Westport Fuel Systems Inc. (NASDAQ:WPRT), an alternative-fuel technology company, saw its shares trade higher Thursday after the company said Cespira, its joint venture with Volvo Group (OTC:VLVLY), signed a development agreement to advance hydrogen-powered heavy-duty engines.
Hydrogen Engine Development Agreement
The agreement covers the final development and commercialization of Cespira's HPDI fuel system for Volvo's 13-liter engine platform.
The technology is designed to let the engine run on hydrogen while delivering diesel-equivalent performance.
Volvo trucks using the system are already in on-road testing, with a European-certified commercial launch targeted before 2030.
HPDI Technology Details
Westport said hydrogen HPDI can tolerate a wider range of hydrogen fuel compositions than fuel-cell systems and offers competitive performance and efficiency under heavy-duty load cycles.
Volvo Group's Mehdi Ferhan said the project reflects the company's commitment to low-carbon heavy-duty transport through multiple technology pathways.
Cespira CEO Carlos Gonzalez said hydrogen HPDI can help fleets cut CO₂ emissions without sacrificing performance.
Earnings And Analyst Outlook
The next major catalyst for the stock is its expected earnings report on Aug. 10, 2026.
Wall Street expects the company to report a loss of 37 cents per share, an improvement from a loss of $1.98 per share a year earlier. Revenue is projected to decline sharply to $2.29 million from $88.80 million in the year-ago quarter.
Most recently, RBC Capital maintained its Sector Perform rating and lowered its price forecast to $1.75 on April 27.
Westport Fuel Systems Stock Jumps
WPRT Stock Price Activity: Westport Fuel Systems shares were up 11.29% at $2.07 at the time of publication on Thursday, according to Benzinga Pro data.
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