# EDGAR Filing Document

**Accession Number:** 0001370416
**File Stem:** 0001370416-26-000005
**Filing Date:** 2026-4
**Character Count:** 760147
**Document Hash:** ae8f6eaac9649ec384b6a8f33fa8fd96
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001370416-26-000005.hdr.sgml**: 20260423

**ACCESSION NUMBER**: 0001370416-26-000005

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 238

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260423

**DATE AS OF CHANGE**: 20260423

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WESTPORT FUEL SYSTEMS INC.
- **CENTRAL INDEX KEY:** 0001370416
- **STANDARD INDUSTRIAL CLASSIFICATION:** ENGINES & TURBINES [3510]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34152
- **FILM NUMBER:** 26889783

**BUSINESS ADDRESS:**
- **STREET 1:** 1691 WEST 75TH AVENUE
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6P6G2
- **BUSINESS PHONE:** 6047182000

**MAIL ADDRESS:**
- **STREET 1:** 1691 WEST 75TH AVENUE
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6P6G2

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WESTPORT INNOVATIONS INC
- **DATE OF NAME CHANGE:** 20060726

?xml version='1.0' encoding='ASCII'? wprt-20251231

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**___________________________**

**FORM 20-F**

**___________________________**

**(Mark One)**

**☐** **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

⌧ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the Fiscal Year Ended December 31, 2025

**OR**

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from January 31, 2023 to December 31, 2025

**OR**

**☐** **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Date of event requiring this shell company report December 31, 2025

**Commission file number 001-34152**

**___________________________**

**WESTPORT FUEL SYSTEMS INC.**

**___________________________**

**(Exact name of registrant as specified in its charter)**

**Not applicable**

**(Translation of Registrant's name into English)**

**Alberta, Canada**

**(Jurisdiction of incorporation or organization)**

**1691 West 75th Avenue, V6P 6P2,** 

**Vancouver, Canada**

**(Address of principal executive offices)**

**Daniel Sceli, (1) (604) 718-2046, invest@westport.com, 1691 West 75th Avenue, V6P 6P2,Vancouver, Canada**

**(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)**

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common shares, no par value | WPRT | NASDAQ Global Select Market |

---

------

Securities registered or to be registered pursuant to Section 12(g) of the Act. None.

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None.

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report.

17,375,213 Common shares, no par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes □No ⌧

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes □No ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ⌧No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ⌧No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large accelerated filer,"accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ⌧ | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

□

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

⌧

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

□

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

□

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ⌧ International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

□ Item 17□ Item 18

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes □No ⌧

------

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| <u>[Part I](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3495)</u> | | <u>[7](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3495)</u> |
| <u>[Item 1.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3501)</u> | <u>[Identity of Directors, Senior Management and Advisers](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3501)</u> | <u>[7](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3501)</u> |
| <u>[Item 2.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3509)</u> | <u>[Offer Statistics and Expected Timetable](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3509)</u> | <u>[7](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3509)</u> |
| <u>[Item 3.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3515)</u> | <u>[Key Information](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3515)</u> | <u>[7](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3515)</u> |
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3680)</u> | <u>[\[Reserved\]](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3680)</u> | <u>[7](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3680)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3707)</u> | <u>[Capitalization and indebtedness](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3707)</u> | <u>[7](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3707)</u> |
| <u>[C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3714)</u> | <u>[Reasons for the Offer and Use of Proceeds](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3714)</u> | <u>[7](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3714)</u> |
| <u>[D.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2102)</u> | <u>[Risk Factors](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2102)</u> | <u>[7](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2102)</u> |
| <u>[Item 4.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3529)</u> | <u>[Information on the Company](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3529)</u> | <u>[17](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3529)</u> |
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3536)</u> | <u>[History and Development of the Company](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3536)</u> | <u>[17](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3536)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2272)</u> | <u>[Business Overview](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2272)</u> | <u>[18](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2272)</u> |
| <u>[C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3725)</u> | <u>[Organizational Structure](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3725)</u> | <u>[21](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3725)</u> |
| <u>[D.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3731)</u> | <u>[Property, Plants and Equipment](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3731)</u> | <u>[21](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3731)</u> |
| <u>[Item 4A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3545)</u> | <u>[Unresolved Staff Comments](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3545)</u> | <u>[21](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3545)</u> |
| <u>[Item 5.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3551)</u> | <u>[Operating and Financial Review and Prospects](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3551)</u> | <u>[22](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3551)</u> |
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2262)</u> | <u>[Operating Results](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2262)</u> | <u>[22](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2262)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3593)</u> | <u>[Liquidity and Capital Resources](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3593)</u> | <u>[31](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3593)</u> |
| <u>[C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3748)</u> | <u>[Research and Development, Patents and Licenses](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3748)</u> | <u>[32](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3748)</u> |
| <u>[D.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3754)</u> | <u>[Trend Information](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3754)</u> | <u>[33](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3754)</u> |
| <u>[E.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2202)</u> | <u>[Critical Accounting Estimates](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2202)</u> | <u>[33](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2202)</u> |
| <u>[Item 6.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2544)</u> | <u>[Directors, Senior Management and Employees](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2544)</u> | <u>[34](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2544)</u> |
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4398046514867)</u> | <u>[Directors, Senior Management and Employees](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4398046514867)</u> | <u>[34](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4398046514867)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2577)</u> | <u>[Compensation](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2577)</u> | <u>[37](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2577)</u> |
| <u>[C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_8246337212933)</u> | <u>[Board Practices](#ic71a8f7b6c69453c9455b5fc9b95a5eb_8246337212933)</u> | <u>[54](#ic71a8f7b6c69453c9455b5fc9b95a5eb_8246337212933)</u> |
| <u>[D.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3782)</u> | <u>[Employees](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3782)</u> | <u>[68](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3782)</u> |
| <u>[E.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3788)</u> | <u>[Share Ownership](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3788)</u> | <u>[69](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3788)</u> |
| <u>[F.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3794)</u> | <u>[Disclosure of a registrants action to recover erroneously awarded compensation](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3794)</u> | <u>[69](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3794)</u> |
| <u>[Item 7.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3612)</u> | <u>[Major Shareholders and Related Party Transactions](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3612)</u> | <u>[69](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3612)</u> |
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3800)</u> | <u>[Major Shareholders](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3800)</u> | <u>[69](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3800)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3807)</u> | <u>[Related Party Transactions](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3807)</u> | <u>[69](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3807)</u> |
| <u>[C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3813)</u> | <u>[Interest of Experts and Counsel](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3813)</u> | <u>[69](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3813)</u> |
| <u>[Item 8.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3618)</u> | <u>[Financial Information](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3618)</u> | <u>[69](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3618)</u> |
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3825)</u> | <u>[Consolidated Statements and Other Financial Information](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3825)</u> | <u>[69](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3825)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3833)</u> | <u>[Significant Changes](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3833)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3833)</u> |
| <u>[Item 9.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3624)</u> | <u>[The Offer and Listing](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3624)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3624)</u> |
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3839)</u> | <u>[Offer and Listing Details](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3839)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3839)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3847)</u> | <u>[Plan of Distribution](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3847)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3847)</u> |
| <u>[C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3858)</u> | <u>[Markets](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3858)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3858)</u> |
| <u>[D.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3853)</u> | <u>[Selling Shareholders](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3853)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3853)</u> |
| <u>[E.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3870)</u> | <u>[Dilution](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3870)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3870)</u> |
| <u>[F.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3865)</u> | <u>[Expenses of the Issue](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3865)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3865)</u> |
| <u>[Item 10.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2446)</u> | <u>[Additional Information](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2446)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2446)</u> |

---

------

---

| | | |
|:---|:---|:---|
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3877)</u> | <u>[Share Capital](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3877)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3877)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3923)</u> | <u>[Memorandum and Articles of Association](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3923)</u> | <u>[70](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3923)</u> |
| <u>[C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3918)</u> | <u>[Material Contracts](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3918)</u> | <u>[72](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3918)</u> |
| <u>[D.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3913)</u> | <u>[Exchange Controls](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3913)</u> | <u>[73](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3913)</u> |
| <u>[E.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3908)</u> | <u>[Taxation](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3908)</u> | <u>[73](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3908)</u> |
| <u>[F.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3903)</u> | <u>[Dividends and Paying Agents](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3903)</u> | <u>[78](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3903)</u> |
| <u>[G.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3898)</u> | <u>[Statement by Experts](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3898)</u> | <u>[78](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3898)</u> |
| <u>[H.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3893)</u> | <u>[Documents on Display](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3893)</u> | <u>[78](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3893)</u> |
| <u>[I.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3888)</u> | <u>[Subsidiary Information](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3888)</u> | <u>[78](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3888)</u> |
| <u>[J.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3883)</u> | <u>[Annual Report to Security Holders](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3883)</u> | <u>[78](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3883)</u> |
| <u>[Item 11.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3635)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3635)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3635)</u> |
| <u>[Item 12.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3641)</u> | <u>[Description of Securities Other than Equity Securities](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3641)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3641)</u> |
| <u>[A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3953)</u> | <u>[Debt Securities](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3953)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3953)</u> |
| <u>[B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3948)</u> | <u>[Warrants and Rights](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3948)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3948)</u> |
| <u>[C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3943)</u> | <u>[Other Securities](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3943)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3943)</u> |
| <u>[D.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3938)</u> | <u>[American Depositary Shares](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3938)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3938)</u> |
| <u>[Part II](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3656)</u> | | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3656)</u> |
| <u>[Item 13.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3662)</u> | <u>[Defaults, Dividend Averages and Delinquencies](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3662)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3662)</u> |
| <u>[Item 14.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3672)</u> | <u>[Material Modifications to the Rights of Security Holders and Use of Proceeds](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3672)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3672)</u> |
| <u>[Item 15.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2192)</u> | <u>[Controls and Procedures](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2192)</u> | <u>[79](#ic71a8f7b6c69453c9455b5fc9b95a5eb_2192)</u> |
| <u>[Item 16.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3969)</u> | <u>[\[Reserved\]](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3969)</u> | <u>[80](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3969)</u> |
| <u>[Item 16A.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3687)</u> | <u>[Audit committee financial expert](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3687)</u> | <u>[80](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3687)</u> |
| <u>[Item 16B.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3693)</u> | <u>[Code of Ethics](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3693)</u> | <u>[80](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3693)</u> |
| <u>[Item 16C.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3699)</u> | <u>[Principal Accountant Fees and Services](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3699)</u> | <u>[80](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3699)</u> |
| <u>[Item 16D.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4006)</u> | <u>[Exemptions from the Listing Standards for Audit Committees](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4006)</u> | <u>[81](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4006)</u> |
| <u>[Item 16E.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4001)</u> | <u>[Purchases of Equity Securities by the Issuer and Affiliated Purchasers](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4001)</u> | <u>[81](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4001)</u> |
| <u>[Item 16F.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3996)</u> | <u>[Change in Registrant's Certifying Accountant](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3996)</u> | <u>[82](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3996)</u> |
| <u>[Item 16G.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3991)</u> | <u>[Corporate Governance](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3991)</u> | <u>[82](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3991)</u> |
| <u>[Item 16H.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3986)</u> | <u>[Mine Safety Disclosure](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3986)</u> | <u>[82](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3986)</u> |
| <u>[Item 16I.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3981)</u> | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3981)</u> | <u>[82](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3981)</u> |
| <u>[Item 16J.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3976)</u> | <u>[Insider trading policies](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3976)</u> | <u>[82](#ic71a8f7b6c69453c9455b5fc9b95a5eb_3976)</u> |
| <u>[Item 16K.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4016)</u> | <u>[Cybersecurity](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4016)</u> | <u>[82](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4016)</u> |
| <u>[Part III](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4025)</u> | | <u>[83](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4025)</u> |
| <u>[Item 17.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4031)</u> | <u>[Financial Statements](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4031)</u> | <u>[83](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4031)</u> |
| <u>[Item 18.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4047)</u> | <u>[Financial Statements](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4047)</u> | <u>[83](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4047)</u> |
| <u>[Item 19.](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4042)</u> | <u>[Exhibits](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4042)</u> | <u>[84](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4042)</u> |
| <u>[Signatures](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4037)</u> | | <u>[85](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4037)</u> |

---

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**Cautionary Note Regarding Forward-Looking Statements**

Certain statements contained in this annual report constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended (collectively referred to as, "**forward-looking statements**"). When used, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "project" and similar expressions, as they relate to us or our management, are intended to identify forward-looking statements. In particular, this annual report contains forward-looking statements which include, statements relating to our objectives, plans and strategies, statements that contain projections of results of operations or of financial condition and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future.

Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these forward-looking statements due to several uncertainties and risks, including the risks described in this prospectus supplement, the prospectus and the documents incorporated by reference herein and therein and other unforeseen risks. Such risks, uncertainties, factors and assumptions include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• supply of, demand for and price of lower/zero emission propulsion systems for transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions of government and governmental authorities, including, without limitation, the imposition of tariffs, implementation of emission and fuel consumption standards, the implementation of policies or other measures that promote the supply of and demand for liquified natural gas, renewable natural gas and hydrogen;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions in the hydrogen and other industries, including fluctuations in the supply, demand and price for hydrogen, including demand for hydrogen in transportation and the implementation of hydrogen fueling infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market acceptance of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to raise additional capital or earn enough revenue to fund operations as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product development delays and delays in contractual commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changing environmental legislation and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to attract and retain business partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the success of our joint ventures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the success of our business partners and original equipment manufacturers ("**OEMs**") with whom we partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future levels of government funding and incentives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition from other technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price differential between compressed natural gas, liquid natural gas, liquid petroleum gas and hydrogen relative to petroleum-based fuels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on our ability to protect our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• various events that could disrupt operations, including cybersecurity attacks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential claims or disputes in respect of our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations in our ability to successfully integrate acquired businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations in the development of natural gas and hydrogen refueling infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to provide and access the capital required for research, product development, operations and marketing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• there could be unforeseen claims made against us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our international business operations could expose us to regulatory risks or factors beyond our control such as currency exchange rates, changes in governmental policy, including without limitation, those relating to the regulation of rates, tariffs, import/exports, taxes, wages, labour and immigration, trade barriers, trade embargoes, investigation of sanctions relating to corruption of foreign public officials or international sanctions and delays in the development of international markets for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• volatility in the price of our Common Shares on the TSX and Nasdaq;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other risks relating to our Common Shares and debt securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the consequences to U.S. investors if we are treated as a passive foreign investment company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risks of operating in China;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risk of conflict related to our directors and officers who may currently, or in the future, also serve as directors and/or officers of other public companies that may be involved in the same industry as us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• those other risks discussed in Item 3D "Key Information – Risk Factors" as well as in other portions of this annual report.

Readers are cautioned that forward-looking statements are not based on historical facts but instead are based on reasonable assumptions, estimates, analysis and opinions of our management at the time they were provided or made, in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, as applicable, to be

------

materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Readers are cautioned that the foregoing lists are not exhaustive of all factors and assumptions that may have been used. Although we have attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained in this prospectus supplement, the accompanying prospectus and the documents incorporated by reference herein and therein are presented for the purposes of assisting readers in understanding our expected financial and operating performance and our plans and objectives and may not be appropriate for other purposes.

Any forward-looking statement is made only as of this annual report, unless otherwise indicated, and represent the views and expectations of our management. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law.

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**Part I**

**Item 1. Identity of Directors, Senior Management and Advisers**

Not applicable.

**Item 2. Offer Statistics and Expected Timetable**

Not applicable.

**Item 3. Key Information**

**A. [Reserved]**

**B. Capitalization and indebtedness**

Not applicable.

**C. Reasons for the Offer and Use of Proceeds**

Not applicable.

**D. Risk Factors** 

An investment in our business involves risk, and readers should carefully consider the risks described below and in our other filings on the SEDAR+ website and filed with the U.S. Securities and Exchange Commission (**"SEC"**) on EDGAR. Our ability to generate revenue and profit from our technologies is dependent on a number of factors, and the risks identified below, if they were to occur, could have a material impact on our business, financial condition, liquidity, results of operations or prospects. Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also impair our business operations. These risk factors could materially affect our future operating results and could cause actual events to differ materially from those described in our forward-looking statements.

**Risks Related to our Business and the Automotive Industry**

Our products face, and will continue to face, significant competition from competing alternative powertrain technologies, including from incumbent technologies, improvements to current powertrain technologies, and new alternative powertrain technologies (such as fuel cell and battery electric technologies). As the market for our products continues to grow, this competition may increase. New developments in technology may negatively affect the development or sale of some or all our products or make our products noncompetitive or obsolete. Other companies, many of which have substantially greater customer bases, businesses, and financial and other resources than us, are currently engaged in the development of products and technologies that are similar to, or may be competitive with, certain of our products and technologies.

Competition for our products may come from a wide range of established and emerging powertrain and fuel system technologies. Each of our target markets is currently serviced by existing manufacturers with existing customers and suppliers using proven and widely accepted technologies. Many existing manufacturers have or had natural gas and hydrogen engine programs and could develop new engines without our help or components, using other technologies or technologies from competitive companies. Additionally, there are competitors working on developing technologies such as cleaner diesel engines, biodiesel, fuel cells, advanced batteries and hybrid battery/internal combustion engines, and new fuels in each of our target markets. Each of these competitors has the potential to capture market share in various markets, which could have a material adverse effect on our position in the industry and our financial results. For our products to be successful against competing technologies, especially diesel engines, they must offer advantages in one or more of these areas: regulated or unregulated emissions performance, including CO2 reduction; fuel economy; fuel cost; engine performance; power density; engine and fuel system weight; and engine and fuel system price. There can be no assurance that our products will be able to offer advantages in all or any of these areas.

**The market for vehicles with our fuel systems may be limited or may take longer to develop than we anticipate and/or certain products may not achieve widespread adoption.**

Vehicles with our alternative fuel systems represent an emerging market, and we do not know the extent to which end-users will ultimately want to use them or to pay for any initial incremental purchase price over and above a competing technology or a technology that may have a preferential advantage due to government incentives. The development of a mass market for our fuel systems may be affected by many factors, some of which are beyond our control, including: the

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emergence of newer, more competitive technologies and products; the future cost of natural gas and other fuels used by our systems; the future cost of diesel, gasoline and other alternative fuels that may be used by competitive technologies; the ability to successfully build the refueling infrastructure necessary for our systems; changes to regulatory requirements; availability of government incentives; customer perceptions of the safety of our products; and customer reluctance to try a new product. If a market fails to develop or develops more slowly than we anticipate, we may be unable to recover the investments we will have made in the development of our products and may never achieve profitability.

Our technologies have been commercialized in heavy-duty trucks, medium-duty vehicles, and construction, bus, rail, forklift and passenger car applications. However, we do not know whether we will successfully grow these market offerings as required to realize a long-term sustainable business where higher volumes are important drivers to bring costs in line with customer expectations.

**Management identifies a material uncertainty regarding our ability to continue as a going concern** 

Management continues to identify a material uncertainty that raises substantial doubt about the Company's ability to continue as a going concern. Based on the Company's projected capital expenditures, debt servicing obligations and operating requirements under its current business plan, we anticipate that our cash and cash equivalents will not be sufficient to fund our operations through the next twelve months from the date of the issuance of this annual report.

We may need to raise additional funding in order to continue as a going concern and we cannot provide any assurance that it will be successful in doing so. If we are unable to improve its liquidity position when required, we may not be able to continue as a going concern.

**Our growth is dependent on available refueling infrastructure, fuel price differentials and environmental regulations, policies and government incentives which may not persist or develop as we anticipate.**

Natural gas and hydrogen must be carried on board in liquefied or compressed form and refueling infrastructure is not as well developed as gasoline and diesel fuel infrastructure in many jurisdictions. Although alternative refueling infrastructure is expanding, there can be no assurance of the successful expansion of the availability of such infrastructure to meet projected demand. If customers are unable to obtain fuel conveniently and affordably, a mass market for vehicles with our technology is unlikely to develop.

The acceptance of low carbon fueled engines may depend in large part on the price differential between low carbon fuels and diesel after incentives. Current oil price volatility and natural gas price volatility may change what has, at certain times and in certain markets, been a price advantage for natural gas, including Renewable Natural Gas (RNG), and biogas. This price differential is affected by many factors, including changes in the resource base for natural gas compared with crude oil, availability of shale gas, pipeline transportation capacity for natural gas, refining capacity for crude oil, exports for refined products and government excise and fuel tax policies and geopolitical pressures. There can be no assurance that natural gas, RNG, or biogas will consistently remain less expensive than diesel and gasoline fuels in all geographies. This may impact upon potential customers' decisions to adopt gaseous fuels as a transportation energy solution in the short term.

While we have benefited historically from certain government environmental policies, mandates and regulations around the world, there are indications this may change regarding fossil natural gas, where some jurisdictions are keen to move to incentive for only carbon neutral or carbon free fuels. Examples of such regulations include those that provide economic incentives, subsidies, tax credits and other benefits to purchasers of low emission vehicles, restrict the sale of engines that do not meet emission standards, fine the sellers of non-compliant engines, tax the operators of diesel engines and require the use of more expensive ultra-low sulfur diesel fuel. There can be no assurance that these policies, mandates, and regulations will be continued. Incumbent industry participants with a vested interest in gasoline and diesel, many of which have substantially greater resources than we do, may invest significant time and money to influence environmental regulations in ways that delay or repeal requirements for clean vehicle emissions. If these are discontinued, if current requirements are relaxed, or if other regulations (for example those related to zero carbon) are implemented that may impact our business.

**Failure of our products to perform as expected could negatively impact our ability to develop, market and sell our products.**

If our products contain defects in design and manufacture that cause them not to perform as expected or that require repair, our ability to develop, market and sell our products could be impaired. While we attempt to address any identified product issues as effectively and rapidly as possible, any lack of timeliness may impede production or not satisfy our customers.

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While we have performed extensive quality control on our products, we cannot provide assurance that we will be able to detect and fix all defects in our products prior to their sale to or installation for customers.

Any product defects, delays or legal restrictions on product features, or other failure of our products to perform as expected, could harm our reputation and result in delivery delays, product recalls, product liability claims, breach of warranty claims, and significant warranty and other expenses, and could have a material adverse impact on our business, financial condition, operating results and prospects.

**We will need to raise additional funds to grow our business and meet our financial obligations. If we cannot raise additional funds when we need or want them, our operations and prospects could be negatively affected.**

The design and manufacture of powertrain technologies is a capital-intensive business, and the specific timing of cash inflows and outflows may fluctuate substantially from period to period. Until we are consistently generating positive free cash flows, we may need or want to raise additional funds through the issuance of equity, equity-related or debt securities or through obtaining credit from financial institutions to fund, together with our organic cash flows from operations, the costs of developing and manufacturing our current or future products, to pay any significant unplanned or accelerated expenses or for new significant strategic investments, or to refinance our indebtedness, even if not required contractually. We may need sufficient capital to fund our ongoing operations, and continue research and development "R&D" projects for future generations of our products and/or technologies. We cannot be certain that additional funds will be available to us on favorable terms when required, or at all. If we cannot raise additional funds when we need them, our financial condition, results of operations, business and prospects could be materially and adversely affected.

**We are dependent on relationships with our suppliers.**

While we have a diverse supply base with various manufacturers, certain suppliers provide components or materials that are critical to our products, and we are dependent on their ability to source materials, manage their capacity, workforce, and schedules as well as their ability to ramp up capacity and maintain quality and cost to support our production requirements. For several reasons, including but not limited to shortages of parts, labor disruptions, lack of capacity and equipment failure, a supplier may fail to supply materials or components that meet our quality, quantity or cost requirements or to supply any at all. If we are not able to resolve these issues or obtain substitute sources for these materials or components in a timely manner on terms acceptable to us or at all, our ability to manufacture certain products may be harmed, and we may be subjected to cancellation of orders or penalties for failed or late deliveries, which could have a material adverse effect on our business and financial results. Our products also use steel and other materials that are in global demand. The prices and quantities at which those supplies are available fluctuate and may increase significantly. Competitive pressure, however, may not allow us to increase the sales price of our products. Any such increases may therefore negatively affect our margins and financial condition. We mitigate these risks by seeking secondary suppliers, carrying inventory and locking in long-term pricing when possible. There are no guarantees, however, that we will be successful in securing alternative suppliers or that our inventory levels will be sufficient for our production requirements.

**We conduct business in foreign markets that carry risk.**

We conduct a substantial portion of our business in foreign markets that may carry risks relating to: political and economic uncertainty, including those related to nationalization, war, civil unrest, insurrection, acts of terrorism, and other political risk; corruption risks; high inflation; trade, customs and tax risks; currency exchange rates; limitations on the repatriation of funds; competition to attract and retain qualified employees; risks of pandemics or other outbreaks of illness, disease or virus; expropriation of property and equipment; and other risks associated with conducting business internationally, including other actions by governments that may adversely affect our operations. Expansion of our business internationally to where gaseous fuel systems are opening due to favorable climate change-related regulation is an important element of our long-term strategy. Consequently, our exposure to the risks described above may be greater in the future and the potential risks to us will vary from country to country and are unpredictable. The occurrence of any such risks could have an adverse effect on our operations, profitability and financial condition.

We derive a substantial portion of our revenue from production and sales by subsidiaries outside of Canada, and the payment of dividends or the making of other cash payments or advances by these subsidiaries to us may be subject to restrictions or exchange controls on the transfer of funds in or out of the respective countries or result in the imposition of taxes on such payments or advances. We have organized our foreign operations in part based on certain assumptions about various tax laws (including capital gains and withholding taxes), foreign currency exchange and capital repatriation laws and other relevant laws of a variety of foreign jurisdictions. While we believe that such assumptions are reasonable, we

------

cannot provide assurance that foreign taxation or other authorities will reach the same conclusion. Further, we cannot provide assurance that future developments, including changes in government, civil unrest, changes in laws or other disturbances, would not have an adverse impact on our ongoing operations, and thus not have an adverse impact on our operational and financial results.

**Our ability to achieve our objectives with respect to our Cespira joint venture may be impacted by its operations and our relationship with the joint venture partner.**

We conduct certain of our operations through our Cespira joint venture under contractual arrangements pursuant to which we share ownership and certain management and governance responsibilities with our joint venture partner, Volvo Group. As a result, our ability to realize the anticipated benefits of our investment in Cespira depends in significant part on Cespira's operational performance, its ability to expand commercialization of its products, secure additional customers, achieve anticipated production volumes, and the actions and strategic priorities of our joint venture partner.

From an operational and governance perspective, joint venture arrangements also involve inherent risks. Our joint venture partner's strategic objectives may differ to ours, and disagreements could result in delays or limitations in decision making, including with respect to business strategy, capital allocation, or operational matters. In addition, our ability to implement our operational policies and internal controls within the joint venture may be limited. As a result, we may face increased risks related to adherence to laws and regulations, including but not limited to, tax laws, customs laws, environmental laws, labor laws, permitting laws and regulations, industry laws or international anti-corruption and anti-bribery laws, including Canadian anti-corruption laws and U.S. Foreign Corrupt Practices Act (**"FCPA"**). The occurrence of any such risks could have an adverse effect on our operations, profitability and reputation.

**Our limited production trials, commercial launch activities and field tests could encounter problems.**

We conduct limited production trials and field tests on several of our products as part of our product development cycle, and we are working on scaling up our production capabilities. These trials, production readiness activities and field tests may encounter problems and delays for several reasons, including the failure of our technology, the failure of the technology of others, the failure to combine these technologies properly, the failure to maintain and service the test prototypes properly, or changes in macroeconomic or market conditions. Some of these potential problems and delays are beyond our control. Any problem or perceived problem with our limited production trials and field tests could hurt our reputation and the reputation of our products and delay their commercial launch.

**We could become subject to product liability claims.**

Our business exposes us to potential product liability claims that are inherent to natural gas, hydrogen and products that use these gases. Natural gas and hydrogen are flammable gases and are potentially dangerous products. Any accidents involving our products or other natural gas, or hydrogen-based products could materially impede widespread market acceptance and demand for our engines and fuel systems. In addition, we may be subject to a claim by end-users or others alleging that they have suffered property damage, personal injury or death because our products did not perform adequately. Such a claim could be made whether or not our products perform adequately under the circumstances. From time to time, we may be subject to product liability claims in the ordinary course of business, and we carry a limited amount of product liability insurance for this purpose. However, our current insurance policies may not provide sufficient or any coverage for such claims, and we cannot predict whether we will be able to maintain our insurance coverage on commercially acceptable terms.

**Natural gas, hydrogen, and products that use these gases entail inherent safety and environmental risks that may result in substantial liability to us.**

Our operations, including our R&D and manufacturing processes, are subject to all the risks and hazards inherent to natural gas and hydrogen and products that use these gases, including equipment defects, malfunctions and failures and natural disasters, which could result in uncontrollable flows of natural gas, fires, explosions and other damages. Although we believe that our procedures for using, handling, storing and disposing of natural gas, hydrogen and other hazardous materials comply with legally prescribed standards, we cannot completely eliminate the risk of contamination or injury resulting from natural gas, hydrogen and other hazardous materials and we may incur liability as a result of such contamination or injury. In the event of an accident, we could be held liable for damages or penalized with fines, and the liability could exceed our insurance and other resources, in which event we could incur significant costs that could have a material adverse effect upon its financial condition.

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**We could lose or fail to attract the human capital necessary to run our business.**

Our success depends in large part on our ability to attract and retain key management, engineering, scientific, manufacturing, and operating human capital. As we develop additional capabilities, we may require more skilled employees. Given the highly specialized nature of our products, our employees must be highly skilled and have a sound understanding of our industry, business, or technology. Recruiting employees for the alternative fuel industry is also highly competitive. Although to date we have been successful in recruiting and retaining qualified employees, there can be no assurance that we will continue to attract and retain the human capital needed for our business. The failure to attract or retain qualified employees could have a material adverse effect on our business.

**Warranty claims could be higher than forecasted.**

There may be a risk that the warranty accrual included in our cost of revenue is not sufficient, and we may recognize additional expenses, including those related to litigation, because of warranty claims in excess of our current expectations. Such warranty claims may necessitate a re-design, re-specification, a change in manufacturing processes, and/or recall of our products, which may have an adverse impact on our finances and on existing or future sales. Although we attempt to mitigate against these risks through our sales and marketing initiatives and our product development, quality assurance, support and service programs, there can be no assurance that such initiatives and programs are adequate or that sales of our commercial products will continue to grow and contribute financially. Even in the absence of any warranty claims, a product deficiency such as a manufacturing defect or a safety issue could be identified, necessitating a product recall, which could have an adverse impact on our finances and on existing or future sales.

**We may have difficulty responding to significant demand growth for our products.**

As products are launched, sales may be more than we expect. During periods of quicker than anticipated expansion, we may have difficulty expanding the scope of our operations to match the increased demand. In addition, we may be required to place more reliance on our strategic partners and suppliers, some of whom may not be capable of meeting our production demands in terms of timing, quantity, quality or cost. Difficulties in effectively managing the budgeting, forecasting and other process control issues presented by any rapid expansion could harm our business, prospects, results of operations or financial condition.

**We may not realize the anticipated benefits from our joint venture, investments, or acquisitions.**

Our current joint venture, and any future joint venture, investment, or acquisition, could expose us to certain liabilities, including those that we fail or are unable to identify during the investment or acquisition process. In addition, joint ventures and acquisitions often result in difficulties in integration, and, if such difficulties were to occur, they could adversely affect our results. We have historically and may, in the future, seek to expand our business through acquisitions, investments and/or joint ventures. Any such transactions will be in part dependent on management's ability to identify, acquire and develop suitable acquisition targets in both new and existing markets. In certain circumstances, acceptable acquisition targets might not be available. Acquisitions, specifically, involve a number of risks including: (i) the possibility that we, as a successor owner, may be legally and financially responsible for liabilities of prior owners; (ii) the possibility that we may pay more than the acquired company or assets are worth; (iii) the additional expenses associated with completing an acquisition and amortizing any acquired intangible assets; (iv) the difficulty of integrating the operations and employees of an acquired business; (v) the challenge of implementing uniform standards, controls, procedures and policies throughout an acquired business; (vi) the inability to integrate, train, retain and motivate key employees of an acquired business; and (vii) the potential disruption of our ongoing business and the distraction of management from our day-to-day operations. These risks and difficulties, if they materialize, could disrupt our ongoing business, distract management, result in the loss of key human capital, increase expenses and otherwise have a material adverse effect on our business, results of operations and financial performance.

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**We have foreign currency risk.**

Although we report in U.S. dollars, many of our operating expenses are in Canadian dollars, Euros and Renminbi. Foreign exchange gains and losses are included in the results of operations. Following the divestiture of our Light-Duty segment, which generated the majority of our Euro denominated revenues, our revenue from continuing operations is denominated in a combination of U.S. dollars, Canadian dollars, Euros, and Renminbi. A decline in the U.S dollar, Euro or Renminbi relative to the Canadian dollar could negatively impact margins and other financial results. We have not entered into foreign exchange contracts to hedge against gains and losses from foreign currency fluctuations.

**We are at risk of cyber based attacks.** 

Our information technology systems serve an important role in the operation of our business. We rely on various technologies to operate our production facilities, interact with customers, vendors, and employees and to report on our business. Interruption, failure or unsuccessful implementation and integration of our information technology systems could result in material and adverse impacts on our financial condition, operations, sales, and reputation and could also result in damage to our operations. Our information technology systems and networks could be interrupted or fail due to a variety of causes, such as natural disaster, fire, power outages, vandalism, or cyber-based attacks. Subsequent to the fiscal year ended 2025, during the first quarter of 2026, we experienced a ransomware incident involving unauthorized access to certain information systems and certain customer and personal data. While remediation actions are ongoing and, as of the date of this Form 20-F, we do not believe the incident has had a material impact on us, including our operations, business strategy, results of operations, or financial condition, we may incur further costs and liabilities arising from this incident. Any future cybersecurity incident, including a recurrence, could result in operational disruptions, remediation costs, legal claims, regulatory investigations or enforcement actions, reputational harm, and adverse effects on our business, operations, financial condition, results of operations and cash flows. Although to date we have not experienced any material losses relating to cyber risks, there can be no assurance that we will not incur such losses in the future. Our Information Technology leadership continues to develop and enhance internal controls, policies and procedures designed to protect systems, servers, computers, software, data and networks from attack, damage, or unauthorized access. As cyber threats continue to evolve, we may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

**Legal, Regulatory and Other Related Risks** 

**Risks with anti-corruption laws could have a material adverse effect on our reputation and results of operations.**

Our operations are governed by, and involve interactions with, many levels of government in numerous countries. We are required to comply with anti-corruption and anti-bribery laws, including the Canadian Corruption of Foreign Public Officials Act (the "**CFPOA**") and the U.S. FCPA, as well as similar laws in the countries in which we conduct business. In recent years, the U.S. Department of Justice, the SEC, and the Royal Canadian Mounted Police have brought an increasing number of FCPA and CFPOA enforcement cases for non-compliance, many resulting in very large fines, penalties and deferred criminal prosecutions. A company may be liable for violations by its employees, contractors, and third-party agents. Our Code of Conduct, Anti-Bribery and Corruption policies and programs mandate compliance with anti-bribery and corruption laws. Notwithstanding these policies and programs, there can be no assurance that all employees and third-party intermediaries working on our behalf will comply with anti-bribery and corruption laws, which would result in significant penalties, fines and/or sanctions imposed on us, and/or have a material adverse effect on our operations.

**We could become involved in legal proceedings and commercial or contractual disputes, which could have a material adverse effect on our business, results of operations and financial condition.** 

From time to time, we may be involved in proceedings or disputes with other parties arising in the ordinary course of business that may result in litigation. If we are unable to resolve these disputes favourably, it may have a material adverse impact on the financial condition, cash flow and results of our operations. Such proceedings or disputes are typically claims that arise in the ordinary course of business, including, without limitation, commercial or contractual disputes, and other disputes with customers and suppliers, joint venture parties, intellectual property matters, tax matters and employment matters. The outcome with respect to outstanding, pending or future proceedings cannot be predicted with certainty and may be determined adversely to us and could have a material adverse effect on our assets, liabilities, business, financial condition and results of operations. Even if we prevail in any such legal proceedings, the proceedings could be costly and time-consuming and may divert the attention of management and key personnel from business operations, which could have an adverse effect on our financial condition.

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**We depend on our intellectual property and our failure to protect that intellectual property could adversely affect our future growth and success.**

Failure to protect our existing and future intellectual property rights could seriously harm our business and prospects and may result in the loss of our ability to exclude others from practicing our technology. If we do not adequately ensure our ability to use certain technology, we may have to pay others for the right to use their intellectual property, pay damages for infringement or misappropriation and/or be enjoined from using such intellectual property. Our patents do not guarantee us the right to practice our technologies if other parties' own intellectual property rights are necessary to practice such technologies. Our patent position is subject to complex factual and legal issues that may give rise to uncertainty as to the validity, scope and enforceability of a particular patent. As is the case in many other industries, the web of intellectual property ownership in our industry is complicated and, in some cases, it is difficult to define with precision where one property begins and another ends.

We also seek to protect our proprietary intellectual property, including intellectual property that may not be patented or patentable, in part by confidentiality agreements and, if applicable, inventors' rights agreements with our strategic partners and employees. There can be no assurance that these agreements will not be breached, that we will have adequate remedies for any breach or that such persons or institutions will not assert rights to intellectual property arising out of these relationships.

Certain intellectual property has been licensed to us from third parties who may also license such intellectual property to others, including our competitors. If necessary or desirable, we may seek further licenses under the patents or other intellectual property rights of others. However, we can give no assurances that we will obtain such licenses or that the terms of any offered licenses will be acceptable to us. The failure to obtain or renew a license from a third party for intellectual property we use at present could cause us to incur substantial costs and to suspend the manufacture or shipment of products or our use of processes requiring such intellectual property.

**We could become engaged in intellectual property litigation or disputes that may negatively affect our business.**

Claims may be made by third parties that the practice of our technology infringes upon patents owned by those third parties. Although we have seen no valid basis for any claims, as our business grows, parties may attempt to take advantage of that growth and assert claims and demands for compensation. Our response to such claims will be commensurate with the seriousness of the allegations, their potential effect on our business and the strength of our position. We will examine a range of options, from formal legal action to obtaining a declaratory judgment of non-infringement, to the initiation of design changes. We intend to vigorously defend our intellectual property.

We are currently engaged in material intellectual property litigation against others who we believe are infringing on our rights. In addition, we could become subject to lawsuits in which it is alleged that we have infringed the intellectual property rights of others or in which the scope, validity and enforceability of our intellectual property rights is challenged. Our involvement in intellectual property litigation or disputes could be time consuming and result in significant expense to us, diversion of resources, and delays or stoppages in the development, production and sales of products or intellectual property, whether or not any claims have merit, or such litigation or disputes are resolved in our favor. Any such result could require the expenditure of substantial time and other resources and could have a material adverse effect on our business and financial results.

**Economic sanctions may impact the business of certain of our foreign subsidiaries and our joint venture.**

Some of our foreign subsidiaries, our joint venture, or future acquisitions may sell products to customers in countries whose companies, governments, and people may be subject to sanctions, tariffs, and embargoes imposed by, including but not limited to, the U.S., Canadian, and European Union governments. Although these sanctions, tariffs, and embargoes may not prohibit those foreign subsidiaries and joint ventures from selling products and providing services in these countries, they may prohibit us and our domestic subsidiaries and joint ventures, as well as employees of our foreign subsidiaries and joint ventures who are US, Canadian, and European citizens, from participating in, approving or otherwise facilitating any aspect of the business activities in those countries. The constraints on our ability to have U.S., Canadian or European persons, including our senior management, provide managerial oversight and supervision over sales in embargoed countries may negatively affect the financial or operating performance of such business activities. We routinely monitor changes in economic sanctions laws and adapt our procedures to remain in compliance with such laws.

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**We could become liable for environmental damages resulting from our research, development or manufacturing activities.**

The nature of our business and products exposes us to potential claims and liability for environmental damage, personal injury, loss of life, and damage to or destruction of property, including potentially for claims due to the release of methane and other greenhouse gases (GHG). Our business is subject to numerous laws and regulations that govern environmental protection and human health and safety. These laws and regulations have changed frequently in the past and it is reasonable to expect additional and more stringent changes in the future. Our operations may not comply with future laws and regulations, including those related to climate change, and we may be required to make significant unanticipated capital and operating expenditures. If we fail to comply with applicable environmental laws and regulations, governmental authorities may seek to impose fines, penalties, compliance orders, injunctions, civil liability, or criminal sanctions, or to revoke or deny the issuance or renewal of operating permits, and private parties may seek damages from us. Under those circumstances, we might be required to curtail or cease operations, conduct site remediation or other corrective action, or pay substantial damage claims. In addition, depending on the nature of the claim, our current insurance policies may not provide sufficient or any coverage for such claims.

**Failure to comply with privacy laws to which we are subject could harm us.**

Our privacy policy is posted on our website, and any failure by us to comply with it or with privacy, data protection or security laws or regulations to which we are subject, that relate to the collection, use, retention, security and transfer of personally identifiable information could result in regulatory or litigation-related actions against us, legal liability, fines, damages, ongoing audit requirements and other significant costs. Substantial expenses and operational changes may be required in connection with maintaining compliance with such laws, and certain emerging privacy laws are still subject to a high degree of uncertainty as to their interpretation and application.

**Additional or higher tariffs may impact the demand for our products.**

Increases in trade conflicts and protectionism, as well as political developments, could result in increased and additional implementation of tariffs. This may cause volatility in the demand and pricing of our products in the markets we serve, with concerns over supply chain disruptions leading to fluctuations in purchasing patterns. Additionally, ongoing changes and uncertainty in trade policies have contributed to volatility in the U.S. dollar exchange rate, which in turn impacts our sales and cost structure by influencing raw material costs, pricing competitiveness, and cross-border trade dynamics. To the extent such U.S. tariffs have and may continue to lead to retaliatory tariffs on imports of United States products, or otherwise cause an increase in the prices of the inputs we use in our operations or diminished availability of such inputs, our ability to maintain our current cost structure or level of operations may be materially and adversely affected. In addition, general or specific tariffs having an adverse effect on our customers may significantly reduce the demand for our products. Any of these risks may result in, among other things, us experiencing reduced production levels, higher costs and lower operating margins, any of which could have a material and adverse effect on our financial position, results of operations and liquidity. If these or any other of the risks contemplated by this Form 20-F manifest themselves in a manner that has a disproportionate effect on our operations, our financial condition and results of operations may be materially and adversely affected.

**Risks Related to our Common Shares** 

**Our Common Share price may fluctuate.**

The stock market in general, and the market prices of securities of technology companies in particular, can be extremely volatile, and fluctuations in our Common Share price may be unrelated to our operating performance. Our Common Share price has been and could in the future be subject to significant fluctuations in response to many factors, including: actual or anticipated variations in our results of operations; the addition or loss of customers; announcements of technological innovations; new products or services by us or our competitors; changes in financial estimates or recommendations by securities analysts; conditions or trends in our industry; our announcements of significant acquisitions, strategic relationships, joint ventures or capital commitments; additions or departures of key employees; general market conditions; and other events or factors, many of which may be beyond our control. Therefore, you bear the market risk associated with fluctuations in the price of our Common Shares. Unstable market conditions could cause the trading price of our Common Shares to decline or fluctuate in a rapid or unpredictable manner and, in that case, investors could lose all or part of their investment in such securities.

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There can be no assurance that the current trading price will be maintained, and it is possible that our Common Share price could drop significantly. In addition, future sales of substantial amounts of our Common Shares, or securities convertible into or exchangeable for shares of our Common Shares, into the public market, or the perception that those sales could occur, could negatively affect the market price of our Common Shares and our ability to raise capital in the future. An issuance of additional Common Shares could also dilute the percentage ownership interest and corresponding voting power of the existing holders of such securities. Holders of our Common Shares are not entitled to pre-emptive rights or other protections against dilution.

**Litigation, including litigation due to Common Share price volatility or other factors, could cause us to incur substantial costs and divert our management's time and attention.**

From time to time, we may become involved in, or become liable for legal, contractual, and other claims by various parties, including customers, suppliers, former employees, class action plaintiffs and others, including litigation related to the volatility of our Common Shares and investigations or reviews by regulatory bodies. If we become involved in significant litigation, investigations or reviews by regulatory bodies or other proceedings in the future, it could result in substantial costs and diversion of management's attention and resources and could adversely affect our financial condition, business, and prospects. On an ongoing basis, we attempt to assess the likelihood of any adverse judgments or outcomes to these proceedings or claims, although it is difficult to predict final outcomes with any degree of certainty. Except as disclosed from time to time in our financial statements, we do not believe that any of the proceedings or claims to which we are party will have a material adverse effect on our financial position; however, we cannot provide any assurance to this effect.

**We do not currently pay and do not anticipate paying any cash dividends on our Common Shares in the near future; therefore, our shareholders may not be able to receive a return on their Common Shares until they sell them.**

We have never paid or declared any cash dividends on our Common Shares. We do not anticipate paying any cash dividends on our Common Shares in the foreseeable future because, among other reasons, our loan agreement restricts our ability to pay dividends, and we currently intend to retain any future earnings to finance our business. The future payment of dividends will be dependent on factors such as cash on hand and achieving profitability, the financial requirements to fund growth, our general financial condition, and other factors our board of directors may consider appropriate in the circumstances. Until we pay dividends, which we may never do, our shareholders will not be able to receive a return on their Common Shares unless they sell them.

**If we are characterized as a passive foreign investment company ("PFIC"), U.S. holders may be subject to adverse U.S. federal income tax consequences.**

A non-U.S. corporation generally will be treated as a PFIC for U.S. federal income tax purposes in any taxable year if either (1) at least 75% of its gross income for such year is passive income (such as interest income) or (2) at least 50% of the value of its assets (generally based on an average of the quarterly values of the assets) during such year is attributable to assets that produce or are held for the production of passive income. Based on the value of our assets, including goodwill, and the composition of our income, assets and operations for the taxable year ended December 31, 2025, we do not believe that we were a PFIC for U.S. federal income tax purposes for that taxable year. However, we must determine our PFIC status annually based on tests which are factual in nature, and our status in future years will depend on our income, assets and operations in those years. The application of the PFIC rules is subject to uncertainty in several respects, and determinations of value are inherently factual and subject to different interpretations. Changes in the composition of our income or assets, the market value of our Common Shares, and the market value of our assets may cause us to become a PFIC. Accordingly, there can be no assurance that we were not a PFIC for any previous taxable year (including our taxable year ended December 31, 2025) or that we will not be a PFIC for the current taxable year or any future taxable year. Moreover, if we are a PFIC for any taxable year during which a U.S. Holder (as defined in "Taxation — U.S. Federal Income Tax Considerations --Definition of a U.S. Holder") holds our Common Shares, such U.S. Holder may be subject to adverse tax consequences. Each prospective investor is strongly urged to consult its tax advisors regarding the application of these rules to such investor's particular circumstances. See "Taxation — U.S. Federal Income Tax Considerations".

**If a U.S. person is treated as owning at least 10% of our shares, such holder may be subject to adverse U.S. federal income tax consequences.**

If a U.S. person is treated as owning (directly, indirectly or constructively) at least 10% of the value or voting power of our shares, such person will be treated as a "United States shareholder" with respect to each controlled foreign corporation

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("**CFC**") in our group (if any). Because our group includes one or more United States subsidiaries, certain of our non-U.S. subsidiaries could be treated as CFCs for taxable years beginning before January 1, 2026, regardless of whether or not we are treated as a CFC. However, for taxable years beginning after December 31, 2025, as a result of certain changes enacted by the One Big Beautiful Bill Act of 2025, our non-U.S. subsidiaries generally will not be treated as CFCs, and no U.S. Holder will be treated as a United States shareholder with respect to such non-U.S. subsidiaries, solely by reason of the inclusion of one or more U.S. subsidiaries in our group. A United States shareholder of a CFC generally will be required to annually report and include in its U.S. taxable income its pro rata share of "Subpart F income," "net CFC tested income" (or "global intangible low taxed income" for taxable years beginning before January 1, 2026 and investments in U.S. property by the CFC, whether or not we make any distributions. An individual that is a United States shareholder with respect to a CFC generally would not be allowed certain tax deductions or foreign tax credits that would be allowed to a United States shareholder that is a corporation. A failure to comply with these reporting obligations may subject a United States shareholder to significant monetary penalties and may prevent the statute of limitations with respect to a United States shareholder's U.S. federal income tax return for the year for which reporting was due from starting. Furthermore, we cannot provide any assurances that we will have sufficient information to assist investors in determining whether we or any of our subsidiaries are treated as a CFC or whether such investor is treated as a United States shareholder with respect to any such CFCs. We also cannot guarantee that we will be in a position to furnish to any United States shareholder information that may be necessary to comply with the aforementioned reporting and tax payment obligations. U.S. investors should consult their own advisors regarding the potential application of these rules to an investment in our Common Shares.

**As a foreign private issuer, we are subject to different U.S. securities laws and rules than a domestic U.S. issuer, which may limit the information publicly available to our U.S. shareholders.**

We are a foreign private issuer under applicable U.S. federal securities laws and, therefore, we are not required to comply with all the periodic disclosure and current reporting requirements of the U.S. Securities Exchange Act of 1934, as amended (the "**Exchange Act**") and related rules and regulations. We file our annual report with the SEC on Form 20-F, which differs in certain respects from the reports that U.S. domestic issuers file on Forms 10-K, 10-Q, and 8-K. We are not required to file quarterly reports on Form 10-Q or current reports on Form 8-K and instead furnish certain interim reports and press releases to the SEC on Form 6-K. In addition, as a Canadian foreign private issuer, our officers, directors, and principal shareholders are subject to different insider reporting requirements and reporting timeframes than those applicable to officers, directors and principal shareholders of U.S. domestic issuers. Consequently, information regarding purchases or sales of our common shares by such persons may not be available to shareholders on the same basis or within the same timeframes as would be the case for a U.S. domestic issuer. In addition, as a foreign private issuer, we are exempt from the proxy rules under the Exchange Act and Regulation FD. In addition, subject to the applicable rules of our listing exchange, we may follow certain home-country corporate governance practices in lieu of the requirements of U.S. securities exchanges. As a result of these differences, you may receive less or different information about us and at different times than you would receive from a U.S. domestic issuer.

**We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses to us.** 

To maintain our status as a foreign private issuer, a majority of our Common Shares must be owned of record by non-residents of the U.S. unless we also satisfy one of the additional requirements necessary to preserve this status. We may in the future lose our foreign private issuer status if a majority of our Common Shares are held in the U.S. and we fail to meet the additional requirements necessary to avoid loss of foreign private issuer status. The regulatory and compliance costs to us under U.S. federal securities laws as a U.S. domestic issuer may be significantly more than the costs we incur as a Canadian foreign private issuer eligible to file on Form 20-F. If we are not a foreign private issuer, we would not be eligible to use Form 20-F and would instead be required to file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K with the SEC, which impose more detailed and extensive disclosure obligations than those applicable to a foreign private issuer. In addition, we may lose the ability to rely upon exemptions from corporate governance requirements of the Nasdaq Listing Rules that are available to foreign private issuers.

**U.S. investors may not be able to obtain enforcement of civil liabilities against us.**

The enforcement by investors of civil liabilities under the U.S. federal or state securities laws may be affected adversely by the fact that we are governed by the Business Corporations Act (Alberta), a statute of the Province of Alberta, Canada, that the majority of our officers and directors and some of the experts named in this Form 20-F, are residents of Canada or otherwise reside outside the U.S., and that all, or a substantial portion of their assets and a substantial portion of our assets, are located outside the U.S. It may not be possible for investors to effect service of process within the U.S. on certain of our directors and officers or the experts named in this Form 20-F or enforce judgments obtained in the U.S. courts against us,

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certain of our directors and officers or the experts named in this Form 20-F based upon the civil liability provisions of U.S. federal securities laws or the securities laws of any state of the U.S.

There is some doubt as to whether a judgment of a U.S. court based solely upon the civil liability provisions of U.S. federal or state securities laws would be enforceable in Canada against us, our directors and officers or the experts named in this Form 20-F. There is also doubt as to whether an original action could be brought in Canada against us or our directors and officers or the experts named in this Form 20-F to enforce liabilities based solely upon U.S. federal or state securities laws.

**Item 4. Information on the Company**

**A. History and Development of the Company**

We ("Westport") were founded and incorporated under the name Westport Innovations Inc. on March 20, 1995 pursuant to the *Business Corporation Act* (Alberta). During 2016 we changed our name from Westport Innovations Inc. to Westport Fuel Systems Inc. following the merger with Fuel Systems Solutions Inc. on June 1, 2016. Our shares are listed on TSX (WPRT) and Nasdaq (WPRT). Our head office and principal place of business is at 1691 West 75th Avenue, Vancouver, British Columbia V6P 6P2, and our telephone number is (604) 718-2046. Our registered office is 4500, 855 2nd Street SW, Calgary, Alberta T2P 4K7. Our website address is www.westport.com. The information contained on, or accessible through, our website is not incorporated by reference into this annual report. The SEC maintains a website that contains reports and information statements and other information about issuers, such as us, who file electronically with the SEC. The address of that website is https://www.sec.gov. CT Corporation Systems act as our agent in the United States, their address is 28 Liberty Street, New York, NY 10005.

*Corporate History*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 21, 2008, we amended our articles to provide for the consolidation of our common shares on a three and one-half-to-one (3.5:1) basis. Trading in our common shares commenced on a post-consolidation basis on the Toronto Stock Exchange on July 24, 2008. No fractional common shares were issued in connection with the consolidation, and all such fractional interests were rounded down to the nearest whole number of common shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On June 1, 2016, we announced the completion of the merger with Fuel Systems Solutions Inc. Fuel Systems Solutions Inc. shareholders received 2.4755 Westport Innovation Inc. common shares for each share of Fuel Systems Solutions Inc. common stock owned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 5, 2024, we officially launched "Cespira", a joint venture between Westport and Volvo Group focused on promoting, developing, and further accelerating the commercialization of the HPDI<sup>TM</sup> fuel system technology. Leading up to the announcement, on June 3, 2024, it was announced that Westport and Volvo had closed the joint venture transaction; and previously on March 11, 2024, Westport had announced the signing of a definitive agreement with Volvo to establish the joint venture "JV" to accelerate the commercialization and global adoption of Westport's HPDI<sup>TM</sup> fuel system technology for long-haul and off-road applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To date, we have not paid out any dividends on our common shares. The future payment of dividends will be dependent on our ability to pay, including factors such as cash on hand and achieving profitability, the financial requirements to fund growth, our general financial condition and other factors that the Board of Directors may consider appropriate in the circumstances. Our bank credit facilities also contain dividend restrictions. Over the years, we and our partners have also received significant government funding including but not limited to Canadian, U.S., and European government agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of April 23, 2026, we have 17,395,734 common shares issued and outstanding of which we hold nil common shares.

*Recent Developments (2025-2026)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On January 11, 2025, we announced that Cespira had appointed Carlos Gonzalez as President and CEO, effective April 1, 2025. Carlos succeeded Dan Sceli, CEO of Westport, who held the position on an interim basis since the closing of the joint venture transaction in June 2024 and who continues to sit on Cespira's board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 31, 2025, we announced that we had entered into a binding agreement to sell our interest in Westport Fuel Systems Italia S.r.l., which includes the Light-Duty segment, including the light-duty OEM, delayed OEM, and independent aftermarket businesses, to a wholly-owned investment vehicle of Heliaca Investments Coöperatief U.A. ("Heliaca Investments"), a Netherlands based investment firm supported by Ramphastos Investments Management B.V. a prominent Dutch venture capital and private equity firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 29, 2025, we closed the previously announced transaction to divest our Light-Duty Segment. Total consideration for the assets was a base price of approximately $79.5 million (€67.7 million), subject to certain adjustments, along with potential earnouts of up to a revised estimate of $3.9 million (€3.3 million) based on future performance milestones.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On August 26, 2025, we announced the resignation of Westport's Chief Financial Officer, William Larkin and the appointment of Elizabeth Owens as his successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On January 2, 2026, we announced changes to our Board of Directors. Chair Dan Hancock, appointed to the Board in July 2017, retired from the Board, effective December 31, 2025, with current director Anthony (Tony)

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Guglielmin assuming the role of Chair. Bradley Kotush joined Westport's Board of Directors, effective January 1, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On January 19, 2026, we announced the commencement of production at our expanded product development and manufacturing facility in Cambridge, Ontario and our new China Hydrogen Innovation Center and Manufacturing facility in Changzhou, China. Both facilities will support the development of Westport's GFI-branded fuel system components by advancing Westport's global hydrogen, compressed natural gas (CNG) and RNG strategies and enabling local manufacturing capacity in China, a market widely cited as the largest in the world for hydrogen commercial vehicle deployment, with Chinese sales of hydrogen buses and trucks exceeding those of all other regions combined in 2024. Initial products were shipped to customers in December 2025, with both facilities continuing to ramp up capacity through the first quarter of 2026.

**B. Business Overview**

Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a supplier of affordable, alternative fuel, low-emissions transportation technologies, the Company designs, manufactures, and supplies advanced components and systems that enable the transition from traditional fuels to alternative energy solutions.

Westport's technologies support a wide range of alternative fuels – including natural gas, renewable natural gas, and hydrogen – enabling OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way. With decades of expertise and a commitment to engineering excellence, Westport is helping our partners achieve sustainability goals—without compromising performance or cost-efficiency – making clean, scalable transport solutions a reality.

Westport is headquartered in Vancouver, Canada, with operations in Cambridge, Ontario; Calgary, Alberta; and China and Europe. With a focus on engineering, manufacturing, and supplying alternative fuel systems and components for transportation applications, Westport's product offerings, sold under its AFS and GFI brands and through Cespira, enable the use of several alternative fuels in the transportation sector that provide economic and/or environmental advantages as compared to diesel, gasoline, or battery powered electric vehicles.

Our portfolio includes our High-Pressure Controls segment sold under the AFS and GFI brands and a 55% ownership in Cespira, a joint venture with Volvo. Our High-Pressure Controls segment designs, develops, and produces components, including pressure regulators, valves, filters, electronic control units ("ECUs") and high-pressure hydrogen components for transportation and industrial applications. We partner with fuel cell, hydrogen engine and alternative fuel engine manufacturers offering versatile solutions that serve a variety of fuel types. Cespira launched in 2024 and is committed to advancing the development and commercialization of Cespira's HPDI™ fuel system, a fully OEM-integrated gaseous fuel system that enables heavy-duty diesel engines to operate with a range of alternative fuels including natural gas, RNG, hydrogen and others without any performance or efficiency compromises relative to the base diesel engine platform. As part of Westport and Cespira's portfolio of solutions, Cespira's LNG HPDI 2.0 fuel system is on the road today and is a complete system offering OEMs the flexibility to differentiate their natural gas product lines easily while also maintaining maximum commonality with their conventional diesel fueled products.

**Business Segments**

Westport develops and supplies advanced alternative-fuel systems, components, and technologies that enable global transportation and industrial customers to affordably reduce emissions and transition toward cleaner mobility solutions. Our technologies, products, and services are sold under our established brands and form the foundation for sustainable growth in both existing and emerging markets worldwide. We operate through the following segments:

**Cespira** 

In June 2024, Westport and Volvo entered into a series of joint venture agreements (collectively, the "JV Agreement"), to establish Cespira, focused on promoting, developing, and commercializing the HPDI fuel system technology (see Material Contracts – Joint Venture Governance Agreements). Under the terms of the agreement, Westport owns a 55% equity interest in Cespira, while Volvo owns 45%. The JV prioritizes scaling the HPDI fuel system and supporting the global transition to carbon-neutral, internal combustion engine technologies, particularly within heavy-duty, long-haul trucking, where multiple propulsion technologies are required to achieve substantial decarbonization. Cespira designs, assembles, and supplies LNG HPDI 2.0 fuel systems, related components, and engineering services to engine manufacturers and commercial vehicle OEMs. The fully integrated LNG HPDI 2.0 fuel systems enable diesel engines to operate predominantly on alternative gaseous fuels - such as renewable natural gas (RNG) - while maintaining equivalent power, torque, and fuel efficiency relative to conventional compression ignition engines fueled with diesel fuel. This can provide a

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cost-effective pathway to meaningful greenhouse gas reductions. The JV is also advancing the application of HPDI fuel systems for hydrogen and other alternative fuels in internal combustion engines, expanding its relevance to future decarbonization strategies.

Over the past three fiscal years, HPDI has remained Cespira's (and previous to Cespira's formation, Westport's) primary heavy-duty on-engine decarbonization offering.

Cespira is currently working on the advancement of a hydrogen (H2) HPDI fuel system, adapting HPDI technology to operate on gaseous hydrogen. Publicly announced development work is ongoing, including system-level engineering, prototype integration, and performance validation.

**High-Pressure Controls**

The High-Pressure Controls segment designs, engineers, manufacturers, and supplies components for transportation and industrial applications, using gaseous fuels such as hydrogen. This segment represents Westport's off-engine product portfolio, supplying regulators, valves, ECUs, pressure components, and related engineered solutions to OEM and Tier-1 customers worldwide. These technologies support fuel-cell vehicles, hydrogen fueled internal combustion engines, and natural gas mobility platforms.

Westport's High-Pressure Controls segment, with its GFI-branded products, has decades of engineering expertise in developing high-quality and often customized components tailored for global automotive, truck, bus, rail, construction, and industrial OEMs. The business is positioned at the forefront of the clean-energy transition, with solutions supporting both current alternative-fuel deployment and hydrogen-powered mobility.

Through our GFI-branded operations, with manufacturing facilities in Canada and China, we deliver components used in passenger vehicles, buses, mid-duty and heavy-duty trucks, rail applications, construction and industrial equipment.

New products & developments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ongoing development of next-generation hydrogen-rated regulators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expansion of electronics and controls, including updated ECUs and calibration software supporting broader fuel-system architectures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multiple components for hydrogen internal combustion engines and fuel-cell vehicles remain in active development phases with global OEM partners.

**Heavy-Duty OEM** 

The Heavy-Duty OEM segment represents historical results from our heavy-duty business for the period January 1, 2024, until the formation of the Cespira joint venture which occurred on June 3, 2024. Subsequently, the Heavy-Duty OEM segment reflected activity from a transitional services agreement with Cespira, which was put in place primarily to support the JV in the short-term as the organization established its manufacturing operations. On June 30, 2025, the transitional services agreement (TSA) ended.

**2. Principal Markets & Revenue Breakdown (Last Three Years)**

Westport competes across a diverse set of global transportation and industrial markets that are transitioning toward lower-carbon propulsion systems. Our revenue streams reflect the varied applications of Cespira's HPDI and high-pressure components and controls portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Heavy-duty long-haul trucking: A core market for HPDI fuel systems, where operators demand diesel-equivalent performance combined with significant emissions reduction. This segment represents the largest commercial opportunity for Cespira's LNG and hydrogen HPDI offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Medium-duty and vocational transport: Including regional delivery, refuse, governmental, and utility vehicles adopting gaseous-fuel solutions to meet evolving emissions standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Passenger vehicles: GFI-branded components provide OEMs with validated gaseous-fuel solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Industrial, construction, and off-road equipment: Markets requiring high-pressure components for forklifts, construction machinery, power systems, mining equipment, and agricultural machinery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rail and specialty applications: Niche applications where hydrogen and natural-gas fuels provide significant emissions-reduction benefits in controlled-route operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Hydrogen & natural-gas ecosystem suppliers: Including fuel-cell engine manufacturers, hydrogen internal combustion engine ("ICE") developers, storage-system integrators, and Tier-1 and Tier-2 subsystem providers.

Over the last three fiscal years, our revenues have aligned with the structure of our reportable segments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cespira (HPDI fuel system technology, a heavy-duty on-engine solution)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• High-Pressure Controls (components and subsystems)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Heavy-Duty OEM (TSA activities)

Geographically, Westport generates revenue from North America, Europe, and Asia-Pacific, with growing penetration in emerging markets adopting gaseous-fuel mobility solutions. Refer to Note 17 in our consolidated financial statements included in this annual report Form 20-F for our revenue by geographic region.

**3. Seasonality of Business**

Demand in several of our transportation-related markets exhibits moderate seasonality, influenced by OEM production cycles, regulatory introduction dates, and fleet procurement patterns. Hydrogen and natural-gas component sales may fluctuate based on regional adoption incentives and infrastructure availability. Heavy-duty OEM order cycles may also reflect freight and logistics seasonality.

**4. Sources and Availability of Raw Materials**

Our manufacturing processes rely on metals, precision-machined components, electronics, seals, and specialized high-pressure materials sourced from global suppliers. While most raw materials are available from multiple vendors, certain high-precision, hydrogen-rated, and HPDI-specific components require qualified suppliers with specialized manufacturing capabilities. Prices for metals and electronics can exhibit volatility based on global supply-chain disruptions, commodity cycles, and geopolitical factors. We mitigate this risk through multi-source strategies, long-term supply arrangements, and inventory management.

**5. Marketing Channels & Sales Methods**

Westport employs a multi-channel, engineering-driven market approach, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Direct OEM relationships: Our largest revenue streams arise from long-term supply programs with global heavy-duty truck OEMs, bus manufacturers, and industrial-equipment producers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engineering-integration engagements: HPDI and advanced hydrogen systems require deep collaboration with OEM engineering teams during engine development, validation, calibration, and certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tier-1 and Tier-2 supply agreements: GFI-branded components integrate into broader propulsion systems built by leading hydrogen-ICE and fuel-cell system providers.

Sales cycles are long-duration and engineering-intensive, often spanning multi-year development programs. Pricing often reflects multi-year contractual frameworks involving volume commitments, engineering services, and validation milestones.

**6. Dependence on Patents, Licenses & Material Contracts**

Westport's competitive position relies on our portfolio of patents and trade secrets relating to HPDI combustion, high-pressure fuel delivery, hydrogen-rated components, control algorithms, and electronic management systems.

The Cespira joint venture and associated licensing, technology-transfer, and supply agreements are material to our long-term HPDI business.

The Company is also party to industrial contracts with OEMs and Tier-1 suppliers relating to component development, validation, and supply. These contractual and intellectual-property foundations are critical to our business and profitability.

**7. Basis for Competitive Position Statements**

Statements about Westport's competitive position are based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our status as the only commercial provider of HPDI fuel system technology enabling diesel-like performance using LNG/RNG or hydrogen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our decades-long presence in hydrogen and natural-gas components through the GFI brand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Publicly disclosed OEM collaborations, customer deployments, component performance specifications, and industry market-share assessments from independent market participants.

Such statements reflect the Company's evaluation of publicly available data and customer-validated performance metrics.

**8. Government Regulations & Regulatory Bodies**

Our products and operations are subject to environmental, emissions, safety, and fuel-certification standards administered by regulatory agencies globally, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. Environmental Protection Agency (EPA)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• California Air Resources Board (CARB)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• European Union regulatory bodies (e.g., UNECE)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transport Canada

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• China's State Administration for Market Regulation (SAMR) and related authorities

Regulatory developments related to emissions standards, hydrogen safety, and alternative-fuel certification materially influence demand for our technologies and affect cost structures for product compliance, testing, and validation.

