Ballard Power Systems Shares Gain On Q2 Results, Order Book Growth

Ballard Power Systems Inc BLDP reported a second-quarter FY23 revenue decrease of 27% year-over-year to $15.30 million, missing the consensus of $15.88 million.

The company reported a gross loss of $(3.2) million, compared to $(2.2) million a year ago. The gross margin was (21)% versus (11)% in 2Q22.

EPS loss improved to $(0.10) from $(0.19) in 2Q22, beating the consensus of $(0.13).

Adjusted EBITDA loss expanded to $(35.9) million in the quarter, compared to ($35) million a year ago, due to decreased gross margin and increased cash operating costs. 

Ballard received ~$25.1 million of new orders in Q2 and delivered orders valued at $15.3 million, resulting in an Order Backlog of ~$147.5 million at the end of the quarter.

The 12-month Order Book was $85.9 million at end-Q2, an increase of ~16% QoQ.

"During Q2, we grew our order book, invested in next-generation fuel cell products, and continued to drive our product cost reduction programs. We continue to see growing customer interest across our market verticals, which is reflected in $25.1 million of new orders in Q2 and a growing sales pipeline. Importantly, our Power Products backlog is now up over 140% compared to the prior year period. We are particularly excited by the growing customer engagement levels in the US and European markets," stated Randy MacEwen, President and CEO.

"We expect a busy second half of 2023, with sequential quarterly revenue growth as compared to first half quarters, along with continued progress on our order book to support 2024 revenue growth," MacEwen added.

Ballard's cash used in operating activities narrowed to $(27.7) million, compared to $(39) million a year ago.

The company held cash reserves of $815.1 million (-19% Y/Y) as of June 30, 2023.

FY23 Outlook, reaffirmed: Ballard Power sees total operating expenses of $135 million-$155 million and capital expenditure of $40 million-$60 million.

Price Action: BLDP shares are trading higher by 3.5% at $4.86 on the last check Wednesday.