[Condensed Consolidated Interim Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statements of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) As of March 31, 2025, total assets decreased to **$756.6 million** from **$777.3 million**, primarily due to reduced cash, with total equity declining to **$653.8 million** Statement of Financial Position Summary (in thousands of U.S. dollars) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $675,120 | $698,878 | | **Total assets** | $756,610 | $777,307 | | **Total current liabilities** | $74,991 | $75,586 | | **Total liabilities** | $102,789 | $104,317 | | **Total equity** | $653,821 | $672,990 | | **Total liabilities and equity** | $756,610 | $777,307 | - Cash and cash equivalents decreased by **$27.25 million** during the quarter, from **$603.9 million** to **$576.7 million**[2](index=2&type=chunk) - Inventories increased from **$56.4 million** at the end of 2024 to **$65.1 million** as of March 31, 2025[2](index=2&type=chunk) [Condensed Consolidated Interim Statements of Loss and Comprehensive Loss](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) For Q1 2025, net loss significantly reduced to **$21.0 million** from **$41.3 million** in Q1 2024, driven by increased revenue and a **31% decrease in operating expenses** Q1 2025 vs. Q1 2024 Performance (in thousands of U.S. dollars) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Product and service revenues | $15,389 | $14,452 | | Gross margin | ($3,608) | ($5,415) | | Total operating expenses | $25,452 | $37,060 | | Results from operating activities | ($29,060) | ($42,475) | | Net loss for the period | ($21,036) | ($41,292) | | Basic and diluted loss per share | ($0.07) | ($0.14) | - Research and product development expenses were significantly reduced to **$18.1 million** from **$25.3 million** year-over-year[4](index=4&type=chunk) - Net finance income rose to **$11.0 million** from **$2.3 million** in Q1 2024, primarily due to mark-to-market gains on investments[4](index=4&type=chunk) [Condensed Consolidated Interim Statements of Changes in Equity](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by **$19.2 million** in Q1 2025, from **$673.0 million** to **$653.8 million**, primarily due to a **$21.0 million net loss** Reconciliation of Equity for Q1 2025 (in thousands of U.S. dollars) | Description | Amount | | :--- | :--- | | Balance, December 31, 2024 | $672,990 | | Net loss | ($21,036) | | RSUs redeemed | ($488) | | Share-based compensation | $1,826 | | Foreign currency translation | $529 | | **Balance, March 31, 2025** | **$653,821** | [Condensed Consolidated Interim Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) In Q1 2025, cash used in operating activities increased to **$24.4 million**, while cash used in investing activities decreased to **$2.7 million**, resulting in a **$27.3 million** overall decrease in cash Cash Flow Summary (in thousands of U.S. dollars) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities | ($24,403) | ($19,992) | | Cash used in investing activities | ($2,735) | ($9,527) | | Cash used in financing activities | ($689) | ($693) | | **Decrease in cash and cash equivalents** | **($27,250)** | **($30,465)** | | **Cash and cash equivalents, end of period** | **$576,698** | **$720,665** | [Notes to Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Note 1. Reporting entity](index=6&type=section&id=Note%201%2E%20Reporting%20entity) Ballard Power Systems Inc. designs, develops, manufactures, sells, and services proton exchange membrane (PEM) fuel cell products for various applications including bus, truck, rail, marine, and stationary - The company's principal business is the design, development, manufacture, sale, and service of PEM fuel cell products[7](index=7&type=chunk) - Key application focus areas are bus, truck, rail, marine, stationary, and emerging markets[7](index=7&type=chunk) [Note 2. Basis of preparation](index=6&type=section&id=Note%202%2E%20Basis%20of%20preparation) Financial statements are prepared under IAS 34 in U.S. dollars, with management assessing the company's going concern ability based on achieving profitability and securing financing - The financial statements comply with International Accounting Standard (IAS) 34 Interim Financial Reporting[9](index=9&type=chunk) - Management's going concern assessment is dependent on achieving profitable operations and securing additional financing as needed[14](index=14&type=chunk)[15](index=15&type=chunk) [Note 7. Property, plant and equipment](index=9&type=section&id=Note%207%2E%20Property%2C%20plant%20and%20equipment) In Q1 2025, a **$2.2 million impairment charge** was recognized on property, plant, and equipment, with capital expenditures significantly lower at **$2.2 million** compared to **$7.3 million** in Q1 2024 - An impairment charge of **$2,223,000** was recognized on property, plant, and equipment during Q1 2025[23](index=23&type=chunk) - Additions to property, plant, and equipment totaled **$2,230,000** for Q1 2025, a sharp decrease from **$7,293,000** in Q1 2024[27](index=27&type=chunk) [Note 9. Equity-accounted investments](index=10&type=section&id=Note%209%2E%20Equity-accounted%20investments) The primary equity-accounted investment is the **49% stake in Weichai Ballard JV**, with Ballard recording an **$818,000 share of the JV's loss** in Q1 2025, decreasing the investment's carrying value to **$7.5 million** Weichai Ballard JV Investment (in thousands of U.S. dollars) | Description | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Beginning balance | $8,238 | $13,901 | | Equity in loss | ($818) | ($4,941) | | **Ending balance** | **$7,465** | **$8,238** | - The Corporation's share of the net loss from the Weichai Ballard JV was **$818,000** for Q1 2025, compared to **$834,000** for Q1 2024[32](index=32&type=chunk) [Note 10. Long-term financial investments](index=11&type=section&id=Note%2010%2E%20Long-term%20financial%20investments) Long-term financial investments increased to **$42.1 million** from **$37.5 million**, driven by a **$4.4 million net mark-to-market gain** in Q1 2025, reversing a prior-year loss, while the investment in Quantron AG was fully written off Change in Fair Value of Investments - Q1 2025 (in thousands of U.S. dollars) | Investment | Change in Fair Value | | :--- | :--- | | Forsee Power SA | $2,820 | | HyCap Fund | $798 | | Clean H2 Fund | $828 | | **Total Change** | **$4,446** | - The investment in Quantron AG was fully impaired in 2024 and the company was liquidated in 2025, resulting in a carrying value of **$0**[40](index=40&type=chunk)[41](index=41&type=chunk) - The company recognized a net mark-to-market gain of **$4,446,000** in Q1 2025, a significant turnaround from the **$6,302,000 loss** recognized in Q1 2024[35](index=35&type=chunk) [Note 14. Provisions](index=16&type=section&id=Note%2014%2E%20Provisions) Total current provisions decreased to **$26.3 million** from **$30.4 million**, primarily due to a reduction in the restructuring provision to **$5.2 million** as related costs were paid Provisions Breakdown (in thousands of U.S. dollars) | Provision Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Restructuring provision | $5,193 | $8,053 | | Warranty provision | $13,286 | $12,894 | | Onerous contracts provision | $7,869 | $9,460 | | **Total Current Provisions** | **$26,348** | **$30,407** | - The restructuring provision relates to a global corporate restructuring initiated in September 2024 to reduce costs[58](index=58&type=chunk) [Note 17. Equity](index=18&type=section&id=Note%2017%2E%20Equity) Share-based compensation expense decreased to **$1.9 million** in Q1 2025, while outstanding Restricted Share Units (RSUs) substantially increased to **10.1 million** - Total share-based compensation expense was **$1,866,000** for Q1 2025, down from **$2,800,000** in Q1 2024[66](index=66&type=chunk) - The number of outstanding RSUs increased significantly from **4.6 million** at year-end 2024 to **10.1 million** at the end of Q1 2025, following new grants[71](index=71&type=chunk) - No stock options were exercised in Q1 2025, compared to **149,481** options exercised in Q1 2024[69](index=69&type=chunk) [Note 18. Disaggregation of revenue](index=19&type=section&id=Note%2018%2E%20Disaggregation%20of%20revenue) Total revenue for Q1 2025 was **$15.4 million**, with Europe as the largest market at **$9.4 million**, and the Bus segment as the primary driver, growing to **$12.5 million** Revenue by Application (in thousands of U.S. dollars) | Application | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Bus | $12,467 | $8,868 | | Truck | $310 | $1,153 | | Stationary | $596 | $3,651 | | Other | $2,016 | $785 | | **Total** | **$15,389** | **$14,452** | Revenue by Geographical Market (in thousands of U.S. dollars) | Geographical Market | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Europe | $9,401 | $10,965 | | North America | $5,473 | $2,131 | | China | $189 | $1,148 | | Rest of World | $326 | $208 | | **Total** | **$15,389** | **$14,452** | [Note 20. Finance income (expense)](index=21&type=section&id=Note%2020%2E%20Finance%20income%20%28expense%29) Net finance income significantly increased to **$11.0 million** in Q1 2025 from **$2.3 million** in Q1 2024, primarily due to a **$4.4 million mark-to-market gain** on financial assets Finance Income Breakdown (in thousands of U.S. dollars) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Investment income | $6,635 | $10,304 | | Mark-to-market gain (loss) on financial assets | $4,446 | ($6,302) | | Foreign exchange gain (loss) | $250 | ($1,292) | | **Finance income and other** | **$11,501** | **$2,709** | [Note 21. Related party transactions](index=21&type=section&id=Note%2021%2E%20Related%20party%20transactions) Related party transactions primarily involve the Weichai Ballard JV, with Q1 2025 revenue from the JV at **$184,000**, a significant decrease from **$1.0 million** in Q1 2024 Transactions with Weichai Ballard JV (in thousands of U.S. dollars) | Transaction Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $184 | $1,007 | | Cost of goods sold and operating expense | $91 | $939 | [Note 22. Discontinued operations](index=22&type=section&id=Note%2022%2E%20Discontinued%20operations) The Ballard Motive Solutions business, closed in 2023, is reported as a discontinued operation, with **no revenues or expenses** in Q1 2025, compared to a **$226,000 net loss** in Q1 2024 - The historic operating results of the Ballard Motive Solutions business are presented separately as discontinued operations[83](index=83&type=chunk) Net Loss from Discontinued Operations (in thousands of U.S. dollars) | Period | Net Loss | | :--- | :--- | | Q1 2025 | $0 | | Q1 2024 | ($226) | [Note 24. Operating segments](index=22&type=section&id=Note%2024%2E%20Operating%20segments) The Corporation operates as a single operating segment, "Fuel Cell Products and Services," encompassing all activities related to PEM fuel cell product design, development, manufacture, sale, and service - The company operates in a single operating segment: Fuel Cell Products and Services[86](index=86&type=chunk) [Note 25. Financial Instruments](index=23&type=section&id=Note%2025%2E%20Financial%20Instruments) This note details financial instruments, with long-term investments showing a **$4.4 million net mark-to-market gain** in Q1 2025, reversing a **$6.3 million loss** from Q1 2024, and no additional ECL impairment losses recognized - The fair values of cash, short-term investments, receivables, and payables approximate their carrying values due to their short-term nature[87](index=87&type=chunk) - During Q1 2025, the Corporation recognized net mark-to-market and foreign exchange gains of **$4,446,000** on its long-term financial investments, compared to a loss of **$6,302,000** in Q1 2024[88](index=88&type=chunk)