**C. Organizational Structure**

Our governing corporate statute is the Business Corporations Act (Alberta). Our head office and principal place of business is at 1691 West 75th Avenue, Vancouver, British Columbia V6P 6P2. Our registered office is 4500, 855 2nd Street SW, Calgary, Alberta T2P 4K7. In 2016, we amended our articles to change our name from Westport Innovations Inc. to Westport Fuel Systems Inc. following the merger with Fuel Systems Solutions Inc. on June 1, 2016.

The following chart includes our principal operating subsidiaries as of April 23, 2026, and for each subsidiary, its place of organization and our percentage of voting interests beneficially owned or over which we exercise control or direction. The structure is not necessarily indicative of our operational structure.

![Org Chart for Workiva.jpg](wprt-20251231_g1.jpg)

**D. Property, Plants and Equipment**

The Company's headquarters is located in a 2,040 sq.ft leased office space in Vancouver, British Columbia, Canada. The Company's tech center and low volume manufacturing for GFI-branded products is located in a 16,225 sq.ft leased space in Cambridge, Ontario, Canada. The Company's hydrogen innovation center and manufacturing facility for GFI-branded products is located in a 67,911 sq.ft leased space in Changzhou, Jiangsu, China. The Company's low volume manufacturing plant and research and development center for AFS-branded products is located in a 10,814 sq.ft leased space in Calgary, Alberta, Canada.

The majority of the Company's machinery and equipment and leasehold improvements are held at the plants in Cambridge and Changzhou.

**Item 4A. Unresolved Staff Comments**

None.

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**Item 5. Operating and Financial Review and Prospects**

**A. Operating Results**

**OVERVIEW OF FINANCIAL RESULTS FOR 2025**

Revenues for the year ended December 31, 2025 decreased by 43% to $23.3 million compared to $40.7 million in the prior year. The decrease was primarily driven by the end of the transitional service agreement between Westport and Cespira to provide inventory and contract manufacturing in Q2 2025 in our Heavy-Duty OEM segment, resulting in a decrease $16.3 million compared to prior year. The slowdown in the hydrogen industry, beginning early in 2025, along with the move of our manufacturing capability from Italy to Canada and China in the third and fourth quarters of 2025, negatively impacted sales in our High-Pressure Controls segment in 2025.

Cespira's revenue for the year ended December 31, 2025 was $77.4 million, an increase of $34.4 million, or 80% compared to prior year. Cespira continued its growth in 2025, for more information on Cespira's results refer to "Selected Cespira Statement of Operations information" within this MD&A.

We reported a net loss from continuing operations of $29.6 million for the year ended December 31, 2025 compared to a net loss from continuing operations of $31.3 million for the prior year. The net change was primarily the result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower operating expenditures across research and development, and selling, general and administrative expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Favorable change in foreign exchange rates resulting in a net gain in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the prior year, a gain on deconsolidation of $15.2 million on the formation of Cespira reduced the net loss from continuing operations, without the gain, the improvement in our current year net loss from continuing operation compared to prior year would be greater.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Partially offset by our loss from investments accounted for by the equity method of $15.8 million in 2025 compared to a loss of $6.7 million in the prior year.

Cash and cash equivalents were $27.2 million as at December 31, 2025. Cash used in operating activities from continuing operations during the year was $14.2 million, primarily driven by our operating loss from continuing operations. Cash provided by investing activities included the sale of our Light-Duty segment, partially offset by capital contributions to Cespira and the purchase of property, plant, and equipment for the new facilities in Canada and China. Cash used in financing activities from continuing operations was related to net debt repayments of $4.0 million in the year, which included a short-term loan from the Purchaser of $5.8 million in July 2025.

We reported negative adjusted EBITDA of $17.3 million (see "Non-GAAP Measures" section in this annual report Form 20-F) during the year ended December 31, 2025 as compared to negative adjusted EBITDA of $11.4 million in the prior year.

**Revenue for the three months ended December 31, 2025**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  ***(in thousands of U.S. dollars)*** | ***Three months ended December 31,*** | ***Three months ended December 31,*** | ***Three months ended December 31,*** | ***Change vs. 2024*** | ***Change vs. 2023*** |
|  | ***2025*** | ***2024*** | ***2023*** | $*%*** | $*%*** |
| High-Pressure Controls | 1880 | 1570 | 2346 | 20% | (20)% |
| Heavy-Duty OEM |  | 5714 | 21339 | (100)% | (100)% |
| Total revenue | $1880 | $7284 | $23685 | (74)% | (92)% |

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**High-Pressure Controls**

Revenue for the three months ended December 31, 2025 was $1.9 million, compared with $1.6 million and $2.3 million for the comparative periods.

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Revenue for the three months ended December 31, 2025 increased by $0.3 million compared to the three months ended December 31, 2024 and decreased by $0.5 million for the three months ended December 31, 2023.

**Heavy-Duty OEM**

Revenue for the three months ended December 31, 2025 was nil compared to $5.7 million and $21.3 million for the comparative periods.

The decrease in revenue for the three months ended December 31, 2024 is a result of the continuation of the business in Cespira. Revenue for the three months ended December 31, 2024 reflects revenue from our transitional services agreement with Cespira ended at the end of Q2 2025.

**Revenue for the year ended December 31, 2025**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  ***(in thousands of U.S. dollars)*** | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Change vs. 2024*** | ***Change vs. 2023*** |
|  | ***2025*** | ***2024*** | ***2023*** | $% | $*%*** |
| High-Pressure Controls | 8272 | 9383 | 11907 | (12)% | (31)% |
| Heavy-Duty OEM | 15046 | 31315 | 56247 | (52)% | (73)% |
| Total revenue | $23318 | $40698 | $68154 | (43)% | (66)% |

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**High-Pressure Controls**

Revenue for the year ended December 31, 2025 was $8.3 million, compared with $9.4 million for the year ended December 31, 2024 and $11.9 million for the year ended December 31, 2023.

Revenue for the year ended December 31, 2025 decreased by $1.1 million and $3.6 million, compared to the years ended December 31, 2024 and December 31, 2023, respectively.

**Heavy-Duty OEM**

Revenue for the year ended December 31, 2025 was $15.0 million, compared to $31.3 million and $56.2 million for the comparative periods.

The decrease in revenue for the three months and year ended December 31, 2025 is a result of the transfer of the business into Cespira. Further, the decrease was driven by our transitional service agreement with Cespira to provide inventory and contract manufacturing which ended in Q2 2025. Refer to the "Selected Cespira Statement of Operations information" within this annual report Form 20-F for more information on the performance of the HPDI business.

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**Gross profit for the three months ended December 31, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in thousands of U.S. dollars)*** | ***Three months ended December 31,*** | ***% of*** | ***Three months ended December 31,*** | ***% of*** | ***Three months ended December 31,*** | ***% of*** |
|  | ***2025*** | ***Revenue*** | ***2024*** | ***Revenue*** | ***2023*** | ***Revenue*** |
| High-Pressure Controls | (169) | (9)% | 144 | 9% | $651 | 28% |
| Heavy-Duty OEM |  | —% | 219 | 4% | $(4655) | (22)% |
| Total gross profit (loss) | $(169) | (9)% | $363 | 5% | $(4004) | (17)% |

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**High-Pressure Controls**

Gross profit for the three months ended December 31, 2025 decreased by $0.3 million to negative $0.2 million, or negative 9% of revenue, compared to $0.1 million, or 9% of revenue, and $0.7 million, or 28% of revenue for the prior year periods. The decrease for the three months ended December 31, 2024 compared to prior year was primarily driven by lower sales volumes, increasing the per unit manufacturing costs in the quarter.

In the current quarter, we recorded an inventory provision for excess and obsolete parts and materials of $0.4 million, of which $0.2 million is related to a commercial program that was cancelled in 2025.

**Heavy-Duty OEM**

There was no activity in the quarter as the aforementioned transitional service agreement ended in Q2 2025 as planned. The Heavy-Duty OEM segment was impacted by a $4.5 million inventory write-down in the three months ended December 31, 2023.

**Gross profit for the year ended December 31, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in thousands of U.S. dollars)*** | ***Year ended December 31,*** | ***% of*** | ***Year ended December 31,*** | ***% of*** | ***Year ended December 31,*** | ***% of*** |
|  | ***2025*** | ***Revenue*** | ***2024*** | ***Revenue*** | ***2023*** | ***Revenue*** |
| High-Pressure Controls | 910 | 11% | 2191 | 23% | 3324 | 28% |
| Heavy-Duty OEM | 1770 | 12% | 652 | 2% | (2964) | (5)% |
| Total gross profit | $2680 | 11% | $2843 | 7% | $360 | 1% |

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**High-Pressure Controls**

Gross profit for the year ended December 31, 2025 decreased by $1.3 million to $0.9 million, or 11% of revenue, compared to $2.2 million, or 23% of revenue, and $3.3 million, or 28% of revenue for the prior years. The general slowdown of the industry continues to impact volumes and margins of our products sold in the year. Competition in China has resulted in a downward pressure on the margins of products sold locally. The decrease for the year ended December 31, 2024 compared to the prior year was primarily driven by a decrease in sales volume, in conjunction with a $0.8 million in inventory write-downs recorded in the year due to slow moving inventory.

**Heavy-Duty OEM**

Gross profit increased by $1.1 million to $1.8 million, or 12% of revenue, for the year ended December 31, 2025 compared to $0.7 million, or 2% of revenue, and negative $3.0 million, or negative 5% of revenue for the prior years. In the prior year, we recorded an inventory write-down of $0.4 million. The segment was impacted by the aforementioned inventory write-down of $4.5 million in the year ended December 31, 2023.

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**Research and Development Expenses ("R&D") for the three months ended December 31, 2025**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  ***(in thousands of U.S. dollars)*** | ***Three months ended December 31,*** | ***Three months ended December 31,*** | ***Three months ended December 31,*** | ***Change vs. 2024*** | ***Change vs. 2023*** |
|  | ***2025*** | ***2024*** | ***2023*** | $*%*** | $*%*** |
| High-Pressure Controls | 352 | 1128 | 1105 | (69)% | (68)% |
| Heavy-Duty OEM |  |  | 2694 | —% | (100)% |
| Corporate | 245 |  |  | —% | —% |
| Total R&D | $597 | $1128 | $3799 | (47)% | (84)% |

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**High-Pressure Controls**

R&D expenses for the three months ended December 31, 2025 was $0.4 million, compared to $1.1 million and $1.1 million for the same prior year periods. This was primarily related to research and development activities for our new 700 bar products, including pressure regulators, manifolds, and tank valves. Multiple components for hydrogen internal combustion engines and fuel-cell vehicles remain in active development phases with global OEM partners.

In the prior quarter of 2025, we recorded a provision for estimated losses on a hydrogen development program. At that time, there were ongoing negotiations with our customer and the final outcome was uncertain. The provision was reversed in Q4 2025 and the actual impact was recorded as an impairment of $0.5 million to our property, plant and equipment and write-off of inventory of $0.2 million for certain dedicated equipment and components for the program.

**Heavy-Duty OEM**

There was no activity in the quarter as the aforementioned transitional service agreement ended in Q2 2025 as planned.

**Research and Development Expenses ("R&D") for the year ended December 31, 2025**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  ***(in thousands of U.S. dollars)*** | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Change vs. 2024*** | ***Change vs. 2023*** |
|  | ***2025*** | ***2024*** | ***2023*** | $*%*** | $*%*** |
| High-Pressure Controls | 5332 | 5336 | 3584 | —% | 49% |
| Heavy-Duty OEM | 159 | 4196 | 9252 | (96)% | (98)% |
| Corporate | 292 |  |  | —% | —% |
| Total R&D | $5783 | $9532 | $12836 | (39)% | (55)% |

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**High-Pressure Controls**

R&D expenses for the year ended December 31, 2025 were $5.3 million, compared to $5.3 million and $3.6 million for the same prior year periods, respectively. This was primarily related to research and development activities for our new 700 bar products, including pressure regulators, manifolds, and tank valves. Multiple components for hydrogen internal combustion engines and fuel-cell vehicles remain in active development phases with global OEM partners.

**Heavy-Duty OEM**

R&D activities have continued in Cespira after the formation of the joint venture on June 3, 2024.

**Selling, General and Administrative Expenses ("SG&A") for the three months ended December 31, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(in thousands of U.S. dollars)*** | ***Three months ended December 31,*** | ***Three months ended December 31,*** | ***Three months ended December 31,*** | ***Change vs. 2024*** | ***Change vs. 2023*** |
|  | ***2025*** | ***2024*** | **2023** | $*%*** | $*%*** |
| High-Pressure Controls | 677 | 524 | 558 | 29% | 21% |
| Heavy-Duty OEM |  | 64 | 2243 | (100)% | (100)% |
| Corporate | 2862 | 4063 | 4888 | (30)% | (41)% |
| Total SG&A | $3539 | $4651 | $7689 | (24)% | (54)% |

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**High-Pressure Controls**

SG&A expenses for the three months ended December 31, 2025 were $0.7 million, compared to $0.5 million and $0.6 million for the same prior year periods.

The SG&A expenses for the three months ended December 31, 2025 increased by $0.2 million and $0.1 million compared to the three months ended December 31, 2024 and December 31, 2023, respectively. The increase in SG&A expenses was primarily driven by the increased activity at our two new manufacturing facilities in Canada and China.

**Heavy-Duty OEM**

There was no activity in the quarter as the aforementioned transitional service agreement has ended in Q2 2025 as planned. The decrease in SG&A expenses for the three months ended December 31, 2024, compared to $2.2 million in the prior year period was primarily driven by the transition of the HPDI business into Cespira on June 3, 2024.

**Corporate** 

SG&A expenses for the three months ended December 31, 2025 were $2.9 million, compared to $4.1 million and $4.9 million for the same prior year periods.

The SG&A expenses for the three months ended December 31, 2025 decreased by $1.2 million and $2.0 million,compared to the three months ended December 31, 2024 and December 31, 2023, respectively, which were primarily driven by lower compensation costs partially offset by increased outside services incurred for our plans in improving our liquidity position.

**Selling, General and Administrative Expenses ("SG&A") for the year ended December 31, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(in thousands of U.S. dollars)*** | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Change vs. 2024*** | ***Change vs. 2023*** |
|  | ***2025*** | ***2024*** | ***2023*** | $*%*** | $*%*** |
| High-Pressure Controls | 2119 | 1716 | 2091 | 23% | 1% |
| Heavy-Duty OEM | 159 | 3924 | 9351 | (96)% | (98)% |
| Corporate | 13160 | 17792 | 19506 | (26)% | (33)% |
| Total SG&A | $15438 | $23432 | $30948 | (34)% | (50)% |

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**High-Pressure Controls**

SG&A expenses for the year ended December 31, 2025 were $2.1 million, compared to $1.7 million and $2.1 million for the same prior year periods.

The SG&A expenses for the year ended December 31, 2025 increased by $0.4 million, compared to the year ended December 31, 2024. The increase in SG&A expenses was primarily driven by the increased activity at our two new manufacturing facilities in Canada and China.

**Heavy-Duty OEM**

There was minimal activity in the year as the aforementioned transitional service agreement has ended in Q2 2025 as planned. The decrease in SG&A expenses for the year ended December 31, 2024, compared to $9.4 million in the prior year period was primarily driven by the transition of the HPDI business into Cespira on June 3, 2024.

**Corporate** 

SG&A expenses for the year ended December 31, 2025 were $13.2 million, compared to $17.8 million and $19.5 million for the same prior year periods.

The SG&A expenses for year ended December 31, 2025 decreased by $4.6 million as compared to the year ended December 31, 2024, primarily driven by our cost-cutting initiatives resulting in lower compensation costs, partially offset by certain restructuring costs incurred in the prior quarter for the departure of an executive, and $6.3 million, as compared to the year ended December 31, 2023, which decrease was primarily driven by the reduction in headcount in the Corporate function.

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**Selected Cespira Statement of Operations information**

We account for Cespira using the equity method of accounting. However, due to its significance to our long-term strategy and operating results, we disclose certain of Cespira's financial information in notes 8 and 17 in our Annual Financial Statements. Cespira's financial statements are reported in Euro and translated using the period average foreign exchange rates between Euro and U.S. Dollars. The fluctuations in foreign exchange rates between 2025 and 2024 impacted the results presented below.

The following table sets forth a summary of Cespira's financial results for the three months and year ended December 31, 2025 and the period between June 3, 2024 to December 31, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in thousands of U.S. dollars)*** | ***Three months ended December 31,*** | ***Three months ended December 31,*** | ***Change*** | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Change*** |
|  | ***2025*** | ***2024*** | $*%*** | ***2025*** | ***2024*** | $*%*** |
| Product revenue | $23414 | $18051 | 30% | $62356 | $32919 | 89% |
| Service revenue | 5882 | 4855 | 21% | 15087 | 10166 | 48% |
| Total revenue | 29296 | 22906 | 28% | 77443 | 43085 | 80% |
| Gross (loss) profit | (1054) | 458 | (330)% | (3501) | 451 | (876)% |
| *Gross margin*<sup>1</sup> | (4)% | 2% |  | (5)% | 1% |  |
| Research & development | (384) | 1764 | (122)% | 5641 | 4715 | 20% |
| Selling, general, & administrative | 4391 | 3466 | 27% | 13195 | 6528 | 102% |
| Operating loss | (7791) | (4583) | 70% | (27549) | (12091) | 128% |
| Net loss | (9500) | (4825) | 97% | (29278) | (12231) | 139% |

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<sup>1</sup>Gross margin is non-GAAP financial measure. See the section 'Non-GAAP Financial Measures' for explanations and discussions of these non-GAAP financial measures or ratios.

**Product revenue**

Cespira's product revenue was $23.4 million for the three months ended December 31, 2025 compared to $18.1 million in the prior year period. The increase in product revenue was primarily driven by an increase in sales volume to their initial OEM customer.

Cespira's product revenue was $62.4 million for the year ended December 31, 2025 compared to $32.9 million in the prior year. The increase in product revenue was primarily driven by the full year of sales volume in the 2025 compared to 7 months of sales in the prior year.

**Service revenue**

Cespira's service revenue was $5.9 million for the three months ended December 31, 2025 compared to $4.9 million in the prior year period. Cespira's service revenue was $15.1 million for the year ended December 31, 2025 compared to $10.2 million in the prior year.

Cespira provided engineering services to OEM customers for product development, testing, integration, and validation. In 2025, Cespira provided engineering services to their initial OEM customer related to upcoming regulatory changes in the European market. The increase in the current quarter relates to the increased engineering services delivered to their customers. Cespira recognizes its service revenue using the output method, driven primarily by achieving project milestones.

**Gross profit**

Cespira's gross profit was negative $1.1 million for the three months ended December 31, 2025 compared to $0.5 million in the prior year period. In the current quarter, Cespira recognized a provision for obsolete inventory of $1.7 million as a new variant of a certain product was launched and a loss on onerous contract of $2.8 million for a certain engineering project.

Cespira's gross profit was negative $3.5 million for the year ended December 31, 2025 compared to profit of $0.5 million in the prior year. The gross profit decrease was due to the aforementioned provision for obsolete inventory and loss on onerous contract, partially offset by increased sales volume in the year.

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**Research & development**

Cespira's research & development was a recovery of $0.4 million for the three months ended December 31, 2025 as a result of an adjustment to recognize certain research and development costs as direct costs against service revenues earned in the quarter.

Cespira's research & development expenses were $5.6 million for the year ended December 31, 2025 compared to $4.7 million in the prior year. The increase in research and development expenses was primarily driven by 12 months of activity in 2025 compared to 7 months of activity in 2024.

**Selling, general, & administrative**

Cespira's SG&A expenses were $4.4 million for the three months ended December 31, 2025 compared to $3.5 million in the prior year period. Included in the current quarter is a settlement with a supplier impacted by the launch of the new product variant.

Cespira's SG&A expenses were $13.2 million for the year ended December 31, 2025 compared to $6.5 million in the prior year. The increase in SG&A expenses was primarily driven by 12 months of activity in 2025 compared to 7 months of activity in 2024.

**Operating loss**

Cespira's operating loss was $7.8 million for the three months ended December 31, 2025 compared to $4.6 million in the prior year period. Included in the current year is a provision for a onerous contract of $2.8 million and an impairment loss on PP&E for $0.4 million related to obsolete production equipment.

Cespira's operating loss was $27.5 million for the year ended December 31, 2025 compared to $12.1 million in the prior year. The increase in operating loss was primarily driven by the full year activity in 2025 compared to 7 months of activity in the prior year.

**Other significant expense and income items for the year ended December 31, 2025**

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| | | |
|:---|:---|:---|
| ***(in thousands of U.S. dollars)*** | ***Years ended December 31,*** | ***Years ended December 31,*** |
|  | ***2025*** | ***2024*** |
| Foreign exchange (gains) losses | $(5365) | $6227 |
| Depreciation and amortization: |  |  |
| &nbsp;&nbsp;&nbsp;Cost of sales depreciation and amortization | 220 | 1522 |
| &nbsp;&nbsp;&nbsp;Operating expense depreciation and amortization | 515 | 661 |
| &nbsp;&nbsp;&nbsp;Total depreciation and amortization | $735 | $2183 |
| Loss from investments accounted for by the equity method | $(15845) | $(6715) |

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**Foreign exchange gains and losses** reflect net realized gains and losses on foreign currency transactions and net unrealized gains and losses on our net U.S. dollar denominated monetary assets and liabilities in our Canadian operations that were mainly comprised of cash and cash equivalents, accounts receivable and accounts payable. In addition, we have foreign exchange exposure on Euro denominated monetary assets and liabilities where the functional currency of the subsidiary is not in Euro. For the year ended December 31, 2025, we recognized a foreign exchange gain of $5.4 million compared to a foreign exchange loss of $6.2 million for the year ended December 31, 2024. The gain recognized in the current year primarily relates to unrealized foreign exchange gain resulting from the remeasurement of U.S. dollar denominated debt in our Canadian legal entities.

**Depreciation and amortization** for the years ended December 31, 2025 and December 31, 2024 were $0.7 million and $2.2 million, respectively. Depreciation and amortization decreased year-over-year, primarily driven by the transition of the HPDI business into Cespira on June 3, 2024.

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**Income (loss) from investments accounted for by the equity method** for the years ended December 31, 2025 and December 31, 2024 was loss of $15.8 million and loss of $6.7 million, respectively. This was primarily driven by our 55% ownership interest in Cespira, which had 12 months of activity in 2025 compared to 7 months of activity in 2024.

**Interest on debt and amortization of discount** 

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| | | | |
|:---|:---|:---|:---|
| ***(in thousands of U.S. dollars)*** | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Years ended December 31,*** |
|  | ***2025*** | ***2024*** | ***2023*** |
| Interest expense on long-term debt | $613 | $1083 | $1724 |

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The decreases in interest expense on long-term debt for the three months ended and for the year ended December 31, 2025 compared to prior year periods was driven by the reduction in the outstanding balance of the EDC term loan.

**Income tax** expense from continuing operations for the year ended December 31, 2025 was $0.1 million compared to $0.5 million in the prior year.

**NON-GAAP FINANCIAL MEASURES & RECONCILIATIONS**

In addition to the results presented in accordance with U.S. GAAP, we used EBIT, EBITDA, Adjusted EBITDA, gross margin, net working capital, and other non-current liabilities (collectively, the "Non-GAAP Measures") throughout this MD&A. We believe these non-GAAP measures provide additional information that is useful to stakeholders in understanding our underlying performance and trends through the same financial measures employed by our management. We believe that EBIT, EBITDA, and Adjusted EBITDA are useful to both management and investors in their analysis of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. Management also uses these non-GAAP measures in its review and evaluation of the financial performance of the Company. EBITDA is also frequently used by stakeholders for valuation purposes whereby EBITDA is multiplied by a factor or "EBITDA multiple" that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. We believe these non-GAAP financial measures also provide additional insight to stakeholders as supplemental information to our U.S. GAAP results and as a basis to compare our financial performance period-over-period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by, in the case of EBITDA, removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt and debt facilities), asset base (depreciation and amortization) and tax consequences. Adjusted EBITDA provides this same indicator of Westport's EBITDA from operations and removing such effects of our capital structure, asset base and tax consequences, but additionally excludes any unrealized foreign exchange gains or losses, stock-based compensation charges and other one-time impairments and costs that are not expected to be repeated in order to provide greater insight into the cash flow being produced from our operating business, without the influence of extraneous events. Readers should be aware that non-GAAP measures have no standardized meaning under U.S. GAAP and accordingly may not be comparable to the calculation of similar measures by other companies. Non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP.

**NON-GAAP FINANCIAL MEASURES RECONCILIATION**

**Gross profit**

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| | | | |
|:---|:---|:---|:---|
| | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Years ended December 31,*** |
|  | ***2025*** | ***2024*** | ***2023*** |
| ***(in thousands of U.S. dollars)*** |  |  |  |
| Revenue | $23318 | $40698 | $68154 |
| Less: Cost of revenue | $20638 | $37855 | $67794 |
| **Gross profit** | $**2680** | $**2843** | $**360** |

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**Gross margin**

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| | | | |
|:---|:---|:---|:---|
| | ***Years ended December 31,*** | ***Years ended December 31,*** | ***Years ended December 31,*** |
|  | ***2025*** | ***2024*** | ***2023*** |
| ***(in thousands of U.S. dollars)*** |  |  |  |
| Revenue | $23318 | $40698 | $68154 |
| Gross profit | $2680 | $2843 | $360 |
| **Gross margin** | **11%** | **7%** | **1%** |

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**Net Working Capital**

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| | | |
|:---|:---|:---|
| | ***December 31, 2025*** | ***December 31, 2024*** |
| ***(in thousands of U.S. dollars)*** | | |
| Accounts receivable | $10177 | $18738 |
| Inventories | 3037 | 6668 |
| Prepaid expenses | 1182 | 1328 |
| Accounts payable and accrued liabilities | (17933) | (19435) |
| Current portion of operating lease liabilities | (493) | (288) |
| Current portion of warranty liability | (199) | (277) |
| **Net working capital** | **(4229)** | **6734** |

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**Other Non-Current Liabilities**

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| | | |
|:---|:---|:---|
| | ***December 31, 2025*** | ***December 31, 2024*** |
| ***(in thousands of U.S. dollars)*** | | |
| Total liabilities | $25196 | $154596 |
| Less: |  |  |
| &nbsp;&nbsp;Total current liabilities | 21549 | 108393 |
| &nbsp;&nbsp;Long-term debt |  | 2932 |
| **Other non-current liabilities** | **3647** | **43271** |

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**EBIT, EBITDA and ADJUSTED EBITDA**

The Company defines EBIT as net income or loss before taxes adjusted for net interest expense. The Company defines EBITDA as EBIT adjusted for depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA adjusted for stock-based compensation, unrealized foreign exchange gains or losses, and non-cash and other adjustments.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | *31-Mar-24* | *30-Jun-24* | *30-Sep-24* | *31-Dec-24* | *31-Mar-25* | *30-Jun-25* | *30-Sep-25* | *31-Dec-25* |
| Net income (loss) | $(13648) | $5817 | $(3868) | $(10141) | $(2451) | $(34344) | $(13726) | $(11105) |
| Tax expense (recovery) | $735 | $960 | $1427 | $1858 | $579 | $1673 | $203 | $242 |
| Income (loss) before income taxes | $(12913) | $6777 | $(2441) | $(8283) | $(1872) | $(32671) | $(13523) | $(10863) |
| Interest expense (income), net<sup>1</sup> | $471 | $543 | $350 | $272 | $(193) | $571 | $(532) | $9 |
| EBIT | $(12442) | $7320 | $(2091) | $(8011) | $(2065) | $(32100) | $(14055) | $(10854) |
| Depreciation and amortization | $3247 | $1716 | $1790 | $1908 | $1930 | $2051 | $1241 | $159 |
| EBITDA | $(9195) | $9036 | $(301) | $(6103) | $(135) | $(30049) | $(12814) | $(10695) |
| Stock based compensation (recovery) | 409 | 1083 | (140) | 5 | 285 | 451 | (221) | (108) |
| Unrealized foreign exchange (gain) loss | 1820 | 57 | (1069) | 5440 | (456) | (2362) | 839 | (1220) |
| Severance & restructuring costs | 617 | 684 | 380 | 4 | 299 | 96 | 798 | 39 |
| Loss on disposal of operations |  |  |  |  |  | 30183 | 5085 | 2045 |
| Gain on deconsolidation |  | (13266) |  | (1932) |  |  |  |  |
| Loss on sale of investment |  |  | 352 |  |  |  |  |  |
| Loss on sale of assets |  |  |  | 703 |  |  |  |  |
| Impairment of long-term investments and long-term assets |  |  |  |  |  | 664 |  |  |
| Adjusted EBITDA | $(6349) | $(2406) | $(778) | $(1883) | $(7) | $(1017) | $(6313) | $(9939) |

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<u>Notes</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Interest expense, net is calculated as interest and other income, net of bank charges and interest on long-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The above table presents the current and comparative periods from continuing and discontinued operations on a consolidated basis.

**Liquidity & Capital Resources&nbsp;&nbsp;&nbsp;&nbsp;**

The Company believes that it has considered all possible impacts of known events arising from the risks discussed elsewhere in this annual report Form 20-F related to supply chain, and fuel prices in the preparation of the consolidated financial statements for the year ended December 31, 2025. However, changes in circumstances due to the forementioned risks could affect our judgments and estimates associated with our liquidity and other critical accounting assessments.

For the year ended December 31, 2025, the Company continues to sustain operating losses and use cash to support its business activities. Cash used in operating activities from continuing operations was $14.2 million for the year ended December 31, 2025 and was primarily driven by our operating loss from continuing operations and changes in working capital.

As at December 31, 2025, we had cash and cash equivalents of $27.2 million and debt of $2.9 million. Based on the Company's projected capital expenditures, debt servicing obligations and operating requirements under its current business plan, the Company is projecting its cash and cash equivalents will not be sufficient to fund its operations through the next twelve months from the date of the issuance of this annual report. These conditions raise substantial doubt about Westport's ability continue as a going concern within one year after the date of this annual report is issued.

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We plan to improve our liquidity position by raising funds from public markets, borrowing debt, or other financing alternatives. These plans are not final and are subject to market and other conditions not in our control. As such, there can be no assurances that Westport will be successful in obtaining sufficient funding. Accordingly, we concluded under the accounting standards that these plans do not alleviate the substantial doubt about Westport's ability to continue as a going concern.

Our cash and cash equivalents position increased by $12.4 million to $27.2 million at December 31, 2025 compared to $14.8 million at December 31, 2024. The increase in cash was primarily driven by the sale of our Light-Duty segment, partially offset by cash used in our operating activities and debt repayments.

*Cash Flow from Operating Activities from Continuing Operations* 

For the year ended December 31, 2025, net cash used in operating activities from continuing operations was $14.2 million compared to net cash used in operating activities from continuing operations of $5.8 million for the year ended December 31, 2024, an $8.4 million increase in net cash used in operating activities. The increase in net cash used in operating activities for the current year was primarily driven by the change in our working capital in the prior year after the formation of the joint venture in June 2024, partially offset by the lower operating losses in the current year.

*Cash Flow from Investing Activities from Continuing Operations*

For the year ended December 31, 2025, our net cash provided by investing activities from continuing operations was $15.8 million compared to net cash provided by investing activities from continuing operations of $16.3 million for the year ended December 31, 2024. The decrease in net cash provided by investing activities were primarily driven by purchases of property, plant and equipment of $2.7 million and capital contributions to Cespira of $21.7 million in the year ended December 31, 2025, partially offset by the sale of the Light-Duty segment. In the prior year, we received proceeds from sale of investments which included cash proceeds of $27.3 million from Volvo for the purchase of a 45% ownership interest in Cespira as part of the formation of the joint venture.

The Company and its joint venture partner, Volvo, have jointly committed to funding $20.0 million to Cespira for fiscal year 2026. Our expected portion of capital contributions to Cespira is 55% or $11.0 million. Compared to our 2025 annual capital contributions of $21.7 million, this is a significant reduction in required funding reflecting the improvement in net cash flows used in Cespira.

*Cash Flow from Financing Activities from Continuing Operations*

For the year ended December 31, 2025, our net cash used in financing activities was $4.0 million, compared to net cash used in financing activities of $18.7 million during the year ended December 31, 2024. On November 30, 2024, we closed our revolving financing facility with Royal Bank of Canada and reduced our use of the credit facility. In July 2025, we borrowed $5.8 million from the Purchaser for short-term liquidity as we prepared for the sale of the Light-Duty segment. We continued to repay our term loan to EDC in 2025.

**C. Research and Development, Patents and Licenses**

Our joint venture, Cespira, is responsible for all research and development work undertaken to advance the HPDI fuel system technology. Westport continues to work to improve the products for Westport's High Pressure Controls and Systems segment, as we strive to drive innovation, strengthen our competitive edge and position us for long-term growth.

Our intellectual property strategy is to capture, protect, and utilize our intellectual property in coordination with our business and technology plans and enable the successful commercialization of our proprietary products. Our intellectual property strategy is designed to be adaptive to our target markets in supporting the commercial launch of new products while maintaining Westport's long-term competitive advantage. As a result, we rely on a combination of patents, trade secrets, trademarks, copyrights and contracts to protect our proprietary technology.

We use patents as the primary means of protecting our technological advances and innovations. They include proprietary claims to novel concepts embodied in our components, materials, operating techniques, and systems. We have a proactive approach to identifying, evaluating, and choosing strategic inventions to protect through the timely filing and prosecution of patent applications. Patent applications are filed in various jurisdictions internationally, which are carefully chosen based

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on the likely value and enforceability of intellectual property rights, and to strategically protect anticipated major commercial markets.

**D. Trend Information**

Other than as disclosed elsewhere in this annual report on Form 20-F, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse effect on our revenue, net loss, profitability, liquidity or capital resources, or that would render reported financial information to be not necessarily indicative of future operating results or financial conditions.

**E. Critical Accounting Estimates**

Our significant accounting policies are described in "Note 3. Significant accounting policies" in our consolidated financial statements included elsewhere in this annual report on Form 20-F. The preparation of these financial statements in accordance with U.S. GAAP requires us to make estimates and judgments that affect the reported amount of assets, liabilities, revenues, expenses and related disclosure of our long-term investments in Cespira. Critical accounting estimates are those that involve significant judgment or uncertainty and could materially impact our financial condition or results of operations if different assumptions or conditions were to occur.

We are not aware of any specific events or circumstances that would require updates to our estimates and judgments or require us to revise the carrying value of our assets or liabilities from what had been assumed when the financial statements were prepared. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. The following represent our most critical accounting estimates.

**Variable interest entities ("VIEs") and impairment of long-term investments accounted for by the equity method**

We identified Cespira Canada LP and Cespira Sweden AB as VIEs, as the entities are dependent on funding from its owners. The funding and ownership interests of the entities are split on a 55/45 basis between the owners of the VIEs. The voting rights and power to exercise control is shared equally on a 50/50 basis between the owners of the VIEs. Therefore, we have determined that we are not the primary beneficiary of the VIEs. We account for our investment in VIEs for which we are not primary beneficiaries of using the equity method of accounting.

Identifying a VIE and determining the primary beneficiary of a VIE requires the use of our judgment, estimates, and assumptions including determining the most significant activities and decisions that impact the economic performance of a VIE and the beneficiary who has the power over those decisions. If events and circumstances change in a VIE, it may have a significant impact in how we account for the entity.

We evaluate our long-term investments for impairment when an investee has recognized a series of operating losses or recognizes an impairment loss in its financial statements. In such an event, we measure the fair value of the investee against its carrying amount. We estimate the fair value of our long-term investment using the expected future cash flows discounted at a rate commensurate with the risks of the investee.

If the fair value is lower than the carrying amount, we will consider whether the loss is other than temporary. Factors considered when evaluating whether a loss is other than temporary include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the length of time and extent to which the fair value of the investee has been less than its carrying amount

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the investee's financial condition and near term prospects, including recent operating losses or specific events that may negatively influence its future earning potential; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) our intent and ability to retain the investment for a period of time sufficient to allow for an anticipated recovery in fair value.

When we conclude the loss is other than temporary, we would record an impairment against the investment's carrying amount and report the impairment loss in our consolidated statement of operations and comprehensive loss. As at December 31, 2025, we concluded that there was no impairment loss in our investment in Cespira.

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**Property, plant, & equipment ("PP&E") and Right-of-use assets**

We consider whether or not there has been an impairment in our long-lived assets, such as plant and equipment, furniture and leasehold improvements and right-of-use assets, whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If such assets are not recoverable, we are required to write down the assets to fair value. When quoted market values are not available, we use the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset as an estimate of fair value to determine whether or not a write down is required.

*Impairment of PP&E* 

**Item 6. Directors, Senior Management and Employees**

**A. Directors, Senior Management and Employees**

The following table sets forth information regarding our directors and executive officer as of the date of this Form 20-F annual report.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position/Title** |
| Anthony (Tony) Guglielmin | 68 | Independent Director, Chair Board of Directors, Chair Nominating and Governance Committee |
| Michele J. Buchignani | 62 | Independent Director, Chair Human Resources and Compensation Committee |
| Bradley Kotush | 60 | Independent Director, Chair Audit Committee |
| Karl-Viktor Schaller | 67 | Independent Director |
| Eileen Wheatman | 67 | Independent Director |
| Daniel Sceli | 63 | Director, Chief Executive Officer |
| Elizabeth Owens | 59 | Chief Financial Officer |
| Lance Follett | 58 | Chief Legal Officer and Executive Vice President |

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Full profiles of our directors and executive officers which can also be found at www.westport.com/leadership. For duties of Directors see Board Practices section below.

Tony Guglielmin has served as Chair of the Board of Directors of Westport since January 2026 and previously served as Interim Chief Executive Officer from August 2023 to January 2024. He joined the Board in January 2021. Mr. Guglielmin is an experienced financial executive with expertise in capital markets, corporate finance, investor relations, and strategic planning. He previously served as Senior Vice President and Chief Financial Officer of Ballard Power Systems and as Chief Financial Officer of Canada Line Rapid Transit Inc. Earlier in his career, he held senior roles at Finning International Inc., BC Hydro, and the Bank of Nova Scotia. Mr. Guglielmin holds a BA and an MBA from McGill University and the Chartered Financial Analyst designation.

Michele J. Buchignani has served as a director of Westport since March 2018 and previously joined the Westport Advisory Board in September 2017. She brings extensive senior-level experience in law, finance, private equity, corporate strategy, governance, risk management, and executive compensation. Ms. Buchignani is Chief Executive Officer of McLean Drive Consulting Ltd. and Managing Partner of McLane Drive Holdings LP. She currently serves on the boards of Paladin Energy Ltd., TSX Trust Company, CAI Capital Partners V LP, and the RCF Jolimont Innovation Fund II. Her prior experience includes senior roles at Teachers' Private Capital and CIBC Capital Partners, and as Canadian General Counsel

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at CIBC World Markets. She holds a BA (Honours) from the University of British Columbia, a JD from the University of Toronto, and the ICD.D designation.

Brad Kotush was appointed to the Board of Directors of Westport in January 2026. He is an experienced financial executive with more than 20 years of senior leadership experience in public companies, with expertise in finance, risk management, mergers and acquisitions, investor relations, and global operations. Mr. Kotush currently serves as Chief Financial Officer of ReGen III Corp., a clean technology company focused on the upcycling of used motor oil into high-value Group III base oils. From 2017 to 2024, he served as Executive Vice President and Chief Financial Officer of Home Capital Group Inc., where he led significant value-creation initiatives and a successful privatization. Previously, he served as Executive Vice President, Chief Financial Officer, and Chief Risk Officer of Canaccord Genuity Group Inc. Mr. Kotush is a CPA, CA and holds the ICD.D designation.

Prof. Dr. Karl Viktor Schaller has served as an Independent Director of Westport since April 2020. He brings extensive expertise in product development, purchasing, planning, and alternative powertrain technologies. Dr. Schaller is an Honorary Professor at the Technical University of Munich and founder and Managing Director of kvs consulting. He previously served as Executive Vice President of Motorcycles at BMW AG and as a Board Member of MAN Truck & Bus SE, where he was responsible for product development, purchasing, and planning. During his career at MAN, he led initiatives related to alternative drive systems, including natural gas, hydrogen, hybrid systems, batteries, and fuel cells. Dr. Schaller holds a doctorate in mechanical engineering (Dr.-Ing., magna cum laude) from the Technical University of Munich.

Eileen Wheatman is an experienced senior executive with extensive leadership experience in finance and telecommunications. She currently serves as President of Douglas Telecommunications Inc., having joined the company in 1996, been appointed Chief Financial Officer in 1999, and named President in 2017. Ms. Wheatman has played key roles in broadband expansion initiatives and the oversight of multiple cellular market operations, including successful divestitures to AT&T and Verizon. She currently serves on the Board of Directors of Quantum Fuel Systems. Ms. Wheatman holds a bachelor's degree in business management with an emphasis in accounting and obtained her CPA designation in California in 1990. In addition to being an elected director, Ms. Eileen Wheatman is a nominee of Mr. Kevin Douglas according to the terms of a nomination agreement between us and members of the Douglas Group dated March 17, 2016.

Dan Sceli was appointed Chief Executive Officer of Westport and joined the Board of Directors in January 2024. He has more than 37 years of leadership experience in the global manufacturing sector, with deep expertise in operational excellence, technology-enabled productivity, and profitable growth. Prior to joining Westport, Mr. Sceli served as Chief Executive Officer and Board Member of Cadillac Products Automotive Company. Previously, he spent 12 years as Chief Executive Officer of Peterson American Corporation and more than 20 years in senior leadership roles at The Woodbridge Group, including leading its European operations. Mr. Sceli has also served as Chairman and Board Member of the Original Equipment Suppliers Association and the Motor & Equipment Manufacturers Association.

Elizabeth Owens was appointed Chief Financial Officer of Westport in August 2025. She has more than 20 years of experience in senior finance leadership roles across multinational, publicly held companies in the automotive, telecommunications, aviation, and chemical manufacturing sectors. Ms. Owens has been with Westport since August 2015 and has held progressively senior roles, most recently serving as Vice President, Finance and Tax. In this role, she was responsible for corporate finance functions and played a key role in several transformational initiatives, including the establishment of a joint venture with a major OEM. She began her career with Deloitte as a CPA, CA and holds a Bachelor of Commerce degree with a major in Accounting from the University of British Columbia.

Lance Follett is Chief Legal Officer and Executive Vice President, overseeing Corporate Development, Legal, Government Relations, and Intellectual Property. He joined Westport in 2001 and has served in progressively senior roles, assuming his current position in 2017. Mr. Follett has extensive experience in intellectual property protection and licensing, mergers and acquisitions, market development, and the structuring and negotiation of international technology transactions in the energy, automotive, and alternative energy sectors. Prior to joining Westport, he practiced intellectual property law at a national Canadian law firm. Earlier in his career, he worked as an acquisition geophysicist in Southeast Asia. Mr. Follett holds a B.Sc. (Honours) from the University of British Columbia, a JD from the University of Victoria, and is a member of the Law Society of British Columbia and a registered Patent Agent.

**B. Director Compensation** 

The compensation structure of the Board of Directors is designed to attract and retain exceptionally talented and experienced directors, leading to our long-term success. This requires our directors to be adequately and competitively compensated. The Board has determined that director compensation should be in line with comparable companies and

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reflect the time, responsibilities of our directors as well as current trends in director compensation. The HRC Committee reviews these factors based on relevant market data and advice of our external compensation consultant when making recommendations on Director compensation to the Board.

*Director Share Ownership Requirements*

The Board encourages directors to obtain a meaningful share ownership interest in Westport. In 2020, the Board approved an increase in the number of shares required to be held by non-employee directors. Under the share ownership guidelines applicable to all non-employee directors, each director must hold at least five times their annual cash retainer in Common Shares or Units, to be acquired over a five-year period from their election to the Board.

Each of the non-employee directors complied with the guidelines regarding share ownership as of December 31, 2025, or is reasonably proceeding with compliance having regard to the applicable fifth anniversary of his or her initial election to the Board. Mr. Kotush was appointed to the Board on January 1, 2026. For further details on director share ownership, please review the individual director biographies in "**Board Practices: Nominees for Election to the Board**."

*Director Compensation Schedule*

Fixed annual retainers are used to compensate directors rather than a fee per meeting. The retainer is comprised of a combination of cash and equity compensation. Non-management directors are paid a base annualized cash board retainer and equity compensation in the form of DSUs and Committee Chairs are paid a base annualized cash committee chair retainer, all as reflected in the schedule below.

In 2023, the HRC Committee completed a further director compensation review with Hugessen Consulting ("**Hugessen**" or "**Compensation Consultant**") which resulted in the decision to change from Directors to being able to elect to take equity compensation in RSUs, DSUs or a combination, to only awards in DSUs for equity compensation. Compensation in the form of DSUs is at risk since DSUs can be redeemed only upon a director retiring from the board, and the redemption value of DSUs depends on the market value of our shares at that time.

In 2024, the HRC Committee completed a director compensation review with Hugessen, which resulted in the elimination of Committee Member retainers. At the June 13, 2024, Board Meeting, the Board approved that Directors also could elect to take all or a portion of their cash retainers in the form of DSUs. These adjustments were made to align with our strategic priority of reducing our cost structure, enhancing efficiency, and improving cash management.

No changes were made to chair or non-chair director compensation cash retainer or equity compensation levels in 2025.

Directors are also reimbursed for travel and other reasonable expenses incurred in connection with Board or committee meetings. Mr. Sceli does not receive compensation for his role as a director and is instead compensated solely as a member of management. The following table outlines the 2025 Director compensation approved on May 15, 2025.

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| | | | |
|:---|:---|:---|:---|
| DIRECTOR COMPENSATION SCHEDULE | DIRECTOR COMPENSATION SCHEDULE | DIRECTOR COMPENSATION SCHEDULE | DIRECTOR COMPENSATION SCHEDULE |
| <br>**Annualized Retainer** | <br>**Cash** | <br>**Equity (DSUs)** | **Compensation Value Ratio Cash:DSUs** |
| Board Chair | $65000 | $135000 | 32.5:67.5 |
| Director | $50000 | $65000 | 43:57 |
| **Committee Chair Retainer** |  |  |  |
| &nbsp;&nbsp;&nbsp;Audit Committee Chair | $20000 |  |  |
| &nbsp;&nbsp;&nbsp;HRC Committee Chair | $15000 |  |  |
| &nbsp;&nbsp;&nbsp;NCG Committee Chair | $15000 |  |  |

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*2025 Director Compensation Summary*

The total aggregate compensation, including the date of grant value for all equity awards and all other compensation, earned by the directors during the financial year ended December 31, 2025, was $670,782.

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| | | | |
|:---|:---|:---|:---|
| DIRECTOR COMPENSATION | DIRECTOR COMPENSATION | DIRECTOR COMPENSATION | DIRECTOR COMPENSATION |
| <br>**Fees Earned**<br>**(US$)** | &nbsp;&nbsp;**Share-Based Awards**<sup>(1)</sup><br>**(US$)** | **All Other Compensation <br>(US$)** | <br>**Total**<br>**(US$)** |

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| | | | | |
|:---|:---|:---|:---|:---|
| Daniel Hancock<sup>(2)</sup> | 50109 | 135000 | nil | 185109 |
| Michele Buchignani | 65000 | 65000 | nil | 130000 |
| Anthony Guglielmin | 56923 | 65000 | nil | 121923 |
| Karl-Viktor Schaller<sup>(2)</sup> | 50000 | 65000 | nil | 115000 |
| Phil Hodge<sup>(3)</sup> | 3750 | nil | nil | 3750 |
| Eileen Wheatman | 50000 | 65000 | nil | 115000 |
|  |  |  | Total | 670782 |

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*Notes:*

1. This amount represents the accounting fair value determined at the time of grant of DSUs. In 2024, Directors could elect to take a portion of their cash retainers in the form of DSUs. Mr. Hancock, Mr. Guglielmin and Mr. Hodge elected to take Cash Retainer amounts in DSUs as follows $65,000, $35,000, and $50,000. In 2025, no Director elected to take a portion of their cash retainers in the form of DSUs.

2. Mr. Hancock and Mr. Schaller each earned $25,000 in 2025 in consulting fees as members of Cespira's Board of Directors. Mr. Hancock stepped down as a Cespira Board of Directors on July 31, 2025, and Mr. Schaller stepped down as a Cespira Board Member on January 1, 2026.

3. Mr. Hodge did not stand for reelection at the May 15, 2025, Annual General *Meeting.* 

*Omnibus Plan Awards*

The following table and notes detail information concerning all share-based awards vested during the 2025 financial year and outstanding on December 31, 2025, for the following individuals who were directors during the year ended December 31, 2025, excluding Mr. Sceli who received no compensation for his service as a director.

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| | | | | |
|:---|:---|:---|:---|:---|
| **DIRECTOR AWARDS: VESTED/EARNED VALUES** | **DIRECTOR AWARDS: VESTED/EARNED VALUES** | **DIRECTOR AWARDS: VESTED/EARNED VALUES** | **DIRECTOR AWARDS: VESTED/EARNED VALUES** | **DIRECTOR AWARDS: VESTED/EARNED VALUES** |
|  | Vested | Vested | Unvested | Unvested |
| **Name** | **Qty**<br>**(#)** | **Market Value**<br>**(US$)** | **Qty**<br>**(#)** | **Market Value**<sup>(1)</sup><br>**(US$)** |
| Daniel Hancock |  |  | 97696 | nil |
| Michele Buchignani |  |  | 48365 | 75933 |
| Anthony Guglielmin |  |  | 78729 | 123605 |
| Karl-Viktor Schaller |  |  | 48365 | 75933 |
| Eileen Wheatman |  |  | 45115 | 70830 |
| Brenda Eprile <sup>(2</sup> | 34060 | 131698 |  |  |
| Phil Hodge <sup>(3</sup> | 34060 | 97461 |  |  |

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*Notes:*

1.*This is calculated by multiplying the number of Units by the closing price of the Common Shares underlying the Units on the NASDAQ as of December 31, 2025 ($1.57).*

2.*Ms. Eprile retired from the Board on January 6, 2025.*

3.*Mr. Hodge did not stand for reelection at the May 15, 2025 Annual General Meeting.* 

**B. Compensation of Executive Officers**

*Named Executive Officers*

The following discussion relates to the compensation program for Westport's "CEO", the "CFO" and the next three most highly compensated executives or employees as at December 31, 2025, and two executives that transferred with the sale of the Light-Duty business unit (collectively "**NEO**s").

• Daniel Sceli, CEO

• Elizabeth Owens, CFO

• William Larkin, former CFO

• Lance Follett, Chief Legal Officer and Executive Vice President, Corporate Development

• Ashley Nuell, Vice President, Investor Relations

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• Jim Mancuso, Vice President, High Pressure Controls and Systems

• Bart van Aerle, former Executive Vice President, Independent Aftermarket & Light Duty Original Equipment Manufacturing

• Frank Spinello, former Vice President, Financial Operations and Amministratore Delegato, Westport Fuel Systems Italia

*Changes to the NEOs* 

Effective August 26, 2025, Mr. Larkin stepped down as CFO and resigned from all positions with the Company effective as of September 15, 2025.

On August 26, 2025, Ms. Owens was promoted and appointed CFO.

Effective July 29, 2025, Mr. Van Aerle and Mr. Spinello transferred with the disposition of the Light Duty segment.

**Executive Compensation Philosophy**

Our compensation philosophy is to pay for performance over the long-term, as well as on an annual basis. Our performance considerations include both financial and non-financial measures—including the way results are achieved—for the Company, line of business, and the individual. The "**Compensation Governance**" section below presents the range of performance and governance considerations the HRC Committee considers as inputs into compensation decisions. These factors are evaluated each year and have remained consistent over time as part of a balanced and disciplined approach to the compensation decision process. Within that framework, key company, and business segment performance considerations for 2025 and the "Individual performance highlights" are the key considerations for the performance for each of our NEOs. These considerations reinforce and promote fiscal discipline and responsible growth and maintain alignment with our executive compensation philosophy. Our executive compensation program provides a mix of salary, incentives, and benefits paid overtime to align executive officer and shareholder interests. Our HRC Committee is responsible for approving our compensation strategy and philosophy and the compensation programs applicable to our named executive officers.

**Compensation Governance** 

The HRC Committee is responsible for administering our executive compensation program, which, among other things, includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Determining the compensation for our executive officers, including base salary, short and long-term incentive opportunities, performance benchmarking and market analysis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing, approving and administering our executive compensation plans, including our equity plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishing performance objectives under our short and long-term incentive plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Determining the attainment of performance objectives and the resulting awards pursuant to our "STIP" and "LTIP".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluating CEO performance and the performance and capabilities of Executive Management, based on input from the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluating executive officer compensation practices to ensure they remain equitable and competitive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing succession planning for executive officer positions, including the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing and approving the mandate and terms of the Compensation Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Approving employee benefit plans.

To provide support and assistance to the governance and oversight of our compensation process, the HRC Committee originally retained Hugessen on September 26, 2019, as an independent compensation advisor to provide executive and director compensation consulting services. This engagement and the annual workplan are reviewed and approved annually by the HRC Committee. Hugessen participates in certain HRC Committee meetings where executive compensation matters are discussed. As part of its services, Hugessen provides the following services when required:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews market data and participates in the design of executive compensation programs to help the HRC Committee evaluate the linkage between pay and performance, including the selection of peer group companies and market data analysis;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• informs the HRC Committee on market trends, as well as regulatory issues and developments and how they may impact the Company's executive compensation programs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews and advises the HRC Committee regarding director compensation, including market trends, as well as regulatory issues and developments regarding director compensation.

The HRC committee seeks review and input from Hugessen as required, including with respect to proposals from management. Additionally, the HRC Committee and Hugessen will meet without management present to make final decisions or recommendations to the Board. This supports responsible oversight of executive compensation. Recommendations made by the HRC Committee are based on multiple sources including advice received from our Compensation Consultant.

Services provided by Hugessen in 2025 were related to executive and director compensation. No other services were performed by Hugessen and no other fees were paid in 2025. In 2025, alignment changes were made to the compensation plans, and the HRC Committee did not undertake a benchmarking exercise, resulting in lower fees in 2025. It is expected that the fees in 2026 will increase as the HRC Committee will review the Omnibus Plan's available pool and complete appropriate benchmarking reviews.

The table below summarizes the fees paid in relation to executive and director compensation consulting services for the past two financial years. Any additional consulting services required by the Compensation Consultant outside of those relating to executive compensation must be pre-approved by the HRC Committee before proceeding.

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| | | |
|:---|:---|:---|
| **COMPENSATION CONSULTANT SERVICES PERFORMED** | **COMPENSATION CONSULTANT SERVICES PERFORMED** | **COMPENSATION CONSULTANT SERVICES PERFORMED** |
| Hugessen Consulting Inc. | 12/31/2025 | 12/31/2024 |
| Executive compensation-related fees | $11618 | $35745 |
| All other fees |  |  |
| Total | $11618 | $35745 |

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**Executive Compensation and Shareholder Interests** 

Westport maintains its commitment to building long-term shareholder value by using a balanced performance measurement framework aligned with our key performance metrics and ensuring adherence to general governance best practices. The

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following table outlines some of the best practices the HRC Committee employs in implementing the compensation program:

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| | |
|:---|:---|
| **What We Do** | **What We Don't Do** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide a meaningful part of pay which is "at risk" and contingent upon corporate and individual performance<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ensure the pay opportunity is capped<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Retain external experts who report directly to the HRC Committee<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Benchmark pay levels and mix to other organizations of comparable size in a similar industry and geographic area<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Review peer group on a regular basis for continued appropriateness<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ensure the majority of executive long-term compensation vests based on performance<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ensure the short-term incentive award criteria is well defined, aligned to business strategy and reflects pay for performance<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mitigate risk by having Anti-Hedging and Clawback policies in place<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Include a "double trigger" in executive employment agreements so that severance payments are due upon a change of control only if employment is also effectively terminated<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Align executive interests with Shareholders' by having equity ownership guidelines for directors and executive officers<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide Shareholders an opportunity to have their say on executive pay decisions through an annual advisory vote | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No offering or repricing of stock options<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No offering of tax gross ups<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No pledging of our Common Shares as collateral for a loan or holding our Common Shares in margin accounts<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No hedging or "short sales" of our shares<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No defined benefit retirement plan or supplemental executive retirement plan<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No excessive executive perquisites<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No issuance of severance above applicable common-law entitlements; instead, efforts are made to keep severance entitlements in line with industry best practice |

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Compensation Risk Management

Promoting appropriately incented behaviors is an essential part of the compensation setting process. The HRC Committee believes measured risk is necessary for continued growth and innovation, but that risks should be encouraged within parameters that are appropriate for the long-term health and sustainability of the business. Performance relative to incentive targets is regularly reviewed and the HRC Committee is updated periodically to effectively monitor performance and manage inherent risk.

The HRC Committee believes annual STIP bonus plans and LTIP awards granted to executive officers should tie to business performance goals, such as revenue, Adjusted EBIT, operating cash flow, operating metrics and strategic performance objectives and shareholder value creation. These metrics encourage an ownership mindset as these individuals strive to achieve overall business performance. Awards are subject to a maximum payout cap.

The HRC Committee works with independent external consultants to stress test each component, ensuring boundary conditions are reasonable and do not produce unexpected or unintended financial windfalls.

We have implemented a Clawback Policy to ensure that incentive compensation is paid based on accurate financial data. Executive Officers may be required to forfeit or pay back any excess bonus amounts, or equity-based compensation should the Company's financial statements be restated as a result of material non-compliance with any financial reporting requirements under applicable securities laws (other than a restatement due to a change in financial accounting rules).

We have also adopted an Anti-Hedging Policy, which prohibits officers, directors, and employees from engaging in hedging against future decreases in the market value of the securities of the Company through the purchase of financial instruments designed to hedge or offset such risk.

Additionally, Westport, as a foreign private issuer, is subject to certain U.S. legislation, including provisions of the Sarbanes-Oxley Act. The Sarbanes-Oxley Act provides that in the event an issuer is required to prepare an accounting restatement as a result of the material non-compliance of the issuer with any financial reporting requirement, the CEO and

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the CFO of the issuer will be required to reimburse the issuer for certain elements of such executive's compensation. In Westport's case, the elements include annual bonus and PSUs issued under our omnibus incentive plan (the "**Omnibus Plan**"). Westport abides by these laws.

Share Ownership Requirements

Non-employee directors and executive officers are required to meet share ownership guidelines and hold equity in the Company to align their interests with those of our shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our non-employee directors are required to hold a minimum of five times their annual cash retainer in Common Shares or Units (as subsequently defined).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-employee directors have five years from the date the director is elected to the Board to accumulate the minimum threshold required under the share ownership guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each of our Executive Officers, except for the CEO, is required to hold a minimum of one time of their annual base salary in Common Shares or Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The CEO is required to hold a minimum of three times their annual base salary in Common Shares or Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Executive Officers (including the CEO) have five years from the date they are appointed as an executive officer to accumulate the minimum threshold required under the share ownership guidelines. For Executive Officers, the ownership threshold is based on the individual's annual base salary for the preceding financial year.

The value of the Common Shares or Units owned by each non-employee director and NEO for the purposes of achieving the share ownership guidelines is the greater of: (i) the acquisition cost of any Common Shares or the grant price of any Units; and (ii) the market value of the Common Shares at the time of the determination. The table below summarizes each NEO's holdings as of December 31, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **CURRENT NEO SHARE OWNERSHIP AND MINIMUM REQUIREMENT** | **CURRENT NEO SHARE OWNERSHIP AND MINIMUM REQUIREMENT** | **CURRENT NEO SHARE OWNERSHIP AND MINIMUM REQUIREMENT** | **CURRENT NEO SHARE OWNERSHIP AND MINIMUM REQUIREMENT** | **CURRENT NEO SHARE OWNERSHIP AND MINIMUM REQUIREMENT** | |
| **Name**<sup>(1)(2)</sup> | **Common Shares (#)** | **Share Units (#)** | **Total Value of Equity**<sup>(3)</sup><br>**(US$)** | **Share Ownership Requirement (US$)** | **Status**<sup>(4)</sup> |
| Dan Sceli | 7085 | 198210 | 538392 | 146753 | In Progress (3 yrs) |
| Elizabeth Owens | 0 | 39538 | 94588 | 23257 | In Progress (4.5 yrs) |
| Lance Follett | 23759 | 54631 | 596964 | 264772 | Achieved |

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*Notes:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*Ms. Nuell and Mr. Mancuso as Vice Presidents are not subject to minimum share ownership requirements*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.Subsequent to December 31, 2025, Mr. Sceli, Ms. Owens and Mr. Follett purchased 50,000, 2,000,and 1,500 shares respectively.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*3.For the purpose of this table Westport included the weighted average acquisition cost of Common Shares and the value of Restricted Share Units, and Performance Share Units using the grant price at the time of grant.*

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**Executive Compensation Discussion and Analysis** 

Our executive compensation program is designed to retain, attract, motivate, and reward our Executive Officers who advance our strategic, financial and operational objectives and thereby enhance shareholder value. The HRC Committee believes the executive compensation program's underlying philosophy and related policies maintain a robust pay for performance alignment, which factors in the median levels of both local market and peer compensation data to balance pay mix and level targets of its executives and employees.

Westport's compensation program is based on the following philosophy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Pay for performance** - salary, bonus and equity awards are linked to both corporate performance and achievement of goals against an individual's area of responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Long-term incentives** - balance retention and performance-based equity compensation to be aligned with shareholder value creation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Competitive total compensation** - factors in the median levels of both a defined comparator group of peers' compensation and local market data to balance pay mix and level targets for executives and employees across the geographies in which we operate.

*Determination of Compensation* 

The HRC Committee establishes the compensation philosophy and evaluates the design and merits of executive compensation programs through comprehensive reviews to ensure the executive compensation and benefit programs align with shareholders' best interests, while considering any risks associated with our compensation policies and practices. The HRC Committee's recommendations factor in the competitiveness for talent and are reached primarily through benchmark analysis conducted by Hugessen, which assists in determining whether our executive compensation program is both reasonable in relation to competitive pay levels and appropriate in supporting business objectives that encourage a positive performance-based culture. Our current philosophy is to target pay at the median of the a pre-determined comparator group of companies (the **"Comparator Group**") recognizing that pay is often correlated with company size.

In the fall of 2023 Westport completed a comprehensive review of its Comparator Group against selection criteria which included revenue, global scope, EBITDA, Total Enterprise Value ("**TEV**"), market capitalization, business complexity, industry presence and geography. As a result, a new Comparator Group was adopted to ensure a more robust and relevant set of peer data would be used as the basis for compensation program reviews and overall compensation decision making going forward. The table below outlines the 20 companies which form the Comparator Group and includes 8 U.S., 7 European, 3 United Kingdom and 2 Canadian based companies:

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| | | |
|:---|:---|:---|
| Bulten AB (publ) | Ideanomics, Inc. | Somero Enterprises, Inc. |
| Ballar Dewhurst Group Plc | Landi Renzo S.p.A. | Strattec Security Corporation |
| FreightCar America, Inc. | Luceco plc | Tesmec S.p.A. |
| Gencor Industries, Inc. | Manitex International, Inc. | Tornado Global Hydrovacs |
| Glaston Oyj Abp | Mincon Group plc | Twin Disc, Incorporated |
| GreenPower Motor Company | Mpac Group plc | Xos, Inc. |
| hGears AG | PWO AG | |

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As the Company was going through a strategic transition in 2025 which resulted in changes in organizational size, global footprint, business complexity and market capitalization the HRC Committee felt it was appropriate to consult with Hugessen with respect to best practice in compensation decisions and alignment in the Company's situation.

For more information on the LTIP, please see "**Elements of our Executive Compensation Program: Long-Term Incentive Plan.**"

*Executive Compensation At Risk* 

A significant portion of executive pay is designed to be "at risk", meaning that it is not a guaranteed payment, and that payment varies with performance. To align with our pay for performance philosophy, a substantial percentage of the executives' total compensation is comprised of short-term and long-term incentives which link directly to corporate performance and / or relative total shareholder return ("**TSR**"). The following table shows the targeted mix of compensation components and demonstrates the proportion of "at risk" pay for the CEO, CFO and other NEOs employed at December 31, 2025 relative to their total compensation in 2025.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **TARGETED MIX OF COMPENSATION COMPONENTS** | **TARGETED MIX OF COMPENSATION COMPONENTS** | **TARGETED MIX OF COMPENSATION COMPONENTS** | **TARGETED MIX OF COMPENSATION COMPONENTS** | **TARGETED MIX OF COMPENSATION COMPONENTS** | **TARGETED MIX OF COMPENSATION COMPONENTS** | **TARGETED MIX OF COMPENSATION COMPONENTS** | **TARGETED MIX OF COMPENSATION COMPONENTS** |
| | **Program Element** | **CEO** | **CEO** | **CFO** | **CFO** | **NEO** | **NEO** |
| Fixed | Base Salary | 31% |  | 48% |  | 48% - 59% |  |
| At-Risk | Short-Term Incentive | 31% | 69% | 24% | 52% | 24% - 20.5% | 52% - 41% |
|  | Long-Term Incentive | 38% | 69% | 28% |  | 28% - 20.5% |  |

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For a summary of actual compensation for the 2025 financial year, see the following section "**Executive Compensation Figures and Tables.**"

*Elements of Our 2025 Executive Compensation Framework* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Element** | **Element** | **Element** | **Objective** | **Performance Period** | **Form** |
| **Total Direct Compensation** | **Total Direct Compensation** | **Total Direct Compensation** | **Total Direct Compensation** | **Total Direct Compensation** | **Total Direct Compensation** |
| Fixed | Short- Term | Base Salary | &nbsp;&nbsp;Market competitive compensation for skills and experience aligned with responsibilities to attract and retain key top talent. | 1 Year | &nbsp;&nbsp;Cash |
| At Risk | Short- Term | Short-term Incentive | &nbsp;&nbsp;Motivate and reward achievement of determined and measured financial, operating, and strategic goals during the annual operating cycle. | 1 Year | Cash |
| At Risk | Long- Term | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term Incentive<br>–PSUs | &nbsp;&nbsp;Support retention, facilitate executive stock ownership and reward for multi-year shareholder value creation. | Vest at the end of defined points within a three-year period subject to achievement of performance criteria | &nbsp;&nbsp;Share Units |
| **Total Indirect Compensation** | **Total Indirect Compensation** | **Total Indirect Compensation** | **Total Indirect Compensation** | **Total Indirect Compensation** | **Total Indirect Compensation** |
| Health Benefits Regional Long-term Savings Plan | Health Benefits Regional Long-term Savings Plan | Health Benefits Regional Long-term Savings Plan | &nbsp;&nbsp;Retain key employees by providing market competitive health, wellness, and retirement benefits, and limited perquisites. | 1 Year | n/a |

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*Base Salary* 

Base salary guidelines and salary adjustments for executive officers are designed to recognize market compensation trends, acknowledge competencies and skills of individuals, and match the expected market value of senior executives based on executive experience and qualifications. We typically target median base salary levels of our Comparator Group and factor in local market adjustments for base salary where applicable. Executive officer base salaries remain fixed throughout the year unless a promotion, change in responsibilities, or special circumstances occur.

*Short-Term Incentives* 

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The STIP is the primary method for motivating business and individual performance during the financial year and is intended to link pay and performance during the annual operating cycle by providing cash compensation if targeted results are achieved, up to a capped percentage amount of base salary.

