Westport Fuel Systems Inc. (WPRT) Earnings Call Transcript & Summary

Hello, and welcome to the Annual General and Special Meeting of Shareholders of Westport Fuel Systems, Inc. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information, you will be deemed to consent to the recording, transfer and use of same. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant to Computershare and the corporation that you first obtained all required consents for the disclosure, recording transfer and use of such personal information from all appropriate persons before your disclosure. [Operator Instructions] I would now like to turn the conference over to Mr. Anthony Guglielmin, Chair of the Board of Westport Fuel Systems, Inc. Please go ahead, Mr. Guglielmin.

Good day, ladies and gentlemen, and [Audio Gap] The first item of formal business is the election of directors. The Board has fixed the number of directors to be elected at 6. The following individuals have been nominated for election as directors to serve until the next annual meeting or until the successors are elected or appointed: Anthony Guglielmin, Michele Buchignani, Bradley Kotush, Daniel Sceli, Karl-Viktor Schaller and Eileen Wheatman. Is there a motion?

This is Elizabeth Owens, and I move that the persons nominated be elected as directors.

This is Lance Follett, and I second the motion. .

The motion is now open for discussion, if any, by registered shareholders, proxy holders on the webcast. To submit a question for discussion on the motion of electing the directors please use the Q&A function on your screen. We will pause a few moments while we wait for any questions on this motion.

Larry, there is no questions in the queue. We can continue.

You have heard the motion, and as there is no further discussion, we will proceed with the vote for the directors. As previously noted, due to conducting this meeting by webcast voting and the requirement to determine the individual votes cast for each director we will need to receive your votes for each director individually. Voting can be completed using the voting button on your screen. [Voting]

Thank you. We will move on. While we wait final figures in respect of the voting for nominated directors, I can advise that based on the size of the management proxy vote received, the nominated individuals have been duly elected as directors of Westport Fuel Systems, Inc. The final voting totals for each director will be available in the report of voting results to be issued by the corporation after this meeting. The next item of business is the appointment of auditors. Management has nominated Deloitte LLP, chartered professional accountants, to be appointed as the auditors of Westport Fuel Systems, Inc. to hold office until the close of the next Annual Meeting of Shareholders and the Board of Directors has been authorized to fix their remuneration. Is there a motion?

I move that Deloitte be appointed as auditors.

I second the motion.

The motion is now open for discussion, if any, by registered shareholders and proxy holders on the webcast. To submit a question for discussion, please use the Q&A function on your screen now. We will pause a few moments while we wait for any questions on this motion.

Thanks, Larry. There's no questions in the queue. You can continue.

Thanks, Ashley. Computershare will now open the poll for votes. Please vote using the voting function on your screen. [Voting]

Voting has closed. While we wait for the final voting figures to be tabulated, I can confirm that based on the size of the management proxy vote received, Deloitte has been duly appointed as auditors and the motion is carried. We also have before us an advisory resolution on Westport's approach to executive compensation as described in the information circular. This resolution is advisory only and is not binding. It does not diminish the role and responsibilities of the Board of Directors of the corporation. Rather, it is intended to provide the Board with guidance on whether shareholders support the corporation's approach to executive compensation as disclosed in the information circular. Can I have a motion, please?

I move that the advisory resolution accepting Westport's approach to executive compensation as described in the information circular be approved.

I second the motion.

The motion is now open for discussion, if any, by registered shareholders and proxy holders on the webcast. To submit a question for discussion, please use the Q&A function on your screen now. We'll pause a few moments while we wait for any questions on this motion.

There are no questions in the queue. You can continue.

You have heard the motion, and as there is no further discussion, we will proceed with the advisory vote. Please use the voting function on your screen to submit your vote. [Voting]

Voting has closed. Based on the proxies previously received by the management nominees, I can advise that the advisory vote is carried. We also have before us a special resolution approving the name change resolution as described in the information circular. Can I have a motion, please?

I move that the special resolution approving the name change resolution as described in the information circular be approved.

I second the motion.

The motion is now open for discussion, if any, by registered shareholders and proxy holders on the webcast. To submit a question for discussion, please use the Q&A function on your screen now. We will pause a few moments while we wait for any questions on this motion.

There are no questions in the queue. We can continue.

You have heard the motion, and as there is no further discussion, we will proceed with the vote. Please use the voting function on your screen to submit your vote. [Voting]

Voting has closed. While we wait for the final voting figures to be tabulated, I can confirm that based on the size of the management proxy vote received, the special resolution approving the name change resolution is carried. We will now take questions from the webcast. Any registered shareholder or proxy holder who preregistered and wishes to ask a question may submit a question through the Q&A function on your screen.

