as well as the global expansion of Cespira.
While the company has already acknowledged the ongoing cash demands for Cespira, it has gone on to frame the hydrogen innovation center as being the cornerstone of the growth strategy of China and a direct play on the government-backed hydrogen build-out in that market.