The CEO's performance metrics are approved by the HRC Committee for each annual financial period. The corporate performance metrics for NEOs are set by the CEO and reviewed by the HRC Committee before being recommended to the Board of Directors. Payouts are made after the HRC Committee reviews and approves the calculations of performance against the goals for the year and only after the Audit Committee approves audited fiscal year financial statements.

Following the sale of the Company's Light-Duty Business segment in 2025, the HRC Committee determined that, during this period of strategic transformation, 30% of the STIP value should be tied to the financial target of adjusted EBIT. This approach aims to balance operational accountability with strategic flexibility. The adjusted EBIT metric maintains a clear line of sight for management decisions and outcomes on controllable operating performance. This metric provided a clear link to the Company's operational excellence focus and has been a consistent metric for prior STIP programs. Strategic initiatives focused on the Company's business model were set at 60% of the value of the bonus. Each of the following strategic initiatives included defined measurable performance criteria relating to financial metrics, project milestones, and customer and stakeholder engagement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transfer of the retained High-Pressure Control (Hydrogen) manufacturing from Italy to Canada and China

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• North American natural gas heavy-duty market entry path validation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Organizational size and cost realignment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Strategic partners and capital attainment

The balance, weighted at 10%, was linked to individual performance

See "**2025 Executive Compensation: Short-Term Incentives**" for details on results.

*Long-Term Incentives* 

The long-term incentives ("**LTI**s") are established to support retention, facilitate executive stock ownership and reward for multi-year shareholder value creation. LTIs comprise a significant "at-risk" element of total compensation for Executive Management. The design and magnitude of long-term incentives are guided by several factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the design must be aligned with shareholder value creation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the design should be supportive of the Company's business goals and strategic plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the design must be retentive

In prior years, the HRC Committee analyzed market data, Comparator Group data and assessed recommendations from its Compensation Consultant along with information provided by management in determining LTI program design, metrics and targets. The HRC Committee believes that a three-year ratable vesting for restrictive awards such RSUs and a three-year cliff vesting and performance period for PSUs are each an appropriate length of time to support retention, motivate executive performance, and align with shareholder interests. Three-year vesting is also consistent with common market practice and taxation principles. Performance awards only vest and entitle the holder to Common Shares or a cash payout if minimum thresholds are achieved. If the performance metrics are not attained in the three-year performance period, the PSU award will expire and be returned to the pool of awards available for future grants under the Omnibus Plan. The PSU awards have previously used a combination of relative Total Shareholder Return ("**rTSR**") and Share Price Appreciation ("**SPA"**) metrics. The performance of PSUs was measured against Comparator Groups comprised of selected North American based companies on a U.S. based stock exchange.

The following table summarizes the LTI factors and metrics that were used in prior years to provide grants under the LTIs:

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| | | |
|:---|:---|:---|
| | Performance Share Units | Restricted Share Units |
| LTI mix | 70% | 30% |
| Grant frequency | Annual | Annual |
| Grant methodology | Award value divided by 20-day VWAP<br>at time of grant | Award value divided by 20-day VWAP<br>at time of grant |
| Term | 3 years | 3 years |

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| | | |
|:---|:---|:---|
| Vesting | 3-year cliff<br>100% | 3-year ratable<br>33%/33%/33% |
| Payout | Shares or Cash | Shares for RSUs or Cash for RPSs |

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CEO recommendations on LTIs are limited to Executive Management and key employees (other than himself). The HRC Committee then approves the grants of LTI awards for the NEOs, other executives, and other key employees. CEO LTI awards are determined by the HRC Committee, with consultation from the Board Chair.

In 2010, Shareholders approved our current Omnibus Plan. The Omnibus Plan was re-approved by Shareholders for an extended term in 2020 and is designed to provide flexibility to the Board of Directors to issue equity-based incentives to align compensation with shareholder interests over the long-term and offer the ability to retain and attract the best talent globally.

Although the Omnibus Plan allows for the use of Options, virtually all grants made over the life of the Omnibus Plan have taken the form of Units which will ultimately convert into Common Shares of the Company following vesting. On a limited basis Restricted Phantom Shares ("**RPSs"**) have been granted where the recipient receives cash compensation instead of Common Shares of the Company on vesting and to address differing taxation requirements across the various jurisdictions in which we operate.

*Long-Term Incentive Plan ("****LTIP****")* 

In 2019 the HRC Committee approved the adoption of an LTIP that consists of a combination of: (i) time restricted awards in the form of RSUs or RPSs that ratably vest over three years; and (ii) performance-based awards in the form of PSUs that are linked to shareholder value creation metrics, subject to a performance-based payout scale and fully at-risk with the potential for zero payout. RPSs are intended to be awarded to non-executive employees in operating regions outside North America to simplify the conversion process.

In 2023, the HRC Committee adjusted the performance metric to a single metric of rTRS for the PSU awards granted to the management team ensuring the majority of the awards are based on pay-for-performance metrics and aligned with shareholder value creation. In 2023, the HRC Committee introduced restrictive cash-based awards at the employee level outside of North America, replacing the RSU, RPS and PSU awards.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| PSU Metric | Weight | Threshold<sup>(2)</sup> | Threshold<sup>(2)</sup> | ` | ` | Maximum | Maximum |
| PSU Metric | Weight | Performance | Multiplier<sup>(1)</sup> | Performance | Multiplier<sup>(1)</sup> | Performance | Multiplier<sup>(1)</sup> |
| Relative TSR | 100% | 25th Percentile | 50% | 50th Percentile | 100% | 75th Percentile | 150% |

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NOTES:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Multiplier expressed as a % of target PSU award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Performance below threshold results in a 0% payout.

In 2024, the HRC Committee did not award performance-based awards in the form of PSUs as the Company was in a transition phase with respect to the formation of the HPDI joint venture new CEO. The LTIP awards for 2024 consisted of time restricted awards in the form of RSUs that ratably vest over three years as retention of Executive Management through this transition period was viewed to be imperative.

In 2025, the Company initiated a strategic transition to reposition the business for sustainable value creation. In this context, the HRC Committee determined the 2025 LTI awards would consist of only PSUs and selected the SPA metric to measure absolute shareholder value creation, reflecting the market's assessment of the effectiveness of the Company's strategy, execution, and capital allocation decisions. Participants realize value only if the Company's share price increases over the performance period.

The HRC Committee determined that rTSR is less appropriate during the strategic transition due to the evolving nature of the Company's business model and a stable and comparable peer group should be determined in 2026. A SPA metric avoids potential distortion arising from peer group volatility and ensures the incentive outcomes are aligned with the actual shareholder experience.

As such, 100% of the LTIP awards in 2025 were performance based.

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On August 11, 2025, the HRC Committee approved the following LTIP, with the performance period to end December 31, 2027 ("**PP End Date"**). Performance awards only payout if minimum thresholds are achieved and are capped to ensure positive shareholder value transfer is created with the award. If the performance metrics are not attained in the performance period the PSU award will be returned to the Omnibus Pool for future award.

These PSU awards will vest and are dependent on:

• Payout criteria 1 – if payout criteria 2 is not achieved, the number of awards which vest in accordance with payout criteria 1 shall be determined in the manner indicated in the table below are ultimately vested and settled.

• Payout criteria 2 - 100% of the PSUs will vest and settle if the trailing 20-day volume weighted average share price of Westport Fuel Systems shares on the NASDAQ is at or above $7.62 USD at any point before the PP End Date.

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| | | | |
|:---|:---|:---|:---|
| Share Price<sup>(1)</sup> | $5.66 | $6.34 | $7.26 |
|  | $5.66 | $6.34 | $7.26 |
| Absolute Performance Period CAGR TSR Equivalent | 15% | 20% | 25% |
| Payout Criteria 1: Aggregate Proportion of Original PSU Award to be Vested and Settled | 33%<br>(min threshold) | 66% | 100%<br>(max) |
| Payout Criteria 2: Proportion of Original PSU Award to be Vested/Settled at the time of the 20-day VWAP obtaining the max vesting target | 0% | 0% | 100% |

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NOTES:

&nbsp;&nbsp;&nbsp;&nbsp;1.The 20-day NASDAQ VWAP as of August 1, 2025 of $3.72 was used as the base price to establish the performance criteria. This 20-day VWAP post the closure of the sale Light-Duty Business and was lower than the December 31, 2024 20-day NASDAQ VWAP of $3.76.

Other Benefits

In addition to the executive compensation program described above, our executives participate in Company-wide employee benefit programs within their region of employment, such as short-term disability income benefit, health and dental care including dependent coverage, employee life insurance, dependent life insurance, accidental death and dismemberment insurance and the matching of regional long-term savings plans. These programs vary by region of operation and are offered to all employees employed within the region of operation. The Company offers an additional voluntary executive health and wellness benefit to our executives on a cost-sharing basis. The Company does not offer a defined benefit pension plan to executives. In addition, Westport offers only limited benefits and perquisites, and current offerings to our NEOs are consistent with market practice.

Payments Upon Termination

In the event of termination of employment without cause, such as may be the case in the event of a change of control, certain Westport NEOs are entitled to an amount of compensation as outlined in the **"Employment Agreements - Termination and Change in Control"** section of this Form 20-F.

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**2025 Executive Compensation** 

Base Salary Adjustments

In 2025, only Ms. Owens' base salary was adjusted with her promotion to CFO. No other based salary adjustments were made.

See "Executive Compensation Figures & Tables" for details.

Short-Term Incentives

CORPORATE PERFORMANCE

Each NEO's STIP objectives included a financial metric related to achieving better than budgeted Adjusted EBIT (weight of 30%) and as well the strategic initiatives (weight 60%) focused on the Company's business model changes. The remaining weighing of 10% related to individual performance as assessed and recommended by the CEO to the HRC Committee.

The financial metric of Adjusted EBIT was based on the Board approved budget and was set with the following pay out levels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a minimum payout (0.5x) threshold of achieving 10% better than budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a target payout (1.0x) of achieving 20% better than budget; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a maximum payout (1.5x) of achieving 35% better than budget.

The minimum payout threshold was not met, thus the HRC Committee approved 0% pay out of a possible 30%.

Within each of the strategic initiatives, there is a combination of defined financial metrics, project-based milestones, and stakeholder engagement metrics. The Company was able to advance the progression of the strategic initiatives in 2025, including corporate restructuring and relocation of our High Pressure Controls manufacturing plant and establishing the foundations for entry into the North American natural gas, heavy-duty market. The HRC Committee reviewed progress and achievement of each of the initiative's metrics with the CEO and approved a 15% payout out of a possible 60%.

The Strategic Initiative are defined above in the "**Elements of Our 2025 Executive Compensation Framework – Short Term Incentives**" section.

Individual performance was weighed at 10%, with a payout range of 0x to 1.5x. The HRC Committee approved payouts ranging from 10-15%.

Payout amounts for each NEO are listed in full in the "Executive Compensation Figures & Tables" section.

For more information on the financial performance during 2025, see the Company's MD&A and financial statements, filed on SEDAR+ at www.sedarplus.ca and available on our website.

CEO SHORT-TERM INCENTIVE ACHIEVEMENT

As per the CEO's employment agreement, the short-term incentive ("**STI**") component of the CEO's compensation has a target of 100% of base salary, with potential payout between 0% and 150% of base salary depending on performance against predefined corporate and individual performance targets. The table below summarizes the original metrics and weighting for the CEO and the actual achievement in 2025. The HRC Committee has approved a quantitative performance rating of 0% out of a possible 30% weighting for the financial measure of the STIP for 2025. The key qualitative targets for the CEO's 2025 STIP were reviewed by the Board and the Board awarded the CEO a performance rating of 15% for the strategic initiatives. The evaluation of the qualitative metrics and individual performance is based on Board discretion at the recommendation of the HRC Committee after assessing the defined milestone achievements of initiatives related operational effectiveness, organizational transformation and external stakeholder engagement.

This resulted in an overall CEO performance score of 30% for a total STIP payout of $143,835 for 2025.

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Section 4: Compensation of Executive Officers \| Executive Compensation

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| | | | |
|:---|:---|:---|:---|
| **DIRECT CEO Short-Term Incentive Metrics - 2025** | **DIRECT CEO Short-Term Incentive Metrics - 2025** | **DIRECT CEO Short-Term Incentive Metrics - 2025** | **DIRECT CEO Short-Term Incentive Metrics - 2025** |
| **Consolidated Metrics** | **Consolidated Metrics** | **Weight** | **Achievement** |
| Financial | &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT | 30% | 0% |
| Strategic<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Strategic Initiatives | 60% | 15% |
| Individual |  | 10% | 15% |
| **Overall Weighted Achievement** | **Overall Weighted Achievement** | **100%** | 30.0% |
|  |  | Target Bonus (US$) | Achieved Bonus (US$) |
| &nbsp;&nbsp;&nbsp;&nbsp;CEO Short Term Incentive Bonus | &nbsp;&nbsp;&nbsp;&nbsp;CEO Short Term Incentive Bonus | 479452 | 143835 |

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Notes:

1Evaluation of the strategic initiatives is based on defined performance criteria relating to budget, project timelines, and customer and stakeholder engagement as reviewed with the HRC Committee

2Evaluation of Individual is at Board discretion at the recommendation of the HRC Committee after assessing the advancement of initiatives related to , operational effectiveness, organizational transformation and external stakeholder engagement.

Other Named Executive Officer STI

Targeted bonuses for the other NEOs, range from 35% to 50% of base salary, with a potential payout between 0% and 150% of target bonus depending on performance against predefined corporate and individual performance targets. Depending on the NEO's area of responsibility, metrics were established and weighted in alignment with the STI design principles noted above.

Factoring in the financial and strategic metric performance outcomes and individual performance (target weighting of 10%) the HRC Committee approved STIP performance objective ratings ranging from 25% to 30% for the NEOs. NEO STIP participation rates as a percentage of base salary are 50% for Ms. Owens and Mr. Follett and 35% for Ms. Nuell and Mr. Mancuso. The approved payout values ranged from 8.75% to 15% of base salary. These payouts are recorded in the ***Compensation Summary Table*** below.

The consolidated financial performance metrics associated with the NEO's STI were based on the 2025 Annual Operating Plans approved by the Board of Directors.

Ms. Owens payout value was pro-rated for the year, factoring in her prior position prior to being appointed CFO.

With the disposition of the Light Duty Business Unit, Mr. van Aerle and Mr. Spinello were not participants of the STIP in 2025. They were eligible to receive a transaction bonus with the closing of the sale of the Light Duty Business Unit. The transaction bonus was intended to address execution and continuity risks associated with a complex carve-out and sale process, including operational separation, regulatory approvals, customer transition and preservation of transaction value through closing.

Payout amounts for each NEO are listed in full in the "**Executive Compensation Figures & Tables**" section.

2023-2025 Long-Term Incentive Awards

Under the LTIP, in March of 2023 the Company awarded RSUs and PSUs for the three-year retention and performance period for the period of 2023 – 2025. The PSUs were set to become available after December 31, 2025, contingent upon total shareholder return targets achieved over the applicable three-year period, calculated using the weighted volume average share price of Westport shares on the NASDAQ over the preceding 20 days.

Based on the measurement of the required vesting conditions, 0% of the PSUs awarded for the 2023-2025 period met the required vesting conditions to vest and therefore all PSU awards for this period expired and 37,010 units were returned to the equity reserve under the Omnibus Plan.

Following the disposition of the Light Duty Business Unit, LTI participants who transferred with the transaction had their RSU and PSU awards vested at closing and settled in cash, rather than in shares in accordance with the terms of the awards. These awards were returned to the Omnibus Equity Plan pool. The HRC Committee assessed the 2023-2025 PSU awards applicable performance vesting conditions at the time of the Light Duty disposition announcement and determined that 95% of the PSUs awarded would have met the required vesting conditions. A total of 17,721 units vested and were returned to the equity reserve under the Omnibus Plan, with a total cash settlement of $34,175. The HRC Committee

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approved the accelerated vesting of RSUs at closing and were settled in cash rather than receiving shares in accordance with the terms of the awards. A total of 3,319 units were vested and returned to the equity reserve under the Omnibus Plan, with an aggregate cash settlement value of $6,738.

2024 Long-Term Incentive Awards

Under the LTIP, the 2024 LTI awards consisted of time-restricted awards in the form of RSUs that ratably vest over three years, as retention of executive management through this transition period was viewed to be imperative. One-third of these awards vested in December 2025, with the final third to vest in December 2026.

Following the disposition of the Light-Duty Business segment, the HRC Committee approved the accelerated vesting of RSUs for participants who transferred with the transaction. These awards vested at closing and were settled in cash rather than receiving shares in accordance with the terms of the awards. A total of 2,590 units vested, with an aggregate cash settlement value of $5,335, and were returned to the equity reserve under the Omnibus Plan.

Payout amounts, if any, for the prior year LTIP in 2025 for each NEO are listed in full in the table "**Value Vested or Earned During the Year**" in the "**Other Plan Awards**" section below.

2025 Long-Term Incentive Awards

Under the LTIP, in August of 2025 the Company awarded 290,540 PSUs for the performance period for the period of 2025-2027. Payout amounts for each NEO are listed in full in the "**Executive Compensation Figures & Tables**" section.

**Share Performance Graph** 

The Common Shares have been listed and posted for trading on the TSX under the trading symbol "WPRT" since November 10, 2016 (and under the trading symbol "WPT" prior hereto), and the NASDAQ under the trading symbol "WPRT" since August 18, 2008. The following graph and table compare cumulative total shareholder return from an investment of C$100 in Common Shares of the Company made on December 31, 2020, with the cumulative total return of the S&P/TSX Composite Total Return Index over the same period, assuming reinvestment of dividends. Westport's executive compensation is structured in a manner that is intended to align with shareholder value creation. Westport's STI has paid out below target over this period and the LTIP PSU awards have not paid out over the past several performance cycles, consistent with the shareholder experience.

![Share Performane 2025.jpg](wprt-20251231_g2.jpg)

*Sources: S&P, TMX* 

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**Executive Compensation Figures and Tables**

Financial Year 2025 Summary Compensation Table

The following tables and notes thereto set out information concerning the compensation paid, payable, awarded, granted, given or otherwise provided, directly or indirectly, to our NEOs in financial years 2023, 2024 and 2025. The table reflects the CFO transition, the NEOs at December 31, 2025, and the NEOs that transferred with the disposition of the Light-Duty business. The Company does not have a pension plan; therefore, the pension contribution for the NEOs is nil.

The aggregate cash compensation (salary and non-equity incentive plan) earned by the NEOs remaining at December 31, 2025 during the financial year ended December 31, 2025, was $1,541,668 and the total compensation$2,305,048. Based on the 2025 STIP results, and the Share Unit awards received under the LTIP during fiscal year 2025, the sum of their actual fixed compensation was $1,287,988 or 56% of total compensation and actual at-risk pay was $979,390 or 42% of total compensation.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary**<sup>(16)</sup> | **Share-based awards**<sup>(257)</sup> | **Non-equity incentive plan compensation** <sup>(37)</sup> | **All Other Compensation**<sup>(4)</sup> | **Total Compensation** |
|  |  | (US$) | (US$) | (US$) | (US$) | (US$) |
| **Dan Sceli** | 2025 | 479452 | 401549 | 143835 | nil | 1024836 |
| Chief Executive Officer | 2024 | 468797 | 470327 | 252906 | nil | 1192030 |
| **Elizabeth Owens** <sup>(5)</sup> | 2025 | 185964 | 106780 | 39000 | 9298 | 341042 |
| Chief Financial Officer | 2024 | 164277 | 12799 | 42301 | 8257 | 227634 |
|  | 2023 | 145920 | 28160 | 19157 | 7296 | 200533 |
| **William Larkin** <sup>(6)</sup> | 2025 | 283333 | nil | nil | 631250 | 928583 |
| Chief Financial Officer (former) | 2024 | 425000 | 65164 | 171600 | 13635 | 675399 |
|  | 2023 | 450000 | 505822 | 163200 | 15833 | 1134855 |
| **Lance Follett** | 2025 | 264772 | 121561 | 36406 | 10480 | 433219 |
| Chief Legal Officer & Executive Vice President | 2024 | 286693 | 30051 | 95843 | 10395 | 422982 |
| Chief Legal Officer & Executive Vice President | 2023 | 307721 | 225518 | 67711 | 11.402 | 612352 |
| **Ashley Nuell** | 2025 | 178900 | 47911 | 18784 | 8944 | 254539 |
| Vice President, Investor Relations | 2024 | 182529 | 14204 | 25043 | 9126 | 230902 |
| Vice President, Investor Relations | 2023 | 173432 | 28160 | 32007 | 8672 | 242271 |
| **Jim Mancuso** | 2025 | 178900 | 47911 | 15653 | 8944 | 251408 |
| Vice President, High Pressure Control and Systems | 2024 | 182529 | 13307 | 20571 | 8746 | 226051 |
| Vice President, High Pressure Control and Systems | 2023 | 185225 | 40960 | 28784 | 9076 | 264045 |
| *NEOs transferred* |  |  |  |  |  |  |
| **Bart van Aerle** <sup>(8)</sup> | 2025 | 162365 | nil | nil | 262287 | 424652 |
| Executive Vice President, Independent Aftermarket & Light Duty Original Equipment Manufacturing (former) | 2024 | 269018 | 21368 | 40874 | 16558 | 347818 |
| Executive Vice President, Independent Aftermarket & Light Duty Original Equipment Manufacturing (former) | 2023 | 286441 | 85093 | 48208 | 16562 | 436304 |
| **Frank Spinello** <sup>(9)</sup> | 2025 | 102752 | nil | nil | 259314 | 362066 |
| Vice President, Financial Operations & Amministratore Delegato, Westport Fuel Systems Italia (former) | 2024 | 183922 | nil | 33261 | 54233 | 271416 |
| Vice President, Financial Operations & Amministratore Delegato, Westport Fuel Systems Italia (former) | 2023 | 183957 | 42886 | 32192 | 41377 | 300413 |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Annual base salaries for the current NEOs as of December 31, 2025, were C$670,000, C$325,000, C$370,000, C$250,000 and C$250,000 for Mr. Sceli, Ms. Owens, Mr. Follett, Ms. Nuell and Mr. Mancuso respectively, and €225,000, €170,000, for Mr. van Aerle and Mr. Spinello respectively. The table above translates the Canadian and Euro dollar salaries into US dollars at the average exchange rate during the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The values of the RSUs and PSUs are determined by multiplying the number of RSUs and PSUs awarded by the NASDAQ exchange closing price of the Common Shares on the date of the award. These RSUs and PSUs typically vest over three years and the PSUs vest based on achieving performance criteria within a three-year performance period. The actual compensation earned by the NEO may ultimately be more or less than the amount indicated in this table based on whether the vesting criteria associated with such RSUs and PSUs are ultimately achieved. Historically, less than 100% of the issued share based awards have been vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.This represents Westport short-term incentive awards. The amounts were accrued in the year reported but paid to the NEOs in the subsequent year. For details on non-equity incentive plan values paid during the fiscal year, see table titled "NEO Incentive Plan Awards: Value Vested/Earned".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The column entitled "All Other Compensation" includes Westport's contributions to each NEO's long-term savings plan, where applicable. These are voluntary participation programs where the employer matches employee contributions up to a maximum of 5% of base salary per pay period. In addition, it includes additional bonuses and allowances (such as housing and vehicle).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Ms. Owens was appointed CFO on August 26, 2025. STI awards were pro-rated for 2025 based on her time as Vice President, Finance and CFO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.The Company entered into a mutual separation agreement dated August 26, 2025 in connection with Mr. Larkin stepping down as the Company's Chief Financial Officer. Pursuant to the agreement Mr. Larkin was entitled to be paid $530,624 ($400,000 lump sum and $106,250 prorated 2025 STIP entitlement as per his employment agreement). Mr. Larkin was also paid $101,126 in accrued vacation pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Mr. Larkin and Mr. Follett were paid an additional $25,000 and $16,345 respectively in salary in 2024 and $50,000 and $33,588 respectively in salary in 2023 in relation to their additional duties during the CEO transition period. Additionally, Mr. Larkin and Mr. Follett were awarded $150,000, and $100,000 PSUs respectively in 2023 in relation to their additional duties during the CEO transition period. Mr. Larkin and Mr. Follett were paid $75,000 and $49,648 respectively as a one-time bonus in 2024 respectively in relation to the close of Cespira HPDI Joint Venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.The compensation reported for Mr. van Aerle in fiscal 2025 includes a one-time, non-recurring transaction bonus of $252,563 in connection with the sale (disposition) of the Company's Light-Duty Business Unit. The transaction bonus was intended to address execution and continuity risks associated with a complex carve-out and sake process, including operational separation, regulatory approvals, customer transition and preservation of transaction value through closing. Following the disposition, Mr. van Aerle's transferred with with the disposed business unit transferred with the transaction. Mr. van Aerle did not participate in the Company's 2025 STIP and was not awarded LTI equity in fiscal 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.The compensation reported for Mr. Spinello in fiscal 2025 includes a one-time, non-recurring transaction bonus of $190,825 in connection with the sale (disposition) of the Company's Light-Duty Business Unit, which caused Mr. Spinello to qualify as an NEO for fiscal 2025 disclosure purposes. The transaction bonus was intended to address execution and continuity risks associated with a complex carve-out and sake process, including operational separation, regulatory approvals, customer transition and preservation of transaction value through closing. Following the disposition, Mr. Spinello transferred with the disposed business unit transferred with the transaction. Mr. Spinello did not participate in the Company's 2025 STIP and was not awarded LTI equity in fiscal 2025.

Other Plan Awards

During the year ended December 31, 2025, DSUs, were granted for Board of Director compensation (**see section "Director Compensation**") and PSUs were issued to certain employees of the Company (including grants made to NEOs) for LTIP purposes. Excluding director compensation, 290,540 PSUs were issued during the year ended December 31, 2025. The value of the PSUs, are based on the fair market value on the date of the grant.

Outstanding Share-Based Awards as of December 31, 2025

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| | | | | |
|:---|:---|:---|:---|:---|
| **NEO INCENTIVE PLAN: SHARE-BASED AWARDS** | **NEO INCENTIVE PLAN: SHARE-BASED AWARDS** | **NEO INCENTIVE PLAN: SHARE-BASED AWARDS** | **NEO INCENTIVE PLAN: SHARE-BASED AWARDS** | **NEO INCENTIVE PLAN: SHARE-BASED AWARDS** |
|  | Not Vested | Not Vested | Vested | Vested |
| **Name** | **Number of units that have not vested**<sup>(1)</sup> **(#)** | **Market or payout value of share-based awards that have not vested**<sup>(</sup><sup>2)</sup><br>**(US$)** | **Qty (#)** | **Market or payout value of vested share-based awards not paid out or distributed** <sup>(2</sup><br>**(US$)** |
| Daniel Sceli | 198210 | 311190 | nil | nil |
| Elizabeth Owens | 39538 | 62075 | nil | nil |
| Lance Follett | 54631 | 85771 | nil | nil |
| Ashley Nuell | 18677 | 29323 | nil | nil |
| Jim Mancuso | 19010 | 29846 | nil | nil |

---

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Represents the number of Units or Common Share awards that may vest based on either time or performance criteria. For PSUs where the measurement date and criteria has been determined, the actual conversion ratio has been used. Where it has not been determined, an estimate has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.This is a notional amount that is calculated by multiplying the number of Units by the closing price of the Common Shares underlying the Units on the NASDAQ as of December 31, 205 ($1.57). Such amounts may not represent the actual value of the Units that ultimately vest, as the value of the Common Shares underlying the Units may be of greater or lesser value on vesting.

Value Vested or Earned During the Year

---

| | | | |
|:---|:---|:---|:---|
| **NEO INCENTIVE PLAN AWARDS: VALUE VESTED/EARNED** | **NEO INCENTIVE PLAN AWARDS: VALUE VESTED/EARNED** | **NEO INCENTIVE PLAN AWARDS: VALUE VESTED/EARNED** | **NEO INCENTIVE PLAN AWARDS: VALUE VESTED/EARNED** |
| **Name** | **Share-based Awards – Value Vested During the Year (US$)**<sup>(1)</sup> | **Non-equity Incentive Plan Compensation – Value Earned During the Year**<br>**(US$)** | **Total Value Vested and Earned**<br>**(US$)** |
| Dan Sceli | 62526 | 143835 | 206361 |
| Elizabeth Owens | 5159 | 39000 | 44159 |
| Bill Larkin <sup>(2)</sup> | 39917 | nil | 39917 |
| Lance Follett | 10286 | 36406 | 46692 |
| Ashley Nuell | 4420 | 18784 | 23204 |
| Jim Mancuso | 7049 | 15653 | 22702 |
| Bart van Aerle <sup>(3)</sup> | 34622 | nil | 34622 |
| Frank Spinello <sup>(4)</sup> | 16024 | nil | 16024 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.This value was determined by multiplying the vesting price of the underlying Common Shares on the vesting date by the number of vested Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.As per Mr. Larkin's Mutual Termination agreement the HRC Committee approved the accelerated vesting of his outstanding RSUs effective his last day of employment. Mr. Larkin's outstanding PSUs did not payout and were forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.With the closing of the sale of the Light Duty business units Mr. van Aerle's outstanding RSUs and PSUs vested and were settled in cash in accordance with the terms of the awards and returned to the Omnibus Equity Plan pool.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.With the closing of the sale of the Light Duty business units Mr. Spinello's outstanding RSUs and PSUs vested and were settled in cash in accordance with the terms of the awards and returned to the Omnibus Equity Plan pool.

**Omnibus Incentive Plan**

In accordance with the rules of the TSX, the lower table below sets forth the annual burn rate, calculated in accordance with s. 613(d) of the TSX Company Manual, of each of our security-based compensation arrangements for the three most recently completed financial years. A copy of the Omnibus Plan has been filed on SEDAR+ at www.sedarplus.ca.

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| | | | |
|:---|:---|:---|:---|
| **COMPENSATION PLANS USING COMMON SHARES** | **COMPENSATION PLANS USING COMMON SHARES** | **COMPENSATION PLANS USING COMMON SHARES** | **COMPENSATION PLANS USING COMMON SHARES** |
| | **Securities to be issued** | **Weighted-average exercise price**<sup>(1)</sup> | **Securities remaining for future issuance** |
| **Omnibus Plan** | 713061 |  | 141045 |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL BURN RATE**<sup>(2)</sup> | **ANNUAL BURN RATE**<sup>(2)</sup> | **ANNUAL BURN RATE**<sup>(2)</sup> | **ANNUAL BURN RATE**<sup>(2)</sup> |
| | **2025 Burn Rate** | **2024 Burn Rate** | **2023 Burn Rate** |
| **Omnibus Plan** | 0.53% | 0.63% | 0.26% |

---

&nbsp;&nbsp;&nbsp;&nbsp;*1.The awards in the Omnibus Plan are RSUs and PSUs and do not require the holder to pay a strike price.* 

------

&nbsp;&nbsp;&nbsp;&nbsp;*2.Annual burn rate is expressed as a percentage and is calculated by dividing the number of securities granted under the specific plan during the applicable financial year by the weighted average number of securities outstanding for the applicable financial year.* 

**Employment Agreements: Termination and Change in Control** 

The CEO and CFO have signed employment agreements which include standard industry terms and conditions, such as intellectual property and confidentiality provisions. Pursuant to the terms of these agreements, in the event of termination of employment by Westport without cause, the entitlements for the CEO and CFO are outlined below. The other NEOs do not have any termination provisions in their employment agreements as statutory requirements, and common law would apply.

Mr. Sceli entered into an employment agreement on January 16, 2024. Under the terms of this agreement, in case of termination without cause Mr. Sceli is entitled to 1.25 times the aggregate sum of base salary plus target annual performance incentive, plus an additional one twelfth of the aggregate sum of base salary plus target annual performance incentive for every year of company service completed.

Ms. Owens entered into an employment agreement on August 23, 2025. Under the terms of this agreement, in case of a termination without cause Ms. Owens is entitled to a minimum 12 months' of base salary plus one month base salary per year of service in the position of CFO, to a maximum of 18 months, plus a partial incentive bonus calculated on a pro rata basis for months worked within the fiscal year in which termination occurs plus, benefits coverage per the length of service to a maximum of 18 months.

Mr. Follett, Ms. Nuell, and Mr. Mancuso do not have any termination provisions within their employment agreements.

In the event of termination of any eligible recipient's employment with Westport without cause, all PSUs granted under the Omnibus Plan for which the measurement period has been completed would immediately vest with pay out in accordance with the resulting outcome of the award assessment of the grant and pursuant to the terms of the Omnibus Plan.

None of the NEOs have specific change in control provisions in their agreements, however they are covered under Westport's Change in Control Policy (described below).

To the extent that an executive is entitled to benefits under both the Change in Control Policy and the terms of their existing employment agreement, such executive may elect to receive payments and/or benefits under such employment agreement in lieu of the payments or benefits so provided by the Change in Control Policy.

The following tables set forth, for each NEO employed at December 31, 2025, the amount such person would have been contractually entitled to receive on the termination of their employment without cause on December 31, 2025, and the amount such person would have been contractually entitled to receive if a change in control triggered the termination event on December 31, 2025, as per such person's employment agreement or Westport's Change in Control Policy.

------

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| | | | | |
|:---|:---|:---|:---|:---|
| **TERMINATION OF EMPLOYMENT WITHOUT CAUSE** | **TERMINATION OF EMPLOYMENT WITHOUT CAUSE** | **TERMINATION OF EMPLOYMENT WITHOUT CAUSE** | **TERMINATION OF EMPLOYMENT WITHOUT CAUSE** | **TERMINATION OF EMPLOYMENT WITHOUT CAUSE** |
| | **Severance**<br>**(US$)** | **Bonus**<br>**(US$)** | **Value of Unvested Award** | **Total**<sup>(1)</sup><br>**(US$)** |
| Daniel Sceli | 639269 | 639269 | nil | 1278538 |
| Elizabeth Owens | 232570 | 116285 | nil | 348855 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*Total compensation due upon termination of employment does not include the sum of benefits*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **TERMINATION OF EMPLOYMENT FOLLOWING CHANGE IN CONTROL** | **TERMINATION OF EMPLOYMENT FOLLOWING CHANGE IN CONTROL** | **TERMINATION OF EMPLOYMENT FOLLOWING CHANGE IN CONTROL** | **TERMINATION OF EMPLOYMENT FOLLOWING CHANGE IN CONTROL** | **TERMINATION OF EMPLOYMENT FOLLOWING CHANGE IN CONTROL** |
| | **Severance**<br>**(US$)** | **Bonus**<br>**(US$)** | **Value of Unvested Equity Awards**<sup>(1)</sup> **(US$** | **Total**<sup>(23)</sup><br>**(US$)** |
| Dan Sceli | 958904 | 958904 | 311190 | 2228998 |
| Elizabeth Owens | 465140 | 232570 | 62075 | 759785 |
| Lance Follett | 529544 | 264772 | 85771 | 880087 |
| Ashley Nuell | 268350 | 125230 | 29323 | 422903 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*The value of unvested equity awards is calculated using the number of all unvested Options and Units valued at the price of the Common Shares underlying the Options and Units on the NASDAQ as of December 31, 2025 ($1.57).*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.*Total compensation due upon termination of employment does not include the sum of benefits.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.*The Change in Control policy does not apply to Mr. Mancuso.*

**C. Board Practices**

Nomination of Directors

The NCG Committee is responsible for recommending nominees for election at each annual general meeting of Shareholders. The NCG Committee considers the Board's composition and assesses any potential skill or expertise enhancements that can be addressed in future recruitment. The Committee is responsible for the recruitment of additional directors and provides the Board with potential nominees for discussion and approval.

Any new appointees or nominees to the Board of Directors must have a demonstrated commitment to high personal and professional integrity and ethical standards, a favorable record of accomplishment in general business management, special expertise in areas of strategic interest to our organization, the ability to devote the time required, and a willingness to serve as a director. Additionally, the Board is committed to having women represent at least 30% of our Board. This commitment is reflected in our Board of Directors Charter and our Diversity Policy.

We have not established term limits for members of our Board of Directors; however, we are committed to renewing Board membership, on a measured basis. A review and assessment of our Board of Directors is conducted annually, and we periodically review and rotate the Board Chair position and chair position of each Committee ("Committee Chair") to ensure diversity of views.

**Nominees for Election to the Board** 

The following biographies and accompanying notes provide the names and residential location of all of Westport's directors, their principal occupations or employment for the preceding five years, the dates they became directors, the positions with Westport now held by them, the current committee memberships with applicable fiscal year attendance, and the number of Common Shares, RSUs, RPSs, PSUs or deferred share units, ("**DSUs**") (collectively "**Share Units**" or "**Units**") of Westport owned by them or over which they exercised control or direction as of April 23, 2026.

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| | | | | |
|:---|:---|:---|:---|:---|
| MICHELE J. BUCHIGNANI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;<br>Age 62<br>Independent Director since Mar 2018;<br>Joined Advisory Board in September 2017;<br>**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>• Board of Directors 12 of 12<br>• HRC Committee (Chair) 7 of 7 <br>• NCG Committee 4 of 4<br>(Appointed to NCG Committee May 15, 2025) | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Ms. Buchignani should serve as a director because of her strategic business leadership and extensive senior level experience in law, finance, private equity, strategy, governance and compensation.<br>**CAREER HIGHLIGHTS**<br>MCLEAN DRIVE CONSULTING LTD., a consulting firm to private equity owned and growth companies (2010 to current)<br>• Chief Executive Officer<br>MCLANE DRIVE HOLDINGS LP, a US real estate holding company (2012 to current)<br>• Managing Partner<br>TEACHERS' PRIVATE CAPITAL, the private equity arm of the Ontario Teachers' Pension Plan (2005 to 2009)<br>• Director<br>CIBC WORLD MARKETS (1996 to 2003)<br>• Managing Director and Canadian General Counsel<br>• Managing Director and Head of Private Equity Funds Group, Toronto and New York<br>STIKEMAN ELLIOTT (1989 to 1996)<br>• Practiced corporate law in Toronto, Canada and London, England; elected partner in 1995 | **CURRENT PUBLIC COMPANY BOARDS**<br>• Paladin Energy Limited (TSE:PDN)<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>• Holds ICD.D designation and a certificate in Climate Governance from the Institute of Corporate Directors<br>• Various board and advisory positions with several corporate, investment committees and not-for-profit organizations including TSX Trust Company, CAI Capital Partners V LP, and RCF Jolimont Innovation Fund II<br>**EDUCATION**<br>• Bachelor of Arts with Honours, English, University of British Columbia<br>• JD, University of Toronto<br>• Stanford Executive Program, Graduate School of Business, Stanford University |  |  |
| &nbsp;&nbsp;&nbsp;<br>Age 62<br>Independent Director since Mar 2018;<br>Joined Advisory Board in September 2017;<br>**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>• Board of Directors 12 of 12<br>• HRC Committee (Chair) 7 of 7 <br>• NCG Committee 4 of 4<br>(Appointed to NCG Committee May 15, 2025) | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Ms. Buchignani should serve as a director because of her strategic business leadership and extensive senior level experience in law, finance, private equity, strategy, governance and compensation.<br>**CAREER HIGHLIGHTS**<br>MCLEAN DRIVE CONSULTING LTD., a consulting firm to private equity owned and growth companies (2010 to current)<br>• Chief Executive Officer<br>MCLANE DRIVE HOLDINGS LP, a US real estate holding company (2012 to current)<br>• Managing Partner<br>TEACHERS' PRIVATE CAPITAL, the private equity arm of the Ontario Teachers' Pension Plan (2005 to 2009)<br>• Director<br>CIBC WORLD MARKETS (1996 to 2003)<br>• Managing Director and Canadian General Counsel<br>• Managing Director and Head of Private Equity Funds Group, Toronto and New York<br>STIKEMAN ELLIOTT (1989 to 1996)<br>• Practiced corporate law in Toronto, Canada and London, England; elected partner in 1995 | **CURRENT PUBLIC COMPANY BOARDS**<br>• Paladin Energy Limited (TSE:PDN)<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>• Holds ICD.D designation and a certificate in Climate Governance from the Institute of Corporate Directors<br>• Various board and advisory positions with several corporate, investment committees and not-for-profit organizations including TSX Trust Company, CAI Capital Partners V LP, and RCF Jolimont Innovation Fund II<br>**EDUCATION**<br>• Bachelor of Arts with Honours, English, University of British Columbia<br>• JD, University of Toronto<br>• Stanford Executive Program, Graduate School of Business, Stanford University | **RESIDES IN** | &nbsp;&nbsp;**PRINCIPAL OCCUPATION FOR LAST 5 YEARS** |
| Vancouver, BC, Canada | Corporate Director, CEO of McLean Drive Consulting Ltd since 2010;<br>Managing Partner of McLane Drive Holdings LP since 2012 | Corporate Director, CEO of McLean Drive Consulting Ltd since 2010;<br>Managing Partner of McLane Drive Holdings LP since 2012 |  |  |
| **CITIZENSHIP** | **SHAREHOLDINGS / SHARE UNITS**<sup>(13)</sup> | **2025 VOTING RESULTS** |  |  |
| Canadian | Common Shares – 6,276; DSUs –48.365: Holding Requirement - Met | For: 81.22% Withheld: 18.78 |  |  |

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| | | | |
|:---|:---|:---|:---|
| **ANTHONY GUGLIELMIN** | | |  |
| &nbsp;&nbsp;Age 68<br>Independent Director since January 2021<br>Board of Directors (Chair) January<br>2026 | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Mr. Guglielmin should serve as a director because of his strategic business leadership, his financial acumen, and extensive experience in the clean energy industry.<br>**CAREER HIGHLIGHTS**<br>WESTPORT FUEL SYSTEMS INC.<br>Interim Chief Executive Officer (August 2023 to January 2024)<br>BALLARD POWER SYSTEMS, a global leader in clean energy fuel cell products and services (2010 to 2021)<br>**•** Most recently served as Senior Vice President and Chief Financial Officer before retiring in 2021<br>CANADA LINE RAPID TRANSIT, a $2 billion rapid transit project connecting the Vancouver International Airport, the City of Richmond and downtown Vancouver<br>**• Senior Vice President and Chief Financial Officer** | **CURRENT PUBLIC COMPANY BOARDS**<br>**•** Information Services Corporation (TSE: ISC); Audit Committee<br>**•** Next Hydrogen Systems (TSXV: NXH); Chair of the Audit Committee; Governance and Nominating Committee<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>**• Chartered Financial Analyst**<br>**• Member, Association for Investment Management and Research**<br>**• Awarded Business in Vancouver 2017 "CFO of the Year" in the Transformation Agent category**<br>**• Board member of various private and not-for-profit organizations**<br>**EDUCATION**<br>**• Master of Business Administration, McGill University**<br>**• Bachelor of Arts, Economics and Political Science, McGill University** |  |
| &nbsp;&nbsp;Age 68<br>Independent Director since January 2021<br>Board of Directors (Chair) January<br>2026 | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Mr. Guglielmin should serve as a director because of his strategic business leadership, his financial acumen, and extensive experience in the clean energy industry.<br>**CAREER HIGHLIGHTS**<br>WESTPORT FUEL SYSTEMS INC.<br>Interim Chief Executive Officer (August 2023 to January 2024)<br>BALLARD POWER SYSTEMS, a global leader in clean energy fuel cell products and services (2010 to 2021)<br>**•** Most recently served as Senior Vice President and Chief Financial Officer before retiring in 2021<br>CANADA LINE RAPID TRANSIT, a $2 billion rapid transit project connecting the Vancouver International Airport, the City of Richmond and downtown Vancouver<br>**• Senior Vice President and Chief Financial Officer** | **CURRENT PUBLIC COMPANY BOARDS**<br>**•** Information Services Corporation (TSE: ISC); Audit Committee<br>**•** Next Hydrogen Systems (TSXV: NXH); Chair of the Audit Committee; Governance and Nominating Committee<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>**• Chartered Financial Analyst**<br>**• Member, Association for Investment Management and Research**<br>**• Awarded Business in Vancouver 2017 "CFO of the Year" in the Transformation Agent category**<br>**• Board member of various private and not-for-profit organizations**<br>**EDUCATION**<br>**• Master of Business Administration, McGill University**<br>**• Bachelor of Arts, Economics and Political Science, McGill University** | &nbsp;&nbsp;**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>Board of Directors 12 of 12<br>Audit Committee (Chair) 6 of 6 <br>HRC Committee 4 of 4<br>(Appointed to HRC Committee May 15, 2025)  |
| **RESIDES IN** | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Mr. Guglielmin should serve as a director because of his strategic business leadership, his financial acumen, and extensive experience in the clean energy industry.<br>**CAREER HIGHLIGHTS**<br>WESTPORT FUEL SYSTEMS INC.<br>Interim Chief Executive Officer (August 2023 to January 2024)<br>BALLARD POWER SYSTEMS, a global leader in clean energy fuel cell products and services (2010 to 2021)<br>**•** Most recently served as Senior Vice President and Chief Financial Officer before retiring in 2021<br>CANADA LINE RAPID TRANSIT, a $2 billion rapid transit project connecting the Vancouver International Airport, the City of Richmond and downtown Vancouver<br>**• Senior Vice President and Chief Financial Officer** | **CURRENT PUBLIC COMPANY BOARDS**<br>**•** Information Services Corporation (TSE: ISC); Audit Committee<br>**•** Next Hydrogen Systems (TSXV: NXH); Chair of the Audit Committee; Governance and Nominating Committee<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>**• Chartered Financial Analyst**<br>**• Member, Association for Investment Management and Research**<br>**• Awarded Business in Vancouver 2017 "CFO of the Year" in the Transformation Agent category**<br>**• Board member of various private and not-for-profit organizations**<br>**EDUCATION**<br>**• Master of Business Administration, McGill University**<br>**• Bachelor of Arts, Economics and Political Science, McGill University** | **PRINCIPAL OCCUPATION FOR LAST 5 YEARS** |
| Vancouver, BC, Canada | &nbsp;&nbsp;Corporate Director; Interim Chief Executive Officer Westport Fuel Systems (August 2023–January 2024); Senior Vice President and Chief Financial Officer, Ballard Power Systems (June 2010 - May 2021) | &nbsp;&nbsp;Corporate Director; Interim Chief Executive Officer Westport Fuel Systems (August 2023–January 2024); Senior Vice President and Chief Financial Officer, Ballard Power Systems (June 2010 - May 2021) |  |
| **CITIZENSHIP** | **SHAREHOLDINGS / SHARE UNITS**<sup>(13)</sup> | **2025 VOTING RESULTS** |  |
| Canadian | Common Shares – 7,023; DSUs – 78,729: Holding Requirement - Met | For: 87.16% Withheld:12.84% |  |

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| | | | |
|:---|:---|:---|:---|
| **BRAD KOTUSH** | | |  |
| **Age 60**<br>**Independent Director since January 2026** | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Mr. Kotush should serve as a director because of his strategic business leadership, his financial acumen, and capital markets experience.<br>**CAREER HIGHLIGHTS**<br>REGENIII Corp., a clean-tech company listed on the TSX Venture Exchange, (August 2025 to current)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chief Financial Officer<br>HOME CAPITAL GROUP INC., a Canadian company that provides credit products such as mortgages, credit cards and deposit services (2017 to 2024)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Vice President and Chief Financial Officer<br>CANACCORD GENUITY GROUP INC., a leading independent, full-service financial firm (2000 to 2017<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Vice President, Chief Financial and Risk Officer, Canada (2006 to 2017)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Senior Vice President Finance, Canada (2004 to 2006)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chief Information Officer, Canada (2003 to 2004)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Director, Secretary and Chief Financial Officer, England (2000 to 2003) | **CURRENT PUBLIC COMPANY BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chartered Professional Accountant (CPA, CA)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Holds ICD.D designation<br>&nbsp;&nbsp;&nbsp;&nbsp;• CIRO<br>**EDUCATION**<br>&nbsp;&nbsp;&nbsp;&nbsp;• Bachelor of Arts, Economics, University of British Columbia | |
| **Age 60**<br>**Independent Director since January 2026** | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Mr. Kotush should serve as a director because of his strategic business leadership, his financial acumen, and capital markets experience.<br>**CAREER HIGHLIGHTS**<br>REGENIII Corp., a clean-tech company listed on the TSX Venture Exchange, (August 2025 to current)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chief Financial Officer<br>HOME CAPITAL GROUP INC., a Canadian company that provides credit products such as mortgages, credit cards and deposit services (2017 to 2024)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Vice President and Chief Financial Officer<br>CANACCORD GENUITY GROUP INC., a leading independent, full-service financial firm (2000 to 2017<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Vice President, Chief Financial and Risk Officer, Canada (2006 to 2017)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Senior Vice President Finance, Canada (2004 to 2006)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chief Information Officer, Canada (2003 to 2004)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Director, Secretary and Chief Financial Officer, England (2000 to 2003) | **CURRENT PUBLIC COMPANY BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chartered Professional Accountant (CPA, CA)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Holds ICD.D designation<br>&nbsp;&nbsp;&nbsp;&nbsp;• CIRO<br>**EDUCATION**<br>&nbsp;&nbsp;&nbsp;&nbsp;• Bachelor of Arts, Economics, University of British Columbia | |
| **RESIDES IN** | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Mr. Kotush should serve as a director because of his strategic business leadership, his financial acumen, and capital markets experience.<br>**CAREER HIGHLIGHTS**<br>REGENIII Corp., a clean-tech company listed on the TSX Venture Exchange, (August 2025 to current)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chief Financial Officer<br>HOME CAPITAL GROUP INC., a Canadian company that provides credit products such as mortgages, credit cards and deposit services (2017 to 2024)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Vice President and Chief Financial Officer<br>CANACCORD GENUITY GROUP INC., a leading independent, full-service financial firm (2000 to 2017<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Vice President, Chief Financial and Risk Officer, Canada (2006 to 2017)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Senior Vice President Finance, Canada (2004 to 2006)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chief Information Officer, Canada (2003 to 2004)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Director, Secretary and Chief Financial Officer, England (2000 to 2003) | **CURRENT PUBLIC COMPANY BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>&nbsp;&nbsp;&nbsp;&nbsp;• Chartered Professional Accountant (CPA, CA)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Holds ICD.D designation<br>&nbsp;&nbsp;&nbsp;&nbsp;• CIRO<br>**EDUCATION**<br>&nbsp;&nbsp;&nbsp;&nbsp;• Bachelor of Arts, Economics, University of British Columbia | &nbsp;&nbsp;**COMMITTEES and MEETINGS**<br>**Attendance in 2025:**<br>**• N/A**<br>**•** A**ppointed to board January 1, 2026**<br>**PRINCIPAL OCCUPATION FOR LAST 5 YEARS** |
| Toronto, ON, Canada | &nbsp;&nbsp;Chief Financial Officer, ReGen III Corp (August 2025 to current), Executive Vice President and Chief Financial Officer, Home Capital Group Inc. (September 2017-December 2024) | &nbsp;&nbsp;Chief Financial Officer, ReGen III Corp (August 2025 to current), Executive Vice President and Chief Financial Officer, Home Capital Group Inc. (September 2017-December 2024) |  |
| **CITIZENSHIP** | **SHAREHOLDINGS / SHARE UNITS**<sup>(13)</sup> | **2025 VOTING RESULTS** |  |
| Canadian | Common Shares – 0; Holding Requirement - In Progress |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **DANIEL SCELI** | | |  | |
| &nbsp;&nbsp;<br>Age 63<br>Chief Executive Officer (Appointed January 2024)<br>**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>&nbsp;&nbsp;&nbsp;&nbsp;• Board of Directors 12 of 12 | **REASON FOR NOMINATION**<br>Mr. Sceli brings to the Board 37 years of global manufacturing experience, operational expertise and a proven record of accomplishment in driving profitable growth and productivity for numerous companies across a variety of industries. | &nbsp;&nbsp;**CURRENT PUBLIC BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>• Original Equipment Suppliers Association (Past Chair)<br>• Motor & Equipment Manufacturers Association<br>**EDUCATION**<br>• Master of Business Administration - Michigan State University Industrial Engineering Technologist – Fanshawe College<br>• Internal Education - Woodbridge Institute of Learning | | |
| &nbsp;&nbsp;<br>Age 63<br>Chief Executive Officer (Appointed January 2024)<br>**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>&nbsp;&nbsp;&nbsp;&nbsp;• Board of Directors 12 of 12 | **REASON FOR NOMINATION**<br>Mr. Sceli brings to the Board 37 years of global manufacturing experience, operational expertise and a proven record of accomplishment in driving profitable growth and productivity for numerous companies across a variety of industries. | &nbsp;&nbsp;**CURRENT PUBLIC BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>• Original Equipment Suppliers Association (Past Chair)<br>• Motor & Equipment Manufacturers Association<br>**EDUCATION**<br>• Master of Business Administration - Michigan State University Industrial Engineering Technologist – Fanshawe College<br>• Internal Education - Woodbridge Institute of Learning | **RESIDES IN** | <br>**PRINCIPAL OCCUPATION FOR LAST 5 YEARS** |
| Ottawa, ON, Canada | &nbsp;&nbsp;Chief Executive Officer of the Corporation since January 2024; interim President, Cespira (June 2024-March 2025); Chief Executive Officer (2019-2022) and Board Member (2019-2024), Cadillac Products Automotive Company | &nbsp;&nbsp;Chief Executive Officer of the Corporation since January 2024; interim President, Cespira (June 2024-March 2025); Chief Executive Officer (2019-2022) and Board Member (2019-2024), Cadillac Products Automotive Company |  |  |
| **CITIZENSHIP** | **SHAREHOLDINGS / SHARE UNITS**<sup>(13)</sup> | **2025 VOTING RESULTS** |  |  |
| Canadian | Common Shares - 57,085; RSUs - 41,530; PSUs – 156,680: CEO Holding Requirement - In Progress | For: 91.10% Withheld 8.90% |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **KARL-VIKTOR SCHALLER** | | |  | |
| &nbsp;&nbsp;Age 67<br>Independent Director since April 2020<br>**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>• Board of Directors 12 of 12<br>• Audit Committee 2 of 2<br>• NCG Committee 5 of 5<br>(Appointed to Audit Committee May 15, 2025) | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Prof. Dr. Schaller should serve as a director because of his extensive knowledge of product development, purchasing and planning, and the development of alternative drive systems including hybrids, natural gas, hydrogen and fuel cells.<br>**CAREER HIGHLIGHTS**<br>KVS Consulting (2009 to current)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Founder and Managing Director<br>TECHNICAL UNIVERSITY OF MUNICH (2001 to current)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Honorary Professor<br>BMW AG (2014 to 2019)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Vice President Engineering of Motorcycles<br>MAN TRUCK AND BUS SE (now part of Volkswagen, 1990 to 2009)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Board member<br>&nbsp;&nbsp;&nbsp;&nbsp;• Technical Director of the Engineering and Purchasing Department<br>&nbsp;&nbsp;&nbsp;&nbsp;• Various roles leading departments including those responsible for the development of alternative drive systems (batteries, various hybrids, natural gas, hydrogen in ICE and fuel cells) | **CURRENT PUBLIC COMPANY BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>• Cespira Board member (2024-2025)<br>• Volta Trucks AB Board member (2022-2023)<br>• Awarded honorary professor at the Technical University of Munich for his lecture on "commercial vehicles" in 2006<br>**EDUCATION**<br>• Diploma and a Doctorate (Dr.-Ing, magna cum laude), Mechanical Engineering, Technical University of Munich | | |
| &nbsp;&nbsp;Age 67<br>Independent Director since April 2020<br>**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>• Board of Directors 12 of 12<br>• Audit Committee 2 of 2<br>• NCG Committee 5 of 5<br>(Appointed to Audit Committee May 15, 2025) | &nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Prof. Dr. Schaller should serve as a director because of his extensive knowledge of product development, purchasing and planning, and the development of alternative drive systems including hybrids, natural gas, hydrogen and fuel cells.<br>**CAREER HIGHLIGHTS**<br>KVS Consulting (2009 to current)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Founder and Managing Director<br>TECHNICAL UNIVERSITY OF MUNICH (2001 to current)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Honorary Professor<br>BMW AG (2014 to 2019)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Executive Vice President Engineering of Motorcycles<br>MAN TRUCK AND BUS SE (now part of Volkswagen, 1990 to 2009)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Board member<br>&nbsp;&nbsp;&nbsp;&nbsp;• Technical Director of the Engineering and Purchasing Department<br>&nbsp;&nbsp;&nbsp;&nbsp;• Various roles leading departments including those responsible for the development of alternative drive systems (batteries, various hybrids, natural gas, hydrogen in ICE and fuel cells) | **CURRENT PUBLIC COMPANY BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>• Cespira Board member (2024-2025)<br>• Volta Trucks AB Board member (2022-2023)<br>• Awarded honorary professor at the Technical University of Munich for his lecture on "commercial vehicles" in 2006<br>**EDUCATION**<br>• Diploma and a Doctorate (Dr.-Ing, magna cum laude), Mechanical Engineering, Technical University of Munich | **RESIDES IN** | <br>**PRINCIPAL OCCUPATION FOR LAST 5 YEARS** |
| Munich, Germany | Honorary Professor and Managing Director of KVS Consulting; Executive Vice President, Engineering at BMW from April 2014-July 2019 | Honorary Professor and Managing Director of KVS Consulting; Executive Vice President, Engineering at BMW from April 2014-July 2019 |  |  |
| **CITIZENSHIP** | **SHAREHOLDINGS / SHARE UNITS**<sup>(1,3</sup><sup>)</sup> | **2025 VOTING RESULTS** |  |  |
| German | Common Shares – 5,828; DSUs – 48,365: Holding Requirement - Met | For: 61.28% Withheld: 38.72% |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **EILEEN WHEATMAN** | | |  | |
| &nbsp;&nbsp;Age 67<br>Independent Director since April 2020<br>**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>• Board of Directors 12 of 12<br>• Audit Committee 2 of 2<br>• NCG Committee 5 of 5<br>(Appointed to Audit Committee May 15, 2025) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Ms. Wheatman should serve as a director because of her considerable senior executive level management experience in a variety of industries including finance and telecommunications, as well as a broad background in business planning, finance, corporate strategy, and public accounting, audit and estate taxation.<br>**CAREER HIGHLIGHTS**<br>DOUGLAS TELECOMMUNICATIONS INC. (1996 to current)<br>• President (2017 to current)<br>• Chief Financial Officer (1999 to 2016)<br>• Controller (1996 to 1999)<br>As part of DOUGLAS TELECOMMUNICATIONS<br>• BroadbandOne (2020 to Present) — Leadership involvement in building and growing fixed wireless access business<br>• Cellular One markets (1997 to 2014) — Managed multi-market telecom operations in GA, IL, and WV culminating in sale to AT&T and Verizon<br>PISENTI AND BRINKER CPAs (1087-1996)<br>• Senior Manager, Audit Department | &nbsp;&nbsp;&nbsp;**CURRENT PUBLIC COMPANY BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>• Director of Quantum Fuel Systems, LLC, (2016-present) an alternative fuel storage development company<br>• Certified Public Accountant<br>**EDUCATION**<br>• Bachelor's degree, Business Management with emphasis in accounting from Humboldt State University supplemented with Masters' classes in Estate Taxation from San Francisco Golden Gate University | | |
| &nbsp;&nbsp;Age 67<br>Independent Director since April 2020<br>**COMMITTEES and MEETINGS**<br>Attendance in 2025:<br>• Board of Directors 12 of 12<br>• Audit Committee 2 of 2<br>• NCG Committee 5 of 5<br>(Appointed to Audit Committee May 15, 2025) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**REASON FOR NOMINATION**<br>Our Board concluded Ms. Wheatman should serve as a director because of her considerable senior executive level management experience in a variety of industries including finance and telecommunications, as well as a broad background in business planning, finance, corporate strategy, and public accounting, audit and estate taxation.<br>**CAREER HIGHLIGHTS**<br>DOUGLAS TELECOMMUNICATIONS INC. (1996 to current)<br>• President (2017 to current)<br>• Chief Financial Officer (1999 to 2016)<br>• Controller (1996 to 1999)<br>As part of DOUGLAS TELECOMMUNICATIONS<br>• BroadbandOne (2020 to Present) — Leadership involvement in building and growing fixed wireless access business<br>• Cellular One markets (1997 to 2014) — Managed multi-market telecom operations in GA, IL, and WV culminating in sale to AT&T and Verizon<br>PISENTI AND BRINKER CPAs (1087-1996)<br>• Senior Manager, Audit Department | &nbsp;&nbsp;&nbsp;**CURRENT PUBLIC COMPANY BOARDS**<br>None<br>**OTHER ENGAGEMENTS AND RECOGNITIONS**<br>• Director of Quantum Fuel Systems, LLC, (2016-present) an alternative fuel storage development company<br>• Certified Public Accountant<br>**EDUCATION**<br>• Bachelor's degree, Business Management with emphasis in accounting from Humboldt State University supplemented with Masters' classes in Estate Taxation from San Francisco Golden Gate University | **RESIDES IN** | <br>**PRINCIPAL OCCUPATION FOR LAST 5 YEARS** |
| Petaluma, CA, USA | President of Douglas Telecommunications since 2017; Corporate Director | President of Douglas Telecommunications since 2017; Corporate Director |  |  |
| **CITIZENSHIP** | **SHAREHOLDINGS / SHARE UNITS**<sup>(13)</sup> | **2025 VOTING RESULTS** |  |  |
| United States of America | Common Shares – 5,614; RSUs – 3,250; DSUs – 41,865: Holding Requirement – Met | For: 81.43% Withheld: 18,57% |  |  |

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We have a specific policy for our non-management directors of compensating such directors primarily with an annual retainer payment and equity-based compensation. See information under the heading "**Director Compensation.**" Additionally, non-employee directors are required to meet share ownership guidelines and hold equity in the Company of a minimum five times their annual cash retainer in Common Shares or Units, to be acquired over a five-year period.<sup>(3)</sup> For further information see "Section 2: Share Ownership Requirements" of this Circular.

Notes:

1. The number of Common Shares and Units beneficially owned or controlled are provided as of April 23, 2026. The information as to these numbers, not being within the knowledge of Westport, has been furnished by the respective nominees. The number of Common Shares held by directors varies in shareholding positions primarily due to purchase price or grant amounts at varying times and share prices.

2. Certain of such Units are subject to a time-based or performance-based restriction.

3. In April 2020, the Board approved a change to the share ownership requirements for non-employee directors, increasing it to five times their annual cash retainer from the prior requirement of three. As a result, the expected acquisition period has been reset to five years for all non-employee directors. The value of the Common Shares or Units owned by each non-employee director for the purposes of achieving the share ownership guidelines is the greater of: (i) the acquisition cost of any Common Shares and the grant price of any Units; and (ii) the market value of the Common Shares at the time of the determination.

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**Mandate and Charter of the Board of Directors** 

Our Board of Directors is responsible for the stewardship of the Company and oversees the management of the organization's business and affairs in accordance with our By-Laws and applicable law. Together with the CEO, CFO and other executive officers ("**Executive Management**"), the Board of Directors is charged with pursuing the creation of long-term shareholder value.

Each director and executive officer, in exercising his or her powers and discharging his or her duties, is required by law to:

&nbsp;&nbsp;&nbsp;&nbsp;i.act honestly and in good faith with a view to the best interests of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;ii.exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances.

Our Board of Directors conducts its business under the guidance of the Board of Directors Charter (the "**Charter**"), a copy of which is publicly available on our website at https://investors.westport.com/governance/governance-docments/default.aspx. The Charter is reviewed annually and updated as appropriate in accordance with new regulation and governance practices. The Charter also works in conjunction with the charters of the committees of the Board of Directors and with the various position descriptions of Board members, the Board Chair, committee chairs and the CEO. All documents are on our website at investors.wfsinc.com/governance.

Our Board of Directors has several core responsibilities and oversight of specific areas including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporate culture and purpose

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• executive leadership and oversight

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporate and stakeholder communications

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporate governance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• long-term strategic planning

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• annual operating plan and budget

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• material financing activities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• material transactions, including acquisitions or divestitures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risk assessment and internal controls processes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technology and cybersecurity risk management

The Board will carry out these responsibilities and discharge its obligations either directly or through Board committees. Any responsibility not delegated to one or more of its committees remains with the Board of Directors.

**Charter of the Human Resources and Compensation Committee**

The Human Resources and Compensation Committee (the "**HRCC**") charter of Westport Fuel Systems Inc. (the "**Company**"), as accepted by the board of directors (the "**Board**") on December 17, 2025, provides that the HRCC shall consist of a minimum of three independent directors, one of whom shall be designated as the chairperson. HRCC meetings must be held no less than two times per year. The Board has delegated to the HRCC the primary responsibility for the Company's compensation philosophy and principles, such as designing, developing and overseeing the operation of executive compensation. Specifically, the HRCC has the following responsibilities, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Selecting, appointing and terminating the Chief Executive Officer ("**CEO**"), and determining the CEO's duties and responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishing the Company's compensation plan based on the Company's compensation philosophy, and evaluating the effectiveness and the inherent risk of the compensation plan, with the objective of attracting, retaining and motivating skilled and experienced executive leadership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Setting executive and director compensation in light of financial and non-financial performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Authorizing and approving grants of awards to executives, directors and employees under the Company's omnibus incentive plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing public disclosure on compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing corporation governance and human resources policies related to best practice, including in relation to diversity amongst executive management and the employee base and any risk-related issues.

The chairperson may, in their discretion, and in consultation with the chair of the board, retain independent consultants or compensation specialists or other advisers for the purpose of advising the HRCC in the execution of its responsibilities.

**Charter of the Audit Committee**

The Audit Committee (the "**AC**") charter of the Company, as accepted by the Board on December 17, 2025, provides that the AC shall consist of a minimum of three independent directors, one of whom shall be designated as the chairperson. No director may serve on the AC if they sit on more than three public company audit committees and each of the directors on the AC shall possess a basic level of "financial literacy", and at least one member should qualify as an "audit committee financial expert". AC meetings must be held at least four times per year. The AC has oversight over the Company's accounting and financial reporting processes and audits, risk assessment and management processes, and the performance of the Company's internal audit function and external auditors. Specifically, the AC has the following responsibilities, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Selecting an independent, registered, external audit firm to prepare the Company's financial statements, and determining the compensation of such auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluating the qualifications, performance and independence of external auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishing policies and procedures around the scope of audit services, and reviewing the results of the external auditor's work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Monitoring the range of risks pertaining to the Company's financial reporting and making recommendations as required to the Board regarding appropriate responsibilities and delegations for the identification, monitoring and management of these risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Oversight of legal and regulatory compliance pertaining to financial reporting and promotion of legal and ethical conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing quarterly and annual financial statements, management's discussion and analysis and earnings press releases to ensure compliance with regulatory requirements, including other timely disclosure documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Oversight of the Company's internal audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing and approving any transaction between the Company and a related person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing and assessing the adequacy of the reporting systems and related internal controls relating to ESG matters.

The AC is not responsible to plan and conduct audits or to determine that the Company's financial statements are complete, accurate and in accordance with generally accepted accounting principles.

