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Westport (WPRT) Gets $33M Contract From Truck Manufacturer

Westport Fuel Systems Inc. WPRT received a development contract from a global heavy truck manufacturer. Per the contract, Westport needs to modify its Next Generation LNG HPDI fuel system to comply with the Euro 7 emissions requirements for heavy-duty vehicle applications.

The estimated amount of the program is around $33 million, which will be financed by the original equipment manufacturer (“OEM”). The new LNG and liquified biomethane-fueled product is expected to launch within a few years.

The new features that will be incorporated in Westport’s Next Generation LNG HPDI fuel system are enhanced fuel pressure control to improve fuel efficiency, higher pressure fuel supply systems to optimize engine performance and Brake Thermal Efficiency, enhanced reliability and durability and On Board Fuel Consumption Monitoring.

Per Anders Johansson, vice president of Heavy-Duty OEM for Westport Fuel Systems, the LNG HPDI fuel system helps long-haul trucks to reduce CO2 emission while fulfilling the fleet’s performance demands for payload, performance and durability, along with stringent Euro 7 emission regulations.

This program is Westport’s next major collaboration with the OEM to design a low-carbon solution for heavy-duty trucking by developing Westport's Next Generation LNG HPDI fuel system. The new solution will be an extension of the existing HPDI LNG truck application from the OEM.

The Euro 7 standards aim to reduce air pollution from road transport by lowering emissions limits from new vehicles sold in the European Union. The agreement on the new regulation is yet to be finalized, but for heavy-duty vehicles, the European Commission's proposal will bring the new standards into effect from mid-2027.

Zacks Rank & Key Picks

WPRT currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the auto space are Volvo VLVLY, Stellantis N.V. STLA and BYD Company Limited BYDDY. While VLVLY and STLA each sport a Zacks Rank #1 (Strong Buy), BYDDY carries Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for STLA’s 2023 sales and earnings indicates year-over-year growth of 12.3% and 10.5%, respectively. The EPS estimate for 2024 has increased 13 cents in the past 30 days.

The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings indicates year-over-year growth of 35.7% and 74.7%, respectively. The EPS estimate for 2024 has increased 10 cents in the past 60 days.

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Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report

AB Volvo (VLVLY) : Free Stock Analysis Report

Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report

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