Ballard Power Systems (BLDP) Q2 2024 earnings summary

Executive summary

• Launched ninth-generation PEM Fuel Cell engine (FCmove-XD) with industry-leading power density, durability, and modular scalability for heavy-duty mobility applications.

• Advanced Project Forge to scale graphite bipolar plate production by 10x and reduce costs by up to 70%.

• Strategic partnership with Vertiv to validate fuel cell backup power for data centers, demonstrating successful zero-emission integration.

• Q2 revenue was $16.0 million, up 4% year-over-year and 11% sequentially, driven by higher fuel cell product sales.

• Order intake was soft at $5 million in Q2 due to customer deferrals, following $130 million in new orders in prior quarters.

Financial highlights

• Q2 revenue reached $16 million, with bus vertical revenue up 84% quarter-over-quarter.

• Heavy Duty Mobility revenue rose 55% to $13.2 million, led by Bus (+84%) and Truck (+70%), offset by Rail (-100%).

• Gross margin was -32%, down 11 points year-over-year, mainly due to product mix and fixed overheads on low seasonal revenue.

• Net loss from continuing operations was ($31.5) million, or ($0.11) per share, compared to ($28.2) million, or ($0.09) per share.

• Cash and cash equivalents stood at $678 million at quarter end, down from $720.7 million at Q1 2024.

Outlook and guidance

• Underlying gross margins expected to break even in Q4 as revenue increases and cost reductions take effect.

• Full-year gross margin forecasted to improve by 5-10 points versus last year.

• Capital expenditure guidance for 2024 reduced to $25–$40 million from $50–$70 million, reflecting market conditions and project timing.

• Final investment decision on Texas production facility expected in Q4 2024, with minimal CapEx expected this year.

• No specific revenue or net income guidance provided due to early stage of hydrogen fuel cell market.