Good morning, everyone. Welcome to Westport's conference call regarding the first quarter 2026 financial and operational results.

This call is being held to coincide with the press release containing our financial results that was issued yesterday after market close. On today's call, speaking on behalf of Westport will be our Chief Executive Officer and Director, Dan Sceli, and our Chief Financial Officer, Elizabeth Owens.

Attendance on this call is open to the public, but questions will be restricted to the analyst community. You are reminded that certain statements made on the conference call and our responses to certain may constitute forward-looking statements within the meaning of US and applicable Canadian securities laws, and as such, forward-looking statements are made based on our current expectations and involve certain risks and uncertainties.

With that, I will turn the call over to you, Dan.

Thank you, Ashley, and good morning, everyone. Turn to our financial results.

Sespira's momentum continues to build, with revenue up 33% year-over-year in the first quarter. That growth is increasingly material to Westport, reflecting stronger volumes, broader market adoption of HPDI, and progress with a second OEM.

Importantly, we expect this momentum to continue through 2026, supported by favorable fuel economics, tightening emissions regulations, and growing OEM and fleet interest in practical, low-carbon solutions. The significance for our investors is not only top-line growth, but the financial read-through.

As Sespira continues to scale and improve operating performance, we expect our funding requirements for the joint venture to continue to decline. That creates a more direct link between commercial execution at Sespira and improved capital efficiency at Westport.

The broader market backdrop also remains supportive. Volvo Trucks recently announced it has delivered more than 10,000 gas-powered trucks globally, highlighting growing adoption in key European markets, while Cognitive Market Research projects the European LNG heavy truck market to grow at a 12.5% growth rate through 2031.

Together, those indicators reinforce our view that Sespira is participating in a market with both near-term momentum and multi-year growth potential. Our high-pressure controls business has also reflected improved results in Q1 2026, with a 21% increase in revenue compared with the same period last year.

What makes it truly meaningful is how we delivered it. Our brand, GFI Control Systems, provides critical components that make this system viable, while AFS ensures that technologies come together as a complete, real-world solution, enabling the performance, reliability, and control our customers expect.

Adding to this result, we commenced production at the expanded product development and manufacturing facility in Cambridge, Ontario, and GFI's new China Hydrogen Innovation Center and manufacturing facility in Changzhou, China. With production underway at all facilities, combined with strong demand from large industrial companies, we remain optimistic about its performance this year, building off this strong start.

Moving on to some recent excitement at the ACT conference in Las Vegas, I believe it provides some key insights into our experience. Getting this truck to Las Vegas on time, show-ready, and performing was a complex, high-pressure effort, and the fact that we delivered it speaks volumes.

At ACT, from the moment the show floor opened, we saw strong interest, other exhibitors, fleets, and OEMs stopping to take a closer look and excited by what they saw, because this is not a concept. It's a fully integrated platform that proves we can deliver diesel performance with cleaner, more cost-effective fuel today.

A focused team brought this to life, but their success reflects something bigger: our ability to execute, to integrate, and to lead. As we showcase this platform, we demonstrated what sets us apart: not just innovation, but the ability to bring it to market where it matters most, and fleets and OEMs are starting to notice.

It was clear from the volume of interactions this year compared to previous years that this is an exciting time for Westport. We are making clear steps forward in expanding our technology reach, what we see growing demand for high-performance, lower-emission alternatives.

The conference success was a clear signal that we are advancing our high-pressure CNG stored solution into a North American market with real momentum, positioning Westport to capture long-term growth opportunities in the global heavy-duty transportation market. Now, I'll have Elizabeth run through some financial details, and then we'll come back.

Elizabeth?

Thank you, Dan, and good morning, everyone. I'll highlight a few key milestones that Westport has achieved, the first of which remains our strong cash position through the first quarter of 2026.

As of March 31st, 2026, our cash and cash equivalents position stood at $24.5 million, compared to $27.2 million at December 31st, 2025. Net cash used in operating activities from continuing operations was $3.4 million for the quarter ended March 31st, 2026, compared to $8.6 million in the prior year, an improvement of $5.2 million as a result of changes in working capital.