*Structure and Composition of the Board and Election of Directors* 

The NCG Committee annually reviews the composition of the Board of Directors with consideration of our business strategy, all relevant facts and circumstances, individual director contributions, tenure, risk of over boarding and potential candidates for election as directors. The NCG Committee also has the responsibility to determine the optimum mix of business skills, experience, and diversity of the members of the Board of Directors to effectively fulfill its mission.

The NCG Committee then recommends to the Board a slate of directors for election by Shareholders that brings a diversity of background and industry or related expertise and experience to the Board. Directors are individually nominated and elected annually at Westport's Annual General Meeting of Shareholders. There are no term limits for directors since the directors are subject to an election by Shareholders each year. If a nominated director fails to achieve a majority of votes for their appointment in an uncontested election, that nominated director is required to submit his or her resignation to the Board Chair in accordance with Westport's Majority Voting Policy.

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*Board Leadership* 

The Board Chair sits at the intersection between the Board of Directors and Executive Management and, although the Board Chair is also a director and shares all the duties and responsibilities of any director, the Board Chair has several unique duties and responsibilities that include:

&nbsp;&nbsp;&nbsp;&nbsp;• presiding at all meetings of the Board of Directors and at Annual General Meetings of Shareholders, or delegate a substitute chair if necessary

&nbsp;&nbsp;&nbsp;&nbsp;• engaging with the chair of each committee to build strong and effective committees and, together with the NCG Committee, develops and oversees an effective annual performance review process to improve the performance of Board members and their committees

&nbsp;&nbsp;&nbsp;&nbsp;• leading special projects or taking on special assignments from the Board of Directors

&nbsp;&nbsp;&nbsp;&nbsp;• ensuring the Board of Directors operates independently from management and, for example, ensuring *in camera* sessions of the Board, excluding any directors who are also officers or employees, will be held at each meeting of the Board of Directors

The Board Chair is elected annually by the independent directors following the Annual General Meeting of Shareholders.

*Board Independence and Effectiveness*

Our business is conducted by Executive Management under the oversight of the Board of Directors. We believe an effective Board of Directors has a high degree of independence from management and, while a working culture of trust and collaboration must exist with Executive Management for us to succeed, the Board of Directors must exercise its duties and responsibilities in accordance with its own best judgment and its own views of the long-term interests of the organization and its Shareholders. The Board of Directors have adopted the following organizational principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board of Directors must have a majority of independent directors. All directors except Mr. Sceli, who is our CEO, are considered independent within the meaning of National Instrument 58-101 - Corporate Governance Disclosure ("NI 58-101") and the listing rules of the NASDAQ and the TSX;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Chair of the Board of Directors, Mr. Gugliemin, is considered independent within the meaning of NI 58-101 and the listing rules of the NASDAQ and the TSX;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During 2025, the Board of Directors maintained three standing committees ("Standing Committees") and delegated specific responsibilities to each Committee. Each Committee operates under a charter and has a chair ("Committee Chair") responsible for leadership and overall operation of the Committee. The Standing Committees are the Audit Committee, the HRC Committee, and the NCG Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Audit Chair, the NCG Chair and the HRC Chair positions are held by independent directors, and all members of these Standing Committees are independent directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board frequently reviews the need for new committees and may establish new committees or disband current committees at its discretion according to evolving circumstances, legal and regulatory requirements, as well as best corporate governance practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board may form special committees and delegate specific responsibilities to address extraordinary matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At every Board and committee meeting, time is set aside if needed for in camera discussion excluding any directors who are also officers or employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Where appropriate, executive sessions of only independent directors are held, with these sessions being overseen by the Board Chair.

Certain functions shall be the exclusive responsibility of independent directors, consulting closely with the Board Chair and CEO, who will then bring recommendations to the full Board of Directors for approval. These functions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• revising the Board of Director charter from time to time

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developing a position description for the Board Chair, the Chairs of each Committee, and the directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developing a position description for the CEO, as well as indicators to measure the CEO's performance

The Board, as well as each Standing Committee, may, in its discretion, and in consultation with the Board Chair, retain the services of independent outside professional advisors (financial, legal, compensation, other), at the expense of the Company, for the purpose of advising the Board or a Standing Committee in the execution of its responsibilities and duties.

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*Board of Directors Skills Matrix*

Directors must have an appropriate mix of skills, knowledge and experience in business and an understanding of the industry and the geographical areas in which we operate. We maintain a critical skills matrix which identifies areas which are necessary for the Board to carry out its mandate effectively – now and in the future. The NCG Committee reviews the matrix annually to confirm it continues to reflect the most relevant skills, experience, and competencies. The skills matrix is also used in determining the appropriate mix of directors on each of the Standing Committees. Together with the Chair of the Board of Directors, the NCG Committee determines the expected skill set of new candidates by considering existing Board strengths and the needs of the organization. The following table identifies the skills and experience of our directors as ranked on a scale of one to three by each nominated director and defined below.

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![Skills Matrix.jpg](wprt-20251231_g3.jpg)

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*Diversity* 

The Board recognizes that diversity (including gender, as well as members of minority groups, geography, skills, competency and age) enriches the discussion, debate and facilitates a broader exchange of perspectives, which in turn, helps enable innovation, enhance balanced decision making, and improve business performance leading to greater organizational strength. Westport upholds its commitment to diversity through its diversity policy (the "**Diversity Policy**"), which sets out our commitment to actively considering candidates from diverse backgrounds based on merit, with a focus on gender diversity. For more information, please view the Diversity Policy here: **investors.westport.com/governance/governance-documents/.** 

The Board makes director nominee decisions based on merit and remains committed to selecting the best person to fulfil these roles. We recognize that diversity (including gender, as well as members of minority groups, geography, skills, competency and age) at both the Board and within all levels of management is important to provide a wide range of perspectives, experience and expertise required in building an effective team. We believe that diverse views enrich the discussion and debate and facilitate a broader exchange of perspectives, which in turn, helps enable innovation, enhance balanced decision making, and improve business performance leading to greater organizational strength.

Our Board is committed to upholding a gender balanced board as turnover occurs and consistent with this commitment, the Board has adopted a target of having women represent at least 30% of our Board. This commitment is reflected in both the Charter and in the Diversity Policy. We have met or exceeded this target at our annual meetings since 2020 and at our 2026 Annual General and Special Meeting, 33% of the nominees for our Board are women, with one of the three Standing Committees chairs in 2025 being a woman. Our current director nominees represent a well-rounded diversity of skills, knowledge, experience, and perspectives. All our nominees are seasoned leaders.

While the Company has not set a specific gender target for executive officers, 33% of our executive officers and senior management team are women: Chief Financial Officer and Vice President of Investor Relations. Given the size of the organization, the transition period, and small size of the executive team, the Company believes that implementing targets would not be appropriate.

The Company is committed to taking active measures to ensure candidate pools are diverse when assessing potential new executive officer candidates. Additionally, when using search firms to find executive officer candidates, the Company directs them to prioritize diversity, especially by including women candidates.

**Position Descriptions** 

*Position Description for the Board Chair and Committee Chairs*

The Board of Directors has established a written description of the positions of the Board Chair and a general position description for the Standing Committee Chairs. A copy of each is posted and available on our website at **investors.westport.com/governance/governance-documents/**.

*Position Description for Chief Executive Officer*

The Board of Directors has adopted a written position description for the CEO, a copy of which is posted and available on our website at **investors.westport.com/governance/governance-documents/**.

*Orientation & Continuing Education*

Robust onboarding for new directors is critical, as well as ongoing comprehensive education and training for all Board members on key matters and to foster board effectiveness. In addition, all Board members are encouraged to participate in relevant external director education opportunities. The Board recognizes: (1) the importance of fostering an atmosphere of continuous enhancement, long-term value creation, and strengthening shareholder confidence; and (2) that institutional investors and regulators expect directors at public companies to continually enhance their skills and remain up to date of company and industry matters.

Director onboarding involves a combination of written materials, oral presentations, meetings with the Board and management and site visits where possible. Among the topics covered during onboarding are company purpose, history, strategy, financial condition, risks, safety and soundness, ethics, core values, and corporate governance. To help new directors learn more about our business and their oversight roles within the organization, the onboarding process includes meetings with business segments, control and support groups, and visits to facilities as appropriate. This allows directors to

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better step into their oversight roles and begin making meaningful contributions to the Board more quickly. In-house educational sessions facilitated by management are provided to all directors throughout the year with a focus on topics specific to our business and industry. All new directors must participate in the director orientation program which commences promptly after the appointment of a new director. In addition, the Board of Directors periodically receives advice from outside legal counsel and its auditors regarding changes in the regulations applicable to the organization.

Directors also participate in continuous learning activities as part of Continuing Education initiatives overseen by the NCG Committee. Continuing education covers a range of current topics including best practices in corporate governance, latest business and product information, cybersecurity, artificial intelligence and data privacy matters, and sustainability matters. Sessions are designed to maximize the knowledge and effectiveness of directors throughout their tenure and offer the opportunity to discuss in detail the changing risk environment, impacts on overall business strategy and achievement of our mission. During 2025, the directors attended an education session on AI.

*Meetings of the Board of Directors* 

Our Board of Directors meets as needed during the year and a quorum for Board meetings requires a majority of its members to be in attendance. At every meeting, time is set aside for independent directors to meet without management present to discuss any procedural or substantive issues. The Audit Committee charter requires the committee to meet at least four times per calendar year in conjunction with the review and approval of annual and quarterly financial statements, management discussion, and analysis ("**MD&A**") and related filing. In 2025 the Audit Committee met **6** times. The HRC Committee and NCG Committee charters require each committee to meet at least twice annually. In 2025, the HRC committee met **7** times, and the NCG committee met **5** times. Detailed 2025 attendance by current directors is summarized in each director biography found in "**Board Practices: Nominees for Election to the Board.**"

**Additional Disclosure Relating to the Directors** 

Other than as detailed below, no proposed director (in their personal capacity):

1is, as at April 23, 2026, or has been, within ten years before this date , a director, chief executive officer or chief financial officer of any company (including Westport) that,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)was subject to a cease trade order, an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities legislation that was in effect for a period of more than 30 consecutive days (each, an "Order") that was issued while the proposed director was acting in the capacity as director, chief executive officer or chief financial officer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)was subject to an Order that was issued after the proposed director ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer;

2is, as at the date of this Circular, or has been within ten years before the date of this Circular, a director or executive officer of any company (including Westport) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets;

3has, within the ten years before the date of this Circular, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement, or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the proposed director; has entered into, at any time, a settlement agreement with a securities regulatory authority; or

4has been subject to, at any time, any penalties or sanctions imposed by,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a court relating to securities legislation or a securities regulatory authority, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a court or regulatory body that would likely be considered important to a reasonable security holder in deciding whether to vote for a proposed director.

*Other Directorships*

Some Board of Directors members are also directors of other reporting issuers (or equivalent). Such other directorships are disclosed in the individual nominee biographies under "**Nominees for Election to the Board**." The Board of Directors Charter limits directors to a maximum of four outside public company directorships. In addition, the Board has adopted a policy that no more than two of our directors may serve on the same public company board without the prior consent of the Board Chair. The NCG Committee reviews the number of boards on which our directors serve to ensure directorships align

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with the Charter mandate, to protect from any potential over boarding and to help ensure the Board does not exceed two board interlocks. As of April 23, 2026, no directors served on another public company's board of directors together.

*Indebtedness of Directors & Executive Officers*

None of the director nominees, proposed directors, executive officers or employees, former directors, executive officers, or employees at any time during the Company's last completed financial year, nor any of the associates of such persons, are or have been indebted to the Company or any of its subsidiaries at any time since the beginning of our most recent completed financial year. Furthermore, none of these persons were indebted to another entity where their indebtedness was the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company or any of its subsidiaries.

Interest of Informed Persons in Material Transactions

Other than as described below or elsewhere in this Circular, no informed person, any proposed person nominated for election as a director, nor any associate or affiliate of any informed person or proposed director, has had any material interest, direct or indirect, in any transaction since the commencement of the Company's most recent financial year, nor in any proposed transaction which has materially affected or would materially affect Westport or any of its subsidiaries.

**D. Employees**

We employ a highly educated and experienced team of professionals focused on the development and commercialization of a portfolio of products and technologies. We actively recruit skilled individuals with diverse backgrounds and provide them with specific training relating to our product and technology portfolios and retain consultants and contract workers with specific expertise when appropriate. Employees must certify to having read, understood, and agree to abide by our Code of Conduct. Online training is also conducted to ensure, our global and diverse workforce is empowered to do the right thing, for the right reason, and in the right way.

With the sale of the Light-duty business unit in June of 2025 our workforce was significantly reduced in size in Europe and South America. In 2025 the Company also increase head count in China the formation of our High-pressure manufacturing plant.. In 2024 our workforce was reduce in Canada, United States and Sweden with the formation of the Cespira joint venture, transferring to it. Additionally in 2024, the Company restructured its operating footprint in India.

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| | | | |
|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | **December 31,** |
| | **2025** | **2024** | **2023** |
| Canada | 83 | 82 | 232 |
| United States | 1 | 2 | 8 |
| China | 26 | 6 | 9 |
| Italy | 2 | 893 | 895 |
| Netherlands | nil | 69 | 75 |
| Poland | nil | 381 | 370 |
| Sweden | nil | nil | 11 |
| Argentina | nil | 72 | 74 |
| India | nil | 1 | 37 |
| Other | nil | 3 | 4 |
| **Total** | **112** | **1509** | **1715** |

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The total count of individuals includes direct employees, and individuals contracted directly for twelve months or longer. Our workforce includes, but is not limited to, a mix of engineers, manufacturing technicians, and commercial professionals who have experience with alternative fuel systems, combustion technologies, controls and engine management, and fuel storage and delivery systems, including high-pressure storage and delivery systems.

We are committed to a workplace free of discrimination and harassment. Our expectations for individual integrity and ethical, moral, and legal conduct are outlined in the Code of Conduct which applies to everyone within the organization, including directors, officers, employees, contractors, agents, and consultants who act on behalf of Westport in any business

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dealings. An anonymous ethics hotline is made available as an avenue for employees to raise concerns about corporate conduct. Our whistleblower policy includes the reassurance that individuals will be protected from reprisals or victimization for "whistle blowing" in good faith.

**E. Share Ownership**

Share and Unit holdings for each Director are disclosed in the individual nominee biographies under "**Board Practices**: **Nominees for Election to the Board**."

Share and Unit holdings for each Executive Officer are disclosed in the individual nominee biographies under "**Compensation of Executive Officers: Shareholding Requirements**."

**F. Disclosure of a registrants action to recover erroneously awarded compensation**

None.

**Item 7. Major Shareholders and Related Party Transactions**

**A. Major Shareholders**

To our knowledge, as of the date of this annual report, Mr. Kevin Douglas, beneficially owns, or controls or directs, directly, or indirectly, approximately 1,816,689 common shares, being 10.4% of the shares outstanding. To our knowledge, as of the date of this annual report, Grace & White Inc., beneficially owns, or controls or directs, directly, or indirectly, approximately 1,006,708 common shares, being 5.8% of the shares outstanding. The Company's major shareholders do not have different or special voting rights.

As of December 31, 2025, there were 354 holders of common shares of record worldwide, of which 113 record holders based in Canada and own 4,666,939 common shares combined, being 26.9% of the shares outstanding. In the United States, there were 223 record holders and own 12,699,045 common shares combined, being 73.1% of the shares outstanding.

To the extent known to Westport, Westport is not owned or controlled, directly or indirectly, by another corporation, any foreign government or any natural or legal person.

**B. Related Party Transactions**

Refer to Note 15. Related party transactions in our consolidated financial statements included elsewhere in this annual report Form 20-F.

**C. Interest of Experts and Counsel**

Not applicable.

**Item 8. Financial Information**

**A. Consolidated Statements and Other Financial Information**

**1-3. Consolidated Financial Statements** 

The Company's audited consolidated financial statements are included under "Item 18 - Financial Statements." Except for our consolidated financial statements included under Item 18, no other information in this annual report has been audited by our auditors.

**4. Not applicable.**

**5. Not applicable.**

**6. Export sales**

Refer to Note 17 in our consolidated financial statements for our revenue by geographic region.

**7. Legal and administrative proceedings**

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We are involved in patent-related litigation and related administrative proceedings in the U.S. concerning two U.S. patents, and we have commenced patent infringement actions against certain third parties. Those actions are currently stayed pending the resolution of a related declaratory judgment action initiated by a third party with respect to the same patents. We have asserted counterclaims in the declaratory judgment action, which is ongoing. While the outcome of litigation is uncertain, a favourable outcome could result in a positive financial impact. An unfavorable outcome is not expected to have a material adverse impact on the Company.

**8. Dividend policy**

We have never declared or paid any dividends on our common shares, and have no present plans to declare or pay any dividends on our common shares in the foreseeable future. We currently intend to retain our available funds and any future earnings to operate and expand our business.

**B. Significant Changes**

Except as disclosed in this annual report, there have been no significant changes since the date of Westport's latest

consolidated financial statements.

**Item 9. The Offer and Listing**

Not applicable except for *Item 9.A.4* and *Item 9.C*.

The Common shares have been listed on the TSX since shortly after the initial public offering of the Company's predecessor, Westport Innovations Inc., on August 22, 1995. The common shares were originally listed under the symbol "WPT" and, effective November 10, 2016, the symbol was changed to "WPRT". The common shares have been listed on the Nasdaq under the symbol "WPRT" since August 15, 2008.

**A. Offer and Listing Details**

Refer to Item 9.

**B. Plan of Distribution**

Not applicable.

**C. Markets**

Refer to Item 9.

**D. Selling Shareholders**

Not applicable.

**E. Dilution**

Not applicable.

**F. Expenses of the Issue**

Not applicable.

**Additional Information**

**A. Share Capital**

Not applicable.

**B. Memorandum and Articles of Association**

Our governing corporate statute is the *Business Corporations Act* (Alberta) and we were incorporated under Certificate of Incorporation with corporate access number 20647526 issued by the Registrar of Companies on March 20, 1995. Our head office and principal place of business is at 1691 West 75th Avenue, Vancouver, British Columbia V6P 6P2. Our registered office is 4500, 855 2nd Street SW, Calgary, Alberta T2P 4K7. In 2016, we amended our articles to change our name from Westport Innovations Inc. to Westport Fuel Systems Inc. following a merger with Fuel Systems Solutions Inc. on June 1, 2016.

The holders of our Common Shares are entitled to one vote per Common Share at meetings of shareholders, to receive such dividends as declared by the Board, and to receive Westport Fuel Systems' remaining property and assets upon dissolution

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or winding-up. The Common Shares are not subject to any future call or assessment, and there is no exchange, pre-emptive, conversion, redemption or retraction rights attached to the Common Shares. The Board is elected annually at each annual general meeting of shareholders.

Under the *Business Corporations Act* (Alberta) we are permitted to conduct any lawful business that we are not restricted from conducting by our Articles. Our Articles do not restrict the business we may conduct.

Under the *Business Corporations Act* (Alberta), a director may vote on a proposal, arrangement or contract in which he or she is interested, if the contract is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a contract or transaction in which, but only to the extent that, the director undertakes an obligation or obligations for the benefit of the corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a contract relating primarily to that director's remuneration as a director,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a contract for indemnity or liability insurance, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a contract with an affiliate.

The directors are permitted to vote compensation to themselves or any one of them. There is no specification regarding an independent quorum requirement in either our Articles or our By-laws, although a quorum is required for any directors' meeting.

Without limiting the powers of the corporation as set forth in the Business Corporations Act (Alberta), the board of directors may from time to time cause Westport to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) borrow money on credit of Westport;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issue, reissue, sell or pledge bonds, debentures, notes or other evidences of indebtedness or guarantee of Westport, whether secured or unsecured; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent permitted by the Business Corporations Act (Alberta), give a guarantee on behalf of Westport to secure performance of any present or future indebtedness, liability or obligation of any person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) mortgage, hypothecate, pledge or otherwise create a security interest in all or any currently owned or subsequently acquired, real or personal, movable or removable, property of Westport including book debts, rights, powers, franchises and undertakings to secure any such bonds, debentures, notes or other evidences of indebtedness or guarantee or any other present or future indebtedness, liability or obligation of Westport.

To the extent permitted by the *Business Corporations Act* (Alberta), the Board may from time to time delegate to a committee of directors, or to one or more of the directors and officers of the Corporation, all or any of the powers conferred to the Board to such extent and in such manner as the Board from time to time determines.

There is no specification in Westport's Articles or By-laws that indicate an age limit regarding retirement or non-retirement of directors.

A director is not required to be a shareholder of Westport in accordance with the Articles.

The Articles, authorize the directors, between annual general meetings, to appoint one or more additional directors of Westport to serve until the next annual general meeting, provided that the number of additional directors does not exceed one-third of the number of directors who held office at the expiration of the last annual general meeting of Westport.

In order to amend the Articles to change the rights of holders of shares, a special resolution of Westport and of each class or series of shares affected by that change is required. A special resolution means a resolution passed by a majority of not less than 2/3 of the votes cast by the shareholders who voted in respect of that resolution or signed by all the shareholders entitled to vote on that resolution. There are no requirements applicable to changing the rights of holders of shares of Westport that are more significant than those required by law.

Subject to the *Business Corporations Act* (Alberta), the annual meeting of shareholders is convoked by the directors of Westport at such time as the directors may determine, provided that such meeting shall be held not later than 15 months after the holding of the last preceding annual meeting. Extraordinary general meetings of shareholders may be convoked at any time by the directors of Westport. Meetings of shareholders are held at such place as the directors may determine.

The board of directors has the power to call a special meeting of shareholders at any time.

The only persons entitled to be present at a meeting of shareholders shall be those entitled to vote thereat, the directors and auditors of Westport, and others who, although not entitled to vote, are entitled or required under any provision of the *Business Corporations Act* (Alberta) or Articles or By-laws to be present at the meeting.

There are no known limitations on the rights to own securities, including the rights of non-resident or foreign shareholders to hold or exercise voting rights except that, in accordance with the *Business Corporations Act* (Alberta), the corporation is generally prohibited from holding shares in itself and subsidiaries are limited as to the number of shares of Westport that they may own and the period of time over which they may own such shares.

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There are no provisions in Westport's Articles or By-laws that would have the effect of delaying, deferring or preventing a change in control of Westport and that would operate only with respect to a merger, acquisition or corporate restructuring.

There are no By-law provisions governing the ownership threshold above which shareholder ownership must be disclosed.

There are no significant differences that management is aware of, in the law applicable to Westport in the areas outlined above in Canada versus the United States.

**C. Material Contracts**

**EDC Loan Agreement**

EDC is Canada's export credit agency, providing financing, insurance, bonding, trade knowledge and connections to support Canadian companies. To bolster liquidity and support the Westport LNG HPDI 2.0 fuel system program launch and commercialization, Westport entered into a $20 million secured term loan agreement in December 2017 with EDC. Since that time, there have been several amendments, with the most recent occurring in May 2024. At that time, the security structure was revised to align with the launch of the HPDI joint venture. The maturity date of the loan remains September 15, 2026

**Volvo Investment Agreement**

On March 11, 2024, Westport entered into an investment agreement (the **"Investment Agreement"**) with Volvo, providing for the establishment of, and sale of a 45% interest in the JV to accelerate the commercialization and global adoption of Westport's HPDI fuel system technology for long-haul and off-road applications. Pursuant to the Investment Agreement, Westport transferred all or substantially all of the assets applicable to the HPDI system related business currently carried on by Westport to the JV, following which Volvo acquired a 45% interest in the JV for cash consideration of $28.4 million subject to certain adjustments and hold backs under the terms of the Investment Agreement, plus, subject to the satisfaction of certain earn-out conditions, up to a further $45 million (plus interest) as additional consideration, payable in the form of an earn-out. Closing of the JV was on June 3, 2024. A copy of the Investment Agreement is available on the SEDAR Plus website (www.sedarplus.ca).

**Joint Venture Governance Agreements**

In connection with the closing of the JV transaction, Westport and Volvo entered into the following agreements

which provide for the governance and management of the JV group entities (the **"JV Group"**):

Westport and Volvo, as limited partners, and 1463861 B.C. Ltd (the **"JV GP"**), as the general partner of the Canadian joint venture limited partnership (the **"JV LP"**), entered into an amended and restated limited partnership agreement dated June 3, 2024 (the **"JV Limited Partnership Agreement"**), which governs the management of the JV LP and the conduct of the JV business. The JV Limited Partnership Agreement, among other things, sets forth the business of the partnership; the powers of the JV LP; the powers and obligations of the JV GP; the capital commitment and future capital requirements of the limited partners, including the right of the JV GP to issue requests for additional funding from the limited partners; remedies of the limited partners in the case of a funding default; the restrictions on transfer of partnership units; and how distributions are to be made to the limited partners. A copy of the JV Limited Partnership Agreement is available on the SEDAR Plus website.

**JV GP Unanimous Shareholders' Agreement**

Westport and Volvo, as shareholders of HPDI Technology AB (the **"JVCo"**), the Swedish arm of the JV Group, entered into a shareholders agreement dated June 3, 2024 (the **"JVCo Shareholders Agreement"**), which sets forth the governance of the JVCo, and the conduct of the JV business, including matters related to: the rights and obligations in respect of the ownership of the JVCo Shares; the election of directors of the JVCo and director nomination rights; the management and control of certain of JVCo's affairs, including restriction on the company and matters requiring board approval or shareholder approval; capital funding requirements, including the right of the board to issue requests for additional funding from shareholders; and remedies of the other shareholder in the case a funding default by a shareholder, amongst certain other matters. A copy of the JVCo Shareholders Agreement is available on the SEDAR+ website.

**Light Duty Segment Share Purchase Agreement** 

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On March 30, 2025, we entered into a share purchase agreement (the "**Agreement**") with Heliaca Investments Coöperatief U.A. ("**Heliaca Investments**"), a Netherlands based investment firm supported by Ramphastos Investments Management B.V., a Dutch prominent venture capital and private equity firm, to sell all of the issued and outstanding shares of Westport Fuel Systems Italia S.r.l. The all-cash transaction provided for a base purchase price of $75.1 million (€69.5 million), subject to certain adjustments and potential earnouts of up to an additional $6.5 million (€6 million) if certain conditions are achieved, in accordance with terms of the Agreement. This transaction was completed on July 29, 2025.

**D. Exchange Controls**

Canada has no system of exchange controls. There are no Canadian restrictions on the repatriation of capital or earnings of Canadian public company to non-resident investors. There are no laws in Canada or exchange restrictions affecting the remittance of dividends, profits, interest, royalties and other payments to non-resident holders of the Company's securities, except as discussed in "Item 10.E. Taxation" below.

**E. Taxation**

The following summary discusses certain material U.S. and Canadian tax considerations related to the holding and disposition of common shares as of the hereof. Prospective purchasers of our common shares are advised to consult their own tax advisers concerning the consequences under the tax laws of the country of which they are resident or in which they are otherwise subject to tax of making an investment in our common shares.

<u>Canadian Federal Income Tax Considerations</u>

The Company believes the following is a brief summary of the material principal Canadian federal income tax consequences to a U.S. Holder (as defined below) of common shares of the Company who deals at arm's length with the Company, holds the shares as capital property and who, for the purposes of the Income Tax Act (Canada) (the "Tax Act") and the Canada — U.S. Income Tax Convention (1980) (the "Treaty"), is at all relevant times resident in the U.S., is not and is not deemed to be resident in Canada and does not use or hold and is not deemed to use or hold the shares in carrying on a business in Canada. Special rules, which are not discussed below, may apply to a U.S. Holder that is an insurer that carries on business in Canada and elsewhere. U.S. Holders are urged to consult their own tax advisors with respect to their particular circumstances.

This summary is based upon the current provisions of the Tax Act, the regulations thereunder in force at the date hereof, all specific proposals to amend such regulations and the Tax Act publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof and the current provisions of the Convention and the current administrative practices of the Canada Revenue Agency published in writing prior to the date hereof. This summary does not otherwise take into account or anticipate any changes in law or administrative practices whether by legislative, governmental or judicial decision or action, nor does it take into account tax laws of any province or territory of Canada or of the U.S. or of any other jurisdiction outside Canada.

For the purposes of the Tax Act, all amounts relating to the acquisition, holding or disposition of the common shares must be converted into Canadian dollars based on the relevant exchange rate applicable thereto.

This summary does not address all aspects of Canadian federal income taxation that may be relevant to any particular U.S. Holder in light of such holder's individual circumstances. Accordingly, U.S. Holders should consult with their own tax advisors for advice with respect to their own particular circumstances.

Under the Tax Act and the Treaty, a U.S. Holder of common shares will generally be subject to a 15% withholding tax on dividends paid or credited or deemed by the Tax Act to have been paid or credited on such shares. The withholding tax rate is 5% where the U.S. Holder is a corporation that beneficially owns at least 10% of the voting shares of the Company and the dividends may be exempt from such withholding in the case of some U.S. Holders such as qualifying pension funds and charities.

A U.S. Holder will generally not be subject to tax under the Tax Act on any capital gain realized on a disposition of common shares, provided that the shares do not constitute "taxable Canadian property" to the U.S. Holder at the time of disposition. Generally, common shares will not constitute taxable Canadian property to a U.S. Holder provided that such shares are listed on a designated stock exchange (which currently includes the TSXV) at the time of the disposition and,

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during the 60- month period immediately preceding the disposition, the U.S. Holder, persons with whom the U.S. Holder does not deal at arm's length, or the U.S. Holder together with all such persons has not owned 25% or more of the issued shares of any series or class of the Company's capital stock. If the common shares constitute taxable Canadian property to a particular U.S. Holder, any capital gain arising on their disposition may be exempt from Canadian tax under the Convention if at the time of disposition the common shares do not derive their value principally from real property situated in Canada.

<u>U.S. Federal Income Tax Considerations</u>

The following discussion describes the material U.S. federal income tax consequences to U.S. Holders (as defined below) of the purchase, ownership and disposition of our Common Shares, but does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "**Code**"), U.S. Treasury regulations promulgated thereunder (the "**Treasury Regulations**"), judicial decisions, and published rulings and administrative pronouncements of the U.S. Internal Revenue Service ("**IRS**"), in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a U.S. Holder of our Common Shares. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the purchase, ownership and disposition of our Common Shares.

This discussion is limited to U.S. Holders that hold our Common Shares as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a U.S. Holder's particular circumstances, including the impact of the Medicare contribution tax on net investment income or the alternative minimum tax. In addition, it does not address consequences relevant to U.S. Holders subject to special rules, including, without limitation:

 · U.S. expatriates and former citizens or long-term residents of the United States;

 · persons holding our Common Shares as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment;

 · banks, insurance companies, and other financial institutions;

 · brokers, dealers or traders in securities;

·  persons that directly, indirectly or constructively own 10% or more of the total combined voting power or value of all classes of our share capital;

 · real estate investment trusts or regulated investment companies;

 · S corporations, partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein);

 · tax-exempt organizations or governmental organizations;

 · persons deemed to own Common Shares under the constructive sale provisions of the Code;

 · persons who hold or receive our Common Shares pursuant to the exercise of any employee stock option or otherwise as compensation;

 · U.S. persons that do not have the U.S. dollar as their functional currency;

 · persons that hold our Common Shares in connection with a trade or business conducted outside of the United States or in connection with a permanent establishment outside of the United States;

 · tax-qualified retirement plans; and

 · persons subject to special tax accounting rules as a result of any item of gross income with respect to our Common Shares being taken into account in an applicable financial statement.

THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR COMMON SHARES ARISING UNDER THE U.S.

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FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.

**Definition of a U.S. Holder**

For purposes of this discussion, a "**U.S. Holder**" is any beneficial owner of our Common Shares that, for U.S. federal income tax purposes, is or is treated as:

**·** an individual who is a citizen or resident of the United States;

 · a corporation (or entity taxable as a corporation for U.S. federal income tax purposes) created or organized under the laws of the United States, any state thereof, or the District of Columbia;

 · an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

·  a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more "United States persons" (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes.

If an entity treated as a partnership for U.S. federal income tax purposes holds our Common Shares, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our Common Shares and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.

**Passive Foreign Investment Company**

A non-U.S. entity treated as a corporation for U.S. federal income tax purposes generally will be a passive foreign investment company ("**PFIC**") for U.S. federal income tax purposes for any taxable year if either:

·  at least 75% of its gross income for such year is passive income (such as interest income); or

·  at least 50% of the value of its assets (generally based on an average of the quarterly values of the assets) during such year (which may be determined in part by the market value of our Common Shares, which is subject to change) is attributable to assets that produce passive income or are held for the production of passive income.

For this purpose, we will be treated as owning our proportionate share of the assets and earning our proportionate share of the income of any other entity treated as a corporation for U.S. federal income tax purposes in which we own, directly or indirectly, 25% or more (by value) of the stock.

Based on the value of our assets, including goodwill, and the composition of our income, assets and operations for the taxable year ended December 31, 2025, we do not believe that we were a PFIC for U.S. federal income tax purposes for that taxable year. However, we must determine our PFIC status annually based on tests which are factual in nature, and our status in future years will depend on our income, assets and operations in those years. The application of the PFIC rules is subject to uncertainty in several respects, and determinations of value are inherently factual and subject to different interpretations. Changes in the composition of our income or assets, the market value of our Common Shares, and the market value of our assets may cause us to become a PFIC. Accordingly, there can be no assurance that we were not a PFIC for any previous taxable year (including our taxable year ended December 31, 2025) or that we will not be a PFIC for the current taxable year or any future taxable year.

If the Company is considered a PFIC at any time that a U.S. Holder holds our Common Shares, the Company will generally continue to be treated as a PFIC with respect to the U.S. Holder, even if the Company ceases to be a PFIC in subsequent years, unless the U.S. Holder makes a "deemed sale" election. In addition, any gain recognized by the U.S. Holder on a sale or other disposition of the Common Shares, as well as the amount of any "excess distribution" (defined below) received by the U.S. Holder, would be allocated ratably over the U.S. Holder's holding period for the Common Shares. The amounts allocated to the taxable year of the sale or other disposition (or the taxable year of receipt, in the case of an excess distribution) and to any year before the Company became a PFIC would be taxed as ordinary income. The amount allocated to each other taxable year would be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, for that taxable year, and an interest charge would be imposed. For purposes of these rules, an excess distribution is the amount by which any distribution received by a U.S. Holder on Common Shares exceeds 125% of the average of the annual distributions on the Common Shares received during the preceding three years or the U.S. Holder's holding period, whichever is shorter.

Certain elections may be available that would result in alternative treatments (such as qualified electing fund treatment or mark-to-market treatment) of our Common Shares if we are considered a PFIC. The adverse consequences resulting from

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PFIC treatment can be mitigated if a U.S. Holder makes a valid "qualified electing fund" election ("QEF election"), which, among other things, would require the U.S. Holder to include currently in income its pro rata share of the Company's net capital gain and ordinary earnings, based on earnings and profits as determined for U.S. federal income tax purposes. However, a U.S. Holder can only make a QEF election with respect to our Common Shares if we furnish such U.S. Holder with certain tax information annually. We cannot provide any assurances that we will furnish to U.S. Holders information that may be necessary for U.S. Holders to make a QEF election. U.S. Holders can also mitigate some of the adverse tax consequences resulting from PFIC treatment by making a mark-to-market election with respect to our Common Shares to include in income in each year as ordinary income an amount equal to the increase in value of our Common Shares for that year or a deduction for any decrease in value (but only to the extent of previous mark-to-market gains), provided that our Common Shares are "marketable." Our Common Shares will be marketable if they are "regularly traded" on certain U.S. stock exchanges (including the Nasdaq) or on a foreign stock exchange that meets certain conditions, as set forth in applicable Treasury Regulations. If we are treated as a PFIC with respect to a U.S. Holder for any taxable year, the U.S. Holder will be deemed to own shares in any of our subsidiaries that are also PFICs. However, an election for mark-to-market treatment generally will not be available with respect to any such subsidiaries.

If the Company is considered a PFIC, a U.S. Holder would also be subject to annual information reporting requirements. Failure to comply with such information reporting requirements may result in significant penalties and may suspend the running of the statute of limitations. U.S. Holders should consult their tax advisors about the potential application of the PFIC rules to an investment in our Common Shares.

U.S. Holders should consult their tax advisors regarding whether we are a PFIC, the tax consequences of owning the Common Shares if we were to be a PFIC, certain elections that may be made that are designed to lessen the adverse tax consequences, and reporting requirements that are applicable to U.S. Holders of stock of a PFIC.

**Taxation of Dividends and Other Distributions on the Common Shares**

Subject to the PFIC rules discussed above, the gross amount of any distributions we make to you (including the amount of any tax withheld) with respect to our Common Shares generally will be includible in your gross income as dividend income on the date you receive such distribution, but only to the extent the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). The dividends will not be eligible for the dividends-received deduction allowed to corporations in respect of dividends received from other U.S. corporations. To the extent the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U.S. federal income tax principles), such excess amount will be treated first as a tax-free return of your tax basis in your Common Shares, and then, to the extent such excess amount exceeds your tax basis in your Common Shares, as capital gain. We currently do not, and do not intend to, calculate our earnings and profits under U.S. federal income tax principles. Therefore, you should expect that a distribution will generally be reported as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain under the rules described above.

With respect to certain non-corporate U.S. Holders, including individual U.S. Holders, dividends may be taxed at the lower capital gain rates applicable to qualified dividend income, provided (1)(a) we are eligible for the benefits of the United States-Canada income tax treaty (the "**Treaty**"), or (b) the dividends are with respect to Common Shares that are readily tradable on an established securities market in the United States, (2) the Company is neither a PFIC nor treated as such with respect to you (as discussed above) for either the taxable year in which the dividend was paid or the preceding taxable year, and (3) certain other requirements (including holding period and at risk requirements) are met. We have given notice to the Nasdaq, which for this purpose is an established securities market in the United States, of the offering of the Common Shares offered by this prospectus supplement and the prospectus. The determination of whether a dividend qualifies for the preferential tax rates described above must be made at the time the dividend is paid. Although we do not believe we were a PFIC for the taxable year ended December 31, 2025, whether we are treated as a PFIC for any taxable year will depend on factual circumstances during such year, and therefore there can be no assurance that we will not be a PFIC for the taxable year in which such dividend is paid.

The amount of any distribution paid in a currency other than U.S. dollars will be equal to the U.S. dollar value of such currency on the date such distribution is includible in your income, regardless of whether the payment is in fact converted into U.S. dollars at that time. If a distribution in a foreign currency is converted into U.S. dollars on the day it is received, the U.S. Holder will not be required to recognize foreign currency gain or loss with respect to such distribution. Any gain or loss on a conversion or other disposition of the foreign currency for a different U.S. dollar amount on a later date general will be U.S. source ordinary income or loss. The amount of any distribution of property other than cash will be the fair market value of such property on the date of distribution.

Any dividends will generally constitute foreign-source income for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income (as discussed above), the amount of the dividend taken into account for purposes of calculating the foreign tax credit limitation in general will be limited to the gross amount of the dividend, multiplied by the

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reduced tax rate applicable to qualified dividend income and divided by the highest tax rate normally applicable to dividends. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends paid by us with respect to our Common Shares will generally constitute passive category income but could, in the case of certain U.S. Holders, constitute general category income. However, if the Company is a "United States-owned foreign corporation," solely for foreign tax credit purposes, a portion of the dividends allocable the Company's U.S.-source earnings and profits may be re-characterized as U.S. source income. A "United States-owned foreign corporation" is any foreign corporation in which United States persons own, directly or indirectly, 50% or more (by vote or by value) of the stock. Under an exception, dividends will not be allocated to U.S.-source income if less than 10% of the earnings and profits of a United States-owned foreign corporation are attributable to sources within the United States. We cannot provide any assurances that we will not be characterized as a "United States-owned foreign corporation". If we are a United States-owned foreign corporation and 10% or more of our earnings and profits are attributable to sources within the United States, the portion of the dividends paid on the Common Shares allocable to our United States source earnings and profits would be treated as U.S.-source income, and this treatment could adversely affect a U.S. Holder's ability to credit any foreign tax withheld from such dividends against such holder's U.S. federal income liability. The rules relating to the determination of the U.S. foreign tax credit are complex. U.S. Holders should consult their tax advisors regarding the availability of a foreign tax credit in their particular circumstances and the possibility of claiming an itemized deduction (in lieu of the foreign tax credit) for any foreign taxes paid or withheld.

If Canadian withholding taxes apply to any dividends paid to you with respect to the Common Shares, subject to certain conditions and limitations (including specific holding period and at risk rules), such withholding taxes may be treated as foreign taxes eligible for credit against your U.S. federal income tax liability. If tax is withheld at a rate in excess of the rate applicable to a U.S. Holder under the Treaty, the U.S. Holder may not be entitled to credits for the excess amount, even if the procedures for claiming refunds and the practical likelihood that refunds would be made available in a timely fashion were uncertain. Pursuant to applicable Treasury Regulations, if a U.S. Holder is not eligible for the Treaty or depending on the nature of the Canadian withholding tax, the U.S. Holder may not be able to claim a foreign tax credit arising from Canadian withholding tax imposed on dividends, although the IRS has provided temporary relief from the application of certain aspects of these regulations until new guidance or regulations are issued. Instead of claiming a credit, you may elect to deduct such taxes in computing taxable income, subject to applicable limitations. If a refund of the tax withheld is available under the applicable laws of Canada or under the Treaty, the amount of tax withheld that is refundable will not be eligible for such credit against your U.S. federal income tax liability (and will not be eligible for the deduction against your U.S. federal taxable income).

The rules relating to the determination of the foreign tax credit are particularly complex, and each U.S. Holder should consult its tax advisor regarding the availability of a U.S. foreign tax credit in its particular circumstances, including its eligibility for benefits under the Treaty and the potential impact of the applicable Treasury Regulations and the temporary IRS relief as well as the possibility of claiming a deduction (in lieu of the U.S. foreign tax credit).

**Taxation of Disposition of Common Shares**

Subject to the PFIC rules discussed above, upon a taxable sale or other taxable disposition of our Common Shares, you generally will recognize capital gain or loss for U.S. federal income tax purposes in an amount equal to the difference between the amount realized (including the amount of any tax withheld) and your tax basis in such Common Shares. Your tax basis in your Common Shares generally will equal the cost of such Common Shares. Any gain or loss on the sale or other disposition of such Common Shares generally will be treated as U.S.-source income or loss, and treated as long-term capital gain or loss if your holding period in such Common Shares at the time of the disposition exceeds one year. Because capital gain on the sale or other disposition of our Common Shares generally will be treated as U.S.-source gain, in the event any Canadian tax (including withholding tax) is imposed upon such sale or other disposition, you may not be able to utilize foreign tax credits unless (1) the gain is resourced as foreign-source under the provisions of the Treaty and you elect to apply the Treaty or (2) you have foreign-source income or gain in the same category from other sources. Long-term capital gain of non-corporate U.S. Holders generally will be subject to U.S. federal income tax at reduced tax rates. The deductibility of capital losses is subject to significant limitations.

The rules relating to the determination of the foreign tax credit are particularly complex, and each U.S. Holder should consult its tax advisor regarding the availability of a U.S. foreign tax credit in its particular circumstances, including its eligibility for benefits under the Treaty and the potential impact of the applicable Treasury Regulations and the temporary IRS relief as well as the possibility of claiming a deduction (in lieu of the U.S. foreign tax credit).

**Information Reporting and Backup Withholding**

Payments of distributions with respect to our Common Shares and proceeds from the sale, exchange or redemption of our Common Shares that are made within the United States or through certain U.S.-related financial intermediaries generally are subject to information reporting to the IRS and may be subject to U.S. backup withholding. Backup withholding will

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not apply, however, to a U.S. Holder that furnishes a correct taxpayer identification number and makes any other required certification or that is otherwise exempt from backup withholding. U.S. Holders that are required to establish their exempt status generally must provide such certification on IRS Form W-9. You should consult your tax advisor regarding the application of the U.S. information reporting and backup withholding rules.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information in a timely manner.

**Information with respect to Foreign Financial Assets**

Individuals and certain entities that have U.S. individual owners or beneficiaries may be required to report information on IRS Form 8938 relating to an interest in our Common Shares, subject to certain exceptions (including an exception for our Common Shares held in accounts maintained by certain financial institutions). Penalties can apply if a U.S. Holder fails to satisfy such reporting requirements, and the statute of limitations on the assessment and collection of all U.S. federal income taxes of such U.S. Holder for the related tax year may not close before the date which is three years after the date on which a required IRS Form 8938 is filed. You should consult your tax advisor regarding the effect, if any, of reporting requirements on your ownership and disposition of our Common Shares.

THE DISCUSSION OF MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS SET FORTH ABOVE IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF ALL TAX CONSIDERATIONS APPLICABLE TO AN INVESTMENT IN OUR COMMON SHARES. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS ABOUT THE APPLICATION OF THE U.S. FEDERAL TAX RULES TO THEIR PARTICULAR CIRCUMSTANCES, AS WELL AS THE STATE, LOCAL, NON-U.S. AND OTHER TAX CONSEQUENCES TO THEM OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR COMMON SHARES.

**F. Dividends and Paying Agents**

Not applicable.

**G. Statement by Experts**

Not applicable.

**H. Documents on Display**

The Company's documents can be viewed at its Canadian office, located at: 1691 West 75th Avenue, Vancouver, British Columbia, V6P 6P2, Canada. Further, we file reports under Canadian regulatory requirements on SEDAR+; you may access our reports filed on SEDAR by accessing their website at www.sedarplus.ca. The Company is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the Exchange Act), and files reports, Annual Reports and other information with the SEC. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.sec.gov. The Company's reports, Annual Reports and other information can be inspected on the SEC's website.

As a foreign private issuer, we are exempt from the rules under the Exchange Act related to the furnishing and content of proxy statements, and our officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we are not required under the Exchange Act to file annual, and other reports and financial statements with the SEC as frequently or as promptly as United States domestic companies whose securities are registered under the Exchange Act.

We maintain a corporate website at www.westport.com. Information contained on, or that can be accessed through, our website does not constitute a part of this Annual Report on Form 20-F. We have included our website address in this Annual Report on Form 20-F solely as an inactive textual reference.

**I. Subsidiary Information**

Not applicable.

**J. Annual Report to Security Holders**

Not applicable.

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**Item 11. Quantitative and Qualitative Disclosures About Market Risk**

Westport is exposed to market risk from changes in foreign currency exchange rates and interest rates. Market risk analyses of risks such as foreign exchange risk and interest risk are included in Note 18 of our consolidated financial statements included elsewhere in this annual report.

**Item 12. Description of Securities Other than Equity Securities**

**A. Debt Securities**

Not applicable.

**B. Warrants and Rights**

Not applicable.

**C. Other Securities**

Not applicable.

**D. American Depositary Shares**

Not applicable.

**Part II**

**Item 13. Defaults, Dividend Averages and Delinquencies**

Not applicable.

**Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds**

Not applicable.

**Item 15. Controls and Procedures**

**DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROLS OVER FINANCIAL REPORTING**

**Evaluation of Disclosure Controls and Procedures**

Our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended ("Exchange Act"), are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act and applicable Canadian securities law requirements is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and applicable Canadian securities law requirements, and that such information is accumulated and communicated to our management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") (our principal executive officer and principal financial officer, respectively), as appropriate to allow timely decisions regarding required disclosures.

We evaluated the effectiveness of our internal controls over financial reporting as of December 31, 2025 with the participation, and under the supervision of our management, including our CEO and CFO. Based upon this evaluation, our CEO and CFO concluded that as of December 31, 2025, our internal controls and procedures over financial reporting were effective for the period.

**Management's Report on Internal Control Over Financial Reporting** 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process designed by, or under the supervision of, our CEO and CFO and effected by our board of directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our consolidated financial statements for external reporting purposes in accordance with U.S. GAAP and the requirements of the SEC, as applicable. There are inherent limitations in the effectiveness of internal control over financial reporting, including the possibility that misstatements may not be prevented or detected.

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Because of these inherent limitations, internal control systems, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met, and no evaluation of controls can provide absolute assurance that all control issues have been detected. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under potential future conditions, regardless of how remote. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Management, including the CEO and CFO, has evaluated the effectiveness of our internal control over financial reporting, based on the criteria in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management has determined that our internal control over financial reporting was effective as of December 31, 2025.

KPMG LLP ("KPMG"), our independent registered public accounting firm, has audited our annual financial statements and expressed an unqualified opinion thereon. KPMG has also expressed an unqualified opinion on the effective operation of our internal control over financial reporting as of December 31, 2025. KPMG's audit report on effectiveness of internal control over financial reporting is included in the Annual Financial Statements.

**Changes in Internal Control Over Financial Reporting** 

As a result of the disposal of the Light-Duty segment, during the year ended December 31, 2025, there have been changes to our internal controls over financial reporting. There were no other changes to our internal controls over financial reporting that materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.

**Item 16. [Reserved]**

**Item 16A. Audit committee financial expert**

On April 23, 2026, the Company's Audit Committee consists of Brad Kotush, Eileen Wheatman, and Karl Viktor-Schaller. Each member of the Audit Committee, in the opinion of the directors, is independent (as determined under Rule 10A-3 of the Exchange Act and Nasdaq Rule 5605(a)(2)) and financially literate.

The Company's Board of Directors has determined that Brad Kotush and Eileen Wheatman qualify as "audit committee financial experts" (as defined in Item 407 of Regulation S-K under the Exchange Act) and are independent (as determined under Exchange Act Rule 10A-3 and Nasdaq Rule 5605(a)(2)).

**Item 16B. Code of Ethics**

We have adopted a Code of Conduct that applies to our directors, officers (including our principal executive officer, principal financial officer and principal accounting officer or controller) and employees. Our Code of Conduct is designed to promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest, compliance with applicable laws and regulations, and full, fair, accurate, timely and understandable disclosure in reports and documents that we file with or submit to regulatory authorities. Our Code of Conduct was amended during the financial year ended December 31 2025. The amendments did not result in any material changes to the standards of conduct applicable to our directors, officers and employees. Our Code of Conduct is publicly available on our website at **investors.westport.com/governance/governance-documents/**.

**Item 16C. Principal Accountant Fees and Services**

KPMG LLP served as our independent registered public accounting firm for the fiscal years ended December 31, 2025 and 2024 and has audited the consolidated financial statements of Westport included in this annual report on Form 20-F.

The following table presents the aggregate fees for professional services and other services rendered by KPMG LLP and the various network and member firms of KPMG to Westport in 2025 and 2024.

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| | | |
|:---|:---|:---|
| *In thousands of Canadian dollars* | 2025 | 2024 |
| Audit fees<sup>(1)</sup> | $2027 | $2643 |
| Audit-related fees<sup>(2)</sup> | 24 | 20 |
| Tax fees<sup>(3)</sup> |  |  |
| All other fees<sup>(4)</sup> | 6 | 5 |
| Total | $2057 | $2668 |

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(1) Audit fees represent the aggregate fees billed for each of the last two fiscal years for professional services rendered by the accountant for the audit of the Company's annual consolidated financial statements and reviews of our quarterly financial reporting, and other services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years, such as comfort letters, consents, reviews of securities filings and statutory audits.

(2) Audit-related fees represented the aggregate fees billed for each of the last two fiscal years for professional services rendered by the accountant. Fees disclosed under this category are for assurance and related services of other entities or derivative projects and are not reported under the heading audit fees above.

(3) Tax fees represent the aggregate fees billed for each of the last two fiscal years for professional services rendered by the accountant. Fees disclosed under this category are for professional services rendered for tax compliance, tax advice and tax planning.

(4) All other fees represent the aggregate fees billed for each of the last two fiscal years for professional services rendered by the accountant, which are not related to one of the categories described. Fees to be disclosed under this category include all products and services other than those described under the headings audit fees, audit-related fees, and tax fees above.

**Policies and Procedures of the Audit Committee**

<u>Mandate</u>

The mandate of the Audit Committee as prescribed by the Board is set out in the Audit Committee Charter. The latest version of our Audit Committee Charter is available on our website at **investors.westport.com/governance/governance-documents/**.

<u>Non-Audit Services</u> 

The Audit Committee is mandated to review the provision of non-audit services and consider the effect of any such services on the independence of the external auditors.

The SEC rules on auditor independence as they relate to public companies include prohibitions or restrictions on services that may be provided by auditors to their audit clients and require that all services provided to a listed entity audit client, including its subsidiaries, be pre-approved by the client's audit committee. In accordance with those rules, the Audit Committee has approved, adopted and made effective a preapproval policy as part of the Audit Committee Charter. That policy requires that any proposed audit and permitted non-audit services be provided by the external auditors to Westport or its subsidiaries must receive prior approval from the Audit Committee. As a practical matter, the policy also contemplates that such proposals may be received and considered by the Audit Committee Chair (or such other member of the Audit Committee who may be delegated authority to approve audit and permitted non-audit services) for approval of the proposal on behalf of the Audit Committee, in which case the Audit Committee Chair will then inform the Audit Committee of any approvals granted at the next scheduled meeting.

**Item 16D. Exemptions from the Listing Standards for Audit Committees**

Not applicable.

**Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers**

Not applicable.

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**Item 16F. Change in Registrant's Certifying Accountant**

Not applicable.

**Item 16G. Corporate Governance**

As a foreign private issuer incorporated under the laws of Alberta, Canada and listed on the Nasdaq Stock Market ("Nasdaq"), the Company is permitted to follow Canadian corporate governance practices in lieu of certain corporate governance requirements otherwise applicable to U.S. domestic issuers listed on the Nasdaq, pursuant to Nasdaq Listing Rule 5615(a)(3). A description of the significant ways in which our governance practices differ from those followed by domestic companies pursuant to Rule 5600 of the Nasdaq Rules is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rule 5620(c) requires that each listed company provide for a quorum for any meeting of the holders of the listed company's common stock that is not less than 33 1/3% of the listed company's outstanding shares of common stock entitled to vote. The Company's bylaws provide for a quorum of at least two persons present in person and holding or representing by proxy not less than 25% of the shares entitled to vote at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rule 5605(d)(1)(D) requires that each listed company adopt a formal written compensation committee charter that specifies, among other things, the specific compensation committee responsibilities and authority set forth in Rule 5605(d)(3). The Company's Human Resources and Compensation Committee Charter does not specify the specific compensation committee responsibilities and authority set forth in Rule 5605(d)(3).

We may elect to take advantage of additional Canadian corporate governance practices in lieu of certain corporate governance requirements otherwise applicable to U.S. domestic issuers listed on the Nasdaq in the future.

We follow the corporate governance practices required by applicable Canadian federal and provincial corporate and securities laws, including National Instrument 58-101 - Disclosure of Corporate Governance Practices and National Policy 58-201 - Corporate Governance Guidelines.

**Item 16H. Mine Safety Disclosure**

Not applicable.

**Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

**Item 16J. Insider trading policies**

The Company has adopted an Insider Trading Policy to provide directors, officers and employees with guidelines regarding trading in securities of the Company. The rules and procedures outlined in the Insider Trading Policy are intended to prevent improper trading in securities of Westport and any other company in respect of which material non-public information is obtained by Westport and the improper communication of material non-public information regarding Westport or such other companies. The foregoing description of the Insider Trading Policy does not purport to be complete and is qualified in its entirety by the terms and conditions of the Insider Trading Policy, a copy of which is attached hereto as Exhibit 11.1 and is incorporated herein by reference.

**Item 16K. Cybersecurity**

The Company's Information Technology ("**IT**") function manages its cyber resilience efforts through a variety of relevant organizational functions. The Company's cybersecurity program includes the administrative, technical and organizational measures intended to protect the confidentiality, integrity, and availability of its information and systems. It is led by the head of IT, who has over 25 years of experience in information technology and operational systems at global manufacturing and operations-focused organizations. In carrying out its responsibilities, management also engages external cybersecurity and information security specialists to support the assessment, prevention, detection, mitigation, and remediation of cybersecurity risks and incidents.

The IT function's mandate includes defining the Company's cyber resilience framework, identifying and measuring risks, building the business continuity strategy and tactics, disaster recovery plans, capturing key business information security risks beyond IT and reporting any incidents. The head of IT provides regular updates to the Audit Committee with analysis,

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mitigation strategies and incident reporting being reported to the Board. In 2025, cybersecurity, information security, and artificial intelligence awareness training programs were completed by employees, focused on developing awareness of threats and how to recognize them. Working in concert with an information security partner, the Company has implemented global security structures and measures, with breach detection, prevention, event management and reporting.

During the first quarter of 2026, the Company identified a cybersecurity incident involving unauthorized access to certain information systems. Upon detection, the Company activated its incident response protocols, including containment measures, engagement of external cybersecurity advisors, and notification of senior management and the Audit Committee. The Company is undertaking remediation of the affected systems and implementing targeted enhancements to its cybersecurity controls and monitoring capabilities. The Company is also carrying out notification and regulatory reporting activities where required under applicable laws. As of the date of this Form 20-F, management believes the incident has not had a material impact on the Company, including its operations, business strategy, results of operations, or financial condition; however we may incur further costs and liabilities arising from this incident. Additionally, the Company has not identified risks from any other known cybersecurity threats that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.

The Board receives prompt and timely information from management on any cybersecurity or information security incident that may pose significant risk to our organization and continues to receive regular reports on the incident until its conclusion. In 2025, there were no reported incidents of information or cyber breaches, however the Company identified a cybersecurity incident during the first quarter of 2026, as described above. In addition, the Board receives management reports on key developments and incidents at the industry level and received cybersecurity and artificial intelligence educational sessions in 2025 to ensure members continue to remain informed about evolving trends.

**Part III**

**Item 17. Financial Statements**

Not applicable.

**Item 18. Financial Statements**

The audited consolidated financial statements as required under Item 18 are attached hereto starting on page F-1 of this annual report.

The consolidated financial statements of Cespira Canada Limited Partnership and Cespira Sweden AB required by Rule 3-09 of Regulation S-X are included as Exhibits 15.1 and 15.2 of this annual report, respectively.

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**Item 19. Exhibits**

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| | |
|:---|:---|
| **Exhibit<br>Number** | **Description of Document** |
| 1.1 | <u>[Articles of Incorporation of Westport Fuel Systems Inc., as currently in effect.](exhibit11-wfsxcompiledar.htm)</u> |
| 1.2 | <u>[Bylaws of Westport Fuel Systems Inc., as currently in effect.](exhibit12-wfsxbylawsa01.htm)</u> |
| 2.1 | <u>[Form of Debt Indenture (Incorporated by reference to Exhibit 7.1 to the Company's Registration Statement on Form F-10, filed with the SEC on April 14, 2023.)](https://www.sec.gov/Archives/edgar/data/1370416/000117184323002303/exh_71.htm)</u> |
| 2.2 | <u>[Description of Registered Securities](wprt-descriptionofsecuriti.htm)</u> |
| 4.1† | <u>[Unanimous Shareholders Agreement, effective as of June 3, 2024, by and among 1463861 B.C. Ltd., Westport Fuel Systems Canada Inc., and Volvo HPDI Holdings Inc., (Incorporated by reference to Exhibit 99.1 to the Company's Report on Form 6-K filed with the SEC on November 21, 2025).](https://www.sec.gov/Archives/edgar/data/1370416/000117184325007499/exh_991.htm)</u> |
| 4.2† | <u>[Investment Agreement, effective as of March 11, 2024, by and among Westport Fuel Systems Inc., Westport Fuel Systems Canada Inc., and Volvo Business Services International AB. (Incorporated by reference to Exhibit 99.2 to the Company's Report on Form 6-K filed with the SEC on November 21, 2025).](https://www.sec.gov/Archives/edgar/data/1370416/000117184325007499/exh_992.htm)</u> |
| 4.3† | <u>[Shareholders Agreement, effective as of June 3, 2024, by and among HPDI Technology AB, Westport Fuel Systems Canada Inc., and Volvo Business Services International AB (Incorporated by reference to Exhibit 99.3 to the Company's report on Form 6-K filed with the SEC on November 21, 2025).](https://www.sec.gov/Archives/edgar/data/1370416/000117184325007499/exh_993.htm)</u> |
| 4.4† | <u>[Amended and Restated Limited Partnership Agreement, effective as of June 3, 2024, by and among Westport Fuel Systems Canada Inc. as limited partner, Volvo HPDI Holding Inc., as limited partner, 1463861 B.C. Ltd. as general partner (Incorporated by reference to Exhibit 99.4 to the Company's Report on Form 6-K filed with the SEC on November 21, 2025)](https://www.sec.gov/Archives/edgar/data/1370416/000117184325007499/exh_994.htm)</u> |
| 4.5\* | <u>[Westport Fuel Systems Inc. Omnibus Incentive Plan (Incorporated by reference to Exhibit 99.1 to the Company's Registration Statement on Form S-8 filed with the SEC on September 18, 2020)](https://www.sec.gov/Archives/edgar/data/1370416/000117184320006518/exh_991.htm)</u> |
| 4.6 | <u>[Nomination Agreement, effective](westportfuelsystemsinc_2.htm)[as of](westportfuelsystemsinc_2.htm)[March 17, 2026, by and among Westport Innovations Inc., K&M Douglas Trust, James Douglas and Jean Douglas Irrevocable Descend](westportfuelsystemsinc_2.htm)[a](westportfuelsystemsinc_2.htm)[nts' Trust, Douglas Family Trust and James E. Douglas, III.](westportfuelsystemsinc_2.htm)</u> |
| 8.1 | <u>[List of Subsidiaries](exhibit81-listofsubsidiari.htm)</u> |
| 11.1 | <u>[Insider Trading Policy](insider-tradingxpolicyxn.htm)</u> |
| 12.1 | <u>[Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](a202520fexhibit121ceocert.htm)</u> |
| 12.2 | <u>[Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](a202520fexhibit122cfocert.htm)</u> |
| 13.1\*\* | <u>[Certificate of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](a202520fexhibit131ceocert.htm)</u> |
| 13.2\*\* | <u>[Certificate of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](a202520fexhibit132cfocert.htm)</u> |
| 15.1 | <u>[Cespira Canada LP's consolidated financial statements for the years ended December 31, 2025 and 2024](cespiracanadalpfinancial.htm)</u> |
| 15.2 | <u>[Cespira Sweden AB's consolidated financial statements for the years ended December 31, 2025 and 2024](cespiraswedenabfinancial.htm)</u> |
| 23.1 | <u>[Consent of KPMG LLP](a202520fex231kpmgconsent.htm)</u>  |
| 97.1 | <u>[Registrant's Policy for Recovery of Erroneously Awarded Compensation](westport-antixhedgingxan.htm)</u> |
| 101.SCH | Inline XBRL Taxonomy Extension Schema |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |
| 104 | Cover Page Interactive Data File - (formatted as Inline XBRL and contained in Exhibit) |

---

\* Indicates management contract or compensatory plan or arrangement.

\*\* Furnished herewith.

† Schedules and exhibits to this exhibit omitted pursuant to Instructions as to Exhibits to Form 20-F. The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request.

------

**Signatures**

The registrant hereby certifies that it meets all requirement for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | |
|:---|:---|
| **WESTPORT FUEL SYSTEMS INC.** | **WESTPORT FUEL SYSTEMS INC.** |
| By: | /s/ Daniel Sceli |
| Name: | Daniel Sceli |
| Title: | Chief Executive Officer |

---

Date: April 23, 2026

------

**Westport Fuel Systems Inc.**

**Index to Consolidated Financial Statements**

---

| | |
|:---|:---|
| | Page |
| <u>[Report of Independent Registered Public Accounting Firm (PCAOB ID:](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4910)</u> <u>85)</u> | F-2 |
| <u>[Consolidated Balance Sheet](#ic71a8f7b6c69453c9455b5fc9b95a5eb_13)[s](#ic71a8f7b6c69453c9455b5fc9b95a5eb_13)[as at December 31, 2025 and 2024](#ic71a8f7b6c69453c9455b5fc9b95a5eb_13)</u> | F-6 |
| <u>[Consolidated Statement](#ic71a8f7b6c69453c9455b5fc9b95a5eb_16)[s](#ic71a8f7b6c69453c9455b5fc9b95a5eb_16)[of Operations and Comprehensive Loss for the years ended December 31, 2025, 2024, and 2023](#ic71a8f7b6c69453c9455b5fc9b95a5eb_16)</u> | F-7 |
| <u>[Consolidated](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)[S](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)[tatement](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)[s](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)[of](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)[C](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)[hanges in](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)[E](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)[quity for the years ended December 31, 2025, 2024, and 2023](#ic71a8f7b6c69453c9455b5fc9b95a5eb_19)</u> | F-8 |
| <u>[Consolidated](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)[S](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)[tatement](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)[s](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)[of](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)[C](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)[ash](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)[F](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)[lows for the years ended December 31, 2025, 2024, and 2023](#ic71a8f7b6c69453c9455b5fc9b95a5eb_22)</u> | F-9 |
| <u>[Notes to the](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4250)[C](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4250)[onsolidated](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4250)[F](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4250)[inancial](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4250)[S](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4250)[tatements](#ic71a8f7b6c69453c9455b5fc9b95a5eb_4250)</u> | F-11 |

---

All financial statements schedules are omitted because they are not applicable or the required information is shown in the financial statement or the notes thereto.

Financial statements of 50% or less owned persons accounted for by the equity method have been included elsewhere in this annual report, refer to Item 19. Exhibits.

------

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors

Westport Fuel Systems Inc.:

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated balance sheets of Westport Fuel Systems Inc. (and subsidiaries) (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive loss, shareholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated April 23, 2026, expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.

*Going Concern* 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered recurring losses from operations and, based on the projected capital expenditures, debt servicing obligations, and operating requirements under the current business plan, is projecting insufficient cash flows that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

*Basis for Opinion*

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

------

*Critical Audit Matters*

Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ KPMG LLP

Chartered Professional Accountants

We have served as the Company's auditor since 2015.

Vancouver, Canada

April 23, 2026

------

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors

Westport Fuel Systems Inc.:

*Opinion on Internal Control Over Financial Reporting* 

We have audited Westport Fuel Systems, Inc.'s (and subsidiaries') (the Company) internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive loss, shareholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements), and our report dated April 23, 2026, expressed an unqualified opinion on those consolidated financial statements.

