Good day, and thank you for standing by. Welcome to the Westport Q1-2026 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star-11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star-11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Ashley Newell. Please go ahead.

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 Celay, and our Chief Financial Officer, Elizabeth Ellen. 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 uh may constitute forward forward-looking statements within the meaning of u.s and applicable canadian securities laws and as such forward-looking statements are made based on our correct 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. I'll turn to our financial results. Suspira'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 Susphera 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 Susphera 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 2013, together, those indicators reinforce our view that Suspira 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 the 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 Centre and Manufacturing Facility in Zhengzhou, 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 focus team brought this to life, but their success reflects something bigger, our ability to execute, to integrate, and to lead. As we showcased 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 storage 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.

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 31, 2026, our cash and cash equivalents position stood at $24.5 million compared to $27.2 million at December 31, 2025. Net cash used in operating activities for continuing operations was $3.4 million for the quarter ended March 31, 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 Suspira 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 Suspiria'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 segments on 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, Suspiria'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. The spare product revenue of $19.5 million increased 48%, compared to $13.2 million in Q1 2025. Suspera gross profit improved to $1.6 million compared to $0.4 million one year ago. Gross margin improved in Q1 2026 to 7% from 3% in Q1 2025. Suspera 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, and we're excited about the opportunities ahead as we target an improvement in Suspira's capital requirements. With that, I'll pass the call back to Dan.

We are offered the funding to strengthen year-over-year growth in our Suspira joint venture with Volvo Group, supported by increasing demand for LNG-powered heavy-duty trucks in Europe and other parts of the world, and favourable 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 capitalise on these trends. Suspira's HPDR fuel system technology-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.

As a reminder, to ask a question, please press star 11 on your touchtone telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. And our first question will come from the line of Eric Stein of the Craig Halem Capital Group. Your line is open, Eric.

Good morning, everyone. Hey, good morning, Eric. Hey, maybe just starting with, so the second truck trial, I mean, it does, I know we just connected a couple weeks ago, but it does feel like you're given a more optimistic tone about that trial. So curious, am I reading that right? And 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?

I do feel more optimistic. I mean, the truck trial is going really well. So discussions 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, you know, commercializing, this is the discussion that's ongoing right now.

And timeline in terms of, I think last time you'd said, that you expected a, you know, a decision, and maybe it's a decision as part of the negotiations you mentioned later this year. Does that still hold? It does.

Yeah, I expect a determination on this project before year end.

Okay. And then maybe, you know, anything – I mean, you talk – you get a lot of detail about Q4 and the end of 25 in terms of some of the new markets that Volvo and Sespera are seeing momentum on a global basis. Obviously, North America, a big focus. But just curious, I mean, are there any other contributors to Q1 that are worth highlighting? you know, as awareness of that product expands.

We do see, you know, beachheads opening up in India and Brazil. There's already trucks in Peru and Chile. You know, India and Brazil are two massive markets, and, you know, we're seeing strong interest in those markets to move to alternative fuel. So we're very excited about that.

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

Yeah, so obviously you saw that we've, you know, we've been putting it to the contributions are going down at a steady rate simply because volumes are going up at a steady rate. I mean, the product revenue alone, you know, as we heard about 2027, mid-2027.

You were cutting in and out there, but I guess I'll take that, clarify some stuff offline.

And our next question will be coming from the line of Chris Dendrinos of RBC Capital Markets. Your line is open.

Yeah, good morning. Thank you. I mean, maybe just to follow up here a bit on Sarah here. You know, a good quarter with some solid gross margin there. You know, how are you thinking about gross margin for the remainder of the year? And I guess what I'm kind of curious about is you highlighted some deliveries to the tech OEM. 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.

Yeah, sure. So, I mean, as we've been talking about, you know, for the last few years, Sierra's margins are going to continue to grow just simply based on volume. You know, we built out this business completely. To be a tier one to an automotive OEM like Volvo, you need to have a completely built out and certified business. So that was, you know, day one almost two years ago. You know, all disciplines, all departments, all certifications in IETF, all that. So the expense of building out the business was laid down. and we're now opening the line. As a follow-up here, is there anything that would potentially come in?

Thank you very much.

To ask a question, please press star 11 on your telephone and wait for your name to be announced. Our next question will be coming from the line of Rob Brown of Lake Street Capital Markets. Your line is open, Rob.

Good morning, Rob. 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 XO and good interest. What's sort of the next steps in the North American market development?

Yeah, Ron, I've got to tell you, it was more than, you know, successful. It was overwhelming that we got at the Act show. You know, 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, $30 on gas getting there, More than the chase, a lot of do more demos, fleet-driven demos. There's planning to be done for the EPA certification to launch this. So that's all activity that, you know, multiple.

And then in the high-pressure-controlled business, you had a good step up in gross margin. I assume that has a lot to do with getting China production running. How is the gross margin trend in the –

No further questions.

I would now like to turn the call to Dan for closing remarks.

Well, for your time today, we're headed to today's conference.

Thank you for participating. You may now disconnect.