Ballard Power reports Q3 adjusted EPS (19c), consensus (13c)

Reports Q3 revenue $14.8M, consensus $24.74M. “We had a tough quarter, marked by weak revenue, strained gross margin, soft new order intake, adverse order book adjustments, a restructuring charge of $16.1M, and non-cash impairments totaling approximately $147.0M,” stated Randy MacEwen, CEO. “We have taken difficult but important actions to better align our spending with a multi-year push-out in market adoption of hydrogen and PEM fuel cells. In Q3, we initiated a global corporate restructuring to reduce total annualized operating costs by more than 30%. We expect a substantial part of the annualized cost savings to be realized in 2025. Our restructuring includes a sizeable workforce reduction, rationalization of product development programs, consolidation of global operations and facilities, and a reduction in planned capital expenditures. As part of our global restructuring, we also reduced our corporate cost structure in China and initiated a strategic review of our China joint venture. We have successfully repositioned our Texas gigafactory expansion program to an optionality plan, where we will defer our final investment decision to 2026 pending clear market adoption and demand indicators, while still preserving over $94M of awarded government funding. With no material capital investments planned during this optionality period, we will reassess the underlying business case in 2026…We remain encouraged with our continued customer progress in the Bus, Rail and Stationary markets in Europe and North America. Indeed, given current customer engagement in these markets, we expect a pick-up in new order intake in Q4…Our focus is on our customers and our controllables, including the development of next-generation, low-cost fuel cell products, while maintaining disciplined spending and balance sheet strength for long-term competitiveness and sustainability”.