*Basis for Opinion* 

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

*Definition and Limitations of Internal Control Over Financial Reporting* 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

------

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Chartered Professional Accountants

Vancouver, Canada

April 23, 2026

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Consolidated Balance Sheets** |
| **(Expressed in thousands of United States dollars, except share amounts)** |
| **December 31, 2025 and 2024** |

---

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| Assets |  |  |
| Current assets: |  |  |
| Cash and cash equivalents (including restricted cash, note 3(c)) | $27158 | $14754 |
| Accounts receivable (note 6) | 10177 | 18738 |
| Inventories (note 7) | 3037 | 6668 |
| Prepaid expenses | 1182 | 1328 |
| Assets held for sale (note 5) |  | 128398 |
| **Total current assets** | $**41554** | $**169886** |
| Long-term investments (note 8) | 42714 | 36866 |
| Property, plant and equipment (note 9) | 5605 | 3120 |
| Operating lease right-of-use assets | 1756 | 823 |
| Other long-term assets (note 10) | 2380 | 1431 |
| Long-term assets held for sale (note 5) |  | 79495 |
| **Total assets** | $**94009** | $**291621** |
| Liabilities and Shareholders' Equity |  |  |
| Current liabilities: |  |  |
| Accounts payable and accrued liabilities (note 11) | $17933 | $19435 |
| Current portion of operating lease liabilities | 493 | 288 |
| Current portion of long-term debt (note 12) | 2924 | 3905 |
| Current portion of warranty liability | 199 | 277 |
| Current liabilities held for sale (note 5) |  | 84488 |
| **Total current liabilities** | $**21549** | $**108393** |
| Long-term operating lease liabilities | 1292 | 548 |
| Long-term debt (note 12) |  | 2932 |
| Warranty liability | 966 | 875 |
| Other long-term liabilities | 1389 | 1388 |
| Long-term liabilities held for sale (note 5) | $— | $40460 |
| **Total liabilities** | $**25196** | $**154596** |
| Shareholders' equity: |  |  |
| Share capital (note 13): |  |  |
| Unlimited common and preferred shares, no par value |  |  |
| 17,375,213 (2024 - 17,282,934) common shares issued and outstanding | $1246793 | $1245805 |
| Other equity instruments | 8968 | 9472 |
| Additional paid-in-capital | 11516 | 11516 |
| Accumulated deficit | (1157901) | (1096275) |
| Accumulated other comprehensive loss | (40563) | (33493) |
| **Total shareholders' equity** | $**68813** | $**137025** |
| **Total liabilities and shareholders' equity** | $**94009** | $**291621** |
| Commitments and contingencies (note 16) |  |  |
| Subsequent events (note 5) |  |  |

---

See accompanying notes to consolidated financial statements.

<u>Approved on behalf of the Board</u> <u>Brad Kotush</u> <u>Director</u>  <u>Daniel Sceli</u> <u>Director</u>

&nbsp;&nbsp;&nbsp;&nbsp;

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Consolidated Statements of Operations and Comprehensive Loss** |
| **(Expressed in thousands of United States dollars, except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| | **2025** | **2024** | **2023** |
| Revenue | $23318 | $40698 | $68154 |
| Cost of revenue | 20638 | 37855 | 67794 |
| Gross profit (loss) | 2680 | 2843 | 360 |
| Operating expenses: |  |  |  |
| Research and development | 5783 | 9532 | 12836 |
| General and administrative | 13957 | 20723 | 25106 |
| Sales and marketing | 1481 | 2709 | 5842 |
| Foreign exchange loss (gain) | (5365) | 6227 | 1040 |
| Depreciation and amortization (note 9) | 515 | 661 | 1153 |
| Loss on sale of assets |  | 703 |  |
| Impairment of long-lived assets (note 9) | 538 |  |  |
|  | $16909 | $40555 | $45977 |
| Loss from continuing operations | $(14229) | $(37712) | $(45617) |
| Loss from investments accounted for by the equity method (notes 8 and 17) | $(15845) | $(6715) | $— |
| Gain on deconsolidation |  | 15198 |  |
| Loss on sale of investment |  | (352) |  |
| Loss on extinguishment of royalty payable |  |  | (2909) |
| Interest on long-term debt and accretion of royalty payable | (613) | (1083) | (1724) |
| Impairment of long-term investment |  |  | (413) |
| Interest and other income, net of bank charges | 1259 | (88) | 2572 |
| Loss before income taxes | (29428) | (30752) | (48091) |
| Income tax expense (recovery) (note 14(a)): |  |  |  |
| Current | 143 | 481 | 344 |
| Deferred |  | 35 | (17) |
|  | $143 | $516 | $327 |
| Net loss from continuing operations | $(29571) | $(31268) | $(48418) |
| Net income (loss) from discontinued operations (note 5) | $(32055) | $9427 | $(1300) |
| Net loss for the year | $(61626) | $(21841) | $(49718) |
| Other comprehensive income (loss): |  |  |  |
| Cumulative translation adjustment | $4898 | $(2535) | $4473 |
| Reclassification of accumulated foreign currency translation on deconsolidation | (10070) |  |  |
| Ownership share of equity method investments' other comprehensive loss | (1898) | (113) |  |
|  | (7070) | (2648) | 4473 |
| Comprehensive loss | $(68696) | $(24489) | $(45245) |
| Loss per share: |  |  |  |
| From continuing operations - basic & diluted | $(1.71) | $(1.81) | $(2.82) |
| From discontinued operations - basic & diluted | $(1.85) | $0.55 | $(0.08) |
| Net loss per share - basic & diluted | $(3.56) | $(1.26) | $(2.90) |
| Weighted average common shares outstanding: |  |  |  |
| Basic and diluted | 17343595 | 17248090 | 17173016 |

---

See accompanying notes to consolidated financial statements.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Consolidated Statements of Shareholders' Equity** |
| **(Expressed in thousands of United States dollars, except share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common shares outstanding** | **Share capital** | **Other equity instruments** | **Additional paid-in capital** | **Accumulated deficit** | **Accumulated<br>other comprehensive loss** | **Total shareholder's equity** |
| **January 1, 2023** | **17130316** | $**1243272** | $**9212** | $**11516** | $**(1024716)** | $**(35318)** | $**203966** |
| Issuance of common shares on exercise of share units | 44186 | 1267 | (1267) |  |  |  |  |
| Stock-based compensation |  |  | 1727 |  |  |  | 1727 |
| Net loss for the year |  |  |  |  | (49718) |  | (49718) |
| Other comprehensive income |  |  |  |  |  | 4473 | 4473 |
| **December 31, 2023** | **17174502** | $**1244539** | $**9672** | $**11516** | $**(1074434)** | $**(30845)** | $**160448** |
| Issuance of common shares on exercise of share units | 108432 | 1266 | (1266) |  |  |  |  |
| Stock-based compensation |  |  | 1066 |  |  |  | 1066 |
| Net loss for the year |  |  |  |  | (21841) |  | (21841) |
| Other comprehensive loss |  |  |  |  |  | (2648) | (2648) |
| **December 31, 2024** | **17282934** | $**1245805** | $**9472** | $**11516** | $**(1096275)** | $**(33493)** | $**137025** |
| Issuance of common shares on exercise of share units | 92279 | 988 | (988) |  |  |  |  |
| Stock-based compensation |  |  | 484 |  |  |  | 484 |
| Net loss for the year |  |  |  |  | (61626) |  | (61626) |
| Other comprehensive loss |  |  |  |  |  | (7070) | (7070) |
| **December 31, 2025** | **17375213** | $**1246793** | $**8968** | $**11516** | $**(1157901)** | $**(40563)** | $**68813** |

---

See accompanying notes to consolidated financial statements.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Consolidated Statements of Cash Flows** |
| **(Expressed in thousands of United States dollars)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| | **2025** | **2024** | **2023** |
| **Operating activities:** |  |  |  |
| Net loss for the year from continuing operations | $(29571) | $(31268) | $(48418) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |  |
| Depreciation and amortization | $735 | $2183 | $5820 |
| Stock-based compensation expense | 808 | 766 | 1267 |
| Unrealized foreign exchange loss (gain) | (5365) | 6227 | 1040 |
| Deferred income tax expense (recovery) |  | 35 | (17) |
| Loss from investments accounted for by the equity method | 15845 | 6715 |  |
| Interest on long-term debt and accretion of royalty payable | 92 | 74 | 136 |
| Impairment of long-lived assets (note 9) | 538 |  |  |
| Change in inventory write-downs to net realizable value (note 7) | 403 | 1143 | 4714 |
| Loss on extinguishment of royalty payable |  |  | 2909 |
| Gain on deconsolidation |  | (15198) |  |
| Loss on sale of investment (note 8) |  | 352 |  |
| Net loss on sale of assets (notes 10) |  | 703 |  |
| Impairment of long-term investment |  |  | 413 |
| Change in bad debt expense | 233 | 288 | (500) |
| Net cash used before working capital changes | (16282) | (27980) | (32636) |
| Changes in working capital | $2038 | $22205 | $(7365) |
| **Net cash used in operating activities of continuing operations** | $(14244) | $(5775) | $(40001) |
| **Net cash (used in) provided by operating activities of discontinued operations** | $(862) | $13111 | $26810 |
| **Investing activities:** |  |  |  |
| Purchase of property, plant and equipment | $(2693) | $(3813) | $(6481) |
| Proceeds on sale of investments |  | 29994 |  |
| Proceeds from sale of operations, net of cash in disposed operations | 26034 |  |  |
| Proceeds received from holdback receivable (note 6) | 14067 |  |  |
| Capital contributions to investments accounted for by the equity method | (21654) | (9900) |  |
| **Net cash provided by (used in) investing activities of continuing operations** | 15754 | 16281 | (6481) |
| **Net cash used in investing activities of discontinued operations** | (3169) | (11815) | (8933) |
| **Financing activities:** |  |  |  |
| Drawings on operating lines of credit and long-term facilities | 5839 | 15537 | 35116 |
| Repayment of operating lines of credit and long-term facilities | (9836) | (34229) | (32324) |
| Payment of royalty payable |  |  | (8687) |
| **Net cash used in financing activities of continuing operations** | (3997) | (18692) | (5895) |
| **Net cash (used in) provided by financing activities of discontinued operations** | $(6168) | $(6518) | $3671 |
| Effect of foreign exchange on cash and cash equivalents | $2198 | $(3799) | $(502) |
| **Net decrease in cash and cash equivalents** | (10488) | (17207) | (31331) |
| Cash and cash equivalents, beginning of year (including restricted cash) | 37646 | 54853 | 86184 |
| **Cash and cash equivalents, end of year (including restricted cash)** | $27158 | $37646 | $54853 |
| Less: cash and cash equivalents from discontinued operations, end of year (including restricted cash) | $— | $22892 | $42631 |
| **Cash and cash equivalents from continuing operations, end of year (including restricted cash)** | $27158 | $14754 | $12222 |

---

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Consolidated Statements of Cash Flows (continued)** |
| **(Expressed in thousands of United States dollars)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

---

| | | | |
|:---|:---|:---|:---|
| Supplementary information: | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Interest paid | $1477 | $2721 | $2972 |
| Taxes paid, net of refunds | 1925 | 2108 | 2302 |
| Changes in working capital |  |  |  |
| &nbsp;&nbsp;Accounts receivable | $2268 | $37032 | $(6896) |
| &nbsp;&nbsp;Inventories | 3369 | (6) | 2766 |
| &nbsp;&nbsp;Prepaid expenses | 217 | (635) | (4006) |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | (3824) | (13057) | 3626 |
| &nbsp;&nbsp;Warranty liability | 8 | (1129) | (2855) |
|  | $2038 | $22205 | $(7365) |

---

See accompanying notes to consolidated financial statements.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

**1. Company organization and operations:** 

Westport Fuel Systems Inc. (the "Company") was incorporated under the Business Corporations Act (Alberta) on March 20, 1995. Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a supplier of affordable, alternative fuel, low-emissions transportation technologies, the Company designs, manufactures, and supplies advanced components and systems that enable the transition from traditional fuels to alternative energy solutions. The Company's technologies support a wide range of alternative fuels – including natural gas, renewable natural gas, and hydrogen – enabling OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way.

**2. Liquidity and going concern:** 

For year ended December 31, 2025, the Company reported an operating loss from continuing operations of $14,229. The Company continues to sustain operating losses and to use cash to support its business activities. As at December 31, 2025, the Company had cash and cash equivalents of $27,158 and an outstanding term loan, net of deferred financing fees, with Export Development Canada ("EDC") of $2,924. The Company has a minimum cash covenant under the term loan of $15,000. If the Company's cash and cash equivalents fall below the minimum cash requirement, the Company may be required to repay the outstanding amount of the term loan.

On July 29, 2025, the Company closed the sale of the Light-Duty segment to a wholly-owned investment vehicle of Heliaca Investments (the "Purchaser"), a Netherlands based investment firm supported by Ramphastos Investments Management B.V., a Dutch venture capital and private equity firm for total consideration of $59,975 (€51,424) (note 5).

On September 29, 2025, the Company filed a final short form base shelf prospectus (the "Shelf Prospectus") with the relevant Canadian securities regulatory authorities allowing the Company to offer up to US $100,000 of common shares, preferred shares, subscription receipts, warrants, debt securities, or units, or any combination thereof during the 25-month period that the Shelf Prospectus will be effective.

In connection with preparing consolidated financial statements for each annual and interim reporting period, the Company is required to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements are issued. Substantial doubt exists when conditions and events, considered in aggregate, indicate that it is probable a company will be unable to meet its obligations as they become due within one year after the date the consolidated financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management's plans and actions that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company's ability to continue as a going concern. The mitigating effect of management's plans, however, is only considered if both: (1) it is probable the plans will be effectively implemented within one year after the date the financial statements are issued; and (2) it is probable the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements are issued.

Based on the Company's projected capital expenditures, debt servicing obligations and operating requirements under its current business plan, management is projecting that its existing cash and cash equivalents will not be sufficient to fund its operations through the next twelve months from the date of the issuance of these consolidated financial statements. These conditions raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these consolidated financial statements are issued.

Management plans to improve the Company's liquidity position by raising funds from the public markets, borrowing debt and other financing alternatives. These plans are not final and are subject to market and other conditions not in the Company's control. As such, there can be no assurance that the Company will be successful in obtaining sufficient funding. Accordingly, management has concluded under the accounting standards that these plans do not alleviate the substantial doubt about the Company's ability to continue as a going concern.

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| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

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These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that may be necessary if the Company were unable to continue as a going concern.

**3. Significant accounting policies:** 

(a)&nbsp;&nbsp;&nbsp;&nbsp;Basis of presentation:

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated on consolidation.

These consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). In the statement of operations and comprehensive loss, certain prior period figures have been adjusted to conform to current period presentation.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation:

The Company's functional currency is the Canadian dollar and its reporting currency for its consolidated financial statement presentation is the United States dollar ("U.S. Dollar"). The functional currencies for the Company's significant subsidiaries include the following: U.S. Dollar, Canadian dollar, Euro, and Chinese Renminbi ("RMB"). The Company translates assets and liabilities of non-U.S. dollar functional currency operations using the period end exchange rates, shareholders' equity balances using the weighted average of historical exchange rates, and revenues and expenses using the monthly average rate for the period with the resulting exchange differences recognized in other comprehensive income (loss).

Transactions that are denominated in currencies other than the functional currencies of the Company's or its subsidiaries' operations are translated at the rates in effect on the date of the transaction. Foreign currency denominated monetary assets and liabilities are translated to the applicable functional currency at the exchange rates in effect on the balance sheet date. Non-monetary assets and liabilities are translated at the historical exchange rate. All foreign exchange gains and losses are recognized in the condensed consolidated interim statements of operations, except for the translation gains and losses arising from available-for-sale instruments, which are recorded through other comprehensive income (loss) until realized through disposal or impairment.

Except as otherwise noted, all amounts in these financial statements are presented in U.S. dollars. For the years presented, the Company used the following exchange rates:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year-end exchange rate as at:** | **Year-end exchange rate as at:** | **Year-end exchange rate as at:** | **Average for the year ended:** | **Average for the year ended:** | **Average for the year ended:** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| Canadian dollar | $1.37 | $1.44 | $1.32 | $1.40 | $1.37 | $1.35 |
| Euro | $0.85 | $0.96 | $0.90 | $0.89 | $0.92 | $0.92 |
| RMB | $6.99 | $7.30 | $7.10 | $7.19 | $7.20 | $7.08 |

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(c)&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents (including restricted cash):

Cash and cash equivalents include cash on hand, term deposits, banker acceptances and guaranteed investment certificates with maturities of ninety days or less when acquired. Cash and cash equivalents at December 31, 2025 include restricted cash of $363 (2024 - $406; 2023 - $103). Restricted cash at December 31, 2025, 2024, and 2023 is related to cash used to secure a letter of credit.

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|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

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(d)&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net:

The accounts receivable balance reflects invoiced and accrued revenue and is presented net of an allowance for credit losses. The Company expects most of its accounts receivable balances to continue to come from large customers as it supplies the majority of its products and services through distributors and OEMs. The Company establishes current expected credit losses ("CECL") for pools of assets with similar risk characteristics by evaluating historical levels of credit losses, current economic conditions that may affect a customer's ability to pay, and creditworthiness of significant customers. When specific customers are identified as no longer sharing the same risk profile as their current pool, they are removed from the pool and evaluated separately. The Company, in the normal course of business, monitors the financial condition of its customers and reviews the credit history of each new customer. When the Company becomes aware of a specific customer's inability to meet its financial obligations to the Company (such as in the case of bankruptcy filings or material deterioration in the customer's operating results or financial position, and payment experiences), the Company records a specific credit loss provision to reduce the customer's related accounts receivable to its estimated net realizable value. If circumstances related to specific customers change, the Company's estimates of the recoverability of accounts receivable balances could be further adjusted.

(e)&nbsp;&nbsp;&nbsp;&nbsp;Inventories:

The Company's inventories consist of the Company's fuel system products (finished goods), work-in-progress, purchased parts and materials. Inventories are recorded at the lower of cost and net realizable value. Cost is determined based on weighted average costing method. The cost of fuel system product inventories, assembled parts and work-in-progress includes materials, labour and production overhead, including depreciation. The Company records inventory write-downs based on an analysis of excess and obsolete inventories determined primarily by future demand forecasts. In addition, the Company records a liability for firm, noncancellable, and unconditional purchase commitments with manufacturers for quantities in excess of the Company's future demand forecast consistent with its valuation of excess and obsolete inventory.

(f)&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment:

Property, plant and equipment are stated at cost. Depreciation is provided for as follows:

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| | | |
|:---|:---|:---|
| **Assets** | **Basis** | **Rate** |
| Computer equipment & software | Straight-line | 3 years |
| Furniture and fixtures | Straight-line | 5 years |
| Machinery and equipment | Straight-line | 5 - 10 years |
| Leasehold improvements | Straight-line | Shorter of lease term or estimated useful life |

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Depreciation expense on machinery and equipment used in the production and manufacturing process is included in cost of revenue. All other depreciation is included in depreciation and amortization expense in the consolidated statements of operations and comprehensive loss.

(g)&nbsp;&nbsp;&nbsp;&nbsp;Long-term investments and impairment:

The Company accounts for investments in which it has significant influence, including variable interest entities ("VIEs") for which the Company is not the primary beneficiary, using the equity method of accounting. Under the equity method, the Company recognizes its share of income or loss from equity accounted investees in the statement of operations with a corresponding change in long-term investments. Any additional capital contributions to investees are capitalized and any dividends paid or payable are credited against long-term investments.

The Company identified Cespira Canada LP and Cespira Sweden AB as VIEs, as the entities are dependent on funding from their owners. The funding and ownership interests of the entities are split on a 55/45 basis between the owners of the VIEs. The voting rights and power to exercise control is shared equally on a 50/50 basis between the owners of the VIEs.

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|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

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Therefore, the Company has determined that it is not the primary beneficiary of the VIEs. The Company's maximum exposure to loss are its investments in Cespira Canada LP and Cespira Sweden AB and the current outstanding accounts receivables balances.

The Company evaluates its long-term investments for impairment when an investee has recognized a series of operating losses or recognizes an impairment loss in its financial statements. In such an event, the Company measures the fair value of the investee against its carrying amount. The Company estimates the fair value of its long-term investments under the equity method using the expected future cash flows discounted at a rate commensurate with the risks of the investee.

If the fair value is lower than carrying amount, the Company will consider whether the loss is other than temporary. Factors considered when evaluating whether a loss is other than temporary include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the length of time and extent to which the fair value of the investee has been less than its carrying amount

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the investee's financial condition and near term prospects, including recent operating losses or specific events that may negatively influence its future earnings potential; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for an anticipated recovery in fair value.

When the Company concludes the loss is other than temporary, it records an impairment loss against the investment's carrying amount and reports the impairment loss in the Company's consolidated statement of operations and comprehensive loss.

(h)&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities:

Accounts payable and accrued liabilities, short-term debt and long-term debt are measured at amortized cost. Transaction costs relating to long-term debt are netted against long-term debt and are amortized using the effective interest rate method.

(i)&nbsp;&nbsp;&nbsp;&nbsp;Research and development costs:

Research and development costs are expensed as incurred and are recorded net of funding received or receivable.

(j)&nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets:

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If such conditions exist, assets are considered impaired if the sum of the undiscounted expected future cash flows expected to result from the use and eventual disposition of an asset is less than its carrying amount. An impairment loss is measured at the amount by which the carrying amount of the asset exceeds its fair value. When quoted market prices are not available, the Company uses the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset as an estimate of fair value.

(k)&nbsp;&nbsp;&nbsp;&nbsp;Warranty liability:

Estimated warranty costs are recognized at the time the Company sells its products and are included in cost of revenue. The Company provides warranty coverage on products sold from the date the products are put into service by customers. Warranty liability represents the Company's best estimate of warranty costs expected to be incurred during the warranty period. Furthermore, the current portion of warranty liability represents the Company's best estimate of the costs to be incurred in the next twelve-month period. The Company uses historical failure rates and costs to repair defective products to estimate the warranty liability. New product launches require a greater use of judgment in developing estimates until claims experience becomes available. Product specific experience is typically available four or five quarters after product launch, with a clear experience trend not evident until eight to twelve quarters after launch. The Company records warranty expense for new products using historical experience from previous generations in the first year, a blend of actual product

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|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

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and historical experience in the second year and product specific experience thereafter. The amount payable by the Company and the timing will depend on actual failure rates and cost to repair failures of its products.

(m)&nbsp;&nbsp;&nbsp;&nbsp;Revenue recognition:

The Company generates revenues primarily from product sales. Product revenues are derived from standard product sales contracts and purchase orders from customers. The Company recognizes revenue when a customer obtains control of the goods. Determining the timing of the transfer of control, at a point in time or over time, requires judgment. On standard product sales contracts, revenues are recognized when customers obtain control of the product, that is when transfer of title and risks and rewards of ownership of goods have passed and when obligation to pay is considered certain. Invoices are generated and revenue is recognized at that point in time. Provisions for warranties are made at the time of sale. Service revenue is recognized over time as performance obligations are satisfied.

(n)&nbsp;&nbsp;&nbsp;&nbsp;Income taxes:

The Company accounts for income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are determined based on the temporary differences between the accounting basis and tax basis of the assets and liabilities and for loss carry-forwards, tax credits and other tax attributes, using the enacted tax rates in effect for the years in which the differences are expected to reverse. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company recognizes deferred income tax assets to the extent the assets are more-likely-than-not to be realized. In making such a determination, the Company considers all available positive and negative evidence including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If it is determined that, based on all available evidence, it is more-likely-than-not that some or all of the deferred income tax assets will not be realized, a valuation allowance is provided to reduce the deferred income tax assets.

The Company uses a two-step process to recognize and measure the income tax benefit of uncertain tax positions taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is recognized if it is more-likely-than-not that the position will be sustained upon examination by a tax authority based solely on the technical merits of the position. A tax benefit that meets the more-likely-than-not recognition threshold is measured as the largest amount that is greater than 50% likely to be realized upon settlement with the tax authority. To the extent a full benefit is not expected to be realized, an income tax liability is established. Any change in judgment related to the expected resolution of an uncertain tax position is recognized in the year of such a change.

Interest and penalties related to income taxes are included as a component of income tax expense.

(o)&nbsp;&nbsp;&nbsp;&nbsp;Leases:

The Company determines if an arrangement is a lease or contains a lease at inception. Operating leases with lease terms greater than 12 months are included in current and non-current assets, current and non-current liabilities in the consolidated balance sheet. Assets under finance leases are included in property, plant and equipment and the related lease liabilities in current and non-current liabilities in the consolidated balance sheets.

Operating lease and finance lease right-of-use ("ROU") assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As the rate implicit in the lease is not readily determinable for the Company's operating leases, an incremental borrowing rate is generally used to determine the present value of future lease payments. The incremental borrowing rate for each lease is based on the Company's estimated borrowing rate over a similar term to that of the lease payments, adjusted for various factors including collateralization, location and currency.

The operating lease expenses are recognized on a straight-line basis over the lease term and included in cost of revenue and operating expenses. Short-term leases, which have an initial term of 12 months or less, are not recorded in the consolidated balance sheets.

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|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

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(p)&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation:

The Company measures stock-based awards at fair value on the date of the grant and expense the awards over the requisite service period of employees or consultants. The fair value of stock options is determined using the fair market value at the time of grant. The fair value of restricted stock units ("RSUs") and Deferred Share Units ("DSUs") are determined using the share price of the Company at the date of grant. The fair value of performance based restricted stock units ("PSUs") is determined using the Monte Carlo Simulation Model. Stock-based compensation expense related to stock option awards is recognized over the requisite service period on a graded vesting basis. Forfeitures are accounted for as they occur. Stock-based awards are either equity settled or cash settled. Cash-settled awards are recorded as a liability based on the Company's share price on the date of grant and remeasured at the end of each reporting period over the vesting term.

The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, the Company's performance and related tax impacts.

(q)&nbsp;&nbsp;&nbsp;&nbsp;Earnings (loss) per common share:

Basic earnings or loss per share includes no potential dilution and is computed by dividing the earnings or loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings or loss per share reflect the potential dilution of securities that could share in the earnings or loss of our Company. Dilutive securities are excluded from the calculation of our diluted weighted average common shares outstanding if their effect would be anti-dilutive based on the treasury stock method or due to a net loss from continuing operations. Common Shares that have not been released under the Company's stock based plan or are being held in trust for purposes of the Company's restricted stock unit program have been excluded from the calculation of basic earnings per share.

(r)&nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration:

The Company may enter into contingent consideration arrangements whereby a buyer pays the seller additional consideration after transaction close upon the achievement of certain milestones, performance-based metrics, or other objectives as agreed to per the terms of the related agreement.

The Company accounts for contingent considerations that are not identified as derivatives using the loss recovery approach. The Company does not recognize any contingent receivable at inception and will recognize a contingent gain when such gain is realized or realizable.

(s)&nbsp;&nbsp;&nbsp;&nbsp;Held-for-sale disposal group and discontinued operations:

The Company classifies a component of an entity as a held-for-sale disposal group when it has been disposed of during the period, or it has met all of the held-for-sale criteria under Topic 205 - Presentation of Financial Statements at the balance sheet reporting date. A held-for-sale disposal group is measured at the lower of its carrying amount and fair value less cost to sell. If the fair value less cost to sell is lower than its carrying amount, a loss is recognized to write down the carrying amount of the disposal group as a whole.

After a disposal group has been classified as held-for-sale, management may decide to reverse its plan to divest, or circumstances may change so that the disposal group no longer meets the held-for-sale criteria. In such instances, the Company would reclassify the disposal group's assets and liabilities on the balance sheet as held-and-used and remeasured on the date of reclassification.

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|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

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**4. New accounting pronouncements**

New accounting standard adopted in 2025:

ASU 2023-09 - Income Taxes (Topic 740): Improvement to Income Tax Disclosures

The ASU amends the rules on income tax disclosures by modifying or eliminating certain existing income tax disclosure requirements in addition to establishing new requirements. The amendments address investor requests for more transparency about income taxes, including jurisdictional information, by requiring consistent categories and greater disaggregation of information. The ASU's two primary amendments relate to the rate reconciliation and income taxes paid annual disclosures.

Reconciling items presented in the rate reconciliation are in dollar amounts and percentages, and are disaggregated into specified categories with certain reconciling items further broken out by nature and/or jurisdiction using a 5% threshold of domestic federal taxes. Income taxes paid are disaggregated between federal, provincial/territorial, and foreign taxing jurisdictions using a 5% threshold of total income taxes paid net of refunds received.

The ASU is effective for annual periods beginning after December 15, 2024. The Company adopted this standard prospectively in the fourth quarter of 2025 with an effective date of January 1, 2025 and has included the disaggregation of rate reconciliation items and income tax payments by specified categories, nature and/or jurisdiction as described within note 14 - Income taxes.

Upcoming accounting standards not yet adopted in 2025:

ASU 2024-03 - Disaggregation of Income Statement Expenses (Subtopic 202-40)

The ASU aims to provide stakeholders a clearer understanding of an entity's expenses and enhance their ability to assess performance, forecast expenses and evaluate the entity's potential for future cash flows. The ASU amends the rules on income statement expense disclosures and requires public business entities to disaggregate and disclose, in tabular format in the notes to financial statements, specified categories of expenses contained within certain income statement expense line items; to integrate certain amounts that were already required to be disclosed under current GAAP with the new disaggregation requirements and to qualitatively disclose descriptions of the amounts remaining that were not separately disaggregated. The ASU also requires public business entities to disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of those selling expenses. This ASU does not change or remove the current disclosure requirements of expense line items on the face of the Consolidated Statements of Income.

The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU should be applied either prospectively to Consolidated Financial Statements issued for reporting periods following the effective date, or retrospectively to any or all prior periods presented in the Consolidated Financial Statements. While this guidance may have an impact on the disclosures, the Company does not expect this guidance to have a material impact on its financial position, operations, and cash flows.

The Company has evaluated other recently issued ASU's effective on or after December 31, 2025 and does not expect their adoption to have a material impact on its consolidated financial statements.

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|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

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**5. Discontinued operations**

On May 15, 2025, shareholders approved management's plan to sell the Light-Duty segment in accordance with the terms of the sale and purchase agreement ("SPA") dated March 30, 2025. On July 14, 2025, the Company entered into a short-term loan with the Purchaser for $5,839 (€5,000). The loan was subsequently repaid on July 29, 2025.

On July 29, 2025, the Company closed the sale of its Light-Duty segment to the Purchaser for consideration of $59,975 (€51,424). The Company recorded a $37,313 loss on disposal of the operations in respect of the sale. The Company received proceeds of $50,763 (€43,424) from the Purchaser in cash and other consideration. The Company expects to receive a further $9,391 (€8,000) from proceeds held in escrow, which are included in a holdback receivable (note 6) and other long-term assets (note 10). The proceeds held in escrow will be released to the Company in three tranches by early 2026, early 2027 and mid-year 2027. Purchase price adjustments may impact the final proceeds received from the Purchaser pending satisfaction of certain general representations and warranties provided by the Company that are customary in nature. Subsequent to year-end, the Company received $6,493 (€5,500) for the first of three tranches.

Further, up to $3,790 (€3,250) in potential earnouts will be payable to the Company if certain conditions are achieved in accordance with the terms and conditions of the sale and purchase agreement.

Major assets and liabilities of the discontinued operations were as follows:

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| | | |
|:---|:---|:---|
| | July 29, 2025 | December 31, 2024 |
| Cash | $21112 | $22892 |
| Accounts receivable | 58874 | 54316 |
| Inventories | 55991 | 46858 |
| Prepaid expenses | 14610 | 4332 |
|  | 150587 | 128398 |
| Long-term investments | 3454 | 2866 |
| Property, plant, and equipment | 43798 | 38836 |
| Operating lease right-of-use asset | 20964 | 18196 |
| Intangible assets | 5054 | 5184 |
| Deferred income tax assets | 9990 | 9695 |
| Goodwill | 2957 | 2876 |
| Other long-term assets | 1990 | 1842 |
|  | 88207 | 79495 |
| Total assets classified as held for sale | $238794 | $207893 |
| Accounts payable and accrued liabilities | $84405 | $68688 |
| Current portion of operating lease liabilities | 2414 | 2336 |
| Current portion of long-term debt | 11067 | 10755 |
| Current portion of warranty liabilities | 3329 | 2709 |
|  | 101215 | 84488 |
| Long-term operating lease liabilities | 18691 | 15885 |
| Long-term debt | 13513 | 16135 |
| Warranty liabilities | 1874 | 1456 |
| Deferred income tax liabilities | 1971 | 4029 |
| Other long-term liabilities | 3032 | 2955 |
|  | 39081 | 40460 |
| Total liabilities classified as held for sale | $140296 | $124948 |

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|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

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The period ended July 29, 2025 only included activity prior to the disposal of the operations. Revenue and expenses of the discontinued operations were as follows:

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| | | | |
|:---|:---|:---|:---|
| | Period ended July 29, | Years ended December 31, | Years ended December 31, |
| | 2025 | 2024 | 2023 |
| Revenue | $160004 | $261601 | $263645 |
| Cost of revenue | 126861 | 206853 | 215067 |
| Gross profit | 33143 | 54748 | 48578 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;Research and development | 6763 | 12055 | 13166 |
| &nbsp;&nbsp;General and administrative | 8313 | 16955 | 19128 |
| &nbsp;&nbsp;Sales and marketing | 6006 | 9967 | 10436 |
| &nbsp;&nbsp;Foreign exchange loss | 2166 | 21 | 2935 |
| &nbsp;&nbsp;Depreciation and amortization | 1509 | 2707 | 3145 |
| &nbsp;&nbsp;Loss on sale of assets |  |  | 32 |
|  | 24757 | 41705 | 48842 |
| Income (loss) from discontinued operations | 8386 | 13043 | (264) |
| Income from investment accounted for by the equity method | 591 | 1313 | 779 |
| Loss on disposal of operations | (37313) |  |  |
| Impairment of long-lived assets | (664) |  |  |
| Interest on long-term debt | (930) | (1714) | (1257) |
| Interest and other income, net of bank charges | 429 | 1248 | 117 |
| Income (loss) from discontinued operations before income tax | (29501) | 13890 | (625) |
| Income tax expense | 2554 | 4463 | 675 |
| Net income (loss) from discontinued operations | $(32055) | $9427 | $(1300) |

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**6. Accounts receivable:**

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| Customer trade receivables | $2675 | $2513 |
| Holdback receivable | 5811 | 10737 |
| Other receivables | 2032 | 887 |
| Due from related parties (note 15) | 274 | 4973 |
| Allowance for credit losses | (615) | (372) |
|  | $10177 | $18738 |

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In 2022, a holdback receivable was recorded as part of the sale of the Company's interest in Cummins Westport Inc. to Cummins Inc. ("Cummins"). The holdback was retained by Cummins for a term of three-years to satisfy any extended warranty obligations in excess of the recorded extended warranty obligation. Unused amounts were repaid to the Company at the end of the three-year term. In March 2025, the Company collected $11,365 from Cummins related to the holdback receivable, including interest accrued.

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| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

A holdback receivable was recorded as part of the sale of the Light-Duty segment. The holdback is consideration held in escrow pending satisfaction of certain general representations and warranties provided to the Purchaser. The Company provided for estimated losses on the holdback receivable in loss on disposal of operations. In October 2025, the Company collected $3,617 (€3,000) related to the holdback receivable held in escrow.

**7. Inventories:**

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| Purchased parts & materials | $2034 | $5463 |
| Work-in-progress | 199 |  |
| Finished goods | 804 | 1205 |
|  | $3037 | $6668 |

---

During the year ended December 31, 2025, the Company recorded write-downs to net realizable value of $403 (2024 - $1,143 and year ended 2023 - $4,714) due to slow-moving and obsolete inventory. For the year ended December 31, 2025, inventory write-downs of $232 were allocated to purchased parts & materials and $171 as a result of a development contract which will not be commercialized.

**8. Long-term investments**:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| Cespira Canada LP (a) | $19385 | $25494 |
| Cespira Sweden AB (a) | 23329 | 11225 |
| Other equity accounted investees |  | 147 |
|  | $42714 | $36866 |

---

(a) &nbsp;&nbsp;&nbsp;&nbsp;Cespira:

The Company entered into a joint venture agreement with Volvo Group ("Volvo") and contributed certain net assets of its former HPDI business to a newly formed joint venture ("Cespira"), consisting of two legal entities, Cespira Canada LP and Cespira Sweden AB, in which the Company retained a 55% non-controlling interest. Volvo acquired the remaining 45% interest in Cespira for cash consideration of $27,328. Cespira is jointly controlled by both parties. The Company's former HPDI business continues to operate through the joint venture. The Company made an initial capital contribution of $21,654 in Cespira to fund its operations. For the year ended December 31, 2025, the Company recognized its share of Cespira's losses of $15,845, as a loss from investments accounted for by the equity method (December 31, 2024 - $6,715 loss).

The Company acknowledges that during the initial phase of Cespira's business plan, it may require additional funding from its owners from time to time. If either owner is unable to fund Cespira when funding is requested in accordance with the joint venture agreement, a convertible loan may be extended from the other owner to fund all or a part of the funding requested. The convertible loan may settle in ownership interest in Cespira in the event that the borrowing party is unable to fulfill the repayment terms.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

The carrying amount and maximum exposure to losses relating to Cespira were as follows:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** |
| | **Carrying amount** | **Maximum exposure to loss** |
| Equity method investment in Cespira | $42714 | $42714 |
| Accounts receivable due from Cespira | 274 | 274 |

---

Combined assets, liabilities, revenue and expenses of Cespira, are as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $14869 | $10305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 18718 | 21000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 11566 | 7414 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 1157 | 1471 |
|  | 46310 | 40190 |
| Property, plant and equipment and right-of-use assets | 46352 | 40901 |
| Intangible assets and goodwill | 7516 | 7087 |
| Other long-term assets | 17139 | 563 |
| Total assets | $117317 | $88741 |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $20810 | $16527 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of provisions | 2519 | 2128 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 6266 | 1910 |
|  | 29595 | 20565 |
| Long-term portion of provisions | 1618 | 532 |
| Onerous contract provision | 2890 |  |
| Other long-term liabilities |  | 569 |
| Total liabilities | $34103 | $21666 |
| Net assets | $83214 | $67075 |

---

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

---

| | | |
|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** |
| | **2025** | **2024** |
| Product revenue | $62356 | $32919 |
| Service revenue | 15087 | 10166 |
|  | 77443 | 43085 |
| Cost of revenue | 80944 | 42634 |
| Gross profit (loss) | (3501) | 451 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 5641 | 4715 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 11903 | 5555 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 1292 | 973 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss | 1516 | (421) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 3283 | 1720 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets | 413 |  |
|  | 24048 | 12542 |
| Loss from operations | (27549) | (12091) |
| Interest income (expense), net of bank charges | (4) | 202 |
| Loss before income taxes | (27553) | (11889) |
| Income tax (recovery) expense | 1725 | 342 |
| Net loss | $(29278) | $(12231) |

---

**9. Property, plant and equipment:**

---

| | | | |
|:---|:---|:---|:---|
| **December 31, 2025** | **Cost** | **Accumulated Depreciation** | **Net Book Value** |
| Computer equipment and software | 3598 | 2855 | 743 |
| Furniture and fixtures | 119 | 90 | 29 |
| Machinery and equipment | 13584 | 9505 | 4079 |
| Leasehold improvements | 4864 | 4110 | 754 |
|  | $22165 | $16560 | $5605 |

---

---

| | | | |
|:---|:---|:---|:---|
| **December 31, 2024** | **Cost** | **Accumulated Depreciation** | **Net Book Value** |
| Computer equipment and software | 2945 | 2575 | 370 |
| Furniture and fixtures | 86 | 85 | 1 |
| Machinery and equipment | 10239 | 7713 | 2526 |
| Leasehold improvements | 4064 | 3841 | 223 |
|  | $17334 | $14214 | $3120 |

---

Total depreciation expense for the year ended December 31, 2025 was $735 (year ended December 31, 2024 - $2,183 and year ended December 31, 2023 - $5,820). The amount of depreciation expense included in cost of revenue for the year ended December 31, 2025 was $220 (year ended December 31, 2024 - $1,522 and year ended December 31, 2023 - $4,667). For the year ended December 31, 2025, an impairment loss of $538 was recognized as a result of hydrogen development program cancellation.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

**10. Other long-term assets:**

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| Other assets | $345 | $1124 |
| Prepaid capital asset deposits |  | 242 |
| Property lease deposits | 100 | 65 |
| Holdback receivable (note 6) | 1935 |  |
| Total | $2380 | $1431 |

---

**11. Accounts payable and accrued liabilities:**

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| Trade accounts payable | $11147 | $11397 |
| Accrued payroll | 2704 | 2555 |
| Taxes payable | 3533 | 3813 |
| Deferred revenue | 471 | 533 |
| Due to related parties (note 15) | $78 | $1137 |
|  | $17933 | $19435 |

---

During the year ended December 31, 2025, the Company recognized $62 of contract liabilities which were included in the deferred revenue balance as at the December 31, 2024 as revenue in the consolidated statement of operations and comprehensive loss (December 31, 2024 - $4; December 31, 2023 - $900).

**12. Long-term debt:** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **December 31,** | **December 31,** |
| **Term loan** | **Maturity date** | **Interest rate** | **2025** | **2024** |
| EDC | September 15, 2026 | U.S. Prime Rate plus 2.01% | $2924 | $6837 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion |  |  | 2924 | 3905 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term portion |  |  |  | 2932 |
| Term loan facilities, net of debt issuance costs | Term loan facilities, net of debt issuance costs |  | $2924 | $6837 |

---

On December 13, 2021, the credit facility and non-revolving term facility with EDC were refinanced into one $20,000 term loan, with quarterly principal and interest payments. On May 31, 2024, the Company amended the loan agreement with EDC to permit the asset transfer of certain property, plant, and equipment previously pledged to the loan into Cespira, removal of Fuel System Solutions Inc. as a borrower, added Westport Fuel Systems Canada Inc. as a borrower and modified the securities pledged to the loan. The loan is secured by share pledges in the Company's equity interest in Cespira. Throughout the term of certain of these financing arrangements, the Company is required to meet certain financial and non-financial covenants. As at December 31, 2025, the Company is in compliance with all covenants under the financing arrangements.

**13. Share capital, stock options and other stock-based plans:** 

On June 1, 2023, the Company completed a consolidation of its issued and outstanding common shares on the basis of one new post-consolidation common share for every ten existing pre-consolidation common shares. No fractional common

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

shares were issued and any fractional shares were rounded down to the nearest whole common shares. The number of outstanding common shares and share units issued have been retroactively adjusted for all periods presented.

During the year ended December 31, 2025, the Company issued 92,279 common shares, net of cancellations, upon exercises of share units (year ended December 31, 2024 – 108,432 common shares; December 31, 2023 - 44,186). The Company issues shares from treasury to satisfy share unit exercises.

(a)&nbsp;&nbsp;&nbsp;&nbsp;Share Units ("Units"):

The value assigned to issued Units and the amounts accrued are recorded as other equity instruments. As Units are exercised or vested and the underlying shares are issued from treasury of the Company, the value is reclassified to share capital.

The Westport Omnibus Plan aims to advance the Company's interests by encouraging employees, consultants and non-employee directors to receive equity-based compensation and incentives. The plan outlines the stock-based options types, eligibility and vesting terms.

A continuity of the Units issued under the Westport Omnibus Plan are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** |
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| | **Number of<br>Units** | **Weighted<br>average<br>grant<br>date fair<br>value<br>(CDN $)** | **Number of<br>Units** | **Weighted<br>average<br>grant<br>date fair<br>value<br>(CDN $)** | **Number of<br>Units** | **Weighted<br>average<br>grant<br>date fair<br>value<br>(CDN $)** |
| Outstanding, beginning of year | 524322 | $11.75 | 478643 | $15.68 | $317432 | $24.15 |
| Granted | 427691 | 3.28 | 224050 | 8.23 | 435128 | 13.78 |
| Vested and exercised | (92279) | 6.28 | (108432) | 15.85 | (44186) | 38.76 |
| Forfeited/expired | (146673) | 11.83 | (69939) | 20.95 | (229731) | 19.26 |
| **Outstanding, end of year** | **713061** | $**11.51** | **524322** | $**11.75** | $**478643** | $**15.68** |
| Units outstanding and exercisable, end of year | 491 | $31.07 | 310 | $37.2 | $— | $— |

---

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | **December 31,** |
| | **2025** | **2024** | **2023** |
| Restricted Share Units ("RSUs") |  | 104215 | 147557 |
| Performance Share Units ("PSUs") | 290540 |  | 185365 |
| Deferred Share Units ("DSUs") | 137151 | 119835 | 102206 |
| **Total units granted during the year** | **427691** | **224050** | **435128** |

---

RSUs typically vest over a three year period so the actual value received by the individual depends on the share price on the day such RSUs are settled for common shares, not the date of grant. Values of PSUs are determined using the Monte–Carlo Simulation Model and vest only when the performance criteria has been met within the evaluation period. Vesting of DSUs shall occur immediately prior to the resignation, retirement or termination of directorship, in accordance with the terms of Westport's Omnibus Plan and settled in cash.

As at December 31, 2025, $719 of compensation expense related to Units has yet to be recognized in results from operations and will be recognized ratably over 1.5 years.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025, 2024, and 2023** |

---

(b)&nbsp;&nbsp;&nbsp;&nbsp;Aggregate intrinsic values:

The aggregate intrinsic value of the Company's share units are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | **December 31,** |
| **In Canadian dollars** | **2025** | **2024** | **2023** |
| Share units: |  |  |  |
| Outstanding | $1546 | $2693 | $3283 |
| Exercisable |  |  |  |
| Exercised | 200 | 555 | 386 |

---

(c)&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation:

Stock-based compensation associated with the Unit plans is included in operating expenses as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| | **2025** | **2024** | **2023** |
| Cost of revenue | $— | $63 | $26 |
| Research and development | 39 | 229 | 570 |
| General and administrative | 346 | 895 | 1806 |
| Sales and marketing | 22 | 170 | 228 |
|  | $407 | $1357 | $2630 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| | **2025** | **2024** | **2023** |
| Stock-based compensation - equity or cash settled | $484 | $1066 | $1727 |
| Stock-based compensation - cash settled only | (77) | 291 | 903 |
|  | $407 | $1357 | $2630 |

---

Units outstanding settled in cash only are remeasured at each reporting period based on the Company's closing share price. The outstanding liability is reported within accrued payroll in note 11.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

**14. Income taxes:** 

In the fourth quarter of 2025, the Company adopted ASU 2023-09 - Income Taxes (Topic 740): Improvements to income tax disclosures prospectively, and the associated changes have been reflected below.

(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company's income tax provision differs from that calculated by applying the combined enacted Canadian federal and provincial statutory income tax rate of 15% for the year ended December 31, 2025 as follows:

---

| | | |
|:---|:---|:---|
| | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
| | **Amount** | **Rate** |
| Net loss before taxes after adjustments | $(29428) |  |
| Expected income tax expense (recovery) | (4414) | 15.0% |
| Increase (reduction) in income taxes resulting from: |  |  |
| Canadian Federal Reconciling Items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other permanent differences | 377 | (1.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cross-border items |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign accrual property income | 305 | (1.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Deemed interest inclusion | 302 | (1.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Expired losses | 2931 | (10.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in valuation allowance | 955 | (3.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 7 | —% |
| Provincial tax effect |  | —% |
| Foreign tax effects |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;US: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign tax rate differences, foreign exchange and other adjustments | 515 | (1.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Expired losses | 1188 | (4.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowance | (1977) | 6.7% |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | (127) | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;China: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expired losses | 1174 | (4.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowance | (1020) | 3.5% |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | (66) | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Jurisdictions | (7) | —% |
| Income tax expense (recovery) | $143 | (0.5)% |

---

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

Income tax expense reconciliation prior to adoption of ASU 2023-09 for years ended December 31, 2024, and 2023 applying the enacted Canadian federal statutory income tax rate of 15% as follows:

---

| | | |
|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** |
| | **2024** | **2023** |
| Expected income tax expense (recovery) | $(4613) | $(7214) |
| Non-deductible stock-based compensation | 88 | 167 |
| Other permanent differences | 1001 | (3699) |
| Withholding taxes and other foreign taxes | 1217 | 337 |
| Change in enacted tax rates |  | 222 |
| Foreign tax rate differences, foreign exchange and other adjustments | 808 | (147) |
| Change in valuation allowance | 3587 | 4746 |
| Expired losses | (604) | 916 |
| Provincial tax effect | 1048 | 4999 |
| Non-taxable portion of capital gains | (2016) |  |
| Income tax expense (recovery) | $516 | $327 |

---

(b)&nbsp;&nbsp;&nbsp;&nbsp;The significant components of the deferred income tax assets and liabilities are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | **December 31,** |
| | **2025** | **2024** | **2023** |
| Deferred income tax assets: |  |  |  |
| Net loss carry forwards | $227639 | $208708 | $225659 |
| Intangible assets | 3592 | 3647 | 3793 |
| Property, plant and equipment | 12464 | 15132 | 20047 |
| Warranty liability | 85 | 279 | 466 |
| Deferred revenue | 254 | 270 | 130 |
| Foreign tax credits | 5861 | 5861 | 691 |
| Inventory | 245 | 11 | 1240 |
| Research and development | 4326 | 4698 | 5074 |
| Financing and share issuance cost | (5) | 330 | 725 |
| Restricted interest and financing expense | 2898 | 3785 |  |
| Other | 3352 | 3256 | 7821 |
| Total gross deferred income tax assets | 260711 | 245977 | 265646 |
| Valuation allowance | (260411) | (245827) | (265333) |
| Total deferred income tax assets | $300 | $150 | $313 |
| Deferred income tax liabilities: |  |  |  |
| Property, plant and equipment | 118 | 46 | 30 |
| Other | (418) | (196) | (343) |
| Total deferred income tax liabilities | $(300) | $(150) | $(313) |
| Total net deferred income tax assets | $— | $— | $— |

---

The valuation allowance is reviewed on a quarterly basis to determine if, based on all available evidence, it is more-likely-than-not that some or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

tax assets is dependent on the generation of sufficient taxable income during the future periods in which those temporary differences are expected to reverse. If the evidence does not exist that the deferred income tax assets will be fully realized, a valuation allowance has been provided. The deferred income tax assets have been reduced by the uncertain tax position presented in note 14(f).

(c)&nbsp;&nbsp;&nbsp;&nbsp;The components of the Company's income tax expense (recovery) after adoption of ASU 2023-09 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2025** | **2024** | **2023** |
| Loss from continuing operations before income taxes |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | $(32592) | $(34144) | $(39783) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | 3164 | 3392 | (8308) |
| Total income before income taxes | (29428) | (30752) | (48091) |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2025** | **2024** | **2023** |
| Income tax expense (benefit) from continuing operations |  |  |  |
| Current tax expense (benefit) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | 143 | 481 | 344 |
| Total current income tax expense (benefit) | 143 | 481 | 344 |
| Deferred tax expense (benefit) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign |  | 35 | (17) |
| Total deferred income tax expense (benefit) |  | 35 | (17) |
| Total income tax expense (benefit) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | 143 | 516 | 327 |
| Total income tax expense (benefit) | $143 | $516 | $327 |

---

(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company has loss carry-forwards in various tax jurisdictions available to offset future taxable income that expire in the following years, as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2027** | **2028** | **2029 and later** | **Total** |
| Canada | $4475 | $14159 | $686085 | $704719 |
| United States |  |  | 86209 | 86209 |
| Italy |  |  | 695 | 695 |
| Sweden |  |  | 11731 | 11731 |
| China | 2387 | 1555 | 1541 | 5483 |
| Australia and Other |  |  | 6637 | 6637 |
| Total | $6862 | $15714 | $792898 | $815474 |

---

Certain tax attributes are subject to an annual limitation as a result of the acquisition of Fuel Systems which constitutes a change of ownership as defined under Internal Revenue Code Section 382.

(e)&nbsp;&nbsp;&nbsp;&nbsp;The Company has not recognized a deferred income tax liability for certain undistributed earnings of foreign subsidiaries which are essentially investments in those foreign subsidiaries and are permanent in duration.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

(f)&nbsp;&nbsp;&nbsp;&nbsp;The Company records uncertain tax positions in accordance with ASC No. 740, Income Taxes. As at December 31, 2025, the total amount of the Company's uncertain tax benefits was $3,146 (December 31, 2024 - $3,006). If recognized in future periods, the uncertain tax benefits would affect our effective tax rate. The Company files income tax returns in Canada, the U.S., Italy, and various other foreign jurisdictions. All taxation years remain open to examination by the Canada Revenue Agency, the 2022 to 2025 taxation years remain open to examination by the Internal Revenue Service, the 2020 to 2025 taxation years remain open to examination by the Italian Revenue Agency, and various years remain open in the other foreign jurisdictions.

(g)&nbsp;&nbsp;&nbsp;&nbsp;Net income tax payments after adoption of ASU 2023-09.

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| | **2025** | **2024** | **2023** |
| Canada |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provincial |  |  |  |
| Netherlands | 1125 | 1081 | 608 |
| Italy | 382 | \* | 321 |
| Poland | 253 | 245 | 702 |
| Luxembourg - Net Wealth Tax | \* | 114 | \* |
| India (WHT) | 137 | 234 | 321 |
| Turkey - Corporate Tax Refund | \* | 420 | 269 |
| Other Foreign Jurisdiction | 28 | 14 | 81 |
| Total net income tax payments | $1925 | $2108 | $2302 |

---

\* the amount of income taxes paid during the year does not meet the 5% disaggregation threshold.

**15. Related party transactions:** 

The Company's related parties are Cespira, directors, officers and shareholders that own more than 10% of the Company's shares.

The Company engages in transactions with Cespira primarily through cross charges, the provision of services and the sale of inventory under a transitional services agreement that ended on June 30, 2025.

---

| | | |
|:---|:---|:---|
| **Related party transactions with Cespira** | **Years ended December 31,** | **Years ended December 31,** |
|  | **2025** | **2024** |
| Sales of goods, services and other income | $15684 | $9598 |
| Inventory purchased, services and other expenses | 1525 | 1320 |

---

---

| | | |
|:---|:---|:---|
| **Related party balances with Cespira** | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Receivables (note 6) | $274 | $4973 |
| Payables (note 11) | $78 | $1137 |

---

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

**16. Commitments and contingencies:** 

(a)&nbsp;&nbsp;&nbsp;&nbsp; Contractual commitments

The Company is a party to a variety of agreements in the ordinary course of business under which it is obligated to indemnify a third party with respect to certain matters. Typically, these obligations arise as a result of contracts for sale of the Company's product to customers where the Company provides indemnification against losses arising from matters such as product liabilities. The potential impact on the Company's financial results is not subject to reasonable estimation because considerable uncertainty exists as to whether claims will be made and the final outcome of potential claims. To date, the Company has not incurred significant costs related to these types of indemnifications.

(b) &nbsp;&nbsp;&nbsp;&nbsp;Contingencies

The Company is engaged in certain legal actions and tax audits in the ordinary course of business and believes that, based on the information currently available, the ultimate outcome of these actions will not have a material adverse effect on our operating results, liquidity or financial position.

**17. Segment information:** 

The Company discloses segment information under three reportable segments, consistent with the manner in which its Chief Operating Decision Maker ("CODM") evaluates its businesses. The Company's CODM is its Chief Executive Officer. These segments are the strategic pillars of the Company and are managed separately as each represents a specific grouping of related automotive components and systems. The reportable segments are further described below. In prior years, the Company presented its results under four reportable segments: Light-Duty, High-Pressure Controls, Heavy-Duty OEM, and Cespira.

On July 29, 2025, the Company sold its Light-Duty segment to the Purchaser (note 5). The Company now reports its results in the following three reportable segments: High-Pressure Controls, Heavy-Duty OEM, and Cespira. The prior year comparatives were recast to reflect this change in reportable segments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• High-Pressure Controls: This segment's products include fuel cell and hydrogen fuel system solutions and components.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Heavy-Duty OEM: Prior to June 3, 2024, this segment's products include HPDI related fuel system solutions and components. Subsequently, this segment's operations were related to the transitional services agreement between the Company and Cespira for inventory and contract manufacturing. The transitional service agreement for these services ended on June 30, 2025 when Cespira completed their independent set up for inventory manufacturing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cespira: This segment's products include HPDI related fuel system solutions and components after June 3, 2024.

Segment earnings or losses before income taxes, interest, depreciation, and amortization ("Segment EBITDA") is the measure of segment profitability used by the Company. The accounting policies of our reportable segments are the same as those applied in our consolidated financial statements. Management prepared the financial results of the Company's reportable segments on basis that is consistent with the manner in which Management internally disaggregates financial information to assist in making internal operating decisions. Certain common costs and expenses were allocated among segments and presented differently than the Company would for stand-alone financial information prepared in accordance with GAAP. These include certain costs and expenses of shared services, such as IT, human resources, legal, finance and supply chain management. Segment EBITDA is not defined under US GAAP and may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP.

The Company's CODM uses segment EBITDA disclosed below to evaluate the performance of its reportable segments. The Company believes Segment EBITDA is most reflective of the operational profitability or loss of its reportable

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

segments. The CODM uses this information to drive decisions and resource allocations. Segment EBITDA is used as the key profitability measure when we set our annual budget.

**Financial information by reportable segment as follows:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
| | **High-Pressure Controls** | **Heavy-Duty OEM** | **Cespira** | **Total Segment** |
| Revenue | $8272 | $15046 | $77443 | $100761 |
| Cost of revenue | 7362 | 13276 | 80944 | 101582 |
| Gross profit (loss) | 910 | 1770 | (3501) | (821) |
| Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: |
| Research & development | 5332 | 159 | 5641 | 11132 |
| General & administrative | 1729 | 133 | 11903 | 13765 |
| Sales & marketing | 390 | 26 | 1292 | 1708 |
| Depreciation & amortization | 355 |  | 3283 | 3638 |
| Add back: Depreciation & amortization<sup>1</sup> | 575 |  | 6567 | 7142 |
| Segment EBITDA | $(6321) | $1452 | $(19053) | $(23922) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
| | **High-Pressure Controls** | **Heavy-Duty OEM** | **Cespira** | **Total Segment** |
| Revenue | $9383 | $31315 | $43085 | $83783 |
| Cost of revenue | 7192 | 30663 | 42634 | 80489 |
| Gross profit | 2191 | 652 | 451 | 3294 |
| Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: |
| Research & development | 5336 | 4196 | 4715 | 14247 |
| General & administrative | 1033 | 3068 | 5555 | 9656 |
| Sales & marketing | 683 | 856 | 973 | 2512 |
| Depreciation & amortization | 153 | 131 | 1720 | 2004 |
| Add back: Depreciation & amortization<sup>1</sup> | 401 | 1405 | 3845 | 5651 |
| Segment EBITDA | $(4613) | $(6194) | $(8667) | $(19474) |

---

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
| | **High-Pressure Controls** | **Heavy-Duty OEM** | **Total Segment** |
| Revenue | $11907 | $56247 | $68154 |
| Cost of revenue | 8583 | 59211 | 67794 |
| Gross profit (loss) | 3324 | (2964) | 360 |
| Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: |
| Research & development | 3584 | 9252 | 12836 |
| General & administrative | 1322 | 6444 | 7766 |
| Sales & marketing | 769 | 2907 | 3676 |
| Depreciation & amortization | 204 | 408 | 612 |
| Add back: Depreciation & amortization<sup>1</sup> | 356 | 4923 | 5279 |
| Segment EBITDA | $(2199) | $(17052) | $(19251) |

---

Reconciliations of reportable segment financial information to consolidated statement of operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
| | **Total Segment** | **Less: Cespira** | **Add: Corporate & unallocated** | **Total Consolidated** |
| Revenue | $100761 | $77443 | $— | $23318 |
| Cost of revenue | 101582 | 80944 |  | 20638 |
| Gross profit (loss) | (821) | (3501) |  | 2680 |
| Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: |
| Research & development | 11132 | 5641 | 292 | 5783 |
| General & administrative | 13765 | 11903 | 12095 | 13957 |
| Sales & marketing | 1708 | 1292 | 1065 | 1481 |
| Depreciation & amortization | 3638 | 3283 | 160 | 515 |
| Equity income (loss) (note 8) |  |  | (15845) | (15845) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
| | **Total Segment** | **Less: Cespira** | **Add: Corporate & unallocated** | **Total Consolidated** |
| Revenue | $83783 | $43085 | $— | $40698 |
| Cost of revenue | 80489 | 42634 |  | 37855 |
| Gross profit | 3294 | 451 |  | 2843 |
| Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: |
| Research & development | 14247 | 4715 |  | 9532 |
| General & administrative | 9656 | 5555 | 16622 | 20723 |
| Sales & marketing | 2512 | 973 | 1170 | 2709 |
| Depreciation & amortization | 2004 | 1720 | 377 | 661 |
| Equity loss (note 8) |  |  | (6715) | (6715) |

---

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
| | **Total Segment** | **Add: Corporate & unallocated** | **Total Consolidated** |
| Revenue | $68154 | $— | $68154 |
| Cost of revenue | 67794 |  | 67794 |
| Gross profit | 360 |  | 360 |
| Operating expenses: | Operating expenses: | Operating expenses: | Operating expenses: |
| Research & development | 12836 |  | 12836 |
| General & administrative | 7766 | 17340 | 25106 |
| Sales & marketing | 3676 | 2166 | 5842 |
| Depreciation & amortization | 612 | 541 | 1153 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Reconciliation of Segment EBITDA to Loss before income taxes** | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| **Reconciliation of Segment EBITDA to Loss before income taxes** | **2025** | **2024** | **2023** |
| Total Segment EBITDA | $(23922) | $(19474) | $(19251) |
| Adjustments: | Adjustments: | Adjustments: |  |
| &nbsp;&nbsp;Depreciation & amortization<sup>1</sup> | 735 | 2183 | 5820 |
| &nbsp;&nbsp;Cespira's Segment EBITDA | (19053) | (8667) |  |
| &nbsp;&nbsp;Cespira's equity loss (note 8) | 15845 | 6715 |  |
| &nbsp;&nbsp;Corporate and unallocated operating expenses | 13452 | 17792 | 19506 |
| &nbsp;&nbsp;Foreign exchange loss (gain) | (5365) | 6227 | 1040 |
| &nbsp;&nbsp;Loss on sale of assets |  | 703 |  |
| &nbsp;&nbsp;Gain on deconsolidation |  | (15198) |  |
| &nbsp;&nbsp;Loss on sale of investment |  | 352 |  |
| &nbsp;&nbsp;Impairment of long-lived assets (note 9) | 538 |  |  |
| &nbsp;&nbsp;Loss on extinguishment of royalty payable |  |  | 2909 |
| &nbsp;&nbsp;Impairment of long-term investment |  |  | 413 |
| &nbsp;&nbsp;Interest on long-term debt and accretion of royalty payable | 613 | 1083 | 1724 |
| &nbsp;&nbsp;Interest and other income, net of bank charges | (1259) | 88 | (2572) |
| Loss before income taxes | $(29428) | $(30752) | $(48091) |

---

<sup>1</sup>Depreciation and amortization expenses used in computation for Segment EBITDA and reconciliation to consolidated loss before income taxes are included in cost of revenue and operating expenses on our statement of operations and comprehensive loss.

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| **Total additions to long-lived assets, excluding business combinations** | **2025** | **2024** | **2023** |
| High-Pressure Controls | 2678 | 3142 | 649 |
| Heavy-Duty OEM |  | 510 | 5156 |
| Corporate and unallocated | 15 | 161 | 676 |
| Total consolidated | $2693 | $3813 | $6481 |

---

Cespira's total additions to long-lived assets, excluding business combinations for year ended December 31, 2025 was $8,658 (for the period between June 03, 2024 to December 31, 2024 - $723).

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

Revenues are attributable to geographical regions based on the location of the Company's customers and are presented as a percentage of the Company's revenues, as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **% of total revenue** | **% of total revenue** | **% of total revenue** |
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| | **2025** | **2024** | **2023** |
| Europe | 70% | 87% | 84% |
| Americas | 10% | 4% | 6% |
| Asia | 20% | 9% | 10% |

---

During the period of January through May 2024, total revenue of $16,427 or 40% and full year of 2023 of $53,671 or 79% of consolidated revenue, was earned from the Company's OEM launch partner reported under its Heavy-Duty OEM segment.

During the year ended December 31, 2025, the Company had sales to one distributor in Asia that represented approximately 16% of consolidated revenue (2024 - 9%; 2023 - 9%) which was reported under the High-Pressure Controls segment.

As at December 31, 2025, total long-term investments of $42,714 (2024 - $36,866; 2023 - $1,558) were allocated to Corporate and unallocated.

The measure of segment assets evaluated by the CODM are total assets as reported on the consolidated balance sheet. Total assets are allocated by segment as follows:

---

| | | |
|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** |
| | **2025** | **2024** |
| Light-Duty (Held-for-sale) | $— | $207893 |
| High-Pressure Controls | 17392 | 9026 |
| Heavy-Duty OEM |  | 9138 |
| Corporate and unallocated | 76617 | 65564 |
| Total consolidated assets | $94009 | $291621 |

---

Cespira's total assets as at December 31, 2025 were $117,317 (2024 - $88,741).

**18. Financial instruments:** 

Financial risk management

The Company has exposure to liquidity risk, credit risk, foreign currency risk and interest rate risk.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they are due. The Company has a history of losses and mostly negative cash flows from operations since inception. At December 31, 2025, the Company has $27,158 of cash, cash equivalents including $363 in restricted cash (see note 3(c)).

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

The following are the contractual maturities of financial obligations as at December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Carrying<br>amount** | **Contractual<br>cash flows** | **< 1 year** | **1-3 years** | **4-5 years** |
| Accounts payable and accrued liabilities (note 11) | $17933 | $17933 | $17933 | $— | $— |
| Term loan facilities (note 12) | 2924 | 3194 | 3194 |  |  |
| Operating lease obligations | 1785 | 2093 | 493 | 945 | 655 |
|  | $22642 | $23220 | $21620 | $945 | $655 |

---

Credit risk

Credit risk arises from the potential that a counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company's accounts receivable.

The Company is exposed to credit risk with respect to uncertainties as to timing and amount of collectability of accounts receivable. As at December 31, 2025, 20% (December 31, 2024 - 11%; December 31, 2023 - 91%) of accounts receivable relate to customer receivables, and 80% (December 31, 2024 - 89%; December 31, 2023 - 9%) relate to amounts due from holdback receivable, related parties and income tax authorities for value added taxes and other tax related refunds. In order to minimize the risk of loss for customer receivables, the Company's extension of credit to customers involves review and approval by senior management as well as progress payments as contracts are executed. Most sales are invoiced with payment terms in the range of 30 days to 90 days. Refer to note 3(d) for the Company's policy with respect to an allowance for credit losses.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign currency exchange rates. The Company conducts a significant portion of its business activities in foreign currencies, primarily the U.S. dollar and the Euro. The Company are subject to foreign currency exchange rate risk to the extent that our costs are denominated in currencies other than those in which the Company earn revenues. In addition, since the Company's consolidated financial statements are reported in U.S. dollars, changes in foreign currency exchange rates between the U.S. dollar and other currencies have had, and will continue to have, an impact on the Company's results of operations, financial condition and cash flows.

Cash and cash equivalents, accounts receivable, accounts payable, and long-term debt that are denominated in foreign currencies will be affected by changes in the exchange rate between the Canadian dollar and these foreign currencies. The Company's functional currency is the Canadian dollar.

A 5% increase/decrease in the relative value of the U.S. dollar against the Canadian dollar and Euro compared to the exchange rates in effect for the year ended December 31, 2025 would have resulted in lower/higher income from operations of approximately $441. This assumes a consistent 5% appreciation in the U.S. dollar against the Canadian dollar and the Euro throughout the fiscal year. The timing of changes in the relative value of the U.S. dollar can affect the magnitude of the impact that fluctuations in foreign exchange rates have on our income from operations.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is subject to interest rate risk on its term loan with variable rates of interest.

If interest rates for the year ended December 31, 2025 had increased or decreased by 200 basis points, with all other variables held constant, net loss for the year ended December 31, 2025 would have increased or decreased by $58.

------

---

| |
|:---|
| **WESTPORT FUEL SYSTEMS INC.** |
| **Notes to Consolidated Financial Statements** |
| **(Expressed in thousands of United States dollars except share and per share amounts)** |
| **Years ended December 31, 2025 and 2024 and 2023** |

---

Fair value of financial instruments

As at December 31, 2025, cash and cash equivalents are measured at fair value on a recurring basis and are included in Level 1.

