Aetherion (AETR) Q3 2026 Earnings Call Transcript

Image source: The Motley Fool.

DATE

Friday, Nov. 13, 2026

CALL PARTICIPANTS

• CEO and Director - Daniel Sceli
• Chief Financial Officer - Elizabeth Owens

TAKEAWAYS

• Cespira Product Revenue -- $20.7 million, representing 85% growth year over year driven by increased fleet demand.
• Cespira Net Loss -- $300,000, representing a 95% improvement from a $6 million loss in the prior year quarter due to higher product revenue and a lower cost base.
• Cash and Cash Equivalents -- $14.5 million as of Sept. 30, 2026, compared to $23.9 million at the end of the previous quarter.
• Net Loss per Share -- $0.13, compared to $0.60 in the prior year quarter, reflecting improved performance within the Cespira joint venture.
• High-Pressure Controls Revenue -- $2.6 million, an increase from $1.6 million due to higher sales volumes following a manufacturing transition to China and Cambridge, Ontario.
• Capital Contributions -- $2.8 million provided to Cespira, a reduction from $11 million in the same period last year reflecting the improved financial performance of the joint venture.
• Equity Facility -- $25 million committed via Roth Capital Partners to provide additional working capital and financing flexibility.
• Reinert Logistics Order -- 500 Volvo LNG trucks for delivery over two years beginning in 2027.
• Debt Repayment -- $1 million, representing the final payment to Export Development Canada (EDC).
• Cespira Aftermarket Revenue -- $4.9 million, compared to $3.6 million in the prior year quarter, supported by growth in the installed vehicle base.
• Service Revenue -- $2.7 million, a reduction from $4.6 million due to the timing of project milestone achievements.
• Early Escrow Release -- $2.4 million received following the quarter's end related to a 2025 light-duty transaction.
• SIS Trans Order -- 100 Volvo bio LNG trucks, reinforcing traction for renewable fuel solutions in heavy-duty transport.
• Operating Loss -- $5.1 million from continuing operations, compared to $7.7 million in the prior year quarter.
• Cespira Product Delivery -- More product delivered year to date in 2026 than during the entire 12 months of 2025.
• Inventory Write-downs -- $273,000 recorded in the quarter to adjust stock to net realizable value.
• Research and Development Expenses -- $1 million, a 55% reduction from the prior year quarter due to reallocated internal resources and lower external spending.
• Installed Vehicle Base -- Over 12,000 trucks currently on the road using the company's technology, demonstrating long-term reliability and functional performance.

Need a quote from a Motley Fool analyst? Email pr@fool.com

RISKS

• Sceli stated, "That said, there may be some ups and downs as the Spiro works to kick off production of HPDI 3.0 in Q4," regarding potential startup challenges associated with new engine systems.
• Management warned in regulatory filings that existing cash and liquidity sources are insufficient to fund operations for the next 12 months, raising substantial doubt about the company's ability to continue as a going concern.

SUMMARY

Aetherion Technologies Inc. (NASDAQ:AETR) transitioned its corporate identity to focus on heavy-duty transportation and high-pressure fuel systems. Management reported significant progress in the Cespira joint venture, which is approaching financial breakeven through increased product volumes and improved operating leverage. The company stated that it is expanding its manufacturing capacity to meet growing demand for liquefied natural gas solutions in the European market. Strategic priorities include the launch of next-generation engine technology and the development of high-pressure storage systems for the North American market.

• The company changed its name from Westport Fuel Systems Inc. to Aetherion Technologies Inc. on Oct. 15, 2026, to reflect its focus on affordable, lower-emission heavy-duty transportation.
• Management plans to double Cespira's manufacturing capacity in 2026 using internal cash generation. CEO Sceli stated, "The cash generated in the business is going to be able... Cespira is, going to be able to pay for that."
• The Cespira joint venture is scheduled to begin production of the HPDI 3.0 fuel system in the fourth quarter of 2026.
• Management anticipates achieving financial breakeven for the Cespira joint venture in 2027.
• High-pressure controls technology is being developed for the North American compressed natural gas market. Sceli stated, "The real priority is the North American CNG opportunity."
• Volvo reported that 2025 was its highest sales year for natural gas trucks and expects 2026 to be even stronger.

