Ballard Power Reports 45% Revenue Decline Amid Slowing Hydrogen Adoption, Shares Dip

Ballard Power Systems Inc. BLDP shares are trading lower after it reported third-quarter results.

Revenue fell 45% year-over-year to $14.8 million, missing the analyst consensus estimate of $23.6 million. Revenue decreased due to weak customer demand, which reflects a push-out in the adoption curve for hydrogen and PEM fuel cells.

Heavy-Duty Mobility revenue decreased 38% to $12.8 million and, Stationary fell 82% to $0.5 million. Adjusted loss per share of $0.19 missed the consensus estimate for a loss of $0.13.

Total operating expenses for the quarter totaled $54.9 million, a 58% increase. Adjusted EBITDA loss was $60.1 million, compared to a $34.9 million loss a year ago.

Ballard received about $7.1 million in net new orders in the quarter. Order backlog at the end of the quarter was $122.7 million, down 28% quarter over quarter. Ballard held $635.1 million in cash and equivalents as of September-end.

The company noted it had soft revenue and new order intake performance in the quarter and also removed previously booked orders valued at $39.2 million from its order backlog relating to certain high-risk markets and customers, including in China.

FY24 Outlook: Ballard Power Systems expects revenue to be weighted toward the fourth quarter. The company expects total operating expense, excluding restructuring charges and capital expenditure to be at the low end of their respective guidance ranges.

Randy MacEwen, Ballard’s President & CEO, said, “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 $94 million of awarded government funding. With no material capital investments planned during this optionality period, we will reassess the underlying business case in 2026.”

Price Action: BLDP shares are down 6.36% at $1.62 at the last check Tuesday.

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