Ballard Power Systems Q3 Results Miss Estimates, Notes Margin Pressure

Ballard Power Systems Inc BLDP reported third-quarter revenue of $25.2 million, down 2% year-over-year driven by a reduction in lower Heavy-Duty Motive and Technology Solutions revenue, missing the consensus of $26.46 million.
Revenue by segments: Heavy-Duty $11.2 million (-13% Y/Y), Material Handling $3.1 million (+120% Y/Y), Backup Power $1.9 million (+90% Y/Y), and Technology Solutions of $9 million (-13% Y/Y).
EPS of $(0.10) compared to $(0.05) in 3Q20, missed the consensus of $(0.06).
The gross margin contracted by 800 bps to 11%, driven by a combination of a negative net warranty adjustment, shift to lower margin revenue mix, and an increase in labor, supply, and freight expenses.
Adjusted EBITDA loss was $(23.1) million, compared to $(7.7) million in Q3 2020, reflecting a decrease in gross margin, increase in cash operating costs, and higher equity investment losses in joint ventures and associates.
Ballard received ~$20.5 million of new orders in Q3, resulting in an Order Backlog of ~$108.5 million at end-Q3. The 12-month Order Book was $79.4 million.
Ballard cash used in operating activities year-to-date was $48.5 million, compared to $36.3 million a year ago.
The company held cash reserves of $1.2 billion as of September 30, 2021.
Price Action: BLDP shares are trading lower by 2.79% at $18.8 during the premarket session on Tuesday.

Earnings Calendar