INDUSTRY GLOSSARY

• HPDI (High Pressure Direct Injection): Technology used in heavy-duty engines to enable the use of gaseous fuels without performance loss.
• Cespira: The joint venture between Aetherion Technologies and Volvo Group focused on HPDI technology.
• LNG (Liquefied Natural Gas): Natural gas that has been cooled to a liquid state for storage or transport.
• CNG (Compressed Natural Gas): Methane stored at high pressure as a fuel source.
• EDC (Export Development Canada): A financial institution providing financing and insurance to Canadian exporters.
• Bio LNG: Liquefied biomethane produced from organic waste, serving as a renewable version of LNG.
• OEM (Original Equipment Manufacturer): A company that produces parts and equipment that may be marketed by another manufacturer.
• RNG (Renewable Natural Gas): Biomethane produced from organic waste that can be used as a drop-in replacement for conventional natural gas.

Full Conference Call Transcript

Operator: Good day, and thank you for standing by. Welcome to the Aetherion Technologies Q3 26 conference call. At this time, participants are in a listen only mode. Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question-and-answer session. To ask a question, please press 1-1 on your telephone. And wait for your name to be announced. To withdraw your question, please press 1-1 again. Would now like to hand the conference over to your speaker today, Ashley Nuell.

Ashley Nuell: Good morning, everyone, and welcome to Aetherion Technologies' conference call regarding its third quarter 26 financial and operational results. This call is being held to coincide with the press release containing Aetherion's financial results issued yesterday after market close. On today's call, speaking on behalf of Aetherion will be CEO, and director, Daniel Sceli, and chief financial officer, Elizabeth Owens. Attendance on this call is open to the public, but questions will be stripped restricted to the analyst community. You are reminded that certain statements made on this conference call and our responses to certain questions may constitute forward looking statements within the meaning of U. S. And applicable Canadian securities laws.

Forward looking statements are based on the current expectations and involve risks and uncertainties that could cause actual results to differ materially. Please refer to Aetherion's filings for a more complete discussion on these risks. With that, I will turn the call over to Daniel.

Daniel Sceli: Thank you, Ashley, and good morning, everyone. Westport Fuel Systems is now Aetherion Technologies. A new name for the purpose that brought us together, reducing the emissions from the engines that move the world. Our new identity reflects our sharpened focus on heavy duty transportation, and the opportunities where our technology and expertise can create the greatest value. We are continuing to focus our portfolio and align our resources with this strategy. At the same time, we are retaining the specialized technical and commercial talent to advance our high pressure CNG solution for the North American heavy duty market. Please follow us at our new ticker on both the TSX and Nasdaq. AETR.

Our priorities are clear, build on Cespira's commercial momentum, expand HPDI's reach, and advance toward breakeven with disciplined capital management. First, real world fleet acceptance of HPDI continues to grow. Cespira delivered 85% product revenue growth in Q3. Supported by stronger fleet demand. As the installed base expands, aftermarket activity adds another source of growth That growth is consistent with what we are seeing from our partner, Volvo. In a press release on September 24 Volvo indicated that 2025 was their best sales year ever for natural gas powered trucks. And they expect 2026 will be even stronger. Supporting continued demand for Cespira's systems. The quality of that growth matters.

Revenue continues to outpace overhead growth, support costs remain controlled, and investment is focused on strategic priorities. Together, these trends strengthen operating leverage and support a more self sustaining business. Second, the platform is advancing, and we are expanding its reach. Cespira's HPDI 3.0 fuel system is scheduled to enter production in Q4 26. With the first equipped vehicles expected on the road in early 27. Alongside HPDI 3.0, we are advancing high pressure CNG and renewable natural gas solutions for North America. Our goal is to bring fleets practical alternatives that preserve performance, and support attractive operating economics. Across these opportunities, our approach is consistent, build on proven technology, and pursue practical pathways to lower emission heavy duty transportation.

Third, Cespira's progress reinforces our of breakeven in 2027. Revenue has grown quarter over quarter since inception, and net loss has significantly decreased, nearing breakeven. Both trends we anticipate continuing. That said, there may be some ups and downs as the Spiro works to kick off production of HPDI 3.0 in Q4. The momentum we have seen in demand combined with improving operating leverage as volume scale, strengthens our confidence in the path ahead. We are hearing and seeing in the market is demonstrated fleet demand for LNG heavy duty trucks. Supported by favorable fuel price differentials relative to diesel and tightening emissions regulations.