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short-term period to maturity of these instruments.

The long-term investments represent the Company's interests in Cespira are accounted for using the equity method.

The carrying values reported in the consolidated balance sheets for obligations under operating leases, which are based upon discounted cash flows, approximate their fair values.

The carrying values of the term loan facilities included in the long-term debt (note 12) are carried at amortized costs, which approximate their respective fair values as at December 31, 2025.

The Company categorizes its fair value measurements for items measured at fair value on a recurring basis into three categories as follows:

---

| | |
|:---|:---|
| Level 1 – | Unadjusted quoted prices in active markets for identical assets or liabilities. |
| Level 2 – | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
| Level 3 – | Inputs for the asset or liability that are not based on observable market data (unobservable inputs). |

---

When available, the Company uses quoted market prices to determine fair value and classify such items in Level 1. When necessary, Level 2 valuations are performed based on quoted market prices for similar instruments in active markets and/or model–derived valuations with inputs that are observable in active markets. Level 3 valuations are undertaken in the absence of reliable Level 1 or Level 2 information.

## Exhibit 1.1

![](exhibit11-wfsxcompiledar001.jpg)

6/1/23, 8:19 AM about:blank about:blank 1/1 CORPORATE ACCESS NUMBER: 206475261 BUSINESS CORPORATIONS ACT CERTIFICATE OF AMENDMENT WESTPORT FUEL SYSTEMS INC. AMENDED ITS ARTICLES ON 2023/06/01.

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![](exhibit11-wfsxcompiledar002.jpg)

6/1/23, 8:20 AM about:blank about:blank 1/2 Name/Structure Change Alberta Corporation - Registration Statement Alberta Amendment Date: 2023/06/01 Service Request Number: 39845788 Corporate Access Number: 206475261 Business Number: 899046379 Legal Entity Name: WESTPORT FUEL SYSTEMS INC. French Equivalent Name: Legal Entity Status: Active Alberta Corporation Type: Named Alberta Corporation New Legal Entity Name: WESTPORT FUEL SYSTEMS INC. New French Equivalent Name: Nuans Number: 118829795 Nuans Date: 2016/05/30 French Nuans Number: French Nuans Date: Share Structure: REFER TO "SHARE STRUCTURE" ATTACHMENT. Share Transfers Restrictions: NO RESTRICTIONS. Number of Directors: Min Number Of Directors: 1 Max Number Of Directors: 10 Business Restricted To: THERE ARE NO RESTRICTIONS PLACED ON THE BUSINESS OF THE CORPORATION. Business Restricted From: THERE ARE NO RESTRICTIONS PLACED ON THE BUSINESS OF THE CORPORATION. Other Provisions: REFER TO "OTHER RULES OR PROVISIONS" ATTACHMENT. BCA Section/Subsection: 173(1)(F) Professional Endorsement Provided: Future Dating Required: Amendment Date: 2023/06/01 Annual returns are outstanding for the 2023 file year(s). Annual Return File Year Date Filed 2022 2022/09/21 2021 2021/04/21 2020 2021/02/25

------

![](exhibit11-wfsxcompiledar003.jpg)

6/1/23, 8:20 AM about:blank about:blank 2/2 Attachment Attachment Type Microfilm Bar Code Date Recorded Amended Annual Return 10000504100521947 2005/08/12 Consolidation, Split, Exchange ELECTRONIC 2008/07/21 Share Structure ELECTRONIC 2012/07/09 Other Rules or Provisions ELECTRONIC 2012/07/09 Consolidation, Split, Exchange ELECTRONIC 2023/06/01 Registration Authorized By: ADAM WERYHA SOLICITOR The Registrar of Corporations certifies that the information contained in this statement is an accurate reproduction of the data contained in the specified service request in the official public records of Corporate Registry.

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![](exhibit11-wfsxcompiledar004.jpg)

BUSINESS CORPORATIONS ACT Alberta ARTICLES OF AMENDMENT 1. Name of Corporation 2. Corporate Access Number WESTPORT FUEL SYSTEMS INC. 206475261 3. 4. Pursuant to Section 173(1)(£) of the Business Corporations Act (Alberta), the Atticles of the Corporation are amended to consolidate all of the issued and outstanding common shares in the capital of the Corporation on the basis of ten (10) existing shares being consolidated into one (1) new common share provided however, that no holder of common shares will be entitled to receive any fractional common shares as a result of this consolidation, nor any compensation in lieu of a fractional share interest, as set forth in the Schedule to the Articles of Amendment attached hereto. DATE _M_d_,,�2.._S _ , 2023 SIGNATURE TITLE WSLEGAL\079850\0000 l \34257289vl June 1, 2023 - SN

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![](exhibit11-wfsxcompiledar005.jpg)

6/1/23, 8:20 AM about:blank about:blank 1/1 SCHEDULE TO ARTICLES OF AMENDMENT OF WESTPORT FUEL SYSTEMS INC. (the "Corporation") The Articles of the Corporation are amended as follows: 1. To consolidate all of the issued and outstanding common shares of the Corporation (the "Common Shares") on a 10:1 basis, such that every ten (10) Common Shares of the Corporation shall be consolidated into one (1) Common Share of the Corporation (the "Share Consolidation"). 2. No fractional Common Shares will be issued as a result of the Share Consolidation. Any fractional Common Shares resulting from the Share Consolidation will be rounded down to the nearest whole number of Common Shares that such Shareholder would otherwise be entitled to receive upon implementation of the Share Consolidation. Any fractional Common Share that is rounded down will be disregarded and cancelled without any repayment of capital or other compensation.

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![](exhibit11-wfsxcompiledar006.jpg)

SCHEDULE TO ARTICLES OF AMENDMENT OF WESTPORT FUEL SYSTEMS INC. (the "Corporation") The Articles of the Corporation are amended as follows: 1. To consolidate all of the issued and outstanding common shares of the Corporation (the "Common Shares") on a 10:1 basis, such that every ten (10) Common Shares of the Corporation shall be consolidated into one (1) Common Share of the Corporation (the "Share Consolidation"). 2. No fractional Common Shares will be issued as a result of the Share Consolidation. Any fractional Common Shares resulting from the Share Consolidation will be rounded down to the nearest whole number of Common Shares that such Shareholder would otherwise be entitled to receive upon implementation of the Share Consolidation. Any fractional Common Share that is rounded down will be disregarded and cancelled without any repayment of capital or other compensation. WSLEGAL1087522100009\24979185v4

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![](exhibit11-wfsxcompiledar007.jpg)

CORPORATE ACCESS NUMBER: 206475261 Government of Alberta U BUSINESS CORPORATIONS ACT CERTIFICATE OF AMENDMENT WESTPORT INNOVATIONS INC. CHANGED ITS NAME TO WESTPORT FUEL SYSTEMS INC. ON 2016/06/01,

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![](exhibit11-wfsxcompiledar008.jpg)

BUSINESS CORPORATIONS ACT Alberta 1. Name of Corporation WESTPORT INNOVATIONS INC. ARTICLES OF AMENDMENT 2. Corporate Access Number 206475261 3. Pursuant to subsection 173(1)(a) of the Business Corporations Act (Alberta), the Articles of the Corporation be amended by changing the name of the Corporation from Westport Innovations Inc. to WESTPORT FUEL SYSTEMS INC. 4. DATE ~Ihtvt, 1 2:0 1 SIGNATURE TITLE 5o 14.4v (REGISTEREIY-oN THE ALBERTA REGISTRIES CORES SYSTEM JUN 1 2016 s:\c4\corpserv\alf\lab\831760.DOCX

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![](exhibit11-wfsxcompiledar009.jpg)

Name Change Alberta Corporation - Registration Statement Alberta Amendment Date: 2016/06/01 Service Request Number: 25233866 Corporate Access Number: 206475261 Legal Entity Name: WESTPORT INNOVATIONS INC. French Equivalent Name: Legal Entity Status: Active Alberta Corporation Type: Named Alberta Corporation New Legal Entity Name: WESTPORT FUEL SYSTEMS INC. New French Equivalent Name: Nuans Number: 118829795 Nuans Date: 2016/05/30 French Nuans Number: French Nuans Date: Professional Endorsement Provided: Future Dating Required: Annual Return File Year Date Filed 2016 2016/04/04 2015 2015/05/19 2014 2014/06/27 Attachment Attachment Type Microfilm Bar Code Date Recorded Amended Annual Return 10000504100521947 2005/08/12 Consolidation, Split, Exchange ELECTRONIC 2008/07/21 Share Structure ELECTRONIC 2012/07/09 Other Rules or Provisions ELECTRONIC 2012/07/09

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![](exhibit11-wfsxcompiledar010.jpg)

Registration Authorized By: MATT OLSON SOLICITOR

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![](exhibit11-wfsxcompiledar011.jpg)

CORPORATE ACCESS NUMBER: 206475261 Government of Alberta ■ BUSINESS CORPORATIONS ACT CERTIFICATE OF AMENDMENT AND REGISTRATION OF RESTATED ARTICLES WESTPORT INNOVATIONS INC. AMENDED ITS ARTICLES ON 2012/07/09.

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![](exhibit11-wfsxcompiledar012.jpg)

BUSINESS CORPORATIONS ACT FORM 4 ALBERTA CONSUMER AND CORPORATE AFFAIRS ARTICLES OF AMENDMENT 1. NAME OF CORPORATION: WESTPORT INNOVATIONS INC. 2. CORPORATE ACCESS NUMBER: 206475261 3. THE ARTICLES OF THE ABOVE NAMED CORPORATION ARE AMENDED TO: 1. Pursuant to Section 180 of the Business Corporations Act (Alberta), new policy has been implemented that articles of amendment must be accompanied by restated articles, which are attached hereto. 2. Pursuant to Section 173(1)(n) of the Business Corporations Act (Alberta), the articles of the Corporation be amended by deleting the existing "Other Provisions" in their entirety and replacing it with the "Other Rules or Provisions Schedule" attached hereto. DATE jut. et , 2012 SIGNATURE •••••••••91, elignature of Director or Authorized Officer /3/2•J-r .gee4ez-0 Please Print Name of Signatory TITLE •Di-recter Soi-te-11-014.. REGISTERED ON THE ALBERTA REGISTRIES CORES SYSTEM 'JUL 0 9 2012 529975 vl

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![](exhibit11-wfsxcompiledar013.jpg)

OTHER RULES OR PROVISIONS Attached to and Forming Part of the Articles of Incorporation of WESTPORT INNOVATIONS INC. (a) The Directors may, between Annual General Meetings, appoint one or more additional Directors of the Corporation to serve until the next Annual General Meeting, but the number of additional Directors shall not at any time exceed 1/3 of the number of Directors who held office at the expiration of the last Annual Meeting of the Corporation. (b) A Director or Directors of the Corporation may be elected or appointed for terms expiring not later than the close of the third Annual Meeting of Shareholders following the election. (c) Meetings of the shareholders of the Corporation may be held in any location as shall be determined by the directors of the Corporation, and either inside or outside of Alberta or British Columbia.

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Alberta RESTATED ARTICLES OF INCORPORATION Business Corporations Act Section 180 1. Name of Corporation: WESTPORT INNOVATIONS INC. 2, Corporate Access Number: 206475261 3. The classes of shares, and any maximum number of shares that the corporation is authorized to issue: Refer to "Share Structure" attachment. 4. Restrictions on share transfers (if any): No Restrictions. 5. Number, or minimum and maximum number of directors: Minimum - 1 Maximum - 10 6. If the corporation is restricted FROM carrying on a certain business or restricted TO carrying on a certain business, specify the restriction(s): There are no restrictions placed on the business of the Corporation. 7. Other provisions (if any): Refer to "Other Rules or Provisions" attachment. The Restated Articles of Incorporation correctly set out above, without substantive change represent the Articles of Incorporation as amended and supersede the original Articles of Incorporation. Date ,2012 Signature S. nature of Director or Authorized Officer /7

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SHARE STRUCTURE Attached to and Forming Part of the Articles of Incorporation of WESTPORT INNOVATIONS INC. 1. THE CLASSES AND ANY MAXIMUM NUMBER OF SHARES THAT THE CORPORATION IS AUTHORIZED TO ISSUE: (a) An unlimited number of Common Shares; and, (b) An unlimited number of Preferred Shares. 1.A The Directors of the Corporation may at any time issue any Preferred Shares in one or more series, each series to consist of such number of shares as may be determined by the Directors. The Directors may determine at the time of issuance the designation, rights, privileges, restrictions and conditions attaching to the shares of each series. SPECIAL RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS ATTACHING TO EACH CLASS OF SHARES (I) DIVIDENDS (A) Subject to any rights, privileges, restrictions and conditions which may have been determined by the Directors to which to any series of Preferred shares, the Directors shall have complete uncontrolled discretion to pay dividends on any class or classes of shares or any series within a class of shares issued and outstanding in any particular year to the exclusion of any other class or classes of shares or any series within a class of shares out of any or all profits or surplus available for dividends. (II) REPAYMENT OF CAPITAL (A) On the winding-up, liquidation or dissolution of the Corporation or upon the happening of any other event giving rise to a distribution of the Corporation's assets other than by way of dividend amongst its Shareholders for the purposes of winding-up its affairs (any such occurrence is hereafter called "Winding-Up"), subject to any rights, privileges, restrictions and conditions which may have been determined by the Directors to attach to any series of Preferred shares, the holders of all shares shall be entitled to participate pan passu.

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-2 (III) VOTING RIGHTS AND RESTRICTIONS (A) Common shares. At all meetings of Shareholders of the Corporation, each holder of Common shares shall be entitled to one (1) vote for each Common share held. (B) Preferred shares. The holders of the Preferred shares shall have no right to receive notice of or to be present at or vote either in person or by proxy, at any general meeting of the Corporation by virtue of or in respect of their holdine, of Preferred Shares.

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(a) (b) OTHER RULES OR PROVISIONS Attached to and Forming Part of the Articles of Incorporation of WESTPORT INNOVATIONS INC. The Directors may, between Annual General Meetings, appoint one or more additional Directors of the Corporation to serve until the next Annual General Meeting, but the number of additional Directors shall not at any time exceed 1/3 of the number of Directors who held office at the expiration of the last Annual Meeting of the Corporation, A Director or Directors of the Corporation may be elected or appointed for terms expiring not later than the close of the third Annual Meeting of Shareholders following the election. (c) Meetings of the shareholders of the Corporation may be held in any location as shall be determined by the directors of the Corporation, and either inside or outside of Alberta or British Columbia.

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![](exhibit11-wfsxcompiledar018.jpg)

Name/StOt 0 peChange Alberta Corporation - Registration-. . Statement Alberta Amendment Date: 2012/07/09 Service Request Number: 18258142 Corporate Access Number: 206475261 Legal Entity Name: WESTPORT INNOVATIONS INC. French Equivalent Name: Legal Entity Status: Active Alberta Corporation Type: New Legal Entity Name: New French Equivalent Name: Nuans Number: PRE-CONV Nuans Date: 1995/03/20 French Nuans Number: French Nuans Date: Named Alberta Corporation WESTPORT INNOVATIONS INC. Share Structure: REFER TO "SHARE STRUCTURE" ATTACI IMENT. Share Transfers Restrictions: NO RESTRICTIONS. Number of Directors: Min Number Of Directors: 1 Max Number Of Directors: 10 THERE ARE NO RESTRICTIONS PLACED ON THE BUSINESS OF THE CORPORATION. THERE, ARE NO RESTRICTIONS PLACED ON THE BUSINESS OF THE CORPORATION. Other Provisions: REFER TO "OTI IER RULES OR PROVISIONS" ATTACHMENT. Business Restricted To: Business Restricted From: BCA Section/Subsection: 173(1)(N) Professional Endorsement Provided: Future Dating Required: Annual Return File Year 2012 2011 Date Filed 2012/05/16 2011/04/07

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![](exhibit11-wfsxcompiledar019.jpg)

2010 2010/11/09 Attachment Attachment Type Microfilm Bar Code Date Recorded Amended Annual Return 10000504100521947 2005/08/12 Consolidation, Split, Exchange -ELECTRONIC 2008/07/21 Share Structure ELECTRONIC 2012/07/09 Other Rules or Provisions ELECTRONIC 2012/07/09 Registration Authorized By: BRUCE 11 BBARD SOLICITOR

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![](exhibit11-wfsxcompiledar020.jpg)

CORPORATE ACCESS NUMBER: 206475261 Alberti BUSINESS CORPORATIONS ACT CERTIFICATE OF AMENDMENT WESTPORT INNOVATIONS INC. AMENDED ITS ARTICLES ON 2008/07/21.

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![](exhibit11-wfsxcompiledar021.jpg)

BUSINESS CORPORATIONS ACT Alberta 1. 3. Name of Corporation WESTPORT INNOVATIONS INC. ARTICLES OF AMENDMENT 2. Corporate Access Number 206475261 Pursuant to subsection 173(1)(f) of the Business Corporations Act (Alberta), the Articles of the Corporation are hereby amended by consolidating the issued and outstanding Common Shares of the Corporation on the basis of 1 new Common Share for each Three and One Half (3.5) Common Share presently issued and outstanding and disregarding any resulting fractional shares, with any such fractional shares otherwise issuable rounded down to the nearest whole number. WSI,egal 036683 \000S7,177,{3,11v r01-I C.? 0? ,aoR e 3:e4.2e729Ry L -1;7161:37FFE67- THE ALBERTA REGISTRIES CORES SYSTEM JUL 2 1 2000 01'

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![](exhibit11-wfsxcompiledar022.jpg)

Name/Structure Change Alberta Corporation - Registration Statement Alberta Amendment Date: 2008/07/21 Service Request Number: 11861788 Corporate Access Number: 206475261 Legal Entity Name: WESTPORT INNOVATIONS INC. French Equivalent Name: Legal Entity Status: Active Alberta Corporation Type: Named Alberta Corporation New Legal Entity Name: WESTPORT INNOVATIONS INC, New French Equivalent Name: Nuans Number: PRE-CONV Nuans Date: 1995/03/20 French Nuans Number: French Nuans Date: Share Structure: Share Transfers Restrictions: Number of Directors: Min Number Of Directors: Max Number Of Directors: Business Restricted To: Business Restricted From: Other Provisions: BCA Section/Subsection: Professional Endorsement Provided: Future Dating Required: Annual Return File Year Date Filed 2008 2008/06/25 2007 2008/02/25 2006 2006/06/06 Attachment

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Attachment Type Microfilm Bar Code Date Recorded Amended Annual Return 10000504100521947 2005/08/12 Consolidation, Split, Exchange ELECTRONIC 2008/07/21 Registration Authorized By: BRUCE A. HIBBARD SOLICITOR

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![](exhibit11-wfsxcompiledar024.jpg)

rens"""4""r"""r4",„tA""reArAr„to","tm4 Alberta GOVERNMENT OF ALBERTA CORPORATE ACCESS NUMBER 20647526 BUSINESS CORPORATIONS ACT CERTIFICATE OF AMENDMENT WESTPORT INNOVATIONS INC. AMENDED ITS ARTICLES ON MAY 21, 1997. Registrar of Corpora \ I \ I /R. /11/4 /11/4 / REG 3066 (96/01)

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![](exhibit11-wfsxcompiledar025.jpg)

BUSINESS CORPORATIONS ACT (SECTIONS 27 or 171) Alberta FORM 4 ARTICLES OF AMENDMENT 1. NAME OF CORPORATION: WESTPORT INNOVATIONS INC. 2. ALBERTA CORPORATE ACCESS NUMBER: 20647526 3. ITEM NO, OF THE ARTICLES OF THE ABOVE NAMED CORPORATION ARE AMENDED IN ACCORDANCE WITH SECTION OF THE BUSINESS CORPORATIONS ACT. Pursuant to subsection 167(1)(m) of the Business Corporations Act (Alberta), Article 6 of the Articles of the Corporation be and it is hereby amended by adding the following as item (f) thereto: "(f) Meetings of the shareholders of the Corporation may be held anywhere in the Provinces of Alberta or British Columbia as shall be determined by the directors of the Corporation." c FI MAY 2 EL1 1997, Registrar of Corporations e of MartaProvinc 10,71, MAS\C4\DRO1\MAY\3022.ART

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![](exhibit11-wfsxcompiledar026.jpg)

Alpena REGISTRIES CORPORATE ACCESS NUMBER 20647526 BUSINESS CORPORATIONS ACT CERTIFICATE OF AMENDMENT WESTPORT INNOVATIONS INC. AMENDED ITS ARTICLES ON JUNE 30, 1995. \c" AL AF', (I) 0 < 0 f-- 4L- _ ,40 A, - vI AIT Ok P' Registrar of Corporations REG 3066 (95/01) CCA-06-102

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![](exhibit11-wfsxcompiledar027.jpg)

FORM 4 BUSINESS CORPORATIONS ACT (Section 27 or 167) ARTICLES OF AMENDMENT 1. NAME OF CORPORATION: 2. CORPORATE ACCESS NO. WESTPORT INNOVATIONS INC. 20647526 3. THE ARTICLES OF THE ABOVE-NAMED CORPORATION ARE AMENDED AS FOLLOWS: 1. Section 3 of the Articles of the Corporation shall, pursuant to section 167(1)(1) of the Business Corporations Act (Alberta) (the "Act") be amended by removing therefrom the restrictions on share transfers as contained therein, and substituting therefore: "No restrictions." 2. Section 6 of the Articles of the Corporation shall, pursuant to section 167(1)(m) of the Act be amended by removing therefrom the provisions contained in paragraphs (c), (d) and (e). DATE: JUNE 30, 1995 SIGNATURE: 1;":I c e"L AY474.---41x TITLE: SOLICITOR il i JUN 3 01995 Registrar of Corpora110.4tProvince of Aibe

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![](exhibit11-wfsxcompiledar028.jpg)

t t I I t t t 41. CORPORATE ACCESS NUMBER 20647526 BUSINESS CORPORATIONS ACT CERTIFICATE OF INCORPORATION WESTPORT INNOVATIONS INC. WAS INCORPORATED IN ALBERTA ON MARCH 20, 1995 Registrar of Corporations I k. ► I ► REG 3066 (94/10) CCA-06-102

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## Exhibit 1.2

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WSLegal\036683\00100\9616779v3 BY-LAW NO. 1 as amended and re-stated on June 4, 2021 A By-Law relating generally to the transaction of the business and affairs of WESTPORT FUEL SYSTEMS INC. (hereinafter called the "Corporation") CONTENTS ONE - INTERPRETATION TWO - BUSINESS OF THE CORPORATION THREE - BORROWING AND SECURITY FOUR - DIRECTORS FIVE - COMMITTEES SIX - OFFICERS SEVEN - CONFLICT OF INTEREST AND PROTECTION OF DIRECTORS, OFFICERS. AND OTHERS EIGHT - SHARES NINE - DIVIDENDS AND RIGHTS TEN - MEETINGS OF SHAREHOLDERS ELEVEN - DIVISIONS' AND DEPARTMENTS TWELVE - INFORMATION AVAILABLE TO SHAREHOLDERS THIRTEEN - NOTICES BE IT ENACTED as a by-law of the Corporation as follows: SECTION ONE INTERPRETATION 1.01 Definitions In the by-laws of the Corporation, unless the context otherwise requires: "Act" means the Business Corporations Act (Alberta), and any statute that may be substituted therefore, as from the time, amended; "appoint" includes "elect" and vice versa;

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WSLegal\036683\00100\9616779v3 "articles" means the articles attached to the Certificate of the Corporation as from time to time amended or restated; "board" means the board of directors of the Corporation; "by-laws" means this by-law and all other by-laws of the Corporation from time to time in force and effect; "meeting of shareholders" means an annual meeting of shareholders and a special meeting of shareholders; "special meeting of shareholders" means a meeting of any class or classes of shareholders and a special meeting of all shareholders entitled to vote at an annual meeting of shareholders; "non-business day" means Saturday, Sunday and any other day that is a holiday as defined in The Interpretation Act (Alberta); "ordinary resolution" means a resolution passed by a majority of the votes cast by the shareholders who voted, either in person or by proxy, in respect of that resolution; "recorded address" means in the case of a shareholder his address as recorded in the securities register; and in the case of joint shareholders the address appearing in the securities register in respect of such joint holding or the first address so appearing if there are more than one; and in the case of a director, officer, auditor or member of a committee of the board, his latest address as recorded in the records of the Corporation; "signing officer" means, in relation to any instrument, any person authorized to sign the same on behalf of the Corporation by Clause 2.04 or by resolution passed pursuant thereto. Save as aforesaid, words and expressions defined in the Act have the same meanings when used herein; and words importing the singular number include the plural and vice versa; words importing gender include the masculine, feminine and neuter genders; and words importing persons include individuals, bodies corporate, partnerships, trusts and unincorporated organizations. SECTION TWO BUSINESS OF THE CORPORATION 2.01 Registered Office, Records Office and Address for Service The registered office, the designated records office (if separate from the registered office) and the post office box (if any) of the Corporation shall be at the address or addresses in Alberta as may from time to time be determined by the board.

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WSLegal\036683\00100\9616779v3 2.02 Corporate Seal The Corporation may have a corporate seal of such design as may be approved by the board. The seal, if any, shall be kept in charge of the secretary or other person appointed by the board and shall be used as provided in the by-laws. Whenever determined by the board that such is necessary the Corporation may have and use an official facsimile of its seal for use in any province of Canada not being the province in which the registered office is situate or for use in any territory, district or place outside Canada and in the preparation, adoption and authorization of the use of such seal, the board shall at all times comply with the Statutes and the Articles. 2.03 Financial Year The financial year of the Corporation shall end on such date in each year as the board may from time to time determine. 2.04 Execution of Instruments Deeds, transfers, assignments, contracts, obligations, certificates, documents and other instruments in writing requiring the signature of the Corporation may be signed by any one director or officer of the Corporation alone or by any person or persons authorized in writing by such authorized signatory or by resolution of directors. In addition, the board may from time to time direct the manner in which and the person or persons by whom any particular instrument or class of instruments may or shall be signed. Any signing officer or person or persons authorized as aforesaid may affix the corporate seal to any instrument requiring the same. 2.05 Banking Arrangements The banking business of the Corporation including, without limitation, the borrowing of money and the giving of security therefor, shall be transacted with such banks, trust companies or other bodies corporate or organizations as may from time to time be designated by or under the authority of the board. Such banking business or any part thereof shall be transacted under such agreements, instructions and delegations of powers as may be from time to time be prescribed or authorized by the board. 2.06 Voting Rights in Other Bodies Corporate Any one director or officer of the Corporation may execute and deliver proxies and arrange for the issuance of voting certificates or other evidence of the right to exercise the voting rights attaching to any securities held by the Corporation. Such instruments, certificates or other evidence shall be in favour of such person or persons as may be determined by the officer or director executing such proxies or arranging for the issuance of voting certificates or such other evidence of the right to exercise such voting rights. In addition, the board, or failing the board, the signing officer of the Corporation, may from time to time direct the manner in which and the person or persons by whom any particular voting rights or class of voting rights may or shall be exercised.

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WSLegal\036683\00100\9616779v3 SECTION THREE BORROWING AND SECURITY 3.01 Borrowing Power Without limiting the borrowing powers of the Corporation as set forth in the Act, but subject to the articles, any one director or officer of the Corporation may from time to time on behalf of the Corporation, without authorization of the shareholders: (a) borrow money upon the credit of the Corporation in such amounts and on such terms as may be deemed expedient by obtaining loans or advances or by way of overdraft or otherwise; (b) issue, reissue, sell or pledge bonds, debentures,. notes or other evidences of indebtedness or guarantee of the Corporation, whether secured or unsecured, for such sums and at such prices as may be deemed expedient; (c) to the extent permitted by the Act, give a guarantee on behalf of the Corporation to secure performance of any present or future indebtedness, liability or obligation of any person; (d) mortgage, hypothecate, pledge or otherwise create a security interest in all or any present and future property, real and personal, immoveable and moveable, of the Corporation, including its undertakings and rights, to secure any bonds, debentures, notes or other evidences of indebtedness or guarantee or any other indebtedness, liability or obligation of the Corporation, present or future; and (e) delegate to a committee of the board, a director or an officer of the Corporation all or any of the powers conferred in this clause or by the Act to such extent and in such manner as the directors may determine. Nothing in this section limits or restricts the borrowing of money by the Corporation on bills of exchange or promissory notes made, drawn, accepted, or endorsed by or on half of the Corporation. SECTION FOUR DIRECTORS 4.01 Number of Directors and Quorum Until changed in accordance with the Act, the Board shall consist of not fewer than the minimum number and not more than the maximum number of directors provided in the articles. Subject to the articles, a majority of the number of directors constitutes a quorum at any meeting of directors and, notwithstanding any vacancy among the directors, a quorum of directors may exercise all the powers of the directors. Subject to section 111 of the Act, subsections (3) and (4) of section 114 of the Act, and Clause 4.07 hereof, directors shall not transact business at a meeting of directors unless a quorum is present.

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WSLegal\036683\00100\9616779v3 4.02 Qualification No person shall be qualified for election as a director: (a) who is less than eighteen years of age; (b) if he is a dependent adult as defined in The Dependent Adults Act (Alberta) or is the subject of a certificate of incapacity under the Act; (c) if he is a formal patient as defined in The Mental Health Act (Alberta); (d) if he is the subject of an order under The Mentally Incapacitated Persons Act (Alberta) appointing a committee of his person or estate or both; (e) if he has been found to be a person of unsound mind by a court elsewhere than in Alberta; (f) if he is not an individual; or, (g) if he has the status of a bankrupt. A director need not be a shareholder. As long as required by the Act, at least two directors shall not be officers or employees of the Corporation or its affiliates. 4.03 Consent to Act A person who is elected or appointed a director is not a director unless: (a) he was present at the meeting when he was elected or appointed and did not refuse to act as a director, or (b) if he was not present at the meeting when he was elected or appointed, he consented to act as a director in writing before his election or appointment or within ten days after it, or he has acted as a director pursuant to the election or appointment. A person who is elected or appointed as a director and who refuses or fails to consent or act shall be deemed not to have been elected or appointed as a director. 4.04 Election and Term Shareholders of the Corporation shall, by ordinary resolution at the first meeting of shareholders and at each succeeding annual meeting at which an election of directors is required, elect directors to hold office for a term expiring not later than the close of the third annual meeting of shareholders following the election. At each annual meeting of shareholders, all directors whose term of office has expired or then expires shall retire but, if qualified, shall be eligible for re- election. A director not elected for an expressly stated term ceases to hold office at the close of the first annual meeting of shareholders following his election. Notwithstanding the foregoing, if directors are not elected at a meeting of shareholders, the incumbent directors continue in office

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WSLegal\036683\00100\9616779v3 (b) any written resolution made under this clause may be signed in several counterparts, each of which so executed shall be deemed to be an original and such counterparts together shall constitute but one and the same instrument; (c) where the board consists of a sole director, a resolution or resolutions assented to and adopted in writing under the hand of that director whether embodied in the form of a minute of that director or not shall be as valid and effectual as if passed at a meeting of the board duly called and constituted and shall be entered in the minute book of the Corporation accordingly and shall be held to relate back to any date therein stated to be the date thereof and the sole director may also signify his assent to such resolution or resolutions by telegram or cable or facsimile transmission. 4.10 Meetings by Telephone or Electronic Means A director may participate in a meeting of the board or of a committee of the board by electronic means, telephone or other communication facilities that permit all persons participating in the meeting to hear each other, and a director participating in a meeting by those means is deemed to be present at the meeting. 4.11 Place of Meeting Subject to the articles, meetings of the board may be held at any place in or outside Canada. 4.12 Calling of Meetings Meetings of the board shall be held at such time and at such place as the board, the chairman of the board, the managing director, the president or any two directors may determine. 4.13 Notice of Meetings Notice of the time and place of each meeting of the board shall be given in the manner provided in Clause 13.01 to each director not less than forty-eight hours before the time when the meeting is to be held. Meetings of the board may be summoned by the secretary or an assistant secretary at the request of the president or the chairman and failing them, at the request of the vice- president or a director. A notice of a meeting of directors need not specify the purpose of or the business to be transacted at the meeting, except where the Act requires such purpose or business to be specified including any proposal to:

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WSLegal\036683\00100\9616779v3 (a) submit to the shareholders any question or matter requiring approval of the shareholders; (b) fill a vacancy among the directors or in the office of auditor; (c) issue securities; (d) declare dividends; (e) purchase, redeem or otherwise acquire shares of the Corporation; (f) pay a commission for the sale of shares; (g) approve a management proxy circular; (h) approve any annual financial statement; or (i) adopt, amend or repeal by-laws. A director may in any manner waive notice of or otherwise consent to a meeting of the board, and attendance of a director at a meeting of directors is a waiver of notice of the meeting, except when a director attends a meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. 4.14 Notice of an adjourned meeting of the board is not required if the time and place of the adjourned meeting is announced at the original meeting. 4.15 Provided a quorum of directors is present, the board may without notice hold a meeting immediately following an annual meeting of shareholders. 4.16 The board may from time to time appoint a day or days in any month or months for regular meetings of the board at a place and hour to be named. A copy of any resolution of the board fixing the place and time of such regular meetings shall be sent to each director forthwith after being passed, or forthwith after such director's appointment, whichever is later, but no other notice shall be required for any such regular meeting except where the Act or this by-law requires the purpose thereof of the business to be transacted thereat to be specified. 4.17 Chairman The chairman of any meeting of the board shall be the first mentioned of such of the following officers as have been appointed and who is a director and is present at the meeting: chairman of the board, president or a vice-president (in order of seniority). If no such officer is present, the directors present shall choose one of their number to be chairman.

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WSLegal\036683\00100\9616779v3 4.18 Votes to Govern At all meetings of the board, every question shall be decided by a majority of the votes cast on the question. In case of any equality of votes, the chairman of the meeting shall not be entitled to a second or casting vote. 4.19 Powers of Attorney The board may at any time and from time to time by power of attorney under the seal appoint any person or persons to be the attorney or attorneys of the Corporation for such purposes and with such powers, authorities and discretion (not exceeding those vested in or exercisable by the board under this by-law) and for such period and subject to such conditions as the board may from time to time think fit and any such appointment may (if the board think fit) be made in favor of the members or any of the members of any committee established as aforesaid or in favor of any corporation or of the members, directors, nominees or managers of any corporation or firm or otherwise in favor of any fluctuating body of persons whether nominated directly or indirectly by the board. Any such power of attorney may contain such powers for the protection or convenience of persons dealing with such attorneys as the board may think fit. 4.20 Any attorneys may be authorized by the board to delegate all or any of the powers, authorities and discretion for the time being vested in them subject to the board's confirmation. 4.21 Trustees The board may appoint a corporation or any two or more responsible individuals to be a trustee or trustees for the Corporation for any purpose for which it is deemed advisable to have the intervention of a trustee or trustees and in particular the whole or any part of the property of the Corporation may be vested in such trustee or trustees either for the benefit of the shareholders or to secure to the creditors or obligees of the Corporation the payment of any money or for securing any bonds, debentures, or debenture stock of the Corporation or for the payment or performance of any obligations which the Corporation ought to pay or perform and the board may at any time fill any vacancy in the office of trustee. 4.22 The remuneration of a trustee or trustees shall be such as the Board shall determine and shall be paid by the Corporation. 4.23 The board may delegate to any creditors or other persons the power of appointing or removing a trustee or trustees and may by contract in writing limit or surrender its power of appointing or removing a trustee or trustees. 4.24 Remuneration and Expenses The directors may fix the remuneration, if any, of the directors of the Corporation.

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WSLegal\036683\00100\9616779v3 SECTION FIVE COMMITTEES 5.01 Committee of Directors The board may appoint a committee of one or more directors, however designated, and delegate to such committee any of the powers of the board except those which, under the Act, a committee of directors has no authority to exercise. 5.02 Transaction of Business The powers of a committee of directors may be exercised at a meeting at which a quorum is present or by resolution in writing signed by all the members of such committee who would have been entitled to vote on that resolution at a meeting of the committee. Meetings of such committee may be held at any place in or outside Canada. 5.03 Audit Committee If required by the Act, the board shall elect annually from among its numbers an audit committee to be composed of not fewer than three directors of whom no member shall be an officer or employee of the corporation or its affiliates. 5.04 The audit committee shall review the financial statements of the Corporation before they are approved by the directors. 5.05 The auditor of the Corporation is entitled to receive notice of every meeting of the audit committee, and, at the expense of the Corporation, to attend and be heard at the meeting. 5.06 The auditor of the Corporation or a member of the audit committee may call a meeting of the committee. 5.07 Procedure Unless otherwise provided herein or determined by the board, each committee shall have the power to fix its quorum, to elect its chairman and to regulate its procedure. SECTION SIX OFFICERS 6.01 Appointment Subject to the articles, the board may from time to time appoint a chief executive officer, president, one or more executive vice-presidents or vice-presidents (to which title may be added words indicating seniority or function), a secretary, a treasurer and such other officers as the board may determine, including one or more assistants to any of the officers so appointed. One person may hold more than one office. The board may specify the duties of, and, in accordance with this by-law and subject to the Act, delegate powers to manage the business and affairs of the

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WSLegal\036683\00100\9616779v3 Corporation to such officers. Subject to Clause 6.02, 6.03 and 6.04 an officer may, but need not be, a director. 6.02 The Chief Executive Officer The chief executive officer of the Corporation shall, subject to the direction of the board, exercise general supervision and control over the business and affairs of the Corporation. The chief executive officer shall sign such contracts, documents or instruments in writing as require his or her signature and shall have such other powers and shall perform such other duties as may from time to time be assigned to him or her by resolution of the directors or as are incident to his or her office. The chief executive officer shall preside at all general meetings and in the absence or non- appointment of the chairman of the board shall also preside at meetings of the board. He shall have general and active management of the business and affairs of the Corporation and without limiting the foregoing: (a) he shall have general superintendence and direction of all the other officers of the Corporation; and (b) he shall submit the annual report of the board if any and the annual balance sheets and financial statements of the business and affairs and reports on the financial position of the Corporation as required by the Act to the annual meeting and from time to time he shall report to the board all matters within his knowledge which the interest of the Corporation require to be brought to their attention. 6.03 Chairman of the Board and Officers Generally The board may elect one of their number to be chairman of the board who may preside at any or all meetings of the board and who may also hold the office of president or vice-president. The board may additionally elect one of their number to be vice chairman of the board who may fulfill the roles of the chairman of the board in such chairman's absence and who may also hold the office of president or vice-president. In the absence of the chairman of the board (if any), the vice chairman of the board (if any), and in the absence of any such Vice Chairman, such other director as the chairman of the board may designate, shall preside as chairman at all meetings of directors. 6.04 The Vice-Presidents or Executive Vice-Presidents The board from time to time may also appoint one or more vice-presidents or executive vice- presidents in whom shall be vested all the power and who shall perform all the duties of the chief executive officer in the absence of the latter from his office and who may also preside at meetings of the board in the absence of the chief executive officer, president and the chairman of the board. Nothing, however, herein contained shall prevent any director from presiding at meetings of the board if considered advisable or being necessary and the directors being willing.

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WSLegal\036683\00100\9616779v3 6.05 Secretaries or Assistant Secretaries The board may appoint a secretary and may also appoint one or more assistant secretaries. The secretary or an assistant secretary shall attend any meetings of the board and any general meeting and record the proceedings thereof and all matters transacted and dealt with thereat and shall prepare and keep minutes of all such meetings and record all votes and the minutes of all proceedings in a book or books to be kept for any standing or executive committee. 6.06 The Treasurer or Assistant Treasurer The board may appoint a treasurer and may also appoint one or more assistant treasurers who shall keep or cause to be kept in books belonging to the Corporation full and accurate accounts of receipts and disbursements and shall deposit or cause to be deposited all moneys of the Corporation with the Corporation's bankers or otherwise deal with the same as the board may determine. The treasurer or an assistant treasurer or assistant treasurers shall disburse or cause to be disbursed the funds of the Corporation as may be ordered by the board taking proper vouchers for such disbursements and shall render to the president and to the board at the regular meetings of the board or at such times as they may require an account of all transactions of the Corporation and of the financial position of the Corporation. 6.07 Powers and Duties of Other Officers The powers and duties of all other officers shall, subject to the Act, be such as the terms of their engagement call for or as the board or (except for those whose powers and duties are specified only by the board) the chief executive officer may specify. Any of the powers and duties of an officer to whom an assistant has been appointed may be exercised and performed by such assistant, unless the board or the chief executive officer otherwise directs. 6.08 Variation of Powers and Duties The board and (except as aforesaid) the chief executive officer may from time to time and subject to the provisions of the Act, vary, add to or limit the powers and duties of any officer. 6.09 Terms of Office The board, in its discretion, may remove any officer of the Corporation, without prejudice to such officer's rights under any employment contract. Otherwise, each officer appointed by the board shall hold office until his successor is appointed or until his earlier resignation. 6.10 Terms of Employment and Remuneration The terms of employment and the remuneration of officers appointed by the board shall be settled by it from time to time.

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WSLegal\036683\00100\9616779v3 6.11 Agents and Attorneys Any one director or officer of the Corporation shall have power from time to time to appoint agents or attorneys for the Corporation in or outside Canada with such powers of management or otherwise (including the power to sub-delegate) as may be thought fit. 6.12 Fidelity Bonds The board may require such officers, employees and agents of the Corporation as the board deems advisable to furnish bonds for the faithful discharge of their powers and duties, in such form and with such surety as the board may from time to time determine. SECTION SEVEN INTEREST IN MATERIAL, CONTRACT AND PROTECTION OF DIRECTORS, OFFICERS AND OTHERS 7.01 Interest in Material Contracts and Material Transactions A director or officer who is party to, or who is a director or officer of or has a material interest in any person who is a party to, a material contract or material transaction or proposed material contract or proposed material transaction with the Corporation shall disclose in writing to the Corporation or request to have entered in the minutes of meetings of directors the nature and extent of his interest. The disclosure shall be made: (a) in the case of a director, at a meeting in which the proposed contract or transaction is first considered, or at the first meeting in which he becomes so interested; (b) in the case of an officer, forthwith after he becomes aware that a contract or transaction is considered or has been considered at a meeting of directors or forthwith after an officer has become so interested; (c) in the case of a person who is interested in a contract or transaction who later becomes a director or officer, forthwith after he becomes a director or officer. 7.02 If a material contract or material transaction or proposed material contract or proposed material transaction is one that in the ordinary course of business would not require the consent of the board or shareholders, a director or officer who has an interest in such contract shall nevertheless disclose in writing to the Corporation or request to have entered in the minutes of the meeting of directors, the nature and extent of his interest forthwith after the director of officer becomes aware of the contract or transaction or proposed contract or proposed transaction. 7.03 A director referred to in Clause 7.01 shall not vote on any resolution to approve, the contract or transaction unless the contract or transaction is an arrangement by way of security for money lent to or obligations undertaken by him, or by a body corporate, in which he has an interest for the benefit of the Corporation or an affiliate, a contract or

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![](exhibit12-wfsxbylawsa01014.jpg)

WSLegal\036683\00100\9616779v3 transaction relating primarily to his remuneration as a director, officer, employee or agent of the Corporation or an affiliate, a contract or transaction for indemnity or insurance pursuant to the Act, or a contract or transaction with an affiliate. 7.04 Dissent by Director A director who is present at a meeting of directors or committee of directors is deemed to have consented to any resolution passed or action taken at the meeting unless he requests that his abstention or dissent be, or his abstention or dissent is, entered in the minutes of the meeting; he sends his written dissent to the secretary of the meeting before the meeting is adjourned; he sends his dissent by registered mail or delivers it to the registered office of the Corporation immediately after the meeting is adjourned, or otherwise proves that he did not consent to the resolution or action. A director who votes for or consents to a resolution or action is not entitled to dissent as aforesaid. 7.05 Limitation of Liability Subject to the Act, no director or officer for the time being of the Corporation shall be liable for the acts, receipts, neglects or defaults if any other director or officer or employee, or for joining in any receipt or act for conformity, or for any loss, damage or expense happening to the Corporation through the insufficiency or deficiency of title to any property acquired by the Corporation or for or on behalf of the Corporation or for the insufficiency or deficiency of any security in or upon which any of the moneys of or belonging to the Corporation shall be placed or invested, or for any loss or damage arising from the bankruptcy, insolvency or tortious act of any person, firm or corporation including any person, firm or corporation with whom or with which moneys, securities or effects shall be lodged or deposited for any loss, conversation, misapplication or misappropriation of or any damage resulting from any dealings with moneys, securities or other assets of or belonging to the Corporation or for any other loss, damage or misfortune whatsoever which may happen in the execution of the duties of his respective office or trust or in relation thereto unless the same shall happen by or through his failure to exercise the powers and to discharge the duties of his office honestly and in good faith with a view to the best interests of the Corporation and through a failure to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. 7.06 Indemnity Subject to the Act, the Corporation shall indemnify a director or officer, a former director or officer, and a person who acts or acted at the Corporation's request as a director or officer of a body corporate of which the Corporation is or was a shareholder or creditor, and his heirs and legal representatives, against all costs, charges and expenses, including any amount paid to settle an action or satisfy a judgement, reasonably incurred by him in respect to any civil, criminal or administrative action or proceedings to which he is made a party by reason of being or having been a director of officer of the Corporation or such body corporate, if:

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![](exhibit12-wfsxbylawsa01015.jpg)

WSLegal\036683\00100\9616779v3 (a) he acted honestly and in good faith with a view to the best interests of the Corporation; and (b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, he had reasonable grounds for believing that his conduct was lawful. 7.07 Insurance The Corporation may, subject to and in accordance with the Act, purchase and maintain insurance for the benefit of any director or officer as such against liability incurred by him. SECTION EIGHT SHARES 8.01 Allotment Subject to the articles, the board may from time to time allot, or grant options to purchase, and issue the whole or any part of the authorized and unissued shares of the Corporation at such times and to such persons and for such consideration as the board shall determine, provided that no share shall be issued until it is fully paid as provided by the Act. 8.02 Commissions The board may from time to time authorize the Corporation to pay reasonable commission to any person in consideration of his purchasing or agreeing to purchase shares of the Corporation, whether from the Corporation or from any other person, or procuring or agreeing to procure purchasers for shares of the Corporation. 8.03 Securities Register The Corporation shall maintain or cause to be maintained a securities register in which it records the securities issued by it in registered form, showing with respect to each class or series of securities: (a) the names, alphabetically arranged, and the latest known address of each person who is or has been a security holder; (b) the number of securities held by each security holder; and (c) the date and particulars if the issue and transfer of each security. 8.04 Non-recognition of Trusts Subject to the provisions of the Act, the Corporation may treat as the absolute owner of any share the person in whose name the share is registered in the securities register as if that person had full legal capacity and authority to exercise all rights of ownership, irrespective of any indication

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![](exhibit12-wfsxbylawsa01016.jpg)

WSLegal\036683\00100\9616779v3 to the contrary through knowledge or notice or description in the Corporation's records or on the share certificate. 8.05 Share Certificates Every holder of one or more shares of the Corporation shall be entitled, at his option, to a share certificate, or to a non-transferable written acknowledgement of his right to obtain a share certificate, stating the name of the person to whom the certificate or acknowledgement was issued, and the number and class series of shares held by him as shown on the securities register. The Corporation may charge a fee of not more than $5.00 for a share certificate issued in respect of a transfer. Share certificates and acknowledgements of a shareholder's right to a share certificate, shall, subject to the Act, be in such form as the board shall from time to time approve. Any share certificate shall be signed in accordance with Clause 2.04 and need not be under the corporate seal, provided that, unless the board otherwise determines, certificates representing shares in respect which a transfer agent and/or registrar has been appointed shall not be valid unless countersigned by or on behalf of such transfer agent and/or registrar. The signature of one of the signing officers or, in the case of share certificates which are not valid unless countersigned by or on behalf of a transfer agent and/or registrar, the signatures of both signing officers, may be printed or mechanically reproduced in facsimile upon share certificates and every such facsimile signature shall for all purposes be deemed to be the signature of the officer whose signature it reproduces and shall be binding upon the Corporation. A share certificate executed as aforesaid shall be valid notwithstanding that one or both of the officers whose facsimile signature appears thereon no longer holds office at the date of issue of the certificate. 8.06 Replacement of Share Certificate The board or any officer or agent designated by the board may in its or his discretion direct the issue of a new share certificate in lieu of and upon cancellation of a share certificate that has been mutilated or in substitution for a share certificate claimed to have been lost, destroyed of wrongfully taken on payment of such fee, not exceeding $5.00 or such greater amount as may be allowed by the Act, and on such terms as to indemnity, reimbursement of expenses and evidence of loss and of title as the board may from time to time prescribe, whether generally or in any particular case. 8.07 Joint Shareholders If two or more persons are registered as joint holders of any share, the Corporation shall not be bound to issue more than one certificate in respect thereof, and delivery of such certificates to one of such persons shall be sufficient delivery to all of them. Any one of such persons may give effectual receipts for the certificates issued in respect thereof or for any dividend, bonus, return of capital or other money payable or warrant issuable in respect of such share. 8.08 Fractional Shares The Corporation may issue a certificate for a fractional share or may issue in its place as may be determined by the board, scrip certificates in a form that entitles the holder to receive a certificate for a full share by exchanging scrip certificates aggregating a full share. The directors may attach conditions to any script certificates including that the scrip certificates become void if

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![](exhibit12-wfsxbylawsa01017.jpg)

WSLegal\036683\00100\9616779v3 they are not exchanged for a share certificate representing a full share by a specified date, and that any shares for which those scrip certificates are exchangeable may, notwithstanding any pre- emptive right, to be issued by the. Corporation to any person and the proceeds of those shares distributed rateably to holders of the scrip certificates. 8.09 Transfer and Transmission of Shares Shares of the Corporation may be transferred in the form of a transfer or endorsement endorsed on the certificates issued for the shares of the Corporation or in any form of transfer which may be approved by the board. 8.10 Registration of Transfer Subject to the provisions of the Act, no transfer of shares shall be registered in a securities register except upon presentation of the certificate representing such shares with a transfer endorsed thereon or delivered therewith duly executed by the registered holder or by his attorney or successor duly appointed, together with such reasonable assurance or evidence of signature, identification and authority to transfer as the board may from time to time prescribe, upon payment of all applicable taxes and any fees prescribed by the board. 8.11 Subject to the provisions of the Act, the Corporation may treat a person as a registered shareholder entitled to exercise all rights of the shareholder he represents if that person produces to the board such evidence as may be reasonably required that he is the executor, administrator, heir or legal representative of the heirs of the estate of a deceased shareholder, or guardian committee, trustee, curator or tutor representing a shareholder who is an infant, an incompetent person or a mining person or a liquidation of, or a trustee in bankruptcy for, a registered shareholder. 8.12 If a person on whom the ownership of a share devolves by operation of law, other than a person described in Clause 8.11, furnishes proof of his authority to exercise rights or privileges in respect of a share in the Corporation that is not registered in his name, the Corporation shall treat that person as entitled to exercise those rights or privileges. 8.13 The Corporation is not required to enquire into the existence of, or see the performance or observance of, any duty owed to a third person by a registered holder of any of its shares or by anyone whom it treats, subject to the Act, as the owner or registered holder of the shares. 8.14 Subject to applicable law regarding the collection of taxes, a person referred to in Clause 8.11 is entitled to become a registered holder or to designate a registered holder upon his depositing with the board those documents prescribed by the Act. 8.15 Transfer Agents and Registrars The board may from time to time appoint one or more trust companies registered under The Trust Companies Act (Alberta) as its agent or agents to maintain the central securities register and registers, and an agent or agents to maintain branch securities registers. Such a person may be designated as transfer agent or registrar according to his functions and one person may be

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![](exhibit12-wfsxbylawsa01018.jpg)

WSLegal\036683\00100\9616779v3 appointed both registrar and transfer agent. The board may at any time terminate any such agreement. 8.16 Share Warrants The Corporation, with respect to any fully paid-up shares may issue share warrants under its seal stating that the bearers thereof are entitled to the shares therein respectively specified and may provide by coupons or otherwise for the payment of future dividends on the shares included in such warrants. 8.17 The board may determine and from time to time vary the conditions upon which share warrants shall be issued and in particular upon which a new share warrant or coupon will be issued in the place of one worn-out, defaced, lost or destroyed upon which the bearer of a share warrant shall be entitled to attend and vote at general meetings; and upon which a share warrant may be surrendered and the name of the holder entered in the register in respect of the shares therein specified. Subject to such conditions and to this bylaw, the bearer of a share warrant shall be a shareholder of the Corporation. The holder of share warrant shall be subject to the conditions for the time being in force with respect to share warrants whether made before or after the issue of such warrant. SECTION NINE DIVIDENDS AND RIGHTS 9.01 Dividends Subject to the rights of the holders of any shares entitles to any priority, preference or special privileges, and subject to the provisions of the Act, the board may from time to time declare dividends payable to the shareholders according to their respective rights and interests in the Corporation. 9.02 Record Date for Dividends and Rights The board my fix in advance a date, preceding by not more than fifty days the date for the payment of any dividend or the date for the issue of any warrant or other evidence or right to subscribe for securities of the Corporation, as a record date for the determination of the persons entitled to receive the right to subscribe for such securities, provided that if the Corporation is a distributing corporation, then unless notice of the record date is waived in writing by every holder of a share of the class or series affected, notice of such record date shall be given not less than seven days before such record date, in the manner provided in the Act. Where no record date for the determination of the persons entitled to receive payment of any dividend or to receive the right to subscribe for securities of the Corporation shall be at the close of business on the day on which the resolution relating to such dividend or right to subscribe is passed by the board.

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![](exhibit12-wfsxbylawsa01019.jpg)

WSLegal\036683\00100\9616779v3 9.03 Dividend Resolution The resolution of the board declaring a dividend may direct payment of such dividend wholly or in part by the distribution of specific assets and in particular of paid-up shares, debentures, or debenture stock of the Corporation or of any other corporation or in any one or more of such ways where any difficulty arises in regard to the distribution the board may settle the same as they think expedient and may fix the value for distribution of such specific assets or any part thereof and may determine that such payments shall be made to all parties and may vest any such specific assets in trustees upon such trust for the persons entitled to the dividends as may seem expedient to the board. 9.04 Interest Interest may be paid out of capital where it is lawful to do so by virtue of the Act but no dividend shall be payable except out of the profits arising from the business of the Corporation. 9.05 No dividend shall bear interest as against the Corporation. 9.06 Pre-Paid Shares Where capital is paid up on any shares in advance, such capital shall not confer a right to participate in profits whilst carrying interest. 9.07 Interim Dividends The board may from time to time pay to the shareholders such interim dividends as appear to the board to be justified by the profits of the Corporation. 9.08 Debt to Corporation Subject to the Act, the board shall deduct from the dividends payable to any shareholder all sums of money as may be due from him to the Corporation on account of calls or otherwise. 9.09 Payment of Dividends The Corporation may transmit any dividend or bonus payable in respect of any shares by cheque or warrant through the ordinary post to the registered address of the holder of such share (unless he shall have given written instructions to the contrary) and shall not be responsible for any loss arising therefrom. Every cheque or warrant so sent shall be made payable to the order of the person to whom it is sent. 9.10 Unclaimed Dividends All dividends unclaimed for one year after having been declared may be vested in or otherwise made use of by the board for the benefit of the Corporation.

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![](exhibit12-wfsxbylawsa01020.jpg)

WSLegal\036683\00100\9616779v3 9.11 Fractional Shares Subject to the Articles, a holder of a fractional share or scrip certificate is not entitled to receive a dividend in respect of the fractional share or scrip certificate unless the fractional share or scrip certificate results from a consolidation of shares. SECTION TEN MEETINGS OF SHAREHOLDERS 10.01 First and Subsequent Annual Meetings The first annual meeting shall be held within such period as the board shall determine is in accord with the most convenient date for closing the Corporation's financial year but in any event shall be held within the period of eighteen months from the date of incorporation and subject to the provisions of the Act and the provisions of this by-law, subsequent annual meetings of the Corporation shall be held once in each calendar year and not more than fifteen months after the holding of the last annual meeting. 10.02 Annual Meeting Subject to the Act, the annual meeting of shareholders shall be held at such time in each year and, subject to Clause 10.05, at such place as the board, the chairman of the board, the managing director or the president may from time to time determine, for the purpose of considering the financial statements and reports required by the Act to be placed before the annual meeting, electing directors if required, appointing auditors if required and transacting such other business as may properly be brought before the meeting. 10.03 Special Meetings The board, the chairman of the board or the president shall have power to call a special meeting of the shareholders at any time. 10.04 Requisition of Meeting The board may whenever it thinks fit and it shall upon the requisition of the holders of not less than five (5%) percent of the issued voting share capital of the Corporation forthwith proceed to convene an extraordinary general meeting of the Corporation and any extraordinary general meeting called in pursuance of a requisition shall be convened and held in accordance with the provisions of the Act. 10.05 Place of Meetings Meetings of shareholders shall be held anywhere in the provinces of Alberta or British Columbia (or outside Alberta or British Columbia if the articles so provide or if all the shareholders entitled to vote at that meeting so agree) as shall be determined by the directors of the Corporation.

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![](exhibit12-wfsxbylawsa01021.jpg)

WSLegal\036683\00100\9616779v3 10.06 Telephone Meeting or Electronic Meeting Subject to any limitations or requirements set out in the regulation made pursuant to the Act, if any, a shareholder or any other person entitled to attend a meeting of shareholders may participate by electronic means, telephone or other communication facilities that permit all persons participating to hear or otherwise communicate with each other and a person participating in such a meeting by those means is deemed to be present at the meeting, and may vote by these means at the meeting. 10.07 Notice of Meetings A notice in writing of a meeting of shareholders stating the day, hour and place of meeting and if special business is to be transacted thereat, stating (i) the nature of that business in sufficient detail to permit the shareholder to form a reasoned judgment on that business and (ii) the text of any special resolution to be submitted to the meeting, shall be sent to each shareholder entitled to vote at the meeting, who on the record date for notice is registered on the records of the Corporation or its transfer agent as a shareholder, to each director of the Corporation and to the auditor of the Corporation not less than 21 days and not more than 50 days (exclusive of the day of mailing and of the day for which notice is given) before the date of the meeting. 10.08 Record Date for Notice The board may fix in advance a date, preceding the date of any meeting of shareholders by not more than fifty days and not less than twenty-one days, as a record date for the determination of the shareholders entitled to notice of or to vote at the meeting, provided that if the Corporation is a distributing corporation, then unless notice of the record date is waived in writing by every holder of a share of the class or series affected, notice of any such record date shall be given not less than seven days before such record date in the manner provided in the Act. If no such record date is so fixed, the record date for the determination of the shareholders entitled to receive notice of or vote at the meeting shall be at the close of business on the date immediately preceding the day on which the notice is sent or, if no notice is sent, shall be the day on which the meeting is held. 10.09 List of Shareholders Entitled to Notice The Corporation shall prepare a list of shareholders entitled to receive notice of or vote at a meeting of shareholders, arranged in alphabetical order and showing the number or shares held by each shareholders. If a record date for the meeting is fixed pursuant to Clause 10.08, the shareholders listed shall be those registered at the close of business on such record date. If no record date is fixed, the shareholders listed shall be those registered at the close of business on the date immediately preceding the day on which notice of the meeting is given or, where no such notice is given, on the day on which the meeting is held. The list shall be available for examination by any shareholder during usual business hours at the records office of the Corporation or at the place where the central securities register is maintained and at the meeting for which the list was prepared.

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![](exhibit12-wfsxbylawsa01022.jpg)

WSLegal\036683\00100\9616779v3 10.10 Fractional Shares Subject to the Articles, a holder of a fractional share or scrip certificate is not entitled to exercise voting rights or receive notice of a meeting of shareholders in respect of such fractional share or scrip certificate unless the fractional share or scrip certificate results from a consolidation of shares. 10.11 Meetings Without Notice A meeting of shareholders may be held without notice at any time and place permitted by the Act: (a) if all shareholders entitled to vote thereat are present in person or represented or if those not present or represented waive notice of or otherwise consent to such meeting being held; and (b) if the auditors and the directors are present or waive notice of or otherwise consent to such meeting being held; so long as such shareholders, auditors or directors present are not attending for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. At such a meeting, any business may be transacted which the Corporation at a meeting of shareholders may transact. If the meeting is held at a place outside Alberta, shareholders not present or represented by proxy, but who have waived notice of or otherwise consented to such meeting, shall also be deemed to have consented to the meeting being held at such place. 10.12 Chairman and Secretary The chairman of any meeting of shareholders shall be the president, or in his absence, a vice- president who is a shareholder. If no such officer is present within fifteen minutes from the time for holding the meeting, the persons present and entitled to vote shall choose one of their number to be the chairman. If the secretary of the Corporation is absent, the chairman shall appoint some person, who need not be a shareholder, to act as secretary of the meeting. 10.13 Persons Entitled to be Present The only person entitled to be present at a meeting of shareholders shall be those entitled to vote thereat, the directors and auditors of the Corporation and others who, although not entitled to vote, are entitled or required under any provision of the Act or the articles or by-laws to be present at the meeting. Any other person may be admitted only on the invitation of the chairman of the meeting or with the consent of the meeting. 10.14 Quorum Two persons present and holding or representing by proxy at least twenty-five per cent (25%) of the shares entitled to vote at the meeting shall be a quorum. If a quorum is present at the opening

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![](exhibit12-wfsxbylawsa01023.jpg)

WSLegal\036683\00100\9616779v3 of a meeting of shareholders, the shareholders present may proceed with the business of the meeting, notwithstanding that a quorum is not present throughout the meeting. If a quorum is not present at the opening of any meeting of shareholders, the shareholders present may adjourn the meeting to a fixed time and place but may not transact any other business. Notwithstanding the foregoing, if the Corporation has only one shareholder, or one shareholder holding a majority of the shares entitled to vote at the meeting, that shareholder present in person or by proxy constitutes a meeting and a quorum for such meeting. 10.15 Right to Vote The Corporation shall, no later than 10 days after the record date, prepare a list of shareholders arranged in alphabetical order and showing the number of shares held by each shareholder, and each shareholder shall be entitled to vote the shares shown thereon opposite the shareholder's name at the meeting to which such list relates, except to the extent that: (a) where the Corporation has fixed a record date in respect of such meeting, such person has transferred any of his shares after such record date or, where the Corporation has not fixed a record date in respect of such meeting, such person has transferred any of his shares after the date on which such list is prepared, and (b) the transferee, having produced properly endorsed certificates evidencing such shares or having otherwise established that he owns such shares, has demanded not later than ten days before the meeting that his name be included in such list. In any such excepted case, the transferee shall be entitled to vote the transferred shares at such meeting. If the Corporation is not required to prepare a list under Clause 10.09, subject to the provisions of the Act and this by-law as to proxies and representatives, at any meeting of shareholders, every person shall be entitled to vote at the meeting who at the time is entered in the securities register as the holder of one or more shares carrying the right to vote at such meeting. 10.16 Proxies and Representatives Every shareholder entitled to vote at a meeting of shareholders may appoint a proxy holder, or one or more alternate proxy holders, who need not be shareholders, to attend and act at the meeting in the manner and to the extent authorized and with the authority conferred by the proxy. A proxy shall be in writing executed by the shareholder or his attorney and shall conform with the requirements of the Act. Alternatively, every such shareholder which is a body corporate or association may authorize by resolution of its directors or governing body an individual, who need not be a shareholder, to represent it at a meeting of shareholders and such individual may exercise on the shareholder's behalf all the powers it could exercise if it were an individual shareholder. The authority of such an individual shall be established by depositing with the Corporation a certified copy of such resolution, or in such other manner as may be satisfactory to the secretary of the Corporation or the chairman of the meeting.

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![](exhibit12-wfsxbylawsa01024.jpg)

WSLegal\036683\00100\9616779v3 10.17 Mandatory Solicitation of Proxies If the Corporation is a distributing corporation having fifteen or more shareholders entitled to vote at a meeting of shareholders, two or more joint shareholders being counted as one shareholder, and the management of the Corporation gives or intends to give a holder of its voting shares notice by a meeting, subject to the Act, the management shall, concurrently with or prior to giving of notice, send to each shareholder who is entitled to notice of meeting a form of proxy which shall as nearly as circumstances permit be in a form or to the effect of the following: "I, •, of •, being a shareholder in •, hereby appoint • of •, or failing him, • of •, as my proxy to vote for me and on my behalf of the annual (or extraordinary, as the case may be) meeting of the Corporation to be held on the • day of •, 200• and at every adjournment thereof and at every poll, which may take place in consequence thereof. As witness my hand this • day of •, 200•." 10.18 When Clause 10.17 applies, every form of proxy sent or delivered to a shareholder shall indicate in bold-face type whether or not the proxy is solicited by or, on behalf of management of the Corporation and shall provide a specifically designated space for dating and signing form of proxy. The form of proxy shall also indicate that the shareholder has a right to appoint a person or body corporate to represent him at the meeting other than the person or body corporate, if any, designated in the form of proxy and shall contain instructions as to the manner in which the shareholder may exercise the right, and a means for so doing. The form of proxy shall also provide a means for a shareholder to specify that his shares be voted for or against each matter identified therein, other than the appointment of an auditor and election of directors, a means for the shareholder to specify that his shares shall be voted or withheld from voting in respect of the appointment of an auditor or election of directors, and a statement that the shares represented by the proxy will be voted or withheld from voting in accordance with the instructions of the shareholder on any ballot that may be called for and that, if the shareholder specifies a choice with respect to any matter to be acted on, the, shares shall be voted accordingly. A proxy may confer discretionary authority with respect to each matter identified in the notice of meetings, other than the appointment of an auditor and the election of directors, if the form of proxy states in bold-face type how the shares represented by the proxy will be voted in respect of each matter or group of related matters. 10.19 Validity of Proxy The decision of the chairman of any general meeting as to the validity of any instrument of proxy shall be final and conclusive. 10.20 Time for Deposit of Proxies The board may specify in a notice calling a meeting of shareholders a time, preceding the time of such meeting or an adjournment thereof by not more than forty eight hours exclusive of non- business days, before which proxies to be used at such meeting must be deposited. A proxy shall

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![](exhibit12-wfsxbylawsa01025.jpg)

WSLegal\036683\00100\9616779v3 be acted upon only if, prior to the time so specified, it shall have been deposited with the Corporation or an agent thereof specified in such notice or, if no such time is specified in such notice, it has been received by the secretary of the Corporation or by the chairman of the meeting or any adjournment thereof prior to the time of voting. 10.21 Joint Shareholders If two or more persons hold shares jointly, any one of them present in person or represented at a meeting of shareholders may, in the absence of the other or others, vote the shares, but if two or more of those persons are present in person or represented and vote, they shall vote as one the shares jointly held by them. 10.22 Votes to Govern At any meeting of shareholders, every question shall, unless otherwise required by the articles or by-laws or by law, be determined by the majority of the votes cast on the question. In case of an equality of votes, either upon a show of hands or upon a pool, the chairman of the meeting shall be entitled to a second or casting vote. 10.23 Show of Hands Subject to the provisions of the Act, any question at a meeting of shareholders shall be decided by a show of hands unless a ballot thereon is required or demanded as hereinafter provided. Upon a show of hands, every person who is present and entitled to vote shall have one vote. Whenever a vote by show of hands shall have been taken upon a question, unless a ballot thereon is so required or demanded, a declaration by the chairman of the meeting that he vote upon the question has been carried or carried by a particular majority or not carried and an entry to that effect in the minutes of the meeting shall be prima facie evidence of the fact without proof of the number or proportion of, the votes recorded in favour of or against any resolution or other proceeding in respect of the said question, and the result of the vote so taken shall be the decision of the shareholders upon the said question. 10.24 Ballots On any question proposed for consideration at a meeting of shareholders, any shareholder or proxy holder entitled to vote at the meeting may require or demand a ballot, either before or on the declaration of the result of any vote by show of hands. A ballot so required or demanded shall be taken in such manner as the chairman shall direct. A requirement or demand for a ballot may be withdrawn at anytime prior to the taking of the ballot. If a ballot is taken, each person present shall be entitled, in respect of the shares which he is entitled to vote at the meeting upon the question, to that number of votes provided by the Act or the articles, and the result of the ballot so taken shall be the decision of the shareholders upon the said question. 10.25 Admission or Rejection of a Vote In case of any dispute as to the admission or rejection of a vote, the chairman shall determine the same and such determination made in good faith shall be final and conclusive.