Our capital contributions to the Sespira joint venture decreased from $4.7 million in the first quarter of 2025 to $2.9 million in Q1 of 2026, reflective of the improvement of Sespira's financial performance. Our total outstanding debt sits at $1.9 million, a reduction of $1 million from the $2.9 million reported at year-end 2025.

This debt will be retired in the third quarter of 2026. Our high-pressure controls business segment saw meaningful growth, with revenue for Q1 2026 increasing 21% to $2.3 million from $1.9 million reported in Q1 2025.

Higher year-over-year sales volumes drove the revenue increase, with gross profit of $0.5 million, consistent with the prior period. As Dan highlighted, Sespira's revenue growth is accelerating as we enter 2026.

In Q1 2026, total revenue generated was $22.2 million, compared to $16.7 million in the same period last year, representing an increase of 33%, driven by higher sales volumes. Sespira product revenue of $19.5 million increased 48%, compared to $13.2 million in Q1 2025.

Sespira gross profit improved to $1.6 million, compared to $0.4 million 1 year ago. Gross margin improved in Q1 2026 to 7% from 3% in Q1 2025.

Sespira also significantly improved the bottom line, with a net loss in Q1 2026 of $2.5 million, a 65% reduction from the $7.1 million net loss reported in the prior-year quarter. This progress is supported by strong market adoption, including Volvo reaching the milestone of more than 10,000 natural gas trucks on the road equipped with Sespira's HPDI fuel system.

We are also encouraged by the continued progress of a second OEM that is currently conducting truck trials. We're excited about the opportunities ahead as we target an improvement in Sespira's capital requirements.

With that, I'll pass the call back to Dan.

Thank you, Elizabeth. We are operating where the fundamentals continue to strengthen.

We are seeing solid year-over-year growth in our Sespira joint venture with Volvo Group, supported by increasing demand for LNG-powered heavy-duty trucks in Europe and other parts of the world, and favorable fuel economics that are driving adoption. At the same time, tightening emissions regulations and the need for practical, lower-emission solutions are reinforcing the role of technologies like ours in the transition of the heavy-duty sector.

Against this backdrop, Westport is well positioned to capitalize on these trends. Sespira's HPDI fuel system technology delivers like performance with lower emissions, and we are seeing growing validation through increased volumes with both Volvo and an additional OEM undergoing testing as we speak.

The momentum we demonstrated at ACT Expo highlights our ability to bring fully integrated solutions to market, and we are now focused on execution: scaling commercial volumes, advancing our high-pressure CNG solutions into North America, and expanding into new regions and applications. Together, these efforts position us to build meaningful scale and capture long-term growth opportunities across the global heavy-duty transportation market.

Thank you. That concludes the discussion.

Good morning, everyone.

Hey, good morning, Eric.

Hey. Maybe just starting with Sespira.

The second truck trial, it does, I know we just connected what, a couple weeks ago, but it does feel like you're giving a more optimistic tone about that trial. Curious, am I reading that right?

With that in mind, can you remind us of next steps for that or the timeline we should look for over the remainder of '26 and then '27?

Sure. I do feel more optimistic.

The truck trial is going really well. Discussions, negotiations continue for the next phase of this, which is a higher volume.

The initial truck trial, I think, was around 200 trucks, but moving on to larger volumes and commercializing this is the discussion that's ongoing right now.

Okay. Timeline in terms of, I think last time you'd said that you expected a decision, and maybe it's a decision as part of the negotiations you mention later this year.

Does that still hold?

It does. Yeah.

[unclear]

a determination on this project before year-end.

Okay. Then maybe you give a lot of detail about Q4 and the end of '25 in terms of some of the new markets that Volvo, well, and Sespira, is seeing momentum on a global basis.

Obviously, North America a big focus, but just curious, are there any other contributors to Q1 that are worth highlighting, as awareness of that product expands?

We do see beachheads opening up in India and Brazil. There's already trucks in Peru and Chile.

India and Brazil are two massive markets, and we're seeing strong interest in those markets to move to alternative fuel. We're very excited about that opportunity coming to us.

Got it. All right, maybe last one for me, just because of how things are trending with the joint venture and expectations that momentum continues, can you just update us on maybe current thoughts on contributions needed to the joint venture here going forward?

Yeah. Obviously, you saw that the contributions are going [unclear] rate, simply because volumes are going up at a steady rate.