In September, Reinert Logistics announced an order for 500 Volvo LNG trucks, the largest single order to date. With delivery over 2 years beginning in 2027. The order follows its experience operating 50 Volvo gas powered trucks in everyday service. The significance goes beyond the order size. A fleet tested the technology, assessed performance and fuel economics, and committed to a much larger deployment. That is commercial acceptance translating into repeat demand. Renewable fuels are also gaining traction. Polish carrier SIS Trans ordered 100 Volvo bio LNG trucks. Reinforcing the role of LNG and bio LNG in heavy duty transportation. To support anticipated demand in 2027, Cespira is evaluating targeted capacity increases.

With investment timing and scale aligned to customer requirements. Our planning assumes these capacity investments would be self funded. Without additional capital contributions from the parent companies for those investments. More broadly, progress toward breakeven, stronger operating leverage, and disciplined cost could reduce Cespira's future funding needs from its parents. The priority is to turn higher demand into stronger performance and greater financial self sufficiency. Finally, we entered into a $25 million committed equity facility with Roth Capital Partners. To provide additional working capital for ongoing operations, and strategic priorities. We remain focused on balancing growth investment with careful, capital management and financial discipline.

With that, I will turn the call over to Elizabeth for a closer look at our financial results.

Elizabeth Owens: Thank you, Daniel. Our third quarter financial results have demonstrated meaningful progress. Since Cespira's beginning, have driven quarter over quarter revenue growth. In Q3 26, product revenue grew by 85% to $20.7 million. And in fact, year to date, to the end of the third quarter, Cespira has delivered more product in 2026 than for the entire 12 months of 2025. As Dan mentioned, Cespira's growth is influenced by the favorable price differential between diesel and natural gas. And government regulation support in markets like Europe. Aftermarket revenue was $4.9 million compared to $3.6 million also driven by the increase in sales volumes. Service revenue was $2.7 million, compared to 4.6 million in Q3 25.

Primarily driven by the milestones achieved. Service revenue is allocated to projects as milestones are achieved. 1 of Cespira's significant long term engineering service revenue projects is nearing its end. With substantial completion expected in Q4 26. Prior to the anticipated launch of HPDI 3.0. Gross profit was $3.7 million compared to a gross loss of $1 million in Q3 25. Cespira had a net loss of $300,000, a 95% improvement over the $6 million loss in Q3 25 as they meaningfully increase the product revenue and lower their cost base as they continue to grow and scale the business.

Year to date, we have seen our capital contributions to Cespira decrease, a trend that we see continuing as Daniel mentioned, as they move towards an expected breakeven next year. Turning to our operating segment. Q3 26 revenue for our high pressure controls business was $2.6 million. Compared with $1.6 million for Q3 25. The increase in revenue was primarily driven by higher volume of sales in the quarter compared to prior year, which was impacted by the transition of operations to our manufacturing facilities in China and Cambridge, Ontario. As production and shipment levels normalized, we achieved higher shipment volumes during the current quarter resulting in increased sales. Turning to our bottom line.

Net loss per share improved to $0.13 in Q3 26 from $0.60 in Q3 25. This improvement was driven primarily by growth at Cespira. Where higher product revenue and a lower cost base reduced the losses. And, in turn, our share of those losses. We broadly expect this trend to continue as the scale, and we remain confident in the longer term trajectory. As at the end of September, our cash and cash equivalents position stood at $14.5 million compared to $23.9 million at 06/30/2025. Or, pardon me, 2026. The decrease in cash was primarily driven by our operating losses. Funding of the Cespira JV, and debt repayments.

In the quarter, our capital contributions to Cespira decreased to $2.8 million from $11 million in Q3 25 reflecting the improvement of Cespira's financial performance. We anticipate this number will continue to decrease in the coming year as Cespira continues to drive volume growth. We also paid $1 million in debt repayments which represented our final payment to EDC. Following the end of the quarter, we received an early payment of approximately $2.4 million in relation to a outstanding escrow amounts as a result of our light duty transaction that closed in 2025. These amounts were originally anticipated in early 27. Strengthening our financial position remains a core priority.