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![](exhibit12-wfsxbylawsa01026.jpg)

WSLegal\036683\00100\9616779v3 10.26 Adjournment If a meeting of the shareholders is adjourned by one or more adjournments for an aggregate of less than thirty days, it shall not be necessary to give notice of the adjourned meeting, other than by announcement at the time of an adjournment. If a meeting of shareholders is adjourned by one or more adjournments for an aggregate of thirty days or more, notice of the adjourned meeting shall be given as for an original meeting. 10.27 Only One Shareholder Where the Corporation has only one shareholder or only one holder of any class or series of shares, the shareholder present in person or by proxy constitutes a meeting. 10.28 Resolution Signed by all Shareholders A resolution signed in writing by all the shareholders entitled to vote on that resolution is as valid as if it had been passed at a meeting of shareholders. SECTION ELEVEN DIVISIONS AND DEPARTMENTS 11.01 Creation and Consolidation of Divisions The board may cause the business and operations of the Corporation or any part thereof to be divided or to be segregated into one or more divisions upon such basis, including without limitation, character or type of operation, geographical territory, product manufactured or service rendered, as the board may consider appropriate in each case. The board may also cause the business and operations of any such division to be further divided into sub-units to be consolidated upon such basis as the board may consider appropriate in each case. 11.02 Name of Division Subject to law, any division or its sub-units may be designated by such name as the board may from time to time determine and may transact business, enter into contracts, sign cheques and other documents of any kind and do all acts and things under such name. Any such contract, cheque or document shall be binding upon the Corporation as if it has been entered into or signed in the name of the Corporation. 11.03 Officers of Divisions From time to time the board or, if authorized by the board, the chief executive officer may appoint one or more officers for any division, prescribe their powers and duties and settle their terms of employment and remuneration. The board or, if authorized by the board, the chief executive officer may remove at its or his pleasure any officer so appointed without prejudice to such officer's rights under any employment contract. Officers of divisions or their sub-units shall not, as such, be officers of the Corporation.

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![](exhibit12-wfsxbylawsa01027.jpg)

WSLegal\036683\00100\9616779v3 SECTION TWELVE INFORMATION AVAILABLE TO SHAREHOLDERS 12.01 Except as provided by the Act, or other bodies having jurisdiction, no shareholder shall be entitled to discovery of any information respecting any details or conduct of the Corporation's business which in the opinion of the directors would be expedient in the interests of the Corporation to communicate to the public. 12.02 The directors may from time to time, subject to the rights conferred by the Act, determine whether and to what extent and at what time and place and under what circumstances or regulations the documents, books and registers and accounting records of the Corporation or any of them shall be open to inspection or shareholders and no shareholder shall have any right to inspect any document or book or register or accounting records of the Corporation except as conferred by statute or authorized by the board of directors or by a resolution of the shareholders. SECTION THIRTEEN NOTICES 13.01 Method of Giving Notices Any notice or document required by the Act, the articles or the by-laws to be sent to any shareholder or director of the Corporation may be delivered personally to or sent by mail addressed to: (a) the shareholder at the shareholder's latest address as shown in the records of the Corporation or its transfer agent; and (b) the director at the director's latest address as shown in the records of the Corporation or in the last notice filed under section 106 or 113 of the Act. Subject to subsection (2) of section 134 of the Act, a notice or document sent by mail as contemplated by this Clause 13.01 to a shareholder or director of the Corporation shall be deemed to have been received by the shareholder or director (as the case may be) at the time it would be delivered in the ordinary course of mail, unless there are reasonable grounds for believing that the shareholder or director (as the case may be) did not receive the notice or document at that time or at all. A notice or document required to be sent or delivered as noted above in this Clause 13.01 or pursuant to section 256 or section 257 of the Act may be sent by electronic means in accordance with the provisions of the Electronic Transactions Act (Alberta) or as otherwise permitted by applicable laws including, without limitation, common law, statutes, rules, regulations, official directives, published guidelines, standards, codes of practice (regardless of whether such guidelines, standards and codes of practice have been promulgated by statute or regulation) and orders of and the terms of all judgments, orders and decrees, whether foreign or domestic, issued by any governmental authority.

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![](exhibit12-wfsxbylawsa01028.jpg)

WSLegal\036683\00100\9616779v3 13.02 Notice to Joint Shareholders If two or more persons are registered as joint holders of any share, any notice shall be addressed to all of such joint holders but notice to one of such persons shall be sufficient notice to all of them. 13.03 Computation of Time In computing the date when notice must be given under any provision requiring a specified number of days' notice of any meeting or other event, the date of giving notice shall be excluded and the date of the meeting or other event shall be included. 13.04 Undelivered Notice If notices given to a shareholder pursuant to Clause 13.01 are returned on two consecutive occasions because he cannot be found, the Corporation shall not be required to give any further notices to such shareholder until he informs the Corporation in writing of his new address. 13.05 Omissions and Errors The accidental omission to give any notice to any shareholder, director, officer, auditor or member of a committee of the board of the non-receipt of any notice by any such person or any error in any notice not affecting the substance thereof shall not invalidate any action taken at any meeting held pursuant to such notice or otherwise founded thereon. 13.06 Persons Entitled by Death or Operation of Law Every person who, by operation of law, transfer, death of a shareholder or any other means whatsoever shall become entitled to any share, shall be bound by every notice in respect of such share which shall have been duly given to the shareholder from whom he derives his title to such share prior to his name and address being entered on the securities register (whether such notice was given before or after the happening of the event upon which he became so entitled) and prior to his furnishing to the Corporation the proof of authority or evidence of his entitlement prescribed by the Act. 13.07 Waiver of Notice Any shareholder (or his duly appointed proxy holder), director, officer, auditor or member of a committee of the board may at any time waive any notice, or waive or abridge the time for any notice, required to be given to him under any provision of the Act, the regulations thereunder, the articles, the by-laws or otherwise and such waiver or abridgment shall cure any default ion the giving or in the time of such notice, as the case may be. Any such waiver or abridgment shall be in writing except a waiver of notice of a meeting of shareholders or of the board which may be given in any manner.

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![](exhibit12-wfsxbylawsa01029.jpg)

WSLegal\036683\00100\9616779v3 MADE by the board the 22nd day of March, 1995 with amendments made by the board the 25th day of October, 2013 and 4th day of June, 2021. AMENDMENTS CONFIRMED by the shareholders in accordance with the Act: (i) the 24th day of April, 2014; (ii) the 22nd day of March, 1995, and (iii) the 7th day of July, 2005.

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## Exhibit 2.2

**<u>DESCRIPTION OF SECURITIES</u>**

This exhibit contains a description of the rights of the holders of Common Shares. The following summary is subject to and qualified in its entirety by Westport Fuel Systems Inc. ("**Westport**") articles of incorporation (the "**Articles of Incorporation**"), by-laws (the "**By-Laws**") and by applicable Alberta and Canadian law, particularly the *Business Corporations Act* (Alberta) (the "**ABCA**"). This is not a summary of all the significant provisions of the Articles of Incorporation, By-Laws or of Alberta or Canadian law and does not purport to be complete. Capitalized terms used but not defined herein have the meanings given to them in Westport's annual report on Form 20-F to which this description of securities registered under section 12 of the Exchange Act (the "**Description of Securities**") is an exhibit.

**Item 9. General**

**Item 9. A.3 Pre-emptive rights**

The Articles of Incorporation permit the issuance of an unlimited number of Common Shares, and shareholders have no pre-emptive rights in connection with such further issuance.

**Item 9. A.5 Type and class of securities**

Westport is authorized to issue an unlimited number of Common Shares, no par value. All Common Shares are issued in registered form and there are not restrictions on the free transferability of such Common Shares, except for any transfer restrictions imposed by applicable securities laws.

Westport is authorized to issue an unlimited number of preferred shares, issuable in one or more series, such series to consist of such number of shares as may be determined by the Board, none of which are issued and outstanding as of the date hereof.

**Item 9. A.6 Limitations or qualifications**

Not applicable.

**Item 9. A.7 Other rights**

Not applicable.

**Item 10. B Memorandum and articles of association**

**Item 10. B.3 Shareholder rights**

***Dividends***

Subject the rights of holders of any shares entitled to any priority, preference or special privileges, and subject to the provisions of the ABCA, the board of directors of Westport (the "**Board**") has complete uncontrolled discretion to pay dividends on any class or class of shares or any series within a class of shares issued and outstanding in any particular year to the exclusion of any other class or classes of shares or any series within a class of shares out of any or all profits or surplus available for dividends.

Westport is authorized to issue an unlimited number of preferred shares, issuable in one or more series, such series to consist of such number of shares as may be determined by the Board, none of which are

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issued and outstanding as of the date hereof. With respect to the payment of dividends, Westport's preferred shares, if issued, would be entitled to preference over the Common Shares.

***Voting Rights***

The holders of Common Shares are entitled to attend and vote at all meetings of the shareholders of Westport.

***Rights Upon Dissolution***

On the winding-up, liquidation or dissolution of Westport or upon the happening of any other event giving rise to a distribution of Westport's assets other than by way of dividend for the purpose of winding-up its affairs, subject to any rights, privileges, restrictions and conditions which may have been determined by the Board to attach to any preferred shares, the holders of Common Shares shall be entitled to participate *pari passu*.

***Redemption Provisions***

Not applicable.

***Sinking fund provisions***

Not applicable.

***Capital Calls***

Not applicable.

***Discrimination provisions***

Not applicable.

**Item 10. B.4 Changes to shareholder rights**

***Action Necessary to Change the Rights of Shareholders***

Westport's shareholders can authorize the alteration or amendment of the Articles of Incorporation to create or vary the rights, privileges, restrictions and conditions attached to any of Westport's shares by passing a special resolution. However, the rights, privileges, restrictions and conditions attached to any class or series of shares may not be amended unless the shareholders holding shares of that class or series to which the right or special right is attached consent by a separate special resolution (subject to certain exceptions for separate class votes). A special resolution means a resolution passed by a majority of not less than two thirds of the votes cast by the applicable class or series of shareholders who vote in person or by proxy at a meeting.

***Amendments to the By-Laws***

Westport's Board may make, amend or repeal any By-Law that regulates the business or affairs of Westport. If the directors make, amend or repeal a by-law, they are required under the ABCA to submit such action to the shareholders at the next meeting of shareholders and the shareholders may confirm,

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reject or amend the action by an ordinary resolution. If the action is rejected by the shareholders or if the directors do not submit the action to shareholders at the next shareholder meeting, the action will cease to be effective and no subsequent resolution of the directors to make, amend or repeal a by-law that has substantially the same purpose or effect will be effective until it is confirmed or confirmed as amended by the shareholders.

**Item 10. B.6 Limitations**

There are no restrictions on the rights of non-resident or foreign shareholders to hold or exercise voting rights with respect to Westport's Common Shares.

**Item 10. B.7 Change in control**

The Articles of Incorporation and the By-Laws do not contain any change of control limitations with respect to a merger, acquisition or corporate restructuring that involves Westport.

**Item 10. B.8 Disclosure of shareholdings**

Although applicable securities laws regarding shareholder ownership by certain persons require disclosure, neither the Articles of Incorporation nor the By-Laws provide for any ownership threshold above which shareholder ownership must be disclosed.

**Item 10. B.9 Differences in the law**

***Voting Rights***

*Alberta*. Each shareholder of the Company is entitled to one vote per share. Under the ABCA, the vote of a majority of shares voted on any matter (including the election of directors) at a meeting of shareholders at which a quorum is present is the act of such shareholders on the matter, unless the vote of a greater number is required by law or by the articles of the corporation.

Shareholders as of the record date for the meeting are entitled to vote at the meeting, and the directors may fix in advance a date as the record date for that determination of shareholders, but that record date shall not, subject to Canadian securities laws, precede by more than 50 days or by less than 21 days the date on which the meeting is to be held. If no record date is fixed, the record date for the determination of shareholders entitled to receive notice of a meeting shall be at the close of business on the last business day preceding the day on which the notice is sent, or, if no notice is sent, the day on which the meeting is held.

*Delaware*. Under the Delaware General Corporation Law (the "**DGCL**"), each stockholder is entitled to one vote per share of stock, unless the certificate of incorporation provides otherwise. In addition, the certificate of incorporation may provide for cumulative voting at all elections of directors of the corporation, or at elections held under specified circumstances. Either the certificate of incorporation or the bylaws may specify the number of shares and/or the amount of other securities that must be represented at a meeting in order to constitute a quorum, but in no event can a quorum consist of less than one-third of the shares entitled to vote at a meeting.

Stockholders as of the record date for the meeting are entitled to vote at the meeting, and the board of directors may fix a record date that is no more than 60 nor less than 10 days before the date of the meeting, and if no record date is set then the record date is the close of business on the day next preceding

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the day on which notice is given, or if notice is waived then the record date is the close of business on the day next preceding the day on which the meeting is held. The determination of the stockholders of record entitled to notice or to vote at a meeting of stockholders shall apply to any adjournment of the meeting, but the board of directors may fix a new record date for the adjourned meeting.

***Shareholder Proposals***

*Alberta*. Under the ABCA, a registered holder or beneficial owner of shares may submit to the corporation notice of any matter related to the business or affairs of the corporation that the registered holder or beneficial owner of shares proposes to raise at the meeting, and discuss at the meeting any matter in respect of which the registered holder or beneficial owner of the shares would have been entitled to submit a proposal. To be eligible to make a proposal a person must: (a) be a registered holder or beneficial owner of at least one percent (1%) of all issued voting shares of the corporation for at least six months or with a fair market value of a least $2,000 for at least six months; (b) have the support of other registered holders or beneficial owners of shares of at least five percent (5%) of the issued voting shares of the corporation; (c) provide to the corporation his or her name and address and the names and addresses of those registered holders or beneficial owners of shares who support the proposal; and (d) continue to hold or own the prescribed number of shares up to and including the day of the meeting at which the proposal is to be made.

*Delaware*. Delaware law does not specifically grant stockholders the right to bring business before an annual or special meeting of stockholders. However, if a Delaware corporation is subject to the SEC's proxy rules, a stockholder who owns at least $2,000 in market value for at least three years, $15,000 in market value for at least two years, or $25,000 in market value for at least one year may propose a matter for a vote at an annual or special meeting in accordance with those rules.

***Action by Written Consent***

*Alberta*. Under Alberta law, a written resolution signed by all the shareholders of the corporation who would have been entitled to vote on the resolution at a meeting is effective to approve the resolution.

*Delaware*. Under Delaware law, a written consent signed by stockholders having not less than the minimum number of votes that would be required to authorize or take such action is effective to approve such action.

***Appraisal Rights***

*Alberta*. The ABCA provides that shareholders of a corporation are entitled to exercise dissent rights and to be paid the fair value of their shares in connection with specified matters, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any amalgamation with another corporation (other than with certain affiliated corporations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an amendment to the corporation's articles to add, change or remove any provisions restricting or constraining the issue or transfer of shares of the class in respect of which a shareholder is dissenting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an amendment to the corporation's articles to add or remove an express statement establishing the unlimited liability of shareholders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an amendment to the corporation's articles to add, change or remove any restriction upon the business or businesses that the corporation may carry on;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a continuance under the laws of another jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a sale, lease or exchange of all, or substantially all, of the property of the corporation other than in the ordinary course of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain amendments to the articles of a corporation which require a separate class or series vote by a holder of shares of any class or series.

*Delaware*. The DGCL provides for stockholder appraisal rights, or the right to demand payment in cash of the judicially determined fair value of the stockholder's shares, in connection with certain mergers and consolidations.

***Compulsory Acquisition***

*Alberta*. The ABCA provides that if, within 120 days after the making of an offer to acquire shares, or any class of shares, of a corporation, the offer is accepted by the holders of not less than 90% of the shares (other than the shares held by the offeror or an affiliate of the offeror) of any class of shares to which the offer relates, the offeror is entitled, upon giving proper notice within 180 days after the date of the offer, to acquire (on the same terms on which the offeror acquired shares from those holders of shares who accepted the offer) the shares held by those holders of shares of that class who did not accept the offer. Offerees may apply to the court, within 20 days of the offeror paying the money or transferring the consideration for the shares, and the court may set a different price or terms of payment and may make any consequential orders or directions as it considers appropriate.

*Delaware*. Under the DGCL, mergers in which one corporation owns 90% or more of each class of stock of a second corporation may be completed without the vote of the second corporation's board of directors or shareholders.

***Shareholder Suits***

*Alberta*. Under Alberta law, a "complainant" may bring a derivative action in the name of and on behalf of a corporation or any of its affiliates, or intervene in an existing action to which the corporation is a party, if the complainant has given reasonable notice to the directors of the corporation and the complainant satisfies the court that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the directors of the corporation will not bring, diligently prosecute or defend or discontinue the action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the complainant is acting in good faith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it appears to be in the interest of the corporation that the action be brought, prosecuted, defended or discontinued.

In connection with any derivative action initiated by the complainant, the court may at any time make any order it thinks fit.

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*Delaware*. Under the DGCL, a stockholder may bring a derivative action on behalf of the corporation to enforce the rights of the corporation. An individual also may commence a class action suit on behalf of himself and other similarly situated stockholders where the requirements for maintaining a class action under Delaware law have been met. A person may institute and maintain such a suit only if that person was a stockholder at the time of the transaction which is the subject of the suit. In addition, under Delaware case law, the plaintiff normally must be a stockholder at the time of the transaction that is the subject of the suit and throughout the duration of the derivative suit. Delaware law also requires that the derivative plaintiff make a demand on the directors of the corporation to assert the corporate claim before the suit may be prosecuted by the derivative plaintiff in court, unless such a demand would be futile.

***Oppression Remedy***

*Alberta*. Alberta law provides an oppression remedy that allows a "complainant" who is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a present or former registered or beneficial securityholder of the corporation or its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a present or former director or officer of the corporation or its affiliates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other person who in in the discretion of the court is a proper person to make the application;

to apply to the court for relief where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any act or omission of the corporation or any of its affiliates effects a result;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the business or affairs of the corporation or any of its affiliates are or have been carried on or conducted in a manner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the powers of the directors of the corporation or any of its affiliates are or have been exercised in a manner,

that is oppressive or unfairly prejudicial to or that unfairly disregards the interest of a shareholder, creditor, director or officer. Alberta law permits a court to make any interim or final order it thinks fit to rectify the matters complained of in the application for relief.

*Delaware*. There is no remedy under the DGCL for oppression. However, minority stockholders may bring oppression-like claims based on other legal principles.

***Repurchase of Shares***

*Alberta*. Under the ABCA, a corporation may purchase or otherwise acquire shares issued by it if there are no reasonable grounds for believing that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the corporation is, or would after the payment be, unable to pay its liabilities as they become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the realizable value of the corporation's assets would after the payment be less than the aggregate of its liabilities and stated capital of all classes.

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*Delaware*. Under the DGCL, a corporation may purchase or redeem its own shares unless the capital of the corporation is impaired or the purchase or redemption would cause an impairment of the capital of the corporation. A Delaware corporation may, however, purchase or redeem out of capital any of its preferred shares or, if no preferred shares are outstanding, any of its own shares if such shares will be retired upon acquisition and the capital of the corporation will be reduced in accordance with specified limitations.

***Anti-Takeover Provisions***

*Alberta*. Alberta law does not provide anti-takeover provisions.

*Delaware*. In addition to other aspects of Delaware law governing fiduciary duties of directors during a potential takeover, the DGCL also contains a business combination statute that protects Delaware companies from hostile takeovers and from actions following the takeover by prohibiting some transactions once an acquirer has gained a significant holding in the corporation.

Section 203 of the DGCL prohibits "business combinations," including mergers, sales and leases of assets, issuances of securities and similar transactions by a corporation or a subsidiary with an interested stockholder that beneficially owns 15% or more of a corporation's voting stock, within three years after the person becomes an interested stockholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the transaction that will cause the person to become an interested stockholder is approved by the board of directors of the target prior to the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• after the completion of the transaction in which the person becomes an interested stockholder, the interested stockholder holds at least 85% of the voting stock of the corporation not including shares owned by persons who are directors and officers of interested stockholders and shares owned by specified employee benefit plans; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• after the person becomes an interested stockholder, the business combination is approved by the board of directors of the corporation and holders of at least 66.67% of the outstanding voting stock, excluding shares held by the interested stockholder.

A Delaware corporation may elect not to be governed by Section 203 by a provision contained in the original certificate of incorporation of the corporation or an amendment to the original certificate of incorporation or to the bylaws of the corporation, which amendment must be approved by a majority of the shares entitled to vote and may not be further amended by the board of directors of the corporation. Such an amendment is not effective until 12 months following its adoption.

***Inspection of Books and Records***

*Alberta*. Under the ABCA, any shareholder of a corporation, their agents and legal representatives may examine certain of the records of the corporation during the usual business hours of the corporation free of charge.

*Delaware*. Under the DGCL, any stockholder may inspect certain of the corporation's books and records, for any proper purpose, during the corporation's usual hours of business.

***Pre-Emptive Rights***

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*Alberta*. Under the ABCA, shareholders have no pre-emptive rights to subscribe for additional issuances of shares unless such rights are expressly provided in the articles of the corporation or its unanimous shareholders agreement. Notwithstanding that the articles or unanimous shareholders agreement may provide a pre-emptive right, shareholders have no pre-emptive right in respect of shares to be issued:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for a consideration other than money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as a share dividend; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to the exercise of conversion privileges, options or rights previously granted by the corporation.

*Delaware*. Under the DGCL, stockholders have no pre-emptive rights to subscribe for additional issues of stock or to any security convertible into such stock unless, and to the extent that, such rights are expressly provided for in the certificate of incorporation.

***Dividends***

*Alberta*. Under the ABCA, a corporation may pay dividends on its shares unless there are reasonable grounds for believing that after such payment either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Corporation is, or would after the payment be, unable to pay its liabilities as they become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the realizable value of the corporation's assets would thereby be less than the aggregate of its liabilities and stated capital of all classes of shares.

*Delaware*. Under the DGCL, a Delaware corporation may pay dividends out of its surplus (the excess of net assets over capital), or in case there is no surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year (provided that the amount of the capital of the corporation is not less than the aggregate amount of the capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets). In determining the amount of surplus of a Delaware corporation, the assets of the corporation, including stock of subsidiaries owned by the corporation, must be valued at their fair market value as determined by the board of directors, without regard to their historical book value. Dividends may be paid in the form of shares, property or cash.

***Shareholder Vote on Certain Transactions***

*Alberta*. Under the ABCA, certain extraordinary corporate actions, such as amalgamations (other than with certain affiliated corporations), continuances and sales, leases or exchanges of all, or substantially all, of the property of a corporation other than in the ordinary course of business, and other extraordinary corporate actions such as liquidations, dissolutions and (if ordered by a court) arrangements, are required to be approved by "special resolution".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A "special resolution" is a resolution passed by not less than two-thirds of the votes cast by the shareholders who voted in respect of the resolution or signed by all shareholders entitled to vote on the resolution. A quorum with respect to a special resolution is a majority of the outstanding common shares unless otherwise specified in the corporation's by-laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In specified cases, a special resolution to approve an extraordinary corporate action is also required to be approved separately by the holders of a class or series of shares, including in certain cases a class or series of shares not otherwise carrying voting rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In specified extraordinary corporate actions, all shares have a vote, whether or not they generally vote and, in certain cases, have separate class votes.

Arrangements are permitted under the ABCA. In general, a plan of arrangement is approved by a corporation's board of directors and then is submitted to a court for approval. It is customary for a company in such circumstances to apply to a court initially for an interim order governing various procedural matters prior to calling any security holder meeting to consider the proposed arrangement. Plans of arrangement involving shareholders must be approved by a majority of at least two-thirds of the votes cast by the shareholders voting on the resolution. The court may, in respect of an arrangement proposed with persons other than shareholders and creditors, require that those persons approve the arrangement in the manner and to the extent required by the court. The court determines, among other things, to whom notice shall be given and whether, and in what manner, approval of any person is to be obtained and also determines whether any shareholders may dissent from the proposed arrangement and receive payment of the fair value of their shares. Following compliance with the procedural steps contemplated in any such interim order (including as to obtaining security holder approval), the court would conduct a final hearing, which would, among other things, assess the fairness of the arrangement and approve or reject the proposed arrangement

*Delaware*. Under the DGCL, the vote of a majority of the outstanding shares of capital stock entitled to vote thereon generally is necessary to approve a merger or consolidation or the sale of all or substantially all of the assets of a corporation. The DGCL permits a corporation to include in its certificate of incorporation a provision requiring for any corporate action the vote of a larger portion of the stock or of any class or series of stock than would otherwise be required. However, under the DGCL, no vote of the stockholders of a surviving corporation to a merger is needed, unless required by the certificate of incorporation, if (1) the agreement of merger does not amend in any respect the certificate of incorporation of the surviving corporation, (2) the shares of stock of the surviving corporation are not changed in the merger and (3) the number of shares of common stock of the surviving corporation into which any other shares, securities or obligations to be issued in the merger may be converted does not exceed 20% of the surviving corporation's common stock outstanding immediately prior to the effective date of the merger. In addition, stockholders may not be entitled to vote in certain mergers with other corporations that own 90% or more of the outstanding shares of each class of stock of such corporation, but the stockholders will be entitled to appraisal rights.

**Item 10. B.10 Changes in capital**

The Articles of Incorporation and By-Laws do not impose requirements governing changes in capital.

**Item 12. A Debt Securities**

Not applicable.

**Item 12. B Warrants and Rights**

Not applicable.

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**Item 12. C Other Securities**

Not applicable.

**Item 12. D American Depositary Shares**

Not applicable.

## Exhibit 4.6

![](westportfuelsystemsinc_2001.jpg)

Exhibit 7.5 NOMINATION AGREEMENT THIS AGREEMENT is made as of this 17 day of March, 2016 B E T W E E N : WESTPORT INNOVATIONS INC. ("Westport") - and - K&M DOUGLAS TRUST ("K&M") - and - JAMES DOUGLAS AND JEAN DOUGLAS IRREVOCABLE DESCENDANTS' TRUST ("Descendants' Trust") - and - DOUGLAS FAMILY TRUST ("Douglas Trust") - and - JAMES E. DOUGLAS, III ("James Douglas", and together with K&M, Descendants' Trust and Douglas Trust, the "Douglas Group") WHEREAS the Douglas Group beneficially owns, directly or indirectly, 10,045,657 Common Shares, comprising approximately 15.61% of the issued and outstanding Common Shares as at the date hereof; AND WHEREAS Westport, the Douglas Group and Fuel Systems Solutions, Inc. entered into a Voting Agreement dated as of September 1, 2015 and, concurrently with the execution of this Agreement, Westport, Fuel Systems and the Douglas Group are entering into certain amendments to the Voting Agreement; AND WHEREAS the parties have agreed to grant to the Douglas Group certain rights to nominate an individual identified by the Douglas Group for election to Westport's board of directors (the "Board of Directors"), as the same may be reconstituted from time to time, on and subject to the terms as hereinafter set forth;

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![](westportfuelsystemsinc_2002.jpg)

NOW THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the parties), the parties hereto agree as follows: ARTICLE 1 INTERPRETATION 1.1 Defined Terms. As used in this Agreement, the following terms have the following meanings: "Affiliate" of a Person means a Person Controlled by such Person, which Controls such Person or which is under common Control with such Person. "Agreement" means this Nomination Agreement, as the same may be amended or amended and restated from time to time. "Associate" has the meaning ascribed thereto in the Securities Act (British Columbia). "Board of Directors" has the meaning ascribed thereto in the recitals to this Agreement. "Business Day" means any day other than a Saturday, Sunday or a civic or statutory holiday in Vancouver, British Columbia. "Common Shares" means common shares in the capital of Westport. "Control" means the ability, whether through the direct or indirect ownership of securities in a Person, by contract, or through any other means, to direct the management and policies of a Person. "Determination Date" has the meaning ascribed thereto in Section 2.1 hereof. "Douglas Group Nominee" has the meaning ascribed thereto in Section 2.1 hereof. "Person" means a natural person, partnership, limited partnership, limited liability partnership, limited liability company, unlimited liability company, corporation, joint stock company, trust, unincorporated association, joint venture or other entity or governmental entity, and pronouns have a similarly extended meaning. "Shareholders' Meeting" has the meaning ascribed thereto in Section 2.1 hereof. ARTICLE 2 DIRECTOR NOMINATION 2.1 Director Nomination Rights. If, as of the record date (the "Determination Date") for any meeting of the shareholders of Westport at which directors are to be elected (a "Shareholders' Meeting"), and, as long as, the Douglas Group and its Affiliates collectively beneficially own 10% or more of the outstanding Common Shares, Westport shall include one nominee of the Douglas Group (the "Douglas Group Nominee") in the list of individuals proposed by Westport's management for election to the Board of Directors at the Shareholders' Meeting. Westport shall give the Douglas - 2 -

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![](westportfuelsystemsinc_2003.jpg)

Group not less than 15 Business Days written notice prior to each Determination Date. The Douglas Group Nominee shall be communicated by the Douglas Group in writing to Westport at least five Business Days prior to the Determination Date along with the information with respect to such Douglas Group Nominee that is required by applicable laws to be included in Westport's management information circular for the Shareholders' Meeting. If the Douglas Group does not advise Westport of the identity of the Douglas Group Nominee at least five Business Days prior to the Determination Date, then the Douglas Group will be deemed to have nominated its incumbent nominee. If at any time after the Determination Date but prior to the relevant Shareholders' Meeting, the Douglas Group gives written notice to Westport that it wishes to replace a Douglas Group Nominee with another individual, Westport shall cause such replacement Douglas Group Nominee to be included in the list of individuals nominated by management for election to the Board of Directors at the Shareholders' Meeting, and Westport shall cause the proxyholders described in Section 2.2 hereof to cast their votes in favour of such nominee. Westport's obligation to include any Douglas Group Nominee in the list of individual's nominated by management for election to the Board of Directors shall be subject to the requirement that such individual is eligible under applicable laws, including the rules of any stock exchange, to serve on the Board of Directors. If a vacancy occurs because of the death, disability, retirement, resignation or removal for any reason of the Douglas Group Nominee, the Douglas Group may name another individual to fill such vacancy, and the Board of Directors shall appoint such individual to the Board of Directors to fill the vacancy. 2.2 Solicitation and Exercise of Proxies. All forms of proxy used or distributed by Westport in connection with the solicitation of proxies for a Shareholders' Meeting shall list officers or employees of Westport as proxyholders, and Westport shall cause any of its officers or employees holding proxies at a Shareholders' Meeting to cast the votes represented by such proxies in favour of the list of individuals nominated by Westport's management for election to the Board of Directors, including the Douglas Group Nominee. 2.3 Regulatory Approvals. Westport shall use its best efforts to obtain any necessary regulatory approvals in connection with the election of any Douglas Group Nominee to the Board of Directors, promptly notify Douglas Group of the failure to obtain any such approval and afford Douglas Group a reasonable opportunity (and, in any event, not less than five Business Days) to replace such nominee. 2.4 Indemnity and Insurance. Subject to the provisions of the Business Corporations Act (Alberta), Westport agrees to indemnify and save each of the Douglas Group's nominees to the Board of Directors harmless from and against any and all demands, claims, costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by him or her in respect of any civil, criminal or administrative action or proceeding to which he or she is made a party by reason of having been a director or officer of Westport or any affiliated company, whether before or after termination. - 3 -

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![](westportfuelsystemsinc_2004.jpg)

Westport agrees to maintain directors' and officers' liability insurance for the benefit of nominees of the Douglas Group to the Board of Directors on terms as are customary for Westport. ARTICLE 3 GENERAL 3.1 Notices. All notices, requests, demands and other communications hereunder shall be deemed to have been duly given and made, if in writing and if served by personal delivery upon the party for whom it is intended or delivered, by courier, or sent by facsimile, to the Person at the address set forth below, or such other address as may be designated in writing hereafter, in the same manner, by such Person: (a) if to Westport: Westport Innovations Inc. 1750 West 75th Ave., Suite 101 Vancouver, British Columbia V6P 6G2, Canada Attention: Salman Manki, General Counsel Email: SManki@westport.com Tel: (604) 718-2000 (b) if to the Douglas Group: Douglas Telecommunications 125 East Sir Francis Drake Blvd. Larkspur, CA 94939-1819 Attention: Tim McGaw Facsimile: (415) 526-2214 3.2 Representations and Warranties of Westport. Westport hereby represents and warrants to the Douglas Group as of the date of this Agreement as follows, and acknowledges that the Douglas Group is relying on such representations and warranties in connection with the transactions herein contemplated: (a) Westport has full corporate power and authority to enter into this Agreement and to carry out the transactions contemplated hereby; (b) this Agreement has been duly executed and delivered by Westport and is a legal, valid and binding obligation of Westport enforceable against same in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting the rights of creditors generally; and - 4 -

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![](westportfuelsystemsinc_2005.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;(c) the execution, delivery and performance of this Agreement by Westport and the consummation of the transactions contemplated hereby will not: (i) constitute a violation (with or without the giving of notice or lapse of time, or both) of any provision of law or any judgment, decree, order, regulation or rule of any court or other governmental entity or regulatory or self-regulatory organization applicable to Westport; (ii) require any consent, approval or authorization of, or declaration, filing, registration with any Person; (iii) result in a default (with or without the giving of notice or lapse of time, or both) under, or acceleration or termination of, or the creation in any party of the right to accelerate, terminate, modify or cancel, any agreement to which Westport is a party or by which it is bound; or (iv) conflict with or result in a breach of or constitute a default under any provision of the charter documents or by-laws of Westport. 3.3 No Action in Contravention. Westport shall take no action, and shall take all steps in its power necessary and appropriate, to prevent the taking of any action, which would or may prevent or limit the Douglas Group's rights of nomination as set forth in this Agreement, and shall use its best efforts to cause the realization of such rights. 3.4 Term and Termination. This Agreement shall come into force and be effective as of the date hereof and shall terminate at such time as the Douglas Group and its Affiliates collectively beneficially own less than 10% of the outstanding Common Shares. 3.5 Amendments. This Agreement may only be amended, supplemented or otherwise modified by written agreement executed by all of the parties hereto. 3.6 Waiver. No waiver of any of the provisions of this Agreement will constitute a waiver of any other provision (whether or not similar). No waiver will be binding unless executed in writing by the party to be bound by the waiver. A party's failure or delay in exercising any right under this Agreement will not operate as a waiver of that right. A single or partial exercise of any right will not preclude a party from any other or further exercise of that right or the exercise of any other right it may have. 3.7 Remedies. Each party hereto, in addition to being entitled to exercise all rights provided herein and granted by law, including recovery of damages, will be entitled to specific performance of its - 5 -

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![](westportfuelsystemsinc_2006.jpg)

respective rights under this Agreement. Each party hereto agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive the defence in any action for specific performance that a remedy at law would be adequate. 3.8 Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject-matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties. 3.9 Successors and Assigns. This Agreement shall be binding upon the parties hereto and their respective successors and permitted assigns. This Agreement shall not be assigned by either party hereto without the prior written consent of the other party hereto. Notwithstanding any other provision of this Agreement, the rights provided hereunder to the Douglas Group may be assigned by each member of the Douglas Group to any direct or indirect subsidiaries of the Douglas Group or Persons in respect of whom the Douglas Group is an Associate, provided that in any case any assignee or successor of the Douglas Group must be a legal or beneficial owner of Common Shares in order to exercise the rights provided in this Agreement. 3.10 Severability. If any provision of this Agreement is determined to be illegal, invalid or unenforceable, by an arbitrator or any court of competent jurisdiction from which no appeal exists or is taken, that provision will be severed from this Agreement and the remaining provisions will remain in full force and effect. 3.11 Further Assurances. The parties agree to execute and deliver to each other such further instruments and other written assurances and to do or cause to be done such further acts or things as may be necessary or convenient to carry out and give effect to the intent of this Agreement or as either of the parties may reasonably request in order to carry out the transactions contemplated herein. 3.12 Governing Law. This Agreement will be governed by, interpreted and enforced in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. Each of the parties hereto hereby irrevocably and unconditionally consents to submit to the non-exclusive jurisdiction of the courts of the Province of British Columbia for any action or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby (and agrees not to commence any action or proceeding relating thereto except in such courts). Each of the parties hereto hereby irrevocably and unconditionally waives any objection to the laying of venue of any action or proceeding arising out of this Agreement or the transactions contemplated hereby in the courts of the Province of British Columbia, and hereby further - 6 -

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![](westportfuelsystemsinc_2007.jpg)

irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum. 3.13 Counterparts. This Agreement may be executed in any number of counterparts (including counterparts by facsimile) and all such counterparts taken together will be deemed to constitute one and the same instrument. The party sending the facsimile transmission will also deliver the original signed counterpart to the other party, however, failure to deliver the original signed counterpart shall not invalidate this Agreement. [Signature Page Follows] - 7 -

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![](westportfuelsystemsinc_2008.jpg)

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written. WESTPORT INNOVATIONS INC. Per: /s/ David Demers Name: David Demers Title: CEO K&M DOUGLAS TRUST Per: /s/ Kevin Douglas Name: Kevin Douglas Title: Trustee Per: /s/ Michelle Douglas Name: Michelle Douglas Title: Trustee JAMES DOUGLAS AND JEAN DOUGLAS IRREVOCABLE DESCENDANTS' TRUST Per: /s/ Kevin Douglas Name: Kevin Douglas Title: Trustee Per: /s/ Michelle Douglas Name: Michelle Douglas Title: Trustee DOUGLAS FAMILY TRUST Per: /s/ James E. Douglas Jr. Name: James E. Douglas, Jr. Title: Trustee Per: /s/ Jean A. Douglas Name: Jean A. Douglas Title: Trustee /s/ James E. Douglas, III JAMES E. DOUGLAS, III Nomination Agreement

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## Exhibit 8.1

**Exhibit 8.1**

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| | | |
|:---|:---|:---|
| **Subsidiaries of Westport Fuel Systems Inc.** | **Subsidiaries of Westport Fuel Systems Inc.** | **Subsidiaries of Westport Fuel Systems Inc.** |
| **Name** | **Jurisdiction of Incorporation** | **Percentage interest held** |
| Westport Fuel Systems Canada Inc. | Canada | 100 |
| Westport Fuel Systems Co., Ltd. | China | 100 |
| Westport Fuel Systems Italy S.r.l. | Italy | 100 |
| Cespira Canada Limited Partnership | Canada | 55 |
| Cespira Sweden AB | Sweden | 55 |

---

\*Other subsidiaries have been omitted because, in aggregate, they would not be a "significant subsidiary" as defined in rule 1-02(w) of Regulation S-X as of the end of the fiscal year covered by this report.

## Exhibit 11.1

![](insider-tradingxpolicyxn001.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 \| P a g e REVIEWED AND ACCEPTED BY THE BOARD OF DIRECTORS ON NOVEMBER 4, 2022 1.0 PURPOSE Canadian securities laws prohibit "insider trading" and impose restrictions on trading in securities while in possession of material non-public information. The objective of this Insider Trading Policy ("Policy") is to provide directors, officers and employees with guidelines regarding trading in securities of Westport Fuel Systems Inc. (together with its subsidiaries, "Westport" or the "Corporation"). The rules and procedures outlined in this Policy are intended to prevent improper trading in securities of Westport and any other company in respect of which material non-public information is obtained by Westport and the improper communication of material non-public information regarding Westport or such other companies. 2.0 SCOPE This Policy applies to all transactions involving all securities of the Corporation, as well as to derivative securities relating to the Corporation's securities, whether or not issued by the Westport. This Policy also applies to securities in companies with which Westport does business or may do business, or in which Westport holds a substantial equity interest, when material non-public information regarding such company is known. All directors, officers, employees and certain advisors of Westport who have knowledge of material non-public information (each, a "Covered Person") are required to comply with this Policy and with the securities laws in respect of insider trading and tipping. 3.0 NOTICE AND ENFORCEMENT Violations of insider trading and tipping laws carry severe consequences both for Westport and the individuals involved. Compliance with this Policy is a condition of office or employment with the Corporation and its subsidiaries. Every Covered Person will have access to a copy of this Policy and is responsible for becoming familiar with and understanding the provisions set out in the Policy. A violation of this Policy may be grounds for disciplinary action, up to and including immediate termination of employment for just cause or other sanctions as the Corporation may deem appropriate. The criminal and civil consequences of prohibited insider trading, tipping or failing to file an insider report where required on a timely basis can be severe and may include penalties, fines, criminal charges, and/or imprisonment. Where Westport is aware or suspects any conduct may have violated applicable securities laws, the Corporation may refer the matter to the appropriate regulatory authorities. 4.0 TRADING IN SECURITIES OF THE CORPORATION 4.1 Rules Against Insider Trading and Tipping No person in a "special relationship" with Westport may purchase or sell, or otherwise trade, securities of the Corporation with knowledge of material non-public information relating to Westport and no such person shall Insider Trading Policy

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![](insider-tradingxpolicyxn002.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 \| P a g e disclose to any other person material non-public information about Westport (known as "tipping"), except where such disclosure is in the necessary course of Westport's business and except to the extent permitted by the Corporation's policies. In Westport's business, such disclosure is normally made under the protection of a non- disclosure agreement. For the purposes of this Policy: (a) "trade" includes a purchase or sale of securities, an offer or solicitation to purchase or sell securities or an exercise of an option, warrant or other convertible security including any sale of shares to cover tax liability associated with a grant of shares; and (b) "necessary course of business" means communications that are necessary to further the business purposes of Westport with: (i) vendors, suppliers or strategic partners; (ii) other employees, officers and directors of the Corporation; (iii) lenders, legal counsel, underwriters, auditors, and financial and other professional advisors of the Corporation; (iv) parties to negotiations with the Westport; (v) credit rating agencies; or (vi) government agencies and regulators. 4.1.1 DEFINITION OF "SPECIAL RELATIONSHIP" All Covered Persons are in a special relationship with Westport, as are former directors, officers, employees and consultants who acquired material non-public information while in office. Those in a "special relationship" with Westport also include professional advisors to the Corporation (including legal, accounting, engineering, financial and other advisors) and any person or company that learns material non-public information from a person in a special relationship with Westport (including a partner, spouse, relative, or anyone living in the same household as such person), that the person or company knows, or ought reasonably to have known, is in a special relationship with Westport ("tippees"). Both the person who provides the information and the person who receives the information could be liable under securities laws if the person who receives the information uses it to trade in securities. Covered Persons are reminded that they have access to non-public information about Westport, which must be maintained as confidential, including avoiding disclosure of such information to the persons noted above. 4.1.2 DEFINITION OF MATERIAL NONPUBLIC INFORMATION Material non-public information is information that has not yet been disclosed to the public by Westport that has, or is reasonably expected to have, a significant effect on the market price or value of the Corporation's securities. The terms "material fact" and "material change" generally mean information that significantly affects or would reasonably be expected to have a significant effect on the market price or value of securities. In other words, any information whose disclosure would be likely to affect the market price of a security is material in relation to the security. Therefore, non-public information about Westport is generally considered to be "material" if there is a substantial likelihood that a reasonable investor would consider the information important in deciding whether to purchase, sell, or hold a Westport security, or what value the investor would ascribe to the Westport security. In making materiality judgements, it is necessary to take account of the volatility of the Corporation's securities, the nature of the information, prevailing market conditions and other factors that cannot be adequately captured in a simple bright-line standard or test. When in doubt, please consult with the Corporation's Chief Financial Officer, Chief Legal Officer or head of Investor Relations for guidance before engaging in a transaction.

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![](insider-tradingxpolicyxn003.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 \| P a g e 4.1.3 WHEN INFORMATION BECOMES PUBLIC Information is considered to become public when it has been released to the public through appropriate channels, such as by news release, public filing with a regulatory agency, public statements by senior officers or otherwise made available to the public and a reasonable period of time for dissemination of the information has passed for the securities markets to digest the information. Material information about Westport should be considered to be non-public unless there is a certainty that it has been publicly disseminated. All Covered Persons should assume that all information about Westport is confidential unless told otherwise. Readers of this Policy should refer to Westport's Disclosure Policy for further details. 4.1.4 STOCK SURVEILLANCE PROGRAM Westport shall implement and maintain a stock surveillance program (the "Surveillance Program") which shall be overseen by the head of the accounting and corporate control function. Pursuant to the Surveillance Program Westport shall: (a) monitor Westport' SEDAR profile for new SEDAR filings, including but not limited to, the filing of any press releases and early warning reports; (b) monitor any new insider reports which are filed in respect of the securities of Westport; (c) monitor the trading price and volume of Westport's publicly traded securities and identify any material or unusual patterns or changes with respect to such trading; (d) monitor and identify any significant changes in the type of investor, or the specifically identified investors, of Westport; and (e) periodically report to the Board with respect to any material changes or filings which have been identified. 4.2 Blackout Periods Westport has established "Blackout Periods" during which Covered Persons may not trade in securities of the Corporation. The "Blackout Periods": (a) with regard to financial results, apply during the period beginning on: (i) the last "trading day" of each of the first, second and third fiscal quarters; and (ii) the tenth trading day following a fiscal year end. Such financial results related Blackout Periods shall end one clear trading day after a news release is issued disclosing the quarterly or annual financial results. For the purposes of this section 4.2, "trading day" means a day on which either the Toronto Stock Exchange or NASDAQ is open for trading of Westport securities. This Blackout Period applies to all Covered Persons, with knowledge of, or who could acquire knowledge of, the non-public financial results for the quarter in question prior to the date of their release, and includes, but is not limited to, directors, officers, senior employees, any employee who regularly attends executive committee meetings and any finance and accounting staff, investor relations staff, corporate communications staff involved in the preparation of Westport's quarterly or annual financial statements, who are aware of or could become aware of the financial results prior to their release; (b) apply to all Covered Persons who are aware of material non-public information until one clear trading day after public disclosure of the material information;

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![](insider-tradingxpolicyxn004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 \| P a g e (c) apply for offerings and include, but is not limited to, all Board members, Board advisors, and officers of Westport for the period from one business day prior to the determination of the offering price until one clear trading day after the closing of the offering, unless, if the Covered Person such as the director or officer is buying shares and the total amount of purchases by all such Covered Persons in this period is less than 2% of worldwide average daily trading volume during the two calendar months immediately preceding the beginning of the period, or any consecutive 60 calendar days ending within the 10 calendar days preceding the beginning of the period; or (d) apply any other time and for any length of time as deemed necessary by the Corporation's Chief Financial Officer, after consultation with the Corporation's Chief Executive Officer, Chief Legal Officer and head of Investor Relations provided that the Chief Financial Officer, or his or her delegate, provides written notice of such Blackout to the specified persons. 4.3 Rule as it Applies to Other Corporations No Covered Person may purchase or sell, or otherwise trade, or encourage or recommend that another person trade, in securities of any other company if such person has actual knowledge that Westport is doing business, or proposes or is considering or evaluating doing business or engaging in an undisclosed material transaction with that company and has actual knowledge of material non-public information relating to that other company. Under the circumstances set out above, each Covered Person is considered to be in a special relationship with that other company and, therefore, cannot trade in securities of the other company with knowledge of material non-public information. In addition, no such person may disclose to someone else material non-public information relating to that other company which was learned in the course of service as a Covered Person, except where such disclosure is in the necessary course of business. 5.0 INSIDER REPORTING REQUIREMENTS Under securities laws, a "reporting insider" must file an insider report following any trade or change in beneficial ownership of, or control or direction over, whether direct or indirect, securities of the Corporation (including the exercise of any stock options, restricted share units, performance share units or similar equity-based compensation awards). Reporting insiders are required to file an insider report electronically through the "System for Electronic Disclosure by Insiders" ("SEDI") within 5 calendar days of any trade or other change in holdings of Westport securities (including the transfer of securities into or out of an individual's RRSP, or similar tax deferred account). Westport assists certain Board members and officers with the filing procedures by providing administrative support. This administrative support does not remove individual responsibility to file insider reports in a timely and accurate fashion. Failure of insiders to comply with the prescribed time limits for declaring their control or a change in their control over the securities of the Corporation, or their failure to provide complete information constitutes a violation under securities law and may result in a fine. For purposes of this section, a "reporting insider" of the Corporation includes: (a) every person who is a director or officer of the Corporation, of a company that is itself an insider or subsidiary of the Corporation; (b) a person or company responsible for a principal business unit, division or function of the reporting issuer; (c) any person or company who beneficially owns, directly or indirectly, voting securities of the Corporation, or who exercises control or direction over the voting securities of the Corporation, or a combination of

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![](insider-tradingxpolicyxn005.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5 \| P a g e both, carrying more than 10 per cent of the voting rights attached to all voting securities of the Corporation; and (d) any person who in the ordinary course receives or has access to information as to material facts or material changes concerning the Corporation before the material facts or material changes are generally disclosed. 6.0 PROHIBITIONS AGAINST SHORT SELLING, HEDGING AND CERTAIN TRADING All Covered Persons and any other person or company in a special relationship with Westport are prohibited from engaging in transactions that are designed to hedge, limit or otherwise offset their economic risk with respect to their holdings of Westport securities. All readers of this Policy should refer to the Corporation's Anti- Hedging Policy and Clawback Policy for further details. 7.0 REFERENCES This Policy should be read in conjunction with the following Westport policies:  Disclosure Policy  Anti-Hedging Policy and Clawback Policy

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## Exhibit 12.1

**Exhibit 12.1**

**CERTIFICATION**

I, Daniel Sceli, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this annual report on Form 20-F of Westport Fuel Systems Inc.;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: April 23, 2026 | By: | /s/ Daniel Sceli |
|  |  | Name: Daniel Sceli<br>Title: Chief Executive Officer, Westport Fuel Systems Inc. |

---

## Exhibit 12.2

 **Exhibit 12.2**

**CERTIFICATION**

I, Elizabeth Owens, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this annual report on Form 20-F of Westport Fuel Systems Inc.;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: April 23, 2026 | By: | /s/ Elizabeth Owens |
|  |  | Name: Elizabeth Owens<br>Title: Chief Financial Officer, Westport Fuel Systems Inc. |

---

## Exhibit 13.1

**Exhibit 13.1**

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of Westport Fuel Systems Inc. (the "Company") on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Daniel Sceli, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the "Exchange Act"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: April 23, 2026 | /s/ Daniel Sceli |
|  | Daniel Sceli |
|  | Chief Executive Officer |

---

This certification accompanies this annual report on Form 20-F pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Exchange Act, be deemed filed by the Company for purposes of Section 18 of the Exchange Act. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

## Exhibit 13.2

**Exhibit 13.2**

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of Westport Fuel Systems Inc. (the "Company") on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Elizabeth Owens, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the "Exchange Act"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: April 23, 2026 | /s/ Elizabeth Owens |
|  | Elizabeth Owens |
|  | Chief Financial Officer |

---

This certification accompanies this annual report on Form 20-F pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Exchange Act, be deemed filed by the Company for purposes of Section 18 of the Exchange Act. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

## Exhibit 15.1

![](cespiracanadalpfinancial001.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cespira Canada Limited Partnership (previously HPDI Technology Limited Partnership) Consolidated Financial Statements For the year ended December 31, 2025, and for the period from incorporation on February 2, 2024, to December 31, 2024 (Expressed in thousands of Euros)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Table of Contents** Pages Independent Auditor's Report 1-2 Consolidated Statements of Financial Position 3 Consolidated Statements of Comprehensive Loss 4 Consolidated Statements of Partners' Equity 5 Consolidated Statements of Cash Flows 6 Notes to the Consolidated Financial Statements 7-25

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 Report of Independent Registered Public Accounting Firm To the Partners of Cespira Canada Limited Partnership Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated statements of financial position of Cespira Canada Limited Partnership (the Partnership) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive loss, partners' equity, and cash flows for the year ended December 31, 2025, and for the period from incorporation on February 2, 2024 to December 31, 2024, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2025 and 2024, and its financial performance and its cash flows for the year ended December 31, 2025, and for the period from incorporation on February 2, 2024 to December 31, 2024, in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Partnership has incurred net losses and expects that capital contributions will be required to fund operating losses. These factors indicate the existence of a material uncertainty that may cast significant doubt as to the Partnership's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis for Opinion These consolidated financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts

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![](cespiracanadalpfinancial004.jpg)

2 or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters. /s/ KPMG LLP Chartered Professional Accountants We have served as the Partnership's auditor since 2024. Vancouver, Canada April 15, 2026

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Cespira Canada Limited Partnership Consolidated Statements of Financial Position (Expressed in thousands of Euros) 3 Note December 31, 2025 December 31, 2024 Assets Current Cash and cash equivalents € 10,193 8,157 Accounts receivable 3 16,359 18,210 Inventory 4 1,678 2,731 Prepaid expenses 813 1,072 29,043 30,170 Non-current Property, plant and equipment 5 23,082 27,252 Right-of-use assets 5 1,416 675 Intangible assets 6 5,898 6,831 Goodwill 504 543 Other assets 7 2,636 226 33,536 35,527 Total Assets € 62,579 65,697 Liabilities Current Accounts payable and accrued liabilities 8 € 17,517 15,887 Current portion of warranty liability 10 1,562 2,051 Current portion of lease liability 14 515 394 Deferred revenue 9 5,338 1,447 24,932 19,779 Non-current Warranty liability 10 391 513 Lease liability 14 902 284 Onerous contract provision 18 2,462 - Other long-term liabilities - 127 Total Liabilities 28,687 20,703 Total Partners' Equity 12 33,892 44,994 Total Liabilities and Partners' Equity € 62,579 65,697 Subsequent events (note 2) Approved on behalf of the Board: Jan Ytterberg Director and Elizabeth Owens Director

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![](cespiracanadalpfinancial006.jpg)

Cespira Canada Limited Partnership Consolidated Statements of Comprehensive Loss (Expressed in thousands of Euros) 4 Note December 31, 2025 February 2, 2024 to December 31, 2024 Revenue Engineering services € 13,335 9,397 Product revenue 56,146 30,430 Total revenue 69,481 39,827 Cost of sales (75,359) (39,469) Gross profit (loss) (5,878) 358 Expenses General and administrative 15 8,931 4,930 Research and development 15 5,836 4,378 Sales and marketing 15 1,109 779 Depreciation and amortization 5,6 2,616 1,480 Loss on asset impairment 5 366 - 18,858 11,567 Loss from operations (24,736) (11,209) Other expenses (income) Interest and bank charges 102 52 Foreign exchange gain (91) (269) Interest income (158) (224) (147) (441) Net loss before income taxes (24,589) (10,768) Income tax expense 11 Current 138 149 Net loss after income taxes (24,727) (10,917) Other comprehensive loss Foreign currency translation (4,190) (446) Total comprehensive loss (28,917) (11,363)

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![](cespiracanadalpfinancial007.jpg)

Cespira Canada Limited Partnership Consolidated Statements of Partners' Equity (Expressed in thousands of Euros) 5 General Partner Limited Partners December 31, 2025 Note Cespira Canada GP Ltd. (#) Cespira Canada GP Ltd. (€) Volvo HPDI Holding Inc. (#) Volvo HPDI Holding Inc. (€) Westport Fuel Systems Canada Inc. (#) Westport Fuel Systems Canada Inc. (€) Total (#) Total (€) Balance, February 2, 2024 - - - - - - - - Partner units issued 12 1 1 450 19,557 550 23,902 1,001 43,459 Contributed surplus - - - 5,804 - 7,094 - 12,898 Net loss for the period - - - (4,913) - (6,004) - (10,917) Other comprehensive loss - - - (201) - (245) - (446) Balance, December 31, 2024 1 1 450 20,247 550 24,747 1,001 44,994 Contributed surplus - - - 8,017 - 9,798 - 17,815 Net loss for the period - - - (11,127) - (13,600) - (24,727) Other comprehensive loss - - - (1,885) - (2,305) - (4,190) Balance, December 31, 2025 1 1 450 15,252 550 18,640 1,001 33,892

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![](cespiracanadalpfinancial008.jpg)

Cespira Canada Limited Partnership Consolidated Statements of Cash Flows (Expressed in thousands of Euros) 6 Note December 31, 2025 February 2, 2024 to December 31, 2024 Operating activities Net loss for the period € (24,727) (10,917) Adjustment for non-cash items Depreciation of property, plant and equipment 5 3,674 2,114 Depreciation of right-of-use asset 5 457 299 Amortization of intangible assets 6 449 277 Changes in inventory write-downs 4 - 96 Other adjustments 544 - Loss on asset impairment 5 366 - Loss on onerous contract 18 2,448 - Unrealized foreign exchange loss (gain) 155 (186) (16,634) (8,317) Changes in working capital balances Accounts receivable (1,790) (18,114) Inventory 870 4,415 Prepaid expenses (53) (368) Accounts payable 4,076 15,812 Warranty liability (1,659) 1,278 Deferred revenue 3,057 1,447 Cash outflows from operating activities (12,133) (3,847) Investing activities Acquisition of property, plant and equipment (1,606) (489) Cash outflows from investment activities (1,606) (489) Financing activities Repayment of lease liability 14 (455) (331) Paid in capital from Partners 16,945 12,898 Cash inflows from financing activities 16,490 12,567 Effect of foreign exchange on cash (715) (74) Increase in cash during the period 2,036 8,157 Cash, beginning of the period 8,157 - Cash, end of the period € 10,193 8,157 For the year ended December 31, 2025, the Partnership has paid cash interest of €67 related to its lease obligations and €15 for insurance financing and paid €352 related to its income tax payable. For the period of February 2, 2024, to December 31, 2024, the Partnership had paid cash interest of €24 related to its lease obligations and nil for insurance financing and paid nil for its income tax payable.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 7 1. Nature of operations Cespira Canada Limited Partnership ("Cespira LP" or the "Partnership"), is a Limited Partnership, domiciled in Vancouver, Canada. The Partnership is between Volvo HPDI Holding Inc. ("Volvo") and Westport Fuel Systems Canada Inc. ("Westport") (collectively, the "Limited Partners") and Cespira Canada GP Ltd. (the "General Partner") (collectively referred to as the "Partners") and was formed as a result of a joint venture agreement between Volvo, Westport and the General Partner in which Westport deconsolidated its formerly wholly owned HPDI™ business and entered into a newly formed joint venture. Westport acquired a 55% non-controlling interest and Volvo acquired a 45% interest. The Partnership is focused on engineering, manufacturing and supplying alternative fuel systems and components for transportation applications relating to heavy-duty truck and off-road applications based on the HPDI™ fuel system technology. On June 1, 2024, the Partnership had entered into an agreement for the purchase of certain assets and assumption of certain liabilities of Westport. These assets and liabilities were acquired by the Partnership for a total purchase price of €43,459, which was settled in the form of an ownership interest in the Limited Partnership's units. The joint venture transaction was completed on June 3, 2024, with Volvo's investment into the Limited Partnership's units. The following table summarizes the fair value of the assets acquired and liabilities assumed as of the transaction finalization date. Fair value of assets and liabilities acquired: Inventories € 7,303 Prepaid expenses 936 Property, plant and equipment 29,006 Intangible assets 7,168 Goodwill 548 Accrued payroll obligations (205) Warranty liabilities (1,297) Total purchase price € 43,459 The valuation of the fair value of the property, plant and equipment acquired was conducted through a third-party appraisal using the cost approach. In this approach, the current replacement cost, as of the valuation date, for each category of property, plant and equipment asset was determined using the indirect method, ensuring a reliable estimate of the assets' fair value. The acquired inventory was valued on a category basis for finished goods, work in process and raw materials. Finished goods were valued at the selling price, less the costs of disposal and with a margin for expected profit. The work in process inventory was valued at the selling prices, less costs to complete and disposal costs. The raw materials inventory was valued based on current replacement costs as of the valuation date. The intangible assets acquired includes rights to the HPDI™ technology, originally developed by Westport Fuel Systems Inc. and now owned by Cespira™, and which is designed to enable direct injection of various low carbon or zero carbon fuels (including but not limited to natural gas or hydrogen) into the combustion chamber of heavy-duty engines at high pressure. This technology enables vehicles to operate with lower carbon emissions compared to traditional diesel engines. The technology assets were valued using the income approach, based on future discounted cash flows expected to be generated through the use of this technology, as of the valuation date. On June 26, 2025, the Partnership changed its legal name from HPDI Technology Limited Partnership to Cespira Canada Limited Partnership. This name change did not affect the Partnership's legal form, ownership interests, or underlying operations.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 8 2. Material accounting policies The material accounting policies adopted in the preparation of the consolidated financial statements are set out below. Basis of presentation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). These are the Partnership's first annual financial statements for the year ended December 31, 2025. The statement of financial position presents comparative information as at December 31, 2024.The Partnership was incorporated on February 2, 2024. Accordingly, comparative information presented in the statement of comprehensive loss, the statement of changes in partners' equity and the statement of cash flows relates to the period from February 2, 2024 to 31 December 2024. As a result, the comparative information is not directly comparable to the current period results for these statements. The consolidated financial statements were authorized for issue by the General Partner on April 15, 2026. Going concern The consolidated financial statements have been prepared on a going concern basis, which assumes that the Partnership will continue its operations for at least twelve months from the end of the reporting date. Management has assessed the Partnership's ability to continue as a going concern, considering all relevant information available as at the date of this report, including cash flow forecasts, current financial position, and access to additional financing and funding from the joint venture partners. As at December 31, 2025, the Partnership had cash and cash equivalents of €10,193 (€8,157 as at December 31, 2024). For the year ended December 31, 2025, the Partnership incurred a net loss of €24,727 (€10,917 for the year ended December 31, 2024) and had net cash used in operating activities of €12,133 (€3,847 for the year ended December 31, 2024). Net cash used in investing activities amounted to €1,606 (€489 for the year ended December 31, 2024). The Partnership expects that cash requirements during 2026 will exceed cash generated from operations and will require capital contributions to fund operating losses and planned capital expenditures. The Partnership's operations and planned investments during the start-up and scale-up phase are expected to be funded primarily through periodic partner cash calls in accordance with the partnership agreement. Under the partnership agreement, the Partners are required to provide funding in proportion to their respective interests, subject to an aggregate funding cap for the joint venture group, including Cespira Sweden AB. The Board approved the 2026 budget and funding plan, including anticipated funding through partner cash calls. Management has prepared a cash flow forecast, which assumes that operating and investing cash outflows will be funded through a combination of (i) customer sales and (ii) cash calls to the joint venture partners. On this basis, management expects the Partnership to maintain sufficient liquidity to meet its obligations as they fall due over the assessment period. Due to recent geopolitical developments, broader macroeconomic uncertainty has increased volatility in supply chains, fuel and energy prices, inflation, and government regulation in certain markets relevant to the Partnership.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 9 2. Material accounting policies, continued Going concern, continued The Partnership's ability to continue as a going concern remains dependent on the receipt of proceeds from future cash calls in accordance with the approved funding plan and the overall obligation of the joint venture partners towards the Partnership. If joint venture partner funding is not received, the Partnership may be unable to meet its obligations as they fall due. These factors indicate the existence of material uncertainty that may cast significant doubt as to the Partnership's ability to continue as a going concern. These consolidated financial statements do not give effect to any adjustments which may be necessary should the Partnership be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts materially different from those reflected in the accompanying consolidated financial statements. Subsequent to year-end, the Partnership received €4,047 in January 2026 and €4,047 in April 2026 from the joint venture partners in full settlement of formal cash call requests made to date. In March 2026, the Partnership entered a financing arrangement with a third party, under which the Partnership may, at its election, receive settlement of its approved customer invoices in advance of the contractual 45-day payment term. The financing cost under the arrangement is EURIBOR + 0.73%. The arrangement is expected to support the Partnership's short- term working capital and liquidity management. Basis of measurement The consolidated financial statements have been prepared on the historical cost basis unless otherwise stated in the accounting policy or note disclosures that follow. Basis of consolidation The consolidated financial statements include the financial results of the Partnership and its subsidiaries. Subsidiaries include entities which are wholly owned as well as entities over which the Partnership has the authority or ability to exert power over the entity's financial and/or operating decisions (i.e., control), which in turn may affect the Partnership's exposure or rights to variable returns from the investee. The consolidated financial statements include the operating results of acquired or disposed entities from the date control is obtained or the date control is lost, respectively. All intercompany balances and transactions are eliminated upon consolidation. The Partnership's principal subsidiaries are as follows: Major subsidiaries Percentage Ownership Functional Currency Cespira Innovations Canada Limited (previously 1464244 B.C. Ltd.) 100% CAD Revenue recognition The Partnership generates revenue from the sale of products related to HPDI™ systems and the provision of engineering services. The Partnership uses the following five-step contract-based analysis of transactions to determine if, when and how much revenue can be recognized: 1. Identify the contract with a customer; 2. Identify the performance obligation(s) in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligation(s) in the contract; and 5. Recognize revenue when or as the Partnership satisfies the performance obligation(s).