The product revenue alone [unclear] 48% [unclear] expecting it to [unclear] that rate, and as we approach 2027, mid-2027 [unclear] contributions reduced a lot more.

Okay. You were cutting in and out there, but I guess I'll take that.

Clarify some stuff offline. Thank you.

Thanks, Eric.

Your line is open. Good morning, and thank you.

Maybe just to follow up here a bit on Sespira here. A good quarter with some solid gross margin there.

How are you thinking about gross margin for the remainder of the year? I guess what I'm kind of curious about is you highlighted some deliveries to the test OEM, and I'm curious what that volume looks like maybe for the rest of the year, and how that's playing out in terms of gross margin.

Thanks.

Sure. As we've been talking about for the last year, Sespira's margins are going to continue to grow just simply [unclear] volume.

We built out this business completely. To be a tier one to a automotive OEM like Volvo, you need to have a completely built out and certified business.

That was day one almost 2 years ago. All disciplines, all departments, full certifications in IATF, all that.

The expense of building out the business was laid down. We're now [unclear] [unclear] we continue to [unclear] build forward in time, a lot of those margins [unclear] in terms of [unclear] Sespira and the business [unclear] the business we have [unclear] accelerating [unclear] rest of the year [unclear] OEM [unclear] we're in discussion with [unclear] [unclear] We should be able to [unclear]

Got it. Thanks.

Then maybe just as a follow-up here, there is the service segment, and I think that project rolls off at the end of this year. Is there anything that would potentially come in and replace that?

Thanks.

That service is really two two main [unclear] projects. It's HPDI 3.0, which is in conjunction with Volvo launching its [unclear] at the end of this year.

It's an advanced HPDI system. It's an advanced Volvo engine.

That's the first part that will be wrapping up. The second is we are still doing the development work for Volvo's hydrogen project.

They've recently announced the [unclear] on the road [unclear] we are doing that development work over the next couple of years. That service work is going to continue.

We're looking at additional service work, which is engineering development work on a couple of other projects that we're not allowed to talk about yet, as you can understand. We hope that we can announce [unclear] down the road.

Got it. Thank you very much.

Good morning. Just kind of at a high level, what are the next steps in the North American market?

You had kind of a good showing at the ACT Expo and good interest. What sort of the next steps in the North American market development?

Rob, I've got to tell you, it was more than successful. It was overwhelming.

The excitement, the interest that we got at the ACT show, we built out a truck. Volvo got us a truck and an engine.

We built it out and drove it down from Vancouver to Las Vegas. The funny thing was, we had a chase car.

The truck spent $280 on gas getting there, less than the chase car. The interest is just overwhelming.

There's an awful lot of discussion right now between fleets, dealers, and the OEM on what's next. Certainly, we are planning to do more demos, fleet-driven demos.

There's planning to be done for the EPA certification to launch this. That's all activity that is picking up pace just coming out of the ACT show because of the interest from multiple fleets, multiple very large fleets.

We're very excited [about that?] .

Good. Then in the high-pressure controls business, you had a good step-up in gross margin.

Assume that has a lot to do with getting China production running. How is the gross margin trends in the controls business going forward?

We expect down the road it is a volume [unclear] shutdown before [unclear] to move that manufacturing equipment out of Italy and move it to between Cambridge and China. The China piece was really built out to focus on the China market only for localized costs, localized [unclear] politics.

Of course, we're going to be localizing some of the components. We expect the margins to grow there, but we need the volume to pick up.

There is still the pause in hydrogen. We're hearing from the Chinese government that's going to get pushed forward again.

The underlying product is a very, very high-demand product that we can get good margins on. What we need right now is volume, and that volume is starting to come.

We're seeing indicators already this year. I'm sure you follow them as well, Plug Power, one of our customers in that regard who had their call earlier this week, their volumes [unclear].

All over, the volume is starting to go up for high-pressure components, and as that volume goes up, the margins are going to be there.

Thank you for your time today. [unclear] [unclear] where we're headed, lots of positive trends.

I want to emphasize the [unclear] ACT Expo show [unclear] HPDI high pressure and [unclear] the North American market [unclear] full system. Forward to the next [unclear]