Ballard Power ( (BLDP) ) has released its Q3 earnings. Here is a breakdown of the information Ballard Power presented to its investors.
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Ballard Power Systems Inc. is a company focused on delivering zero-emission Proton Exchange Membrane (PEM) fuel cells for applications in mobility and stationary power sectors. The company’s products are used in buses, trucks, trains, marine vessels, and various stationary power applications.
In its latest financial report for the third quarter of 2024, Ballard Power Systems reported significant financial challenges, including a substantial drop in revenue and increased losses. The company faced a tough quarter with a weak revenue of $14.8 million, marking a 45% decrease compared to the same period last year. These results are attributed to lower customer demand and a push-out in the adoption of hydrogen and PEM fuel cells.
Key financial metrics highlight the difficulties faced by Ballard, including a gross margin decline to negative 56%, operating expenses rising to $54.9 million due to restructuring charges and impairments, and a substantial net loss of $204.5 million. The company also initiated a global restructuring aimed at reducing annualized operating costs by over 30%, which includes workforce reductions, program rationalization, and facility consolidation.
Despite the financial setbacks, Ballard sees potential in specific sectors like buses, with bus revenue rising by 33% year-over-year. Looking forward, the company remains optimistic about the role of hydrogen and PEM fuel cells in the decarbonization of heavy mobility and stationary power applications. It plans to focus on cost management and the development of next-generation, low-cost fuel cell products, while maintaining a strong balance sheet to ensure long-term competitiveness.
The management anticipates a rebound in order intake in the fourth quarter, especially in the bus, rail, and stationary markets in Europe and North America, reflecting ongoing customer engagements and strategic agreements like the recent supply deal with New Flyer for fuel cell engines.