Core Viewpoint - Ballard Power Systems reported a 6% increase in revenue for Q1 2025 compared to Q1 2024, driven primarily by growth in the bus market, which accounted for 81% of total revenue [1][5][6]. Financial Performance - Total revenue for Q1 2025 was $15.4 million, up from $14.5 million in Q1 2024, with heavy-duty mobility revenue increasing by 22% to $12.9 million [5][7]. - Engine shipments rose by 31% year-over-year, contributing to a gross margin improvement of 14 percentage points, reaching a negative gross margin of 23% [1][6][7]. - Total operating expenses decreased by 31% to $25.5 million, primarily due to restructuring actions initiated in September 2024 [5][6][7]. Market Dynamics - The bus market showed significant strength, with revenues increasing by 41% year-over-year, while revenues from truck, rail, and marine verticals declined [5][6]. - Order backlog at the end of Q1 2025 was $158 million, a decrease of 9% from the end of Q4 2024, reflecting more revenue delivered than new orders received [3][6][7]. Cash Position - The company ended Q1 2025 with $576.7 million in cash and cash equivalents, down from $720.7 million in the prior year [5][6][7]. - Cash used by operating activities was $24.4 million, compared to $20.0 million in the prior year, indicating increased cash outflow [5][6][7]. Future Outlook - The company did not provide specific revenue and net income guidance for 2025 but indicated that revenue is expected to be back-half weighted [4][6]. - Total operating expense guidance for 2025 is set between $100 million and $120 million, with capital expenditure guidance between $15 million and $25 million [4][7].

