05:13 PM EDT, 08/13/2024 (MT Newswires) -- Westport Fuel Systems ( WPRT ) on Tuesday said it swung to an unexpected second-quarter profit despite a drop in revenue.

The company, whose HPDI fuel system technology switches engines from gasoline or diesel to low-carbon fuels, said it earned US$5.8 million, or US$0.33 per share, in the period, compared to a loss of US$13.2 million, or US$0.77, in the year-prior quarter. The result beat the consensus analyst estimate for a loss of US$0.53 per share, according to Capital IQ.

Revenue fell to US$83.4 million from US$85 million.

The company said the profit came on a US$13.3 million gain from the "deconsolidation of the HPDI business and formation of the HPDI joint venture with Volvo Group", improved margins and a lower foreign exchange loss.

"The closing of our HPDI joint venture with Volvo Group in June was a transformational step forward and represents one of many steps we are taking to evolve the Company. Our financial results in the quarter were strong, with results from our cost cutting initiatives, along with recent growth projects delivering demonstrated margin improvement," chief executive Dan Sceli said in a release.

The company's shares closed down $0.05 to $7.71 on the Toronto Stock Exchange.