There are no questions from registered shareholders or proxy holders on the phone line.

Well, thank you, everyone. Seeing no questions, all formal items of the business on today's agenda have now been considered. There being no other formal business, I declare the formal portion of this annual general and special meeting officially closed and adjourned. On behalf of the Board of Directors and management, we thank you for your participation today.

Thanks, Tony. With the Annual General and Special Meeting now concluded, we invite you all to stay with us for our informal management presentation, following which we will have a question-and-answer session with management. Dan, over to you.

Thanks, Larry. Good day, and thank you for joining us today. Before I begin, I would like to remind everyone that today's presentation includes forward-looking statements. Please refer to the forward-looking statements caution shown on this slide and the risk factors and other disclosures in Westport's public filings. Since we reported our first quarter results in May, we have seen meaningful progress across several areas of the business. Most importantly, we have seen even stronger evidence that the market is beginning to understand the strategic value of our portfolio: Cespira's proven HPDI platform, our high-pressure controls capabilities and the opportunity to extend those technologies into the North American heavy-duty transportation market with our CNG storage solution paired with Cespira's HPDI fuel system. We are seeing growing recognition that these are not stand-alone opportunities, but interconnected assets that can create value across multiple pathways and applications. Cespira remains central to Westport's strategy. The joint venture with Volvo Group is demonstrating the commercial relevance of HPDI fuel system technology in the market today, particularly in LNG applications where fleet economics, emissions reduction and performance all matter. The growth we saw in Q1 reinforces several important points. Customers are adopting the technology at a rapidly increasing pace. Cespira is gaining commercial traction and the platform has the potential to scale across multiple fuel pathways. That is important not only for Cespira but also for Westport because Cespira validates the core HPDI technology that underpins our broader strategy. As adoption expands and the technology platform evolves, we see opportunities to extend its relevance across additional lower carbon and zero-carbon fuel pathways, creating new avenues for growth over time. A recent example of that growth potential is the development agreement announced earlier this month between Cespira and Volvo Group to finalize the integration and commercialization of HPDI technology for Volvo Group's 13-liter hydrogen engine platform. This milestone represents a natural evolution of the HPDI platform beyond LNG applications and demonstrates the flexibility of the technology to support multiple fuel pathways. Just as importantly, it reflects a continuing confidence from Volvo Group in both Cespira and HPDI technology. For Westport, this serves as an important proof point that the platform can expand into new markets and applications while maintaining the performance characteristics that heavy-duty customers require. As the industry evaluates practical pathways towards decarbonization, hydrogen internal combustion may become an attractive option in applications where infrastructure cost or operational realities challenge other alternatives. Since unveiling our new integrated high-pressure CNG storage solution, we have had the opportunity to engage directly with a broad range of industry participants, including some of North America's largest commercial fleets during meetings and demonstrations in Vancouver. The level of interest and quality of feedback have been encouraging and have reinforced our belief that the market is actively searching for practical, commercially viable decarbonization solutions. The conversations we are having increasingly focused on deployment pathways, operating economics and fleet requirements rather than technology feasibility. Our focus remains on disciplined execution, continuing engagement with fleet and infrastructure partners, advancing demonstrations, validating the value proposition in real-world operating environments and positioning the platform for future commercial opportunities. We recognize that none of this progress matters without the capital required to execute. Since Q1, we have continued to evaluate financing alternatives and engage with the market to support the next phase of Westport strategy. Our recent equity offering was an important step in strengthening our balance sheet and supporting the company's near-term priorities. We are mindful of dilution and the need to be disciplined in how we access capital, but we also believe the market now has a clear understanding of the value we are building through Cespira, our North American market opportunity and our broader high-pressure technology portfolio. Going forward, our objective is to align financing with milestones. We want to use our market catalysts, partner validation and demonstrated execution to improve our access to capital and support long-term shareholder value. Thank you again for your support and for your continued confidence in Westport.

Thanks, Dan. I will now take the opportunity to answer any questions. [Operator Instructions] It looks like there's no further questions on the phone lines. Dan, I'll pass it over to you.

Thank you all for your interest and investment in Westport. You can always reach us at (604) 718-2046 or at [email protected]. Thank you again, and have a wonderful rest of your day. Goodbye.

This concludes today's conference call. Thank you for participating, and have a pleasant day.