Core Insights - Fontaine Modification is leading a consortium to develop a Class 6 fuel-cell-electric truck aimed at "middle mile" delivery logistics, collaborating with Ballard Power Systems, Forsee Power, and Linamar Corporation [1][3] Company Contributions - Fontaine Modification is the vehicle and systems integrator, assembling the fuel cell electric vehicle (FCEV) on a 26,000-pound GVWR straight truck chassis at its Charlotte modification center [2] - Ballard Power Systems is supplying the fuel cell system, specifically the FCmove®-XD, which offers up to 60% fuel efficiency and a volumetric power density of 0.36 kW/L [5] - Forsee Power is providing the high-voltage battery system critical for the FCEV's operation, optimizing performance for both long-distance and local deliveries [6] - Linamar Corporation is supplying the eAxle for the FCEV, contributing to its low-maintenance design and regenerative braking system [7] Project Timeline and Goals - The consortium plans to complete a pilot unit by summer 2025, which will undergo independent track testing before a six-month trial with a large commercial fleet in the U.S. [3] - Regular production of the truck is anticipated to begin as early as late 2026, contingent on the successful completion of the field trial [3] Market Context - The middle-mile segment involves freight transportation between warehouses or distribution centers, typically covering distances of 300 to 500 miles, making fuel-cell systems a suitable zero-emission option for this range [4]

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 ...

Group 1 - The focus has shifted from primarily tech stocks to include offshore drilling, supply industry, and shipping sectors such as tankers, containers, and dry bulk [1] - There is an emerging interest in the fuel cell industry, which is still in its nascent stage [1] Group 2 - The individual has a background in auditing with PricewaterhouseCoopers and transitioned to day trading nearly 20 years ago [2] - The experience includes navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

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]

Exhibit 99.1 Ballard Reports Q4 2024 Results VANCOUVER, BC, March 13, 2025 /CNW/ - Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial results for the fourth quarter ended December 31, 2024. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS). "2024 was a tough year for the hydrogen and fuel cell industry," stated Randy MacEwen, Ballard's President and CEO. "Amidst prolonged po ...

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]