Ballard(BLDP)2025-03-13 17:44Financial Data and Key Metrics Changes - In Q4 2024, Ballard reported revenue of 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 17 million restructuring provision. Excluding one-time costs, underlying total operating expenses were 147 million, down 10% from the prior year, with approximately 113 million in 2024, with Q4 contributing 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 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]