Ballard Power Posts Mixed Q2 Results Hit By Order Delays: Details

Ballard Power Systems Inc. BLDP shares are trading lower after it reported the second-quarter FY24 results.

Revenue grew 4% Y/Y to $16.0 million, missing the analyst consensus estimate of $18.6 million.

Revenue increased due to a 48% Y/Y rise in fuel cell product sales, which now account for 84% of total revenue (up from 59% in the prior year).

Heavy-Duty Mobility revenue increased 55% Y/Y to $13.2 million and Stationary fell 53% Y/Y to $1.7 million.

EPS loss of $0.11 beat the consensus estimate for a loss of $0.13.

Total operating expenses for the quarter totaled $36.2 million, a 2% increase Y/Y. Adjusted EBITDA loss was $35.4 million, compared to a $34.2 million loss a year ago.

Ballard received about $5.0 million in net new orders in the quarter. Order backlog at the end of the quarter was $169.5 million, down 6% Q/Q.

Ballard held $678.0 million in cash and equivalents as of June-end.

FY24 Outlook: Ballard Power Systems expects revenue to be weighted toward the second half of the year and has reduced its capital expenditure guidance from $50 million-$70 million to $25 million-$40 million.

Randy MacEwen, Ballard’s President & CEO said, “On products, we launched our 9th generation PEM fuel cell engine, re-setting the industry standard for PEM fuel cell engine performance for heavy-duty mobility. Our innovative FCmove®-XD delivers significant improvements in reliability, durability, efficiency, power density, scalability, serviceability, and total cost of ownership.”

“And on markets, we announced a strategic technology partnership with Vertiv to demonstrate the technical feasibility and customer benefits of hydrogen-powered fuel cell backup power solutions for the fast-growing data center market.”

“While we remain confident in the long-term value proposition of hydrogen fuel cells, we continue to see near-term quarterly order lumpiness and experienced a softer quarter for order intake. Following almost $130 million in total new orders in the previous two quarters, Q2 net order intake was muted at $5.0 million, as certain customers deferred new orders into the second half of the year.” 

Price Action: BLDP shares are down 3.11% at $1.87 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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