Ballard Reports Q3 2024 Results

Core Insights - Ballard Power Systems reported a challenging third quarter in 2024, with significant declines in revenue and gross margin, alongside a restructuring charge and non-cash impairments totaling approximately $163.1 million [2][5][6]. Financial Performance - Total revenue for Q3 2024 was $14.8 million, down 45% year-over-year, attributed to slowing customer demand and a delay in the adoption of hydrogen and PEM fuel cells [3][6]. - Heavy Duty Mobility revenue was $12.8 million, a decrease of 38%, with Bus revenue increasing by 33% to $11.2 million, while revenues from Rail, Truck, and Marine verticals saw significant declines [4][6]. - Gross margin was reported at (56%), a decrease of 45 percentage points year-over-year, primarily due to lower revenue and onerous contracts [4][6]. - Total operating expenses rose to $54.9 million, an increase of 58% year-over-year, driven by a $16.1 million restructuring charge and a $7.9 million impairment of trade receivables [5][9]. Order Backlog and New Orders - The company received approximately $7.1 million in new orders during Q3 but removed previously booked orders valued at $39.2 million, resulting in a net new order intake of ($32.1) million [5][7]. - The order backlog at the end of Q3 2024 was approximately $122.7 million, a 28% decrease from the end of Q2 2024 [5][7]. Strategic Actions - A global corporate restructuring was initiated to reduce annualized operating costs by over 30%, with expected savings to be realized in 2025 [2][5]. - The Texas gigafactory expansion program has been repositioned to an optionality plan, deferring the final investment decision to 2026 while preserving over $94 million in government funding [2][5]. Long-term Outlook - The company maintains a strong conviction in the role of hydrogen and PEM fuel cells in decarbonizing heavy mobility and stationary power applications, focusing on developing next-generation, low-cost fuel cell products [2][5].