Ballard Reports Q3 2025 Results

Core Insights - Ballard Power Systems reported a strong third quarter for 2025, with significant year-over-year revenue growth and improvements in gross margins, driven by increased deliveries in the bus and rail sectors [3][4][8] - The company launched its new FCmove®-SC fuel cell engine, which has received positive feedback from customers and is expected to enhance cost efficiency for both the company and its clients [3][4][8] - Ballard has made substantial progress in reducing operating costs, achieving a 40% reduction in cash operating costs and a 36% decrease in total operating expenses year-over-year [3][4][8] Financial Performance - Revenue for Q3 2025 was $32.5 million, representing a 120% increase compared to Q3 2024, primarily due to bus and rail deliveries [4][8] - Gross margin improved to 15%, a 71-point increase year-over-year, attributed to cost reduction efforts and lower manufacturing overhead [4][8] - Net order intake reached $19.1 million, with an order backlog of $132.8 million at the end of Q3 2025, reflecting a decrease of 9% from the previous quarter [4][8] Cost Management - The company achieved a 40% reduction in cash operating costs and a 36% decrease in total operating expenses, with a 55% reduction when excluding restructuring costs [3][4][8] - Total operating expenses for Q3 2025 were reported at $34.9 million, down from $54.9 million in Q3 2024 [4][8] - Cash and cash equivalents at the end of Q3 2025 stood at $525.7 million, down from $635.1 million in the prior year [4][8] Product Development - The FCmove®-SC engine, launched at Busworld, is designed to lower total cost of ownership for customers while reducing Ballard's manufacturing costs [3][4][8] - The new engine features integrated DC/DC functionality, a 25% improvement in power density, and higher operating temperatures, which have been positively received by bus OEMs [3][4][8] Market Outlook - The company anticipates continued growth in the hydrogen and fuel cell market, particularly in heavy-duty mobility and stationary power sectors [3][4][8] - Ballard is focusing on building its order pipeline, although some orders may be delayed to Q4 2025 or Q1 2026 as the company seeks more sustainable contract terms [3][4][8]