Our equity facility of up to $25 million provides additional financing flexibility. While we continue to manage capital carefully. On costs, our underlying corporate run rate is in a good position when we exclude spending related to our CNG solution in North America and other onetime items. We distinguish those underlying costs from targeted investment in future opportunities, that we can maintain this discipline. While progressing our strategic priorities. Spending related to our CNG solution in North America is directed towards unlocking significant opportunity as we continue to assess that investment. With that, I will pass the call back to Daniel.

Daniel Sceli: You, Elizabeth. To close, our focus is clear. Build on Cespira's commercial momentum, advance its path towards self funding, and progress our high pressure CNG solution for North America while maintaining financial discipline. Our transition to Aetherion Technologies brings that focus into sharper view. We are aligning our portfolio technical capabilities, and investment with the opportunities where we believe we can deliver the greatest long term value. Thank you, and we welcome your questions.

Operator: Thank you. As a reminder to ask a question, please press 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press 1-1 again. 1 moment for questions. Our first question comes from Christopher Dendrinos with RBC Capital Markets. You may proceed.

Christopher Dendrinos: Yes. Morning, thanks for taking the question.

Daniel Sceli: Good morning.

Christopher Dendrinos: I wanted to follow-up on Cespira here. And I guess specifically just around the investments that might get made to expand capacity? And can you just comment broadly on where capacity was and maybe how much are you are you all thinking about taking that up? And then second to that, just, you know, I think it. I think the comment was it is being self funded. So should we interpret that to mean that contribution into the JV continue to go lower? Broadly? Thanks.

Daniel Sceli: Yeah. I mean. So we are doubling. We are-- our plan is to double capacity this year. And it will be self funded, I. The cash generated in the business is going to be able. And Cespira is, going to be able to pay for that. So there will be no need for. There will be no need for contributions from parents for that capital investment. And they are. The cash calls are reduced dramatically, and so we are quite pleased about that growth.

Christopher Dendrinos: Okay. Okay. And then maybe just on the you know, the high pressure controls business and just trying to get a feel for how you all are thinking about that opportunity long term and you know, if you could maybe just speak to the outlook to that and where you see the kind of opportunity over time. Just trying to think through the investments that you are making there from an R&D perspective and how you are thinking about a site?

Daniel Sceli: Yeah. So that business is continuing to be strong from a technical perspective. We are the leader in that market. We have some R&D development going on that is funded by some customers, some high end automotive customers. And the real priority is the North American CNG opportunity. Our technology from high pressure controls will be key in delivering our smart storage system for CNG in North America that will be applied with our HPDI 3.0

Christopher Dendrinos: Got it. Thank you.

Operator: Thank you. Our next question comes from Amit Dayal with H. C. Wainwright.

Amit Dayal: Hey, good morning, everyone. Thank you for taking my call.

Daniel Sceli: Hey, good morning, Amit.

Amit Dayal: Hey, Daniel. So this current run rate at Cespira, is that then representing roughly close to full utilization of available capacity?

Daniel Sceli: We are not at full utilization yet, but we are approaching it, and we are going to double that capacity this year.

Amit Dayal: Okay. Thank you. And then this is coming from 1 or 2 customers right now. Right? This level of revenues, basically, Is that.

Daniel Sceli: No. it is actually quite. it is quite-- I mean, we have highlighted a couple. Because they are unique large purchases, but it is across the board. You know? I think we are in 35 or 36 countries now, and we are seeing the demand grow across the markets for natural gas trucks.

Amit Dayal: Understood. I was just trying to see if there was any concentration. It looks like there is not.

Daniel Sceli: So in that No. there is no concentration. it is pretty broad based acceptance of the product, and it is. You know, we are well beyond the question of is the technology reliable and functional, and there is no question about that. Now. You know, we are we are well over 12,000 trucks on the road. And the products are working fantastic. it is just the economics now are also you know, the solution for a lot of these fleets to deal with the economics of diesel and, of course, the regulatory environment is helping as well.

Amit Dayal: So I guess maybe this is a little too early, but just, you know, I am pausing it anyway. Is there a future for Cespira as a public company potentially?

Daniel Sceli: that is a really good question. We have not you know, we have not had that discussion with our partner. And, you know, our goal right now is to, you know, build it out and get the business completely self sustainable financially. We are we are getting very close to that. But, you know, we have not had the conversation, and you know, we will see. it is, you know, something that I suspect we will be talking about at some point.

