Under-the-radar transportation solutions provider Westport Fuel Systems (WPRT 4.72%) did better than many more well-known names on the stock exchange Tuesday. The company's share price zoomed nearly 13% higher on the day on news of a potentially lucrative new international deal signed by the Canada-based specialist.
After market hours on Monday, Westport announced that it had garnered a contract to develop and supply liquefied petroleum gas (LPG) for what it terms "a global original equipment manufacturer (OEM)" that it did not name. According to its calculations, this deal should bring in 38 million euros (about $38 million) in revenue through the end of 2025.
Westport added that it expects production under the contract will begin in the final quarter of next year.
The work will be fairly comprehensive for the company, which specializes in low-emission fuel systems and related products that utilize natural gas to power trucks. It said that it is to furnish the entire LPG system for the unnamed company's vehicles.
"We are proud to supply this industry-leading OEM and to serve the growing global market for affordable alternative fuel systems," the company quoted CEO David Johnson as saying.
Although electric vehicles (EVs) tend to grab the alternative-transportation headlines these days, they don't represent the only "green" technology in the sector. If Westport can do a bang-up job with this anonymous but apparently sprawling and influential OEM, it could not only enhance its own reputation but also help push up demand for LPG solutions throughout the transportation sphere.