VANCOUVER, BC, April 3, 2025 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) will hold a conference call on Tuesday, May 6th, 2025 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review first quarter 2025 operating results.The live call can be accessed by dialing +1-844-763-8274 (Canada/US toll free). Alternatively, a live webcast can be accessed through a link on Ballard's homepage (www.ballard.com). Following the call, the webcast will be archived in the 'Earnings, Interviews & Pres ...

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Financial Data and Key Metrics Changes - In Q4 2024, Ballard reported revenue of $24.5 million, a 42% decrease compared to the same period last year. For the full year, revenue totaled $69.7 million, representing a 32% decline compared to 2023 [39] - The Q4 gross margin was negative 13%, an improvement of nine percentage points compared to Q4 2023. However, the full-year gross margin decreased by eleven percentage points from 2023, reaching negative 32% [40] - Total operating expenses for the year were $161.3 million, including a $17 million restructuring provision. Excluding one-time costs, underlying total operating expenses were $144.3 million [40] - Cash usage in 2024 was $147 million, down 10% from the prior year, with approximately $604 million in cash at year-end, a reduction of 20% from the previous year [42] Business Line Data and Key Metrics Changes - Ballard achieved record new order intake of approximately $113 million in 2024, with Q4 contributing $75.4 million. The year-ending order backlog reached $173.5 million, a 41% increase compared to Q3 [7][8] - Fuel cell engine deliveries grew by approximately 30%, increasing from over 500 engines in 2023 to more than 660 in 2024, with total shipments accounting for over 90% of total revenue [9][10] - The bus vertical saw revenue of approximately $44 million in 2024, a 51% increase compared to 2023, representing over 60% of total revenue [24] Market Data and Key Metrics Changes - In Europe, 378 fuel cell buses were registered in 2024, marking an 82% increase from the previous year. In the US, Federal Transit Administration low-no awards for fuel cell buses increased by over 150% compared to 2023 [23] - The truck market faced challenges with adoption timelines being pushed out, and several business failures among smaller integrators of zero-emission trucks [27] - The rail market saw significant progress, with a landmark supply agreement signed with CPKC for 98 fuel cell engines totaling approximately 20 megawatts for delivery in 2025 [29] Company Strategy and Development Direction - Ballard initiated a global corporate restructuring to reduce total annualized operating costs by more than 30%, with a focus on moderating investment intensity and aligning with delayed market adoption [14] - The company deferred any final investment decision on the proposed Gigafactory to 2026, pending market adoption and demand indicators [15] - Ballard continues to believe in the long-term role of hydrogen and PEM fuel cells in decarbonizing heavy mobility and stationary power applications [16] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 was a difficult year for the hydrogen fuel cell industry due to prolonged policy uncertainty and a challenging funding environment [5] - The company expects further industry rationalization and consolidation in 2025, while starting 2025 with over $600 million in cash and no bank debt [17] - Management emphasized a focus on customers and controllables, including prioritized product development and cost reduction programs for 2025 [37] Other Important Information - Ballard launched its ninth-generation high-performance fuel cell engine, FC Move XD, which aims to reset industry standards for PEM fuel cell engine performance [19] - The company divested its small backup power business to focus on high-power stationary applications aligned with its core product strategy [33] Q&A Session Summary Question: How does the order book look into 2025? - Management indicated that approximately half of the $173.5 million order backlog is in the bus market, with about 40% in the rail market, and expects continued activity in 2025 [48] Question: What is the demand growth in the stationary market? - Management highlighted opportunities in weak grid or microgrid applications and the data center market, focusing on larger stationary applications [55][58] Question: What percentage of the backlog is from long-term platform customers? - Management stated that roughly eight customers account for 70-80% of the business, all of which are repeat customers [63] Question: How does the rationalization in the market impact customers and supply chain? - Management noted that the current order book customers do not have the same risk profile as those that went bankrupt last year, and they feel strong about their key supplier list [84] Question: What are the expectations for gross margins in 2025? - Management expects to see a stepwise improvement in gross margins in 2025, although they do not expect to achieve positive gross margins for the year [122]