Amit Dayal: Thank you. And just last 1. So for the high pressure controls, what are the channels you are using right now and, are more of those sort of distribution channels coming online?

Daniel Sceli: You mean the industrial markets for fuel cells and forklifts? Is that kind of what you are in? Referring to?

Amit Dayal: Yeah. I am just trying to see, like, you know, where the high pressure controls are being sold and how they are being sold today. And then, you know, what are the path or, you know, that to scale in the future.

Daniel Sceli: Sure. So, know, there. there is a significant portion of our revenue today is in the industrial world. it is all the, you know, the high pressure controls for the fuel cells that run forklifts as an example. it is a pretty big market We also have a light duty business there that is developing products for fuel cells for that market. So it is, it is a it is a bit of a mix.

Amit Dayal: Understood. Yeah. that is all I have, guys. I will take 1 of the questions offline. Thank you.

Daniel Sceli: Okay. Thanks, Amit.

Operator: Thank you. And as a reminder, to ask a question, please Our next question comes from Eric Stine with Craig Hallum Capital Group.

Daniel Sceli: Good morning, Eric.

Eric Stine: Good morning. Hey. So just coming back to the CNG back of cab solution. I mean, obviously, that is an offering that you have been very optimistic about. Here for some time, but it does seem like you have kind of leaned in a little bit to it becoming more of a near term opportunity. So first of all, am I reading that right? And second of all, you know, when I think that, I think that what would really enable that would be Volvo HPDI North America. So just give me an update on where that stands.

Daniel Sceli: Sure. So. And you mean, yes, the target is certainly with Volvo and the Cespira HPDI technology. And, I mean, the focus right now is launching HPDI 3.0 with Volvo on their new engine. Their work running parallel to that in North America is-- you know, we are building out the technology We are working on additional demonstration models that will be announced when they get organized. But Volvo is working their business case. Right? This is a standard practice in the OEM world. They have to go through their entire business case analysis and approve it for moving forward. So that is-- that is moving, that is happening.

And, so, you know, we are very excited that you know, the market's going to pull this system into the North American, fleets, it is just a matter of timing.

Eric Stine: Yep. No. that is great. And then you know, you talked about obviously, trends in Cespira are quite good. But, also, you talked about there could be some choppiness because of HPI 3.0 and the timing there. So I mean, in that context, how should we think about Q4 and are there any indications you can give such as you know, preorders, or anything that you can point to. Obviously, your you are doubling capacity. So it seems quite positive.

Daniel Sceli: It is. Yeah. We put that cautionary note on launching. Anytime you launch a new engine system, you know, you are going to be managing startup issues. But, so far, everything has been going fine, and you know, Volvo is rolling out their new engine with our new HPDI 3.0 on it. And, you know, I think just the underlying fact that we need to double capacity. I mean, you just look at the last 2 years in the rate of growth we have had. Right? that is the, you know, that is the theme that we are living to.

Eric Stine: Yep. Okay. Last 1 for me. Just I think, obviously, Volvo is the lion's share, but you have talked about a second OEM, a 200-truck trial. You know, just curious if you can update on you know, second level of field trials and potential plans going forward.

Daniel Sceli: Sure. We have. We have been in detailed conversation with quite a number of OEMs, over the last, 6 months. The second OEM doing the truck travel, that is still ongoing. But we, you know, we are talking to other OEMs beyond that as well. I think what the trucking world is seeing is that the economics of natural gas are superior and making a lot of sense in today's environment. And so we expect to, you know, keep moving those forward.

And at some point, bring on a second or third OEM. that is been the goal from day 1 is to bring on second and third OEMs, and that is-- We are going to continue to drive that mission.

Eric Stine: Alright. Thank you.

Daniel Sceli: Thanks, Eric.

Operator: Thank you. I would now like to turn the call back over to Daniel Sceli for any closing remarks.

Daniel Sceli: Alright. Well, thank you. Thank you for your time today, everybody. We your continued interest in Aetherion, and we will now end the call. Thank you.

Operator: This concludes the conference. Thank you for your participation. You may now disconnect.

Should you buy stock in Aetherion Technologies right now?

Before you buy stock in Aetherion Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Aetherion Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $338,083!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,021,163!*

Now, it’s worth noting Stock Advisor’s total average return is 830% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of November 13, 2026.

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.