Westport Fuel Systems Inc. (WPRT) shares jumped more than 11% on Thursday after the company announced that Cespira, its joint venture with Volvo Group (VLVLY), signed a development agreement to push hydrogen-powered heavy-duty engines closer to commercial reality.

The agreement covers the final development and commercialization of Cespira's HPDI fuel system for Volvo's 13-liter engine platform. The technology is designed to let the engine run on hydrogen while delivering diesel-equivalent performance. Volvo trucks using the system are already in on-road testing, with a European-certified commercial launch targeted before 2030.

Westport says hydrogen HPDI can tolerate a wider range of hydrogen fuel compositions than fuel-cell systems and offers competitive performance and efficiency under heavy-duty load cycles. Volvo Group's Mehdi Ferhan said the project reflects the company's commitment to low-carbon heavy-duty transport through multiple technology pathways. Cespira CEO Carlos Gonzalez noted that hydrogen HPDI can help fleets cut CO₂ emissions without sacrificing performance.

The next major catalyst for the stock is its expected earnings report on Aug. 10, 2026. Wall Street expects the company to report a loss of 37 cents per share, an improvement from a loss of $1.98 per share a year earlier. Revenue is projected to decline sharply to $2.29 million from $88.80 million in the year-ago quarter. Most recently, RBC Capital maintained its Sector Perform rating and lowered its price forecast to $1.75 on April 27.

Westport Fuel Systems shares were up 11.29% at $2.07 at the time of publication on Thursday.