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 10 2. Material accounting policies, continued Revenue recognition, continued Product Revenue Revenue is recognised when transfer of control of the products has passed to the customer which typically occurs when the Partnership has transferred physical possession of the products to the customer and has a present right to payment. Payment is due within a specified time period as permitted by the underlying agreement and the Partnership's credit policy upon the transfer of goods to the customer. Revenue is recorded at the estimated amount of consideration to which the Partnership expects to be entitled. Engineering Services Revenues from the delivery of engineering services are measured based on the consideration specified in a contract with the customer. The Partnership uses the output method to recognize revenue over time. Revenue is recognized on the basis of completing distinct work packages and deliverables under a contract. Any modifications or variations to contracts in progress are assessed to determine if they fall under the scope of the existing contract performance obligation or form part of a new performance obligation. This method is used when the outcome of a contract can be estimated reliably, and it is probable that the economic benefits associated with the contract will flow to the Partnership. A performance obligation is a promise in the contract to transfer a distinct good or service to the customer. For most arrangements, the customer contracts with the Partnership to provide a significant service of integrating a complex set of tasks and components into a single project or capability. If a contract contains multiple performance obligations, the Partnership allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Cash and cash equivalents (including restricted cash) Cash and cash equivalents comprise cash on hand, cash held in bank accounts and short-term deposits that are readily convertible to known amounts of cash. Included within cash and cash equivalents at December 31, 2025, is cash that is restricted, as it has been pledged as collateral in support of credit card facilities used for operating activities. Cash and cash equivalents at December 31, 2025 include restricted cash of €162 (€174 – December 31, 2024). Warranty liability Estimated warranty costs are recognized at the time the Partnership sells its products and are included in cost of sales. The Partnership provides warranty coverage on products sold from the date the products are put into service by customers. The current and non-current warranty liability balances are estimated using management's estimates of future returns and defect rates. Contract balances When the timing of the Partnership's delivery of services is different from the timing of payments made by customers, the Partnership recognizes either a contract asset when performance precedes contractual due date or a contract liability when customer payment precedes performance. Customers that prepay are represented by deferred revenue until the performance obligation is satisfied.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 11 2. Material accounting policies, continued Foreign currency translation The consolidated financial statements are presented in Euro, whereas the Partnership's functional currency is the Canadian dollar. Monetary assets and liabilities denominated in foreign currencies are revalued at period-end exchange rates and non-monetary items are translated at historical exchange rates. Realized and unrealized exchange gains and losses are recognized in the consolidated statement of comprehensive loss. The assets and liabilities of foreign operations are translated into Euros using the period-end exchange rates. Income, expenses, and cash flows of foreign operations are translated into Euros using average exchange rates. Exchange differences resulting from the translation of foreign operations into Euros are recognized in other comprehensive loss and accumulated in partners' equity. Financial instruments The Partnership initially recognizes all financial instruments on the date the Partnership becomes a party to the contractual provisions of the instrument. All financial instruments are originally recognized at fair value. Depending on classification, financial instruments are subsequently measured at either fair value or amortized cost. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. The following sections identify the Partnership's financial assets and liabilities and how they are classified: Financial assets The Partnership classifies its financial assets depending on the business model in which they are held and the characteristics of their contractual cash flows. Financial assets at amortized cost Financial assets at amortized cost arise principally from the provision of goods and services to customers, such as accounts receivable, but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognized at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortized cost using the effective interest rate method, less provision for impairment. Financial assets consist of accounts receivables which are mainly comprised of related party receivables and tax receivables.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 12 2. Material accounting policies, continued Financial instruments, continued Financial liabilities Financial liabilities are classified as financial liabilities at fair value through profit or loss, or other financial liabilities, as appropriate. The Partnership determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value net of attributable transaction costs. There are currently no financial liabilities at fair value through profit or loss. Other financial liabilities which are recorded at amortized cost consist of accounts payable and accrued liabilities. Partnership capital Financial instruments issued by the Partnership are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. Partnership capital represents the value of interests that have been issued. Costs incurred in connection with the offering of units of the partnership are reflected as a reduction of partnership capital. Distributions payable to partners of the partnership are payable when the distributions have been approved by the general partner prior to the reporting date. Costs of issuance of units of the partnership were incurred by the Partners as per the investment agreement. Impairment of financial assets At each reporting date, the Partnership assesses whether a financial asset or group of financial assets is impaired under the expected credit loss ("ECL") model. Loss allowances are measured based on (i) ECLs that result from possible default events within the 12 months after the reporting date ("12-month ECL"), or (ii) ECLs that result from all possible default events over the expected life of a financial instrument ("lifetime ECLs"). For accounts receivable, the Partnership applies the simplified approach. Where information exists, the Partnership establishes a loss rate based on historical normalized credit loss experience. The loss rate is based on the payment profiles and aging of trade receivables and is adjusted to reflect present economic condition. In determining the ECL allowance, the Partnership considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost of effort. The Partnership also considers any available objective evidence that it will be unable to collect all of the amounts due from particular customers and related parties. The amortized cost of the financial asset is reduced by impairment losses at an amount equal to the lifetime expected credit losses. Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amounts of the assets and the loss is recognized in the consolidated statement of comprehensive loss. When a receivable is uncollectible, it is written off against the allowance for doubtful accounts. Inventory Inventory consists of purchased parts and finished goods and is valued at the lower of cost and net realizable value. Inventory on hand is measured on the basis of weighted average cost. Inventory write-downs are included as an expense in cost of sales. Any reversal of such write-downs, due to an increase in net realizable value, would be recognized as a reduction in cost of sales in the period in which the reversal occurs.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 13 2. Material accounting policies, continued Property, plant and equipment Property, plant and equipment ("PP&E") is recorded at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the asset acquisition. Maintenance and repairs are charged to expense as incurred. Where particular parts of an asset are significant, discrete and have distinct useful lives, the Partnership allocates the associated costs between the various components, which are then separately depreciated over the estimated useful lives of each respective component. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Type Useful Life Furniture and fixtures 5-15 years Machinery and equipment 5-10 years Automobiles 5 years Computer hardware and software 3-6 years Residual values, useful lives and depreciation methods are reviewed annually for changes, which are accounted for prospectively. Impairment of long-lived assets The Partnership assesses impairment of property, plant and equipment when an impairment indicator arises (e.g. change in use or discontinued use, obsolescence or physical damage). When the asset does not generate cash inflows that are largely independent of those from other assets or group of assets, the asset is tested at the cash generating unit ("CGU") level. In assessing impairment, the Partnership compares the carrying amount of the asset or CGU to the recoverable amount, which is determined as the higher of the asset or CGU's fair value less costs of disposal and its value-in-use. Value-in-use is assessed based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects applicable market and economic conditions, the time value of money and the risks specific to the asset. An impairment loss is recognized whenever the carrying amount of the asset or CGU exceeds its recoverable amount and is recorded in the consolidated statements of comprehensive loss. Intangible assets Intangible assets are recognized when they are identifiable, the entity has control over them, it is probable that future economic benefits will flow to the entity, and the cost can be reliably measured. Initially, intangible assets are measured at cost, which includes the purchase price and directly attributable costs necessary to prepare the asset for its intended use. Subsequently, intangible assets are measured at cost less accumulated amortization and impairment losses. Intangible assets with finite useful lives are amortized systematically over their useful lives.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 14 2. Material accounting policies, continued Goodwill Goodwill is recorded at the time of acquisition for the excess of the fair value of the consideration transferred over the fair values of the identifiable assets acquired and liabilities assumed. The fair value is determined using the estimated discounted future cash flows of the reporting unit. Goodwill is not amortized and instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. This impairment test is performed annually at December 31. Future adverse changes in market conditions or poor operating results of underlying assets could result in an inability to recover the carrying value of the goodwill, thereby possibly requiring an impairment charge. Leases All leases are accounted for by recognizing a right-of-use asset and a lease liability except for leases of low value assets and leases with a duration of 12 months or less. Payments associated with short-term leases and leases of low-value assets are recognized as an expense on a straight- line basis in the consolidated statement of loss and comprehensive loss. Right-of-use assets and lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless this is not readily determinable, in which case the Partnership's incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. Other variable lease payments are expensed in the period to which they relate. Subsequent to initial measurement, lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Income taxes These consolidated financial statements include the assets and liabilities and results of operations of the Partnership and do not include the assets, liabilities, revenue and expenses of the limited partners. Each partner of the Partnership is required to include in computing its income for a particular taxation year, its share of the income or loss of the Partnership for the fiscal period of the Partnership ending in, or coincidentally with, such taxation year. For this purpose, the income or loss of the Partnership from any source will be computed for each fiscal period as if the Partnership were a separate person resident in Canada and will be allocated to its partners on the basis of their respective shares of that income or loss as provided for in the Partnership Agreement. Income tax expenses and benefits recognized in these consolidated financial statements relate to the wholly owned subsidiaries of the Partnership. These tax amounts are derived from the standalone profit or loss generated by the individual operations of each subsidiary. Current income taxes Current income tax assets and liabilities for the current and prior year are measured at the amount expected to be recovered from or paid to the taxation authorities. Current tax assets and current tax liabilities are only offset if a legally enforceable right exists to set off the amounts, and the Company intends to settle on a net basis, or to realize the asset and settle the liability simultaneously.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 15 2. Material accounting policies, continued Income taxes, continued Deferred income taxes Deferred tax assets are only recognized to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future and future taxable profit will be available against which the temporary difference can be utilized. Deferred tax assets and liabilities are measured at future anticipated tax rates, which have been enacted or substantively enacted at the reporting date. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Provisions A provision is recognized if, as a result of a past event, the Partnership has a present liability that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The carrying amounts of provisions regularly reviewed and adjusted for new facts or changes in markets. Management's use of accounting judgments, estimates and assumptions The preparation of these financial statements in conformity with IFRS requires management to make estimates, judgments and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. Items that require significant judgement and estimates include estimates of fair value for assets and liabilities acquired in business acquisitions, warranty provisions, inventory obsolescence provisions, inventory net realizable value, assessing whether indicators of impairment of property, plant and equipment and intangible assets exist, and onerous contract provisions. Revenue recognition – engineering services Revenue from multi-year customer development programs is recognized over time where the performance obligations are satisfied as the work is performed. Management applies judgement in determining (i) whether the performance obligations are satisfied over time, and (ii) the appropriate measure of progress (input or output method) that faithfully depicts the transfer of services to the customer. Contract liabilities (deferred revenue) are recognized for customer payments received in advance and are recognized as revenue as the related performance obligations are satisfied.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 16 2. Material accounting policies, continued Management's use of accounting judgments, estimates and assumptions, continued Warranty Liability The Partnership uses historical failure rates and costs to repair defective products to estimate the warranty liability. New product launches require a greater use of judgment in developing estimates until claims experience becomes available. Product specific experience is typically available four or five quarters after product launch, with a clear experience trend not evident until eight to twelve quarters after launch. The Partnership records warranty expense for new products using historical experience from previous generations in the first year, a blend of actual product and historical experience in the second year and product specific experience thereafter. The amount payable by the Partnership and the timing will depend on actual failure rates and cost to repair failures of its products. Onerous contracts A provision for onerous contracts is measured at the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract, which is determined based on the incremental cost of fulfilling the obligations under the contract and an allocation of other costs directly related to fulfilling the contract. Future accounting standards and interpretations There are a number of upcoming amendments to standards, and interpretations which have been issued by the IASB. The Partnership is currently evaluating the impact of these standards. ● IFRS 9 Financial Instruments and IFRS 7 Financial Instruments – Disclosures; amendments to the Classification and Measurement of Financial Instruments. ● IFRS 18 Presentation and Disclosure in Financial Statements IFRS 18 introduces the following disclosure requirements: ● New categories in the statement of profit or loss (operating, investing, financing) ● Mandatory subtotals, including operating profit ● Requirements to disclose management-defined performance measures (MPMs) ● Enhanced guidance on aggregation and disaggregation IFRS 18 is effective for reporting periods beginning on or after January 1, 2027 and will be applied retrospectively. The Partnership is evaluating the impact of the new standards. Based on preliminary analysis, the standard will not impact the determination of net income (loss) but is expected to affect the presentation of the consolidated statement of comprehensive income (loss) and related disclosures.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 17 3. Accounts receivable Accounts receivable consists of the following: December 31, 2025 December 31, 2024 Trade and other receivables € 16,017 16,876 Tax receivables 342 1,334 € 16,359 18,210 The Partnership had recognized allowances for expected credit losses of nil for the year ended December 31, 2025 (nil – December 31, 2024). 4. Inventory Inventory consists of the following: December 31, 2025 December 31, 2024 Finished goods € 822 1,642 Purchased parts 856 1,089 € 1,678 2,731 During the year ended December 31, 2025, €46,344 of inventories were recognized as an expense in cost of sales on the consolidated statement of comprehensive loss (€28,416 – December 31, 2024). During the period ended December 31, 2025, the Partnership recorded write-downs for slow- moving inventory of nil (€96 – December 31, 2024). 5. Property, plant and equipment December 31, 2025 Owned Assets Cost Accumulated Depreciation Net Book Value Machinery and equipment € 26,757 (4,862) 21,895 Computer hardware and software 1,220 (546) 674 Furniture and fixtures 581 (123) 458 Automobiles 91 (36) 55 Total owned assets € 28,649 (5,567) 23,082 Right-of-use leased assets € 2,140 (724) 1,416 December 31, 2024 Owned Assets Cost Accumulated Depreciation Net Book Value Machinery and equipment € 27,717 (1,878) 25,839 Computer hardware and software 935 (174) 761 Furniture and fixtures 616 (49) 567 Automobiles 98 (13) 85 Total owned assets € 29,366 (2,114) 27,252 Right-of-use leased assets € 974 (299) 675

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 18 5. Property, plant and equipment, continued Balance January 1, 2025 Additions Depreciation Foreign currency translation Impairment Balance, December 31, 2025 Owned Assets Machinery and equipment € 25,839 1,372 (3,181) (1,769) (366) 21,895 Computer hardware and software 761 386 (391) (82) - 674 Furniture and fixtures 567 10 (79) (40) - 458 Automobiles 85 - (23) (7) - 55 Total owned assets € 27,252 1,768 (3,674) (1,898) (366) 23,082 Right-of-use leased assets € 675 1,236 (457) (38) - 1,416 Balance, February 2, 2024 Additions Depreciation Foreign currency translation Impairment Balance, December 31, 2024 Owned Assets Machinery and equipment € - 27,717 (1,878) - - 25,839 Computer hardware and software - 935 (174) - - 761 Furniture and fixtures - 616 (49) - - 567 Automobiles - 98 (13) - - 85 Total owned assets € - 29,366 (2,114) - - 27,252 Right-of-use leased assets € - 992 (299) (18) - 675 During the year ended December 31, 2025, the Partnership recognized depreciation expense of €4,131 (€2,413 – December 31, 2024), of which €1,963 was included in cost of sales (€1,210 – December 31, 2024). The Partnership recognized an impairment loss of €366 during the year ended December 31, 2025 (nil – December 31, 2024) related to obsolete production equipment.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 19 6. Intangible Assets December 31, 2025 Cost Accumulated Amortization Foreign currency translation Net Book Value Technology assets € 6,594 (726) 30 5,898 December 31, 2024 Cost Accumulated Amortization Foreign currency translation Net Book Value Technology assets € 7,108 (277) - 6,831 During the year ended December 31, 2025, the Partnership recognized amortization expense of €449 (€277 – December 31, 2024) for intangible assets. 7. Other assets December 31, 2025 December 31, 2024 VAT receivable € 2,608 - Long-term deposits 28 227 € 2,636 227 8. Accounts payable and accrued liabilities December 31, 2025 December 31, 2024 Trade payable and accrued liabilities € 15,740 14,533 Accrued payroll obligations 1,777 1,205 Taxes payable - 149 € 17,517 15,887 9. Deferred revenue The change in deferred revenue was as follows: December 31, 2025 December 31, 2024 Deferred revenue, opening balance € 1,447 - Increase from payments received 16,160 8,375 Decrease from revenue recognized (13,157) (6,883) Foreign currency translation 888 (45) Deferred revenue, ending balance € 5,338 1,447 All amounts are classified as current as they are expected to be settled within the next reporting year.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 20 10. Warranty liability The change in the warranty liability was as follows: December 31, 2025 December 31, 2024 Warranty liability, opening balance € 2,564 - Additions 1,127 2,462 Payments (1,659) (147) Change in estimate - 249 Foreign currency translation (79) - Warranty liability, ending balance € 1,953 2,564 Current portion of warranty liability 1,562 2,051 Non-current portion of warranty liability 391 513 € 1,953 2,564 11. Income taxes The Partnership's income tax provision differs from that calculated by applying the combined Canadian federal and provincial statutory income tax rate of 27% for the year ended December 31, 2025, to net loss before taxes (27% - December 31, 2024). The differences result from the following items: December 31, 2025 December 31, 2024 Net loss before income taxes € (24,589) (10,768) Statutory tax rate 27% 27% Expected income tax benefit (expense) at statutory tax rate 6,639 2,907 Changes in benefits not recognized 1,377 (1,018) Income allocated to partners (5,383) (2,043) Change in initial recognition exemption (IRE) (11) - Permanent differences (90) - True-ups (2,334) - Other differences (336) 5 Tax expense € (138) (149) The Partnership's wholly owned subsidiary recognized current income tax expense for €138 for the period ended December 31, 2025 (€149 – December 31, 2024). As at December 31, 2025, the Partnership's subsidiary has unrecognized deferred tax assets of €304 related to investment tax credits.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 21 12. Partners' capital The authorized capital of the Partnership consists of an unlimited number of units designated as "GP Units", which may only be held by the General Partner, and an unlimited number of units designated as "LP Units", which may only be held by Limited Partners. The Partnership is authorized to issue an unlimited number of GP Units and LP Units. Each LP Unit represents an equal undivided beneficial interest in the Partnership with all other outstanding units of that class. A GP Unit does not rank equally with the LP Units, but the holder of a GP Unit shall be entitled to receive distributions based on its partnership interest, as determined by the General Partner. The LP Units are not redeemable 13. Related party transactions The following table summarizes the Partnership's related party transactions: December 31, 2025 December 31, 2024 Expenses: Goods, services and other expenses incurred from Westport and its affiliates € 8,001 8,560 Goods, services and other expenses incurred from Cespira AB 51,394 17,322 Revenue: Sales of products and services to Volvo and its affiliates 67,196 39,253 Sales of products to Cespira AB 1,072 - Due (to) from related parties: Accounts receivable 15,011 16,053 Accounts payable 12,426 (11,269) An affiliated entity of the Partnership, Cespira Sweden AB ("Cespira AB"), provides management, engineering, manufacturing services and the sale of finished goods to the Partnership. For the period from year ended December 31, 2025, the Partnership incurred expenses from Cespira AB of €51,394 (€17,322 – December 31, 2024). As at December 31, 2025, the Partnership had accounts receivable of €499 due from Cespira AB (€1,317 – December 31, 2024) and accounts payable due to Cespira AB of €12,192 (€6,616 – December 31, 2024). As a partner, Westport and its affiliates provide various goods and services to the Partnership under a transition services agreement, which are represented by the balance of €8,001 incurred during the year (€8,560 – December 31, 2024). As at December 31, 2025, the Partnership had accounts receivable of €44 due from Westport (€922 – December 31, 2024) and accounts payable due to Westport of €234 (€4,653 – December 31, 2024). The Partnership provided €812 of services to Westport and its affiliates during the year, recognized as a reduction to expenses (€1,021 – December 31, 2024). The Partnership sells to various Volvo affiliated entities. For the period year ended December 31, 2025, the Partnership sold products and services of €67,196 to these entities (€39,253 – December 31, 2024). As at December 31, 2025, the Partnership had accounts receivable of €14,468 due from these Volvo entities (€13,814 – December 31, 2024).

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 22 14. Lease Liability The Partnership leases buildings and the leases bear borrowing rates of 4.75% and are payable in monthly instalments. The Partnership has incurred €54 in variable lease payments relating to common area maintenance and operating costs for the year ended December 31, 2025 (€95 – December 31, 2024). The following table presents the lease liability for the Partnership: 2025 2024 Opening balance, January 1 € 678 - Additions 1,245 992 Lease payments (455) (329) Interest expense on lease liabilities 67 24 Foreign currency translation (118) (9) Ending balance, December 31 € 1,417 678 Current portion of lease liability 515 394 Long term portion of lease liability 902 284 Total lease liability € 1,417 678 The following table presents the contractual undiscounted cash flows for lease liabilities: December 31, 2025 December 31, 2024 Up to 1 year € 515 394 Between 1 and 5 years 1,165 316 Total undiscounted lease liabilities € 1,680 710

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 23 15. General and administrative, sales and marketing, and research and development expenses December 31, 2025 December 31, 2024 General and administrative Salaries and benefits € 2,749 1,621 Professional fees 3,558 1,451 Legal and insurance 1,643 1,233 Other expenses 981 625 Total general and administrative € 8,931 4,930 December 31, 2025 December 31, 2024 Sales and marketing Salaries and benefits € 650 421 Promotional costs and advertising 452 322 Other expenses 7 36 Total sales and marketing € 1,109 779 December 31, 2025 December 31, 2024 Research and development Salaries and benefits € 2,872 2,649 Outside services and consulting 765 675 Supplies and materials 625 397 Other expenses 1,574 657 Total research and development € 5,836 4,378 16. Capital management The Partnership's capital consists of partners equity and lease liabilities. The Partnership's objectives when managing capital are to ensure that there are adequate capital resources to safeguard the Partnership's ability to continue as a going concern and maintain adequate levels of funding to support ongoing operations and future growth such that the Partnership can continue to deliver returns to shareholders and benefits for other stakeholders. From time to time, the Partnership may adjust its capital structure in light of changes in economic conditions and the risk characteristics of the Partnership's underlying assets. In addition, the Partnership plans to use existing funds, cash calls to the partners and funds from the future sale of products to fund operations and expansion activities.

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 24 17. Financial instruments and risk management Fair value Financial instruments of the Partnership consist of cash, accounts receivable, accounts payable, accrued liabilities and amounts due to/from related parties. The Partnership classifies the fair value measurements of these transactions according to the following hierarchy based on the number of observable inputs used to value the instrument: Level 1: quoted prices in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly. Level 3: inputs for the asset or liability that are no based on observable market data. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The carrying values of cash, accounts receivable, accounts payable and amounts due to and from relates parties approximate their fair values due to the immediate or short-term nature of these securities. There were no transfers between levels during the period. Financial risks The Partnership is exposed to the following financial risks. The Partnership mitigates these risks by assessing, monitoring and approving the Partnership's risk management processes. Credit risk Credit risk is the risk that one party to a financial instrument fails to discharge an obligation and causes financial loss to another party. The Partnership provides credit to customers in the normal course of business. As at December 31, 2025, receivables from Volvo affiliates comprised 94% of the Partnership's total trade receivables. This represents the only concentrated group of accounts receivable for the Partnership. The Partnership also routinely monitors the receivable balances. The carrying amounts of financial assets on the statement of financial position represent the Partnership's maximum exposure to credit risk. December 31, 2025 December 31, 2024 0 to 45 days € 14,188 11,793 46 to 60 days 456 715 61 to 90 days 489 4,139 91 to 365 days 884 229 Total trade and other receivables 16,017 16,876

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Cespira Canada Limited Partnership Notes to the Consolidated Financial Statements (Expressed in thousands of Euros) 25 17. Financial instruments and risk management, continued Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As at December 31, 2025, the Partnership's exposure relates to cash, accounts receivable, and accounts payable. Therefore, the Partnership is exposed to currency risk as fluctuations in the foreign exchange rate between the Partnership's functional currency and other currencies may result in adverse impact for the Partnership. A 5% increase/decrease in the relative value of the Euro against the Canadian dollar compared to the exchange rates in effect for the year ended December 31, 2025, would have resulted in lower/higher loss from operations of approximately €1,178 and €1,302 respectively. This assumes a consistent 5% appreciation in the Euro against the Canadian dollar throughout the fiscal year. The timing of changes in the relative value of the Euro can affect the magnitude of the impact that fluctuations in foreign exchange rates have on our income from operations. Interest rate risk Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Partnership's income and cash flows are substantially independent of changes in market interest rates as the Partnership has no significant interest-bearing assets. The Partnership's management monitors the interest rate fluctuations on a continuous basis and acts accordingly. Liquidity risk Liquidity risk is the risk that the Partnership will not be able to meet its financial obligations associated with its financial liabilities when they are due. The Partnership manages liquidity risk through the management of its capital structure and resources to ensure that it has sufficient liquidity to settle obligations and liabilities when they are due. Management monitors its operating requirements and prepares budgets and cash flow forecasts to identify cash flow needs for general corporate and working capital purposes, as well as for expansion initiatives (note 2). 18. Onerous contract provision During the year, the Partnership assessed the profitability of its engineering service contracts and concluded that the unavoidable costs of meeting the obligations under the contract are expected to exceed the consideration to be received thereunder, primarily as a result of additional rework required to satisfy the remaining performance obligations. The Partnership intends to fulfil all contractual performance obligations through to the contractual end date in 2028. Accordingly, the Partnership has recognized a provision for the onerous contract on the statement of financial position as a long-term liability and on the statement of comprehensive loss as part of the cost of sales as at December 31, 2025, of €2,448 (nil – December 31, 2024). December 31, 2025 December 31, 2024 Opening balance € - - Provisions recognised during the year 2,448 - Amounts utilised during the year - - Foreign currency translation 14 - Ending balance € 2,462 -

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## Exhibit 15.2

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cespira Sweden AB (previously HPDI Technology AB) Consolidated Financial Statements For the year ended December 31, 2025, and for the period from incorporation on January 22, 2024, to December 31, 2024 (Expressed in thousands of Euros)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Table of Contents** Pages Independent Auditor's Report 1-2 Consolidated Statements of Financial Position 3 Consolidated Statements of Comprehensive Income (Loss) 4 Consolidated Statements of Changes in Equity 5 Consolidated Statements of Cash Flows 6 Notes to the Consolidated Financial Statements 7-22

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 Report of Independent Registered Public Accounting Firm To the Shareholders of Cespira Sweden AB Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated statements of financial position of Cespira Sweden AB (the Company) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income (loss), changes in shareholders' equity, and cash flows for the year ended December 31, 2025, and for the period from incorporation on January 22, 2024 to December 31, 2024, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows the year ended December 31, 2025, and for the period from incorporation on January 22, 2024 to December 31, 2024, in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has incurred net losses and expects that capital contributions will be required to fund operating losses. These factors indicate the existence of a material uncertainty that may cast significant doubt as to the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis for Opinion These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts

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&nbsp;&nbsp;&nbsp;&nbsp;2 or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters. /s/ KPMG LLP Chartered Professional Accountants We have served as the Company's auditor since 2024. Vancouver, Canada April 15, 2026

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Cespira Sweden AB Consolidated Statements of Financial Position (Expressed in thousands of Euros) 3 Note December 31, 2025 December 31, 2024 Assets Current Cash and cash equivalents € 2,473 1,775 Accounts receivable 3 12,384 9,964 Inventory 4 8,175 4,415 Prepaid expenses 172 346 23,204 16,500 Non-current Property, plant and equipment 5 14,931 11,028 Right-of-use assets 5 56 198 Other assets 6 11,964 44 26,951 11,270 Total Assets € 50,155 27,770 Liabilities Current Accounts payable and accrued liabilities 7 € 13,008 7,823 Current portion of lease liability 10 68 153 13,076 7,976 Non-current Lease liability 10 85 137 Total Liabilities € 13,161 8,113 Shareholders' Equity Share capital 5 5 Contributed surplus 37,042 19,782 Accumulated other comprehensive income 1,526 259 Deficit (1,579) (389) Total Shareholders' Equity 36,994 19,657 Total Liabilities and Shareholders' Equity € 50,155 27,770 Subsequent events (note 2) Approved on behalf of the Board: Jan Ytterberg Director and Elizabeth Owens Director

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Cespira Sweden AB Consolidated Statements of Comprehensive Income (Loss) (Expressed in thousands of Euros) 4 Note December 31, 2025 January 22, 2024 to December 31, 2024 Revenue Product revenue € 49,065 16,225 Cost of sales (44,431) (16,145) Gross profit 4,634 80 Expenses General and administrative 11 2,579 205 Sales and marketing 11 35 120 Research and development 11 41 2 Depreciation 5 290 110 2,945 437 Income (loss) from operations 1,689 (357) Other expenses (income) Interest and bank charges 137 29 Foreign exchange (gain) loss 1,433 (120) Interest income and other income (80) (44) 1,490 (135) Net income (loss) before income taxes 199 (222) Income tax expense 9 Current 1,389 167 Net loss after income taxes (1,190) (389) Other comprehensive income Foreign currency translation 1,267 259 Total comprehensive income (loss) € 77 (130)

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Cespira Sweden AB Consolidated Statements of Shareholders' Equity (Expressed in thousands of Euros) 5 Notes Common shares (#) Share Capital (€) Contributed Surplus (€) Deficit (€) Accumulated other comprehensive income (€) Total equity (€) Balance, January 22, 2024 - - - - - - Issuance of share capital 12 1,000 5 - - - 5 Contributed surplus - - 19,782 - - 19,782 Other comprehensive income - - - - 259 259 Net loss - - - (389) - (389) Balance, December 31, 2024 1,000 5 19,782 (389) 259 19,657 Issuance of share capital - - - - - - Contributed surplus - - 17,260 - - 17,260 Other comprehensive income - - - - 1,267 1,267 Net loss - - - (1,190) - (1,190) Balance, December 31, 2025 1,000 5 37,042 (1,579) 1,526 36,994

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Cespira Sweden AB Consolidated Statements of Cash Flows (Expressed in thousands of Euros) 6 Note December 31, 2025 January 22, 2024 to December 31, 2024 Operating activities Net loss for the period € (1,190) (389) Adjustment for non-cash items Depreciation of property, plant and equipment 5 1,063 771 Depreciation of right-of-use asset 5 153 93 Inventory write-downs 4 1,509 14 Gain on disposal of asset (15) - Unrealized foreign exchange loss (gain) 1,520 (52) 3,040 437 Changes in working capital balances Accounts receivable (2,562) (10,024) Inventory (5,279) 1,217 Prepaid expenses 724 (281) Other assets 6 (12,479) (44) Warranty liability - (399) Accounts payable 5,651 7,557 Cash outflows from operating activities (10,905) (1,537) Investing activities Acquisition of property, plant and equipment 5 (6,046) (180) Proceeds on disposal of asset 15 - Acquisition of HPDI™ assets - (7,777) Cash outflows from investment activities (6,031) (7,957) Financing activities Capital contributions from Shareholders 17,210 11,462 Repayment of lease liability 10 (171) (89) Cash inflows from financing activities 17,039 11,373 Effect of foreign exchange on cash 595 (104) Increase in cash during the period 698 1,775 Cash, beginning of the period 1,775 - Cash, end of the period € 2,473 1,775 The Company made cash payments for interest on lease obligations of €6 for the year ended December 31, 2025 (€8 – December 31, 2024). The Company made cash payments for taxes of €333 during the year ended December 31, 2025 (nil – December 31, 2024).

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 7 1. Nature of operations Cespira Sweden AB ("Cespira" or the "Company"), incorporated in Goteborg, Sweden, is a joint venture company owned by Volvo Business Services International AB ("Volvo") and Westport Fuel Systems Canada Inc. ("Westport"). Westport has a 55% non-controlling interest and Volvo has a 45% interest. Cespira Sweden AB is jointly controlled by both parties. The Company is focused on manufacturing and supplying alternative fuel systems and components for transportation applications relating to heavy-duty truck and off-road applications based on the HPDI™ fuel system technology. On June 1, 2024, the Company signed an agreement for the purchase of certain assets and assumption of certain liabilities of Westport and its affiliates. These assets and liabilities were acquired by the Company for a total purchase price of €16,211, which was settled in the form of ownership interest in the Company's share capital of €8,434 and cash paid of €7,777. The joint venture transaction was finalized on June 3, 2024, with the completion of Volvo's investment into the Company's share capital. The following table summarizes the fair value of the assets acquired and liabilities assumed as of the transaction finalization date. Fair value of assets and liabilities acquired: Inventories € 5,641 Prepaid expenses 57 Property, plant and equipment 11,207 Lease liability (92) Accrued payroll obligations (203) Warranty liabilities (399) Total purchase price € 16,211 The valuation of the fair value of the property, plant and equipment acquired was conducted through a third-party appraisal using the cost approach. In this approach, the current replacement cost, as of the valuation date, for each category of property, plant and equipment asset was determined using the indirect method, ensuring a reliable estimate of the assets' fair value. The acquired inventory was valued on a category basis for finished goods, work in process and raw materials. Finished goods were valued at the selling price, less the costs of disposal and with a margin for expected profit. The work in process inventory was valued at the selling prices, less costs to complete and disposal costs. The raw materials inventory was valued based on current replacement costs as of the valuation date. The warranty liability acquired from Westport and its affiliates was transferred to HPDI Technology Limited Partnership at a fair value of €399 as at the year ended, December 31, 2024. On July 2, 2025, the Company changed its legal name from HPDI Technology AB to Cespira Sweden AB. This name change did not affect the Company's legal form, ownership interests, or underlying operations.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 8 2. Material accounting policies The material accounting policies adopted in the preparation of the consolidated financial statements are set out below. Basis of presentation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). These are the Company's first annual financial statements for the year ended December 31, 2025. The statement of financial position presents comparative information as at December 31, 2024.The Company was incorporated on January 22, 2024. Accordingly, comparative information presented in the statement of comprehensive income (loss), the statement of changes in shareholders' equity and the statement of cash flows relates to the period from January 22, 2024, to 31 December 2024. As a result, the comparative information is not directly comparable to the current period results for these statements. The consolidated financial statements were authorized for issue by the Board of Directors of the Company on April 15, 2026. Going concern The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue its operations for at least twelve months from the end of the reporting date. Management has assessed the Company's ability to continue as a going concern, considering all relevant information available as at the date of this report, including cash flow forecasts, current financial position, and access to additional financing and funding from the joint venture shareholders. As at December 31, 2025, the Company had cash and cash equivalents of €2,473 (€1,775 – December 31, 2024). For the year ended December 31, 2025, the Company incurred a net loss of €1,190 (€389 – December 31, 2024) and had net cash used in operating activities of €10,905 (€1,537 – December 31, 2024). Net cash used in investing activities amounted to €6,031 (€7,957 – December 31, 2024). The Company expects that cash requirements during 2026 will exceed cash generated from operations and will require capital contributions to fund planned capital expenditures. The Company's operations and planned investments during the start-up and scale-up phase are expected to be funded primarily through periodic shareholder cash calls in accordance with the shareholders' agreement. Under the shareholders' agreement, the shareholders are required to provide funding in proportion to their respective interests, subject to an aggregate funding cap for the joint venture group, including Cespira Canada Limited Partnership. The Board approved the fiscal year 2026 budget and funding plan, including anticipated funding through shareholder cash calls. Management has prepared a 12-month cash flow forecast, which assumes that operating and investing cash outflows will be funded through a combination of (i) customer sales and (ii) cash calls to the joint venture shareholders. On this basis, management expects the Company to maintain sufficient liquidity to meet its obligations as they fall due over the assessment period. Due to recent geopolitical developments, broader macroeconomic uncertainty has increased volatility in supply chains, fuel and energy prices, inflation, and government regulation in certain markets relevant to the Company.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 9 2. Material accounting policies, continued Going concern, continued The Company's ability to continue as a going concern remains dependent on the receipt of proceeds from future cash calls in accordance with the approved funding plan and the overall obligation of the joint venture shareholders to the Company. If joint venture shareholder funding is not received, the Company may be unable to meet its obligations as they fall due. These factors indicate the existence of a material uncertainty that may cast significant doubt as to the Company's ability to continue as a going concern. These consolidated financial statements do not give effect to any adjustments which may be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts materially different from those reflected in the accompanying consolidated financial statements. Subsequent to year-end, the Company received €328 in January 2026 and €328 in April 2026 from the joint venture shareholders in full settlement of formal cash call requests made to date. Basis of measurement The consolidated financial statements have been prepared on the historical cost basis unless otherwise stated in the accounting policy or note disclosures to follow. Basis of consolidation The consolidated financial statements include the financial results of the Company and its subsidiaries. Subsidiaries include entities which are wholly owned as well as entities over which the Company has the authority or ability to exert power over the entity's financial and/or operating decisions (i.e., control), which in turn may affect the Company's exposure or rights to variable returns from the investee. The consolidated financial statements include the operating results of acquired or disposed entities from the date control is obtained or the date control is lost, respectively. All intercompany balances and transactions are eliminated upon consolidation. The Company's subsidiaries are as follows: Major subsidiaries Percentage Ownership Functional Currency Cespira Italy S.r.l (Brescia, Italy) (previously 32024 S.r.l) 100% EUR Cespira Power Systems (Kunshan) Co., Ltd. (Kunshan, China) (previously Sky HPDI Technology (Kunshan) Co., Ltd.) 100% RMB Cespira Innovations Spain, S.L (Barcelona, Spain) 100% EUR

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 10 2. Material accounting policies, continued Revenue recognition The Company generates revenue from the sale of products related to HPDI™ systems. The Company uses the following five-step contract-based analysis of transactions to determine if, when and how much revenue can be recognized: 1. Identify the contract with a customer; 2. Identify the performance obligation(s) in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligation(s) in the contract; and 5. Recognize revenue when or as the Company satisfies the performance obligation(s). Revenue is recognised when transfer of control of the products has passed to the customer which typically occurs when the Company has transferred physical possession of the products to the customer and has a present right to payment. Payment is due within a specified time period as permitted by the underlying agreement and the Company's credit policy upon the transfer of goods to the customer. Revenue is recorded at the estimated amount of consideration to which the Company expects to be entitled. Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, cash held in bank accounts and short-term deposits that are readily convertible to known amounts of cash. Foreign currency translation The consolidated financial statements are presented in Euro, whereas the functional currency is specific to the Company and its subsidiaries, being Swedish Krona, Euro and Renminbi. Monetary assets and liabilities denominated in foreign currencies are revalued at period-end exchange rates and non-monetary items are translated at historical exchange rates. Realized and unrealized exchange gains and losses are recognized in the consolidated statements of comprehensive income (loss). The assets and liabilities of foreign operations are translated into Euros using the period-end exchange rates. Income, expenses, and cash flows of foreign operations are translated into Euros using average exchange rates. Exchange differences resulting from the translation of foreign operations into Euros are recognized in other comprehensive income (loss) and accumulated in shareholders' equity. Financial instruments The Company initially recognizes all financial instruments on the date the Company becomes a party to the contractual provisions of the instrument. All financial instruments are originally recognized at fair value. Depending on classification, financial instruments are subsequently measured at either fair value or amortized cost. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 11 2. Material accounting policies, continued Financial instruments, continued The following sections identify the Company's financial assets and liabilities and how they are classified: Financial assets The Company classifies its financial assets depending on the business model in which they are held and the characteristics of their contractual cash flows. Financial assets at amortized cost Financial assets at amortized costs arise principally from the provision of goods and services to customers, such as accounts receivable, but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognized at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortized cost using the effective interest rate method, less provision for impairment. Financial assets consist of trade receivables which are mainly comprised of related party receivables and tax receivables. Financial liabilities Financial liabilities are classified as financial liabilities at fair value through profit or loss, or other financial liabilities, as appropriate. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value net of attributable transaction costs. There are currently no financial liabilities at fair value through profit or loss. Other financial liabilities which are recorded at amortized cost consist of accounts payable and accrued liabilities. Share capital Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Company's common shares issued have been classified as equity instruments. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Inventory Inventory consists of purchased parts and finished goods and is valued at the lower of cost and net realizable value. Inventory on hand is measured on the basis of weighted average cost. Inventory write-downs are included as an expense in the cost of goods sold. Any reversal of such write-downs, due to an increase in net realizable value, would be recognized as a reduction in the cost of goods sold in the period in which the reversal occurs. Property, plant and equipment Property plant and equipment is recorded at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the asset acquisition. Maintenance and repairs are charged to expense as incurred.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 12 2. Material accounting policies, continued Property, plant and equipment, continued Where particular parts of an asset are significant, discrete and have distinct useful lives, the Company allocates the associated costs between the various components, which are then separately depreciated over the estimated useful lives of each respective component. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Type Useful Life Furniture and fixtures 5-15 years Machinery and equipment 5-10 years Automobiles 5 years Computer Hardware and software 3-6 years Residual values, useful lives and depreciation methods are reviewed annually for relevance and changes are accounted for prospectively. Impairment of long-lived assets The Company assesses impairment of property, plant and equipment when an impairment indicator arises (e.g. change in use or discontinued use, obsolescence or physical damage). When the asset does not generate cash inflows that are largely independent of those from other assets or group of assets, the asset is tested at the cash generating unit ("CGU") level. In assessing impairment, the Company compares the carrying amount of the asset or CGU to the recoverable amount, which is determined as the higher of the asset or CGU's fair value less costs of disposal and its value-in-use. Value-in-use is assessed based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects applicable market and economic conditions, the time value of money and the risks specific to the asset. An impairment loss is recognized whenever the carrying amount of the asset or CGU exceeds its recoverable amount and is recorded in the consolidated statements of comprehensive loss. Leases All leases are accounted for by recognizing a right-of-use asset and a lease liability except for leases of low value assets and leases with a duration of 12 months or less. Payments associated with short-term leases and leases of low-value assets are recognized as an expense on a straight- line basis in the consolidated statement of loss and comprehensive loss. Right-of-use assets and lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless this is not readily determinable, in which case the Company's incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. Other variable lease payments are expensed in the period to which they relate. Subsequent to initial measurement, lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 13 2. Material accounting policies, continued Income taxes Current income taxes Current income tax assets and liabilities for the current and prior year are measured at the amount expected to be recovered from or paid to the taxation authorities. Current tax assets and current tax liabilities are only offset if a legally enforceable right exists to set off the amounts, and the Company intends to settle on a net basis, or to realize the asset and settle the liability simultaneously. Deferred income taxes Deferred tax assets are only recognized to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future and future taxable profit will be available against which the temporary difference can be utilized. Deferred tax assets and liabilities are measured at future anticipated tax rates, which have been enacted or substantively enacted at the reporting date. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Provisions A provision is recognized if, as a result of a past event, the Company has a present liability that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The carrying amounts of provisions regularly reviewed and adjusted for new facts or changes in markets. Management's use of judgments, estimates and assumptions The preparation of these consolidated financial statements in conformity with IFRS accounting standards requires management to make estimates, judgments and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. Items that require significant judgement and estimates include estimates of inventory obsolescence provisions, assessing whether indicators of impairment of property, plant and equipment and intangible assets exist, and inventory net realizable value.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 14 2. Material accounting policies, continued Future accounting standards and interpretations There are a number of upcoming amendments to standards, and interpretations which have been issued by the IASB. The Company is currently evaluating the impact of these standards. • IFRS 9 Financial Instruments and IFRS 7 Financial Instruments – Disclosures; amendments to the Classification and Measurement of Financial Instruments. • IFRS 18 Presentation and Disclosure in Financial Statements IFRS 18 introduces the following disclosure requirements: • New categories in the statement of profit or loss (operating, investing, financing) • Mandatory subtotals, including operating profit • Requirements to disclose management-defined performance measures (MPMs) • Enhanced guidance on aggregation and disaggregation IFRS 18 is effective for reporting periods beginning on or after January 1, 2027 and will be applied retrospectively. The Company is evaluating the impact of the new standards. Based on preliminary analysis, the standard will not impact the determination of net income (loss) but is expected to affect the presentation of the consolidated statement of comprehensive income (loss) and related disclosures.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 15 3. Accounts receivable Accounts receivable consists of the following: December 31, 2025 December 31, 2024 Trade and other receivables € 12,279 6,801 Tax receivables 105 3,163 € 12,384 9,964 4. Inventory Inventory consists of the following: December 31, 2025 December 31, 2024 Finished goods € 1,545 1,935 Purchased parts 6,630 2,480 € 8,175 4,415 During the period ended December 31, 2025, €36,872 (€13,618 – December 31, 2024) of inventories was recognized as an expense in costs of sales on the consolidated statement of comprehensive income (loss). During the period ended December 31, 2025, the Company recorded write-downs for obsolete production inventory of €1,509 (€14 – December 31, 2024). 5. Property, plant and equipment December 31, 2025 Owned Assets Cost Accumulated Depreciation Net Book Value Machinery and equipment € 15,915 (1,936) 13,979 Computer hardware and software 490 (96) 394 Furniture and fixtures 477 (7) 470 Automobiles 146 (58) 88 Total owned assets € 17,028 (2,097) 14,931 Right-of-use leased assets € 311 (255) 56 December 31, 2024 Owned Assets Cost Accumulated Depreciation Net Book Value Machinery and equipment € 11,620 (743) 10,877 Computer hardware and software 41 (8) 33 Furniture and fixtures - - - Automobiles 138 (20) 118 Total owned assets € 11,799 (771) 11,028 Right-of-use leased assets € 291 (93) 198

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 16 5. Property, plant and equipment, continued Balance January 1, 2025 Additions Depreciation Disposals Foreign currency translation Balance, December 31, 2025 Owned Assets Machinery and equipment € 10,877 4,905 (926) - (877) 13,979 Computer hardware and software 33 447 (95) - 9 394 Furniture and fixtures - 477 (7) - - 470 Vehicles 118 - (35) (15) 20 88 Total owned assets € 11,028 5,829 (1,063) (15) (848) 14,931 Right-of-use leased assets € 198 - (153) - 11 56 Balance, January 22, 2024 Additions Depreciation Disposals Foreign currency translation Balance, December 31, 2024 Owned Assets Machinery and equipment € - 11,620 (743) - - 10,877 Computer hardware and software - 41 (8) - - 33 Furniture and fixtures - - - - - - Vehicles - 138 (20) - - 118 Total owned assets € - 11,799 (771) - - 11,028 Right-of-use leased assets € - 293 (93) - (2) 198 For the year ended December 31, 2025, the Company recognized depreciation expense of €1,216 (€864 – December 31, 2024), of which €926 (€754 – December 31, 2024), was included in cost of sales.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 17 6. Other assets December 31, 2025 December 31, 2024 VAT receivable € 11,916 - Long-term deposits 48 44 € 11,964 44 7. Accounts payable and accrued liabilities December 31, 2025 December 31, 2024 Trade payable and accrued liabilities € 9,733 6,990 Accrued payroll obligations 1,761 648 Taxes payable 1,514 185 € 13,008 7,823 8. Related party transactions The following table summarizes the Company's related party transactions: December 31, 2025 December 31, 2024 Expenses: Goods, services and other expenses incurred from Westport and its affiliates € 6,068 184 Goods, services and other expenses charged to Westport and its affiliates 536 208 Goods, services and other expenses charged to Cespira LP (2,454) (1,094) Goods purchased from Cespira LP 1,072 - Services purchased from Volvo and its affiliates 151 - Revenue: Sales of products and services to Cespira LP 48,940 16,225 Due (to) from related parties: Accounts receivable 12,216 6,801 Accounts payable 499 1,458 Cespira Sweden AB provides manufactured goods, manufacturing services and corporate services to an affiliated entity, Cespira Canada Limited Partnership ("Cespira LP"). During the period ended December 31, 2025, the Company recognized €48,940 of revenue related to the sale of manufactured goods (€16,225 – December 31, 2024) and recognized €2,454 of expense recharges (€1,094 – December 31, 2024) related to manufacturing and corporate services provided to Cespira LP. During the year ended December 31, 2025, Cespira Sweden AB purchased €1,072 of goods from Cespira LP (nil – December 31, 2024). As at December 31, 2025, Cespira Sweden AB had accounts receivable of €12,192 (€6,616 – December 31, 2024) due from Cespira LP. The Company had an accounts payable balance of €499 as at December 31, 2025 (€1,317 – December 31, 2024), due to Cespira LP.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 18 8. Related party transactions, continued As a parent entity of Cespira Sweden AB, Westport and its affiliates sold manufactured goods and provided services to Cespira Sweden AB under a transition services agreement and cooperation agreement. For the year ended December 31, 2025, Westport and its affiliates provided €6,068 of goods and services to Cespira Sweden AB (€184 – December 31, 2024). The Company had accounts payable due to Westport of nil as at December 31, 2025 (€141 – December 31, 2024). The Company provided services to Westport and its affiliates and recognized €536 during the period ended December 31, 2025 (€208 – December 31, 2024), as a reduction to expenses on the consolidated statement of comprehensive income (loss). As at December 31, 2025, the Company had accounts receivable due from Westport of €24 (€185 – December 31, 2024). The Company purchased supply chain management services from a Volvo affiliate for €151 for the year ended December 31, 2025 (nil – December 31, 2024). 9. Income taxes (a) The Company's income tax provision differs from that calculated by applying the enacted Swedish statutory income tax rate of 20.6% for the year ended December 31, 2025, to net loss before taxes (20.6% - December 31, 2024). The differences result from the following items: December 31, 2025 December 31, 2024 Net income (loss) before income taxes € 199 (222) Statutory tax rate 20.6% 20.6% Expected income tax (benefit)/expense at statutory tax rate 41 (46) Non-deductible expenses 637 3 Non-recognition of deferred income tax asset in current year 525 191 Foreign tax rate differential 186 19 Tax expense € 1,389 167 (b) The components of the Company's income tax expense for the period ended December 31, are as follows: December 31, 2025 Income tax expense (recovery) Net income (loss) before income taxes Current Deferred Total Italy € 2,543 1,386 - 1,386 China 3 - - - Sweden (2,361) - - - Spain 14 3 - 3 € 199 1,389 - 1,389 December 31, 2024 Income tax expense (recovery) Net income (loss) before income taxes Current Deferred Total Italy € 594 167 - 167 China (561) - - - Sweden (255) - - - Spain - - - - € (222) 167 - 167

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 19 9. Income taxes, continued (c) The Company has loss carry-forwards in the various tax jurisdictions available to offset future taxable income that expires in the years, as follows: Expiring in: 2030 and beyond China € 569 Sweden 2,634 € 3,203 10. Lease Liability The Company leases a building and vehicles and the leases bear borrowing rates of 4.75% and are payable in monthly instalments. The following table presents the lease liability for the Company: 2025 2024 Opening balance, January 1 € 290 - Additions - 386 Lease payments (171) (89) Interest expense on lease liabilities 6 8 Foreign currency translation 28 (15) Ending balance, December 31 € 153 290 Current portion of lease liability 68 153 Long term portion of lease liability 85 137 Total lease liability € 153 290 The following table presents the contractual undiscounted cash flows for lease liabilities: December 31, 2025 December 31, 2024 Up to 1 year € 68 153 Between 1 and 5 years 90 156 Total undiscounted lease liabilities € 158 309

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 20 11. General and administrative, sales and marketing, and research and development expenses December 31, 2025 December 31, 2024 General and administrative Salaries and benefits € 793 125 Professional fees 508 60 Other expenses 1,278 20 Total general and administrative € 2,579 205 December 31, 2025 December 31, 2024 Sales and marketing Salaries and benefits € 17 61 Promotional costs and advertising 8 38 Other expenses 10 21 Total sales and marketing € 35 120 December 31, 2025 December 31, 2024 Research and development Salaries and benefits € 23 2 Outside services and consulting 5 - Supplies and materials 11 - Other expenses 2 - Total research and development € 41 2 12. Capital management The Company's capital consists of shareholders' equity and lease liabilities. The Company's objectives when managing capital are to ensure that there are adequate capital resources to safeguard the Company's ability to continue as a going concern and maintain adequate levels of funding to support ongoing operations and future growth such that the Company can continue to deliver returns to shareholders' and benefits for other stakeholders. From time to time, the Company may adjust its capital structure in light of changes in economic conditions and the risk characteristics of the Company's underlying assets. In addition, the Company plans to use existing funds, capital contributions from the shareholders, as well as funds from the future sale of products to fund operations and expansion activities.

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 21 13. Financial instruments and risk management Fair value Financial instruments of the Company consist of cash, accounts receivable, accounts payable, and due to/from related parties. The Company classifies the fair value measurements of these transactions according to the following hierarchy based on the number of observable inputs used to value the instrument. • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and • Level 3: Inputs for the asset or liability that are not based on observable market data. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Financial risks The Company is exposed to the following financial risks. The Company mitigates these risks by assessing, monitoring and approving the Company's risk management processes. Credit risk Credit risk is the risk that one party to a financial instrument fails to discharge an obligation and causes financial loss to another party. The Company provides credit to their customers in the normal course of business. As at December 31, 2025, receivables from Cespira Canada Limited Partnership comprised 99% of the Company's total trade receivables. This represents the only concentrated group of accounts receivable for the Company. The Company routinely monitors the receivable balances. The carrying amounts of financial assets on the statement of financial position represent the Company's maximum exposure to credit risk. The Company's aging of trade receivables was as follows: December 31, 2025 December 31, 2024 0 to 45 days € 11,986 6,544 46 to 60 days 8 2 61 to 90 days 84 19 91 to 365 days 201 236 Total trade and other receivables 12,279 6,801

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Cespira Sweden AB Notes to the Consolidated Financial Statements For the year ended December 31, 2025 (Expressed in thousands of Euros) 22 13. Financial instruments and risk management, continued Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As at December 31, 2025, the Company's exposure relates to cash, accounts receivable and accounts payable. Therefore, the Company is exposed to currency risk as fluctuations in the foreign exchange rate between the Company's functional currency and other currencies may result in adverse impact for the Company. A 5% increase/decrease in the relative value of the Euro against the Swedish Krona compared to the exchange rates in effect for the period ended December 31, 2025, would have resulted in lower/higher loss from operations of approximately €113 and €124 respectively. This assumes a consistent 5% appreciation in the Euro against the Swedish Krona throughout the fiscal year. The timing of changes in the relative value of the Euro can affect the magnitude of the impact that fluctuations in foreign exchange rates have on our income from operations. Interest rate risk Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Company's income and cash flows are substantially independent of changes in market interest rates as the Company has no significant interest-bearing assets. The Company's management monitors the interest rate fluctuations on a continuous basis and acts accordingly. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations associated with its financial liabilities when they are due. The Company manages liquidity risk through the management of its capital structure and resources to ensure that it has sufficient liquidity to settle obligations and liabilities when they are due. Management monitors its operating requirements and prepares budgets and cash flow forecasts to identify cash flow needs for general corporate and working capital purposes, as well as for expansion initiatives (note 2).

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## Exhibit 23.1

**Consent of Independent Registered Public Accounting Firm**

The Board of Directors

Westport Fuel Systems Inc.

We consent to the use of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our report dated April 23, 2026, on the consolidated financial statements of Westport Fuel Systems Inc. (the "Entity") which comprise the consolidated balance sheets as of December 31, 2025 and December 31, 2024, the related consolidated statements of operations and comprehensive loss, shareholders' equity and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes, (collectively the "consolidated financial statements")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our report dated April 23, 2026, on the effectiveness of the Entity's internal control over financial reporting as of December 31, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our report dated April 15, 2026, with respect to the consolidated statements of financial position of Cespira Canada Limited Partnership as of December 31, 2025 and 2024, the related consolidated statements of comprehensive loss, partners' equity, and cash flows for the year ended December 31, 2025, and for the period from incorporation on February 2, 2024 to December 31, 2024, and the related notes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our report dated April 15, 2026, with respect to the consolidated statements of financial position of Cespira Sweden AB as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income (loss), changes in shareholders' equity, and cash flows for the year ended December 31, 2025, and for the period from incorporation on January 22, 2024 to December 31, 2024, and the related notes

each of which is included in the Annual Report on Form 20-F of the Entity for the fiscal year ended December 31, 2025.

We also consent to the incorporation by reference of such reports in the Registration Statements (No. 333-168847, 333-211726, and 333-248912) on Form S-8, (No. 333-207523) on Form F-4/A, and (No. 333-289669) on Form F-3 of the Entity.

/s/ KPMG LLP

Chartered Professional Accountants

April 23, 2026

Vancouver, Canada

## Exhibit 97.1

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Anti-Hedging Policy and Clawback Policy Page 1 of 6 REVIEWED AND ACCEPTED BY THE BOARD OF DIRECTORS ON NOVEMBER 3RD, 2023 ANTI-HEDGING POLICY 1.0 INTRODUCTION AND OBJECTIVE The Board of Directors (the "Board") of Westport Fuel Systems Inc. (the "Corporation") believe that it is inappropriate for directors, officers or employees of the Corporation or its respective subsidiary entities, or, to the extent practicable, any other person (or their associates) in a special relationship (within the meaning of applicable securities laws) with the Corporation to hedge or monetize transactions to lock in the value of holdings in the securities of the Corporation. Such transactions, while allowing the holder to own the Corporation's securities without the full risks and rewards of ownership, potentially separate the holder's interests from those of other stakeholders, and particularly in the case of equity securities, from the public shareholders of the Corporation. The objective of this Anti-Hedging Policy (the "Policy") is therefore to prohibit those subject to it from directly or indirectly engaging in hedging against future declines in the market value of any securities of the Corporation through the purchase of financial instruments designed to offset such risk. 2.0 POLICY Unless otherwise approved by the Nominating and Corporate Governance Committee (the "NCGC") of the Board (or, if so delegated by the NCGC, the Corporation's legal counsel), no director, officer or employee of the Corporation or its respective subsidiary entities, or, to the extent practicable, any other person (or their associates) in a special relationship (within the meaning of applicable securities laws) with the Corporation, may, at any time, purchase financial instruments, including prepaid variable forward contracts, instruments for the short sale or purchase or sale of call or put options, equity swaps, collars, or units of exchangeable funds, that are designed to or that may reasonably be expected to have the effect of hedging or offsetting a decrease in the market value of any securities of the Corporation. Any violation of this Policy will be regarded as a serious offence. 3.0 GENERAL Nothing in this Policy in any way detracts from or limits any obligations that those subject to it have in law or pursuant to a management, employment, consulting or other agreement with the Corporation or any of its respective subsidiary entities. The Audit Committee shall review this Policy as it deems appropriate, and propose recommended changes to the Board.

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Anti-Hedging Policy and Clawback Policy Page 2 of 6 AMENDED AND RESTATED CLAWBACK POLICY 1.0 OVERVIEW Westport Fuel Systems Inc. (the "Corporation") has adopted this Amended and Restated Clawback Policy (the "Policy"), effective as of October 2, 2023 (the "Effective Date") in order to ensure that incentive compensation is paid based on accurate financial data. This Policy amends, restates and supersedes in its entirety the Corporation's Clawback Policy, which was originally accepted by the Audit Committee of the Board on November 28, 2022. This Policy applies in the event of a Restatement. In the event the Corporation is required to prepare such a Restatement, the Committee shall (i) review the circumstances that caused the Restatement and shall take such action as it deems appropriate to prevent its recurrence and (ii) require the recovery of the Excess Incentive-Based Compensation in accordance with this Policy. Capitalized terms used in this Policy but not otherwise defined herein are defined in Section 12. 2.0 ACCOUNTING RESTATEMENT AND CALCULATION OF EXCESS The Corporation shall recover, reasonably promptly, the Excess portion of Incentive-Based Compensation from a current or former executive officer of the Corporation (as defined in Rule 10D- 1(d) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") who is (or was) subject to Section 16 of the Exchange Act (each such individual, an "Executive") in the following circumstances, unless the Committee has determined that recovery would be Impracticable: a) the Corporation is required to prepare an accounting restatement to correct the Corporation's material non-compliance with any financial reporting requirement under securities laws, including restatements that correct an error in previously issued financial statements (a) that is material to the previously issued financial statements or (b) that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period (a "Restatement"); b) the Incentive-Based Compensation is received by the Executive on or after the Effective Date. For purposes of this Policy, the date on which Incentive-Based Compensation is "received" shall be determined under the Applicable Rules, which generally provide that Incentive-Based Compensation is "received" in the Corporation's fiscal period during which the relevant Financial Reporting Measure is attained or satisfied, without regard to whether the grant, vesting or payment of the Incentive-Based Compensation occurs after the end of that period; and c) the amount of Incentive-Based compensation received by the Executive exceeds the amount of Incentive-Based Compensation that would have been received by such Executive based on a restated Financial Reporting Measure, as determined on a pre-tax basis in accordance with the Applicable Rules (such excess amount, the "Excess"). Recovery shall be required in accordance with the preceding sentence regardless of whether the applicable Executive engaged in misconduct or otherwise caused or contributed to the requirement for the Restatement and regardless of whether or when restated financial statements are filed by the Corporation. For clarity, the recovery of the Excess under this Policy will not give rise to any person's right to voluntarily terminate employment for "good reason," or due to a "constructive termination" (or any similar term of like effect) under any plan, program or policy of or agreement with the Corporation or any of its affiliates.

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Anti-Hedging Policy and Clawback Policy Page 3 of 6 3.0 FORMS OF RECOVERY; LIMITATION ON DUPLICATIVE RECOVERY The Committee shall, in its sole discretion, determine the manner of recovery of any Excess, which may include, without limitation, the right to demand that the Executive reimburse or repay the Corporation for the Excess. To the extent the Executive does not make reimbursement or repayment of the Excess, the Corporation shall have the right to sue for reimbursement or repayment and/or enforce the reimbursement or repayment through the reduction or cancellation of Incentive-Based Compensation or the Excess, and, to the extent permitted by law, an offset of the Excess against other compensation payable by the Corporation or an affiliate of the Corporation to such person. Notwithstanding the foregoing, unless otherwise prohibited by the Applicable Rules, to the extent this Policy provides for recovery of the Excess already recovered by the Corporation pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 or Other Recovery Arrangements, the amount of the Excess already recovered by the Corporation from the recipient of such Excess may be credited to the amount of Excess required to be recovered pursuant to this Policy from such person. The determination of the Committee with respect to forms of recovery need not be uniform with respect to one or more Executives. 4.0 NO ADDITIONAL PAYMENTS In no event shall the Corporation be required to award Executives an additional payment if the restated or accurate financial results would have resulted in a higher incentive compensation payment. 5.0 ADMINISTRATION This Policy shall be administered, interpreted and construed by the Committee, which is authorized to make all determinations necessary, appropriate or advisable for such purpose. The Board may re-vest in itself the authority to administer, interpret and construe this Policy in accordance with applicable law, and in such event references herein to the "Committee" shall be deemed to be references to the Board. Subject to any permitted review by the applicable national securities exchange or association pursuant to the Applicable Rules, all determinations and decisions by the Committee with respect to this Policy shall be final, conclusive and binding on all interested parties. The Committee may delegate administrative duties with respect to this Policy to one or more directors or employees of the Corporation, as permitted under applicable law, including any Applicable Rules. 6.0 INTERPRETATION This Policy will be interpreted and applied in a manner that is consistent with the requirements of the Applicable Rules, and to the extent this Policy is inconsistent with such Applicable Rules, it shall be deemed amended to the minimum extent necessary to ensure compliance therewith. 7.0 NO INDEMNIFICATION; NO LIABILITY The Corporation shall not indemnify or insure any person against the loss of any Excess pursuant to this Policy, nor shall the Corporation directly or indirectly pay or reimburse any person for any premiums for third-party insurance policies that such person may elect to purchase to fund such person's potential obligations under this Policy. None of the Corporation, an affiliate of the Corporation or any member of the Committee or the Board shall have any liability to any person as a result of actions taken under this Policy.

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Anti-Hedging Policy and Clawback Policy Page 4 of 6 8.0 APPLICATION; ENFORCEABILITY Except as otherwise determined by the Committee or the Board, the adoption of this Policy does not limit, and is intended to apply in addition to, any other clawback, recoupment, forfeiture or similar policies or provisions of the Corporation or its affiliates, including any such policies or provisions of such effect contained in any employment agreement, bonus plan, incentive plan, equity-based plan or award agreement thereunder or similar plan, program or agreement of the Corporation or an affiliate or required under applicable law (the "Other Recovery Arrangements"). The remedy specified in this Policy shall not be exclusive and shall be in addition to every other right or remedy at law or in equity that may be available to the Corporation or an affiliate of the Corporation. Additionally, each Executive shall be required to sign an acknowledgment pursuant to which such Executive will agree to be bound by the terms of, and comply with, this Policy; however, any Executive's failure to sign any such acknowledgment shall not negate the application of this Policy to the Executive. 9.0 SEVERABILITY The provisions in this Policy are intended to be applied to the fullest extent of the law; provided, however, to the extent that any provision of this Policy is found to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted, and shall automatically be deemed amended in a manner consistent with its objectives to the extent necessary to conform to any limitations required under applicable law. 10.0 REMEDIES CUMULATIVE The Policy is in addition to (and not in lieu of) any right of repayment, forfeiture or right of offset against any Executive that is required pursuant to any statutory repayment requirement (regardless of whether implemented at any time prior to or following the adoption of the Policy). 11.0 AMENDMENT; TERMINATION The Board (or Board Committee) may amend, modify or terminate this Policy in whole or in part at any time and from time to time in its sole discretion. This Policy will terminate automatically when the Corporation does not have a class of securities listed on a national securities exchange or association. 12.0 DEFINITIONS "Applicable Rules" means Section 10D of the Exchange Act, Rule 10D-1 promulgated thereunder, the listing rules of the national securities exchange or association on which the Corporation's securities are listed, and any applicable rules, standards or other guidance adopted by the Securities and Exchange Commission or any national securities exchange or association on which the Corporation's securities are listed. "Board" means the Board of Directors of the Corporation. "Committee" means the committee of the Board responsible for executive compensation decisions comprised solely of independent directors (as determined under the Applicable Rules), or in the absence of such a committee, a majority of the independent directors serving on the Board. "Financial Reporting Measure" means any measure determined and presented in accordance with the accounting principles used in preparing the Corporation's financial statements, and any measures

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Anti-Hedging Policy and Clawback Policy Page 5 of 6 derived wholly or in part from such measures, including GAAP, IFRS and non-GAAP/IFRS financial measures, as well as stock or share price and total equityholder return. "GAAP" means United States generally accepted accounting principles. "IFRS" means international financial reporting standards as adopted by the International Accounting Standards Board. "Impracticable" means (a) the direct costs paid to third parties to assist in enforcing recovery would exceed the Excess; provided that the Corporation has (i) made reasonable attempts to recover the Excess, (ii) documented such attempt(s), and (iii) provided such documentation to the relevant listing exchange or association, (b) to the extent permitted by the Applicable Rules, the recovery would violate the Corporation's home country laws pursuant to an opinion of home country counsel; provided that the Corporation has (i) obtained an opinion of home country counsel, acceptable to the relevant listing exchange or association, that recovery would result in such violation, and (ii) provided such opinion to the relevant listing exchange or association, or (c) recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to employees of the Corporation, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and the regulations thereunder. "Incentive-Based Compensation" means, with respect to a Restatement, any compensation that is granted, earned, or vested based wholly or in part upon the attainment of one or more Financial Reporting Measures and received by a person: (a) after beginning service as an Executive; (b) who served as an Executive at any time during the performance period for that compensation; (c) while the Corporation has a class of securities listed on a national securities exchange or association; and (d) during the applicable Three-Year Period. "Three-Year Period" means, with respect to a Restatement, the three completed fiscal years immediately preceding the date that the Board, a committee of the Board, or the officer or officers of the Corporation authorized to take such action if Board action is not required, concludes, or reasonably should have concluded, that the Corporation is required to prepare such Restatement, or, if earlier, the date on which a court, regulator or other legally authorized body directs the Corporation to prepare such Restatement. The "Three-Year Period" also includes any transition period (that results from a change in the Corporation's fiscal year) within or immediately following the three completed fiscal years identified in the preceding sentence. However, a transition period between the last day of the Corporation's previous fiscal year end and the first day of its new fiscal year that comprises a period of nine to 12 months shall be deemed a completed fiscal year.

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Anti-Hedging Policy and Clawback Policy Page 6 of 6 ACKNOWLEDGMENT AND CONSENT TO AMENDED AND RESTATED CLAWBACK POLICY The undersigned has received a copy of the Amended and Restated Clawback Policy (the "Policy") adopted by Westport Fuel Systems Inc. (the "Corporation"). For good and valuable consideration, the receipt of which is acknowledged, the undersigned agrees to the terms of the Policy and agrees that compensation received by the undersigned may be subject to reduction, cancellation, forfeiture and/or recoupment to the extent necessary to comply with the Policy, notwithstanding any other agreement to the contrary. The undersigned further acknowledges and agrees that the undersigned is not entitled to indemnification in connection with any enforcement of the Policy and expressly waives any rights to such indemnification under the Corporation's organizational documents or otherwise. ___________________ Date ________________________________________ Signature ________________________________________ Name ________________________________________ Title

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