Company Performance - Ballard Power Systems reported a quarterly loss of $0.14 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.13, but an improvement from a loss of $0.16 per share a year ago, indicating a -7.69% earnings surprise [1] - The company posted revenues of $24.52 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 7.18%, and a significant decline from year-ago revenues of $46.75 million [2] - Over the last four quarters, Ballard has only surpassed consensus EPS estimates once, indicating challenges in meeting market expectations [2] Stock Outlook - Ballard shares have declined approximately 25.9% since the beginning of the year, contrasting with the S&P 500's decline of -4.8%, suggesting underperformance relative to the broader market [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates for the upcoming quarter at -$0.11 on revenues of $15.2 million, and for the current fiscal year at -$0.40 on revenues of $85.5 million [7] Industry Context - The Electronics - Miscellaneous Components industry, to which Ballard belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Core Insights - Ballard Power Systems reported significant financial challenges in 2024, with Q4 revenue of $24.5 million, down 48% year-over-year, and full-year revenue of $69.7 million, down 32% [2][3] - Despite the tough market conditions, the company achieved a record order backlog of $173.5 million at the end of 2024, a 41% increase from Q3 2024, driven by strong order intake [2][7] - The company is focusing on restructuring to reduce operating expenses by more than 30% in 2025 and has halted investments in the China market [2][3] Financial Performance - Q4 2024 total revenue was $24.5 million, a decrease of 48% compared to Q4 2023, with Heavy Duty Mobility revenue at $16.8 million, down 42% [3][6] - Full-year revenue for 2024 was $69.7 million, down 32% from $102.4 million in 2023, with notable growth in the Bus vertical, which saw a 51% increase [2][8] - Q4 gross margin improved by 9 points year-over-year to (13%), while full-year gross margin was (32%), an 11-point decline from 2023 [3][6] Operational Highlights - The company achieved record shipments of over 660 fuel cell engines in 2024, representing approximately 56 MW, an increase of nearly 30% from 2023 [2][7] - New net order intake for 2024 was approximately $113 million, with Q4 order intake of $75.4 million [2][4] - The 12-month order book reached $98.9 million at the end of Q4, a 48% increase compared to the previous year [7] Cash Position and Outlook - At the end of 2024, Ballard had cash and cash equivalents of $603.9 million, down from $751.1 million in 2023, with no bank debt [3][8] - The company expects total operating expenses for 2025 to be between $100 million and $120 million, with capital expenditures projected between $15 million and $25 million [5][8] - The focus for 2025 will be on product development, cost reduction programs, and maintaining a strong balance sheet for long-term competitiveness [2][5]

Core Insights - Ballard Power Systems has announced a multi-year supply agreement with Manufacturing Commercial Vehicles (MCV) for fuel cell engines totaling approximately 5 MW [1] - The agreement includes an initial order of 35 units of FCmove®-HD+ engines, with deliveries expected between 2025 and 2026, primarily supporting projects in the EU [2] - The partnership with MCV began in 2022, and this order continues the momentum from 2024, where Ballard received 1,600 bus engine orders across 7 OEMs [3] Company Overview - Ballard Power Systems focuses on delivering zero-emission PEM fuel cells for various applications, including buses, commercial trucks, trains, and marine vessels [4] - The company currently powers over 1,800 fuel cell buses worldwide, which have collectively logged over 200 million miles of operational service [3] - Ballard's fuel cell engines have a 99% availability rate and have reported zero safety incidents, providing a viable alternative to diesel engines [3]

Core Points - Ballard Power Systems will hold a conference call on March 13th, 2025, to review Q4 and full year 2024 operating results [1] - The live call can be accessed via a toll-free number or through a webcast on Ballard's homepage [2] - Ballard Power Systems focuses on delivering zero-emission PEM fuel cells for various applications, including mobility and stationary power [3]

Group 1 - Ballard Power Systems announced orders from two bus manufacturers for over 90 fuel cell engines, totaling approximately 6.4 megawatts (MW) of power for the European and UK city bus market [1] - The company aims to deliver fuel cell power for a sustainable planet, focusing on zero-emission PEM fuel cells for various mobility applications including buses and commercial trucks [2] - David Mucciacciaro, Chief Commercial Officer, highlighted the growth of bus OEM partnerships and the validation of fuel cells as a zero-emission alternative to diesel engines [7] Group 2 - The recent orders reflect Ballard's ongoing progress in customer platform wins and repeat business, indicating a positive trend in market adoption of their products [7] - Ballard's vision includes enabling electrification of mobility and providing sustainable power solutions across multiple sectors [2]

Core Points - Ballard Power Systems has signed a Long Term Supply Agreement with Canadian Pacific Kansas City for the supply of 98 fuel cell engines, totaling approximately 20 megawatts of power, with deliveries expected in 2025 [1][2] - This agreement builds on a partnership that began in 2021, which has already seen the delivery of around 10 megawatts of fuel cell engines and successful integration into hydrogen-powered locomotives in Alberta, Canada [2][3] - The order is part of CPKC's decarbonization strategy, aiming to replace diesel engines with hydrogen fuel cells, which offer environmental benefits, long range, fast refueling, heavy payloads, and cold weather operation [3] Company Overview - Ballard Power Systems focuses on delivering zero-emission PEM fuel cells for various applications, including mobility solutions like buses, trucks, trains, and marine vessels [4]

I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for Pric ...