- Ballard Power Systems’ (TSX:BLDP) revenue doubled to US$32.5 million, driven by strong growth in Heavy Duty Mobility, especially bus and rail deliveries in North America and Europe
- Gross margin improved to 15 per cent, and operating expenses dropped 36 per cent due to restructuring actions, including workforce reductions and operational consolidation
- Adjusted EBITDA loss narrowed (to US$31.2 million) from (US$60.1 million), and capital expenditure guidance was revised down to US$8–US$12 million for 2025
- Ballard Power Systems stock (TSX:BLDP) last traded at C$4.79
Ballard Power Systems (TSX:BLDP) has announced its consolidated financial results for the third quarter ended September 30, 2025, showcasing significant year-over-year growth and operational improvements driven by strategic restructuring and product innovation.
Revenue surge and margin expansion
Ballard reported total revenue of US$32.5 million, marking a 120 per cent increase compared to Q3 2024. The bulk of this growth came from its Heavy Duty Mobility segment, which generated US$23.4 million, up 83 per cent year-over-year, fueled by bus and rail deliveries to customers in North America and Europe.
Gross margin improved dramatically to 15 per cent, a 71-point increase from the prior year. This was attributed to reduced manufacturing overhead costs following restructuring actions, including workforce reductions and operational consolidation, as well as a net reduction in onerous contract provisions.
Restructuring delivers cost efficiencies
Total Operating Expenses were US$34.9 million, down 36 per cent year-over-year. Excluding restructuring costs, the decrease was even more pronounced at 55 per cent. Ballard also reported a 40 per cent reduction in Cash Operating Costs, reflecting the success of its cost-cutting initiatives.
Improved EBITDA and cash position
Adjusted EBITDA improved to (US$31.2 million) from (US$60.1 million) in Q3 2024, driven by better margins, lower operating costs, and reduced impairment losses. Cash used in operating activities was US$22.9 million, down from US$28.6 million a year earlier. The company ended the quarter with US$525.7 million in cash and cash equivalents and no bank debt.
Order backlog and product launch
Ballard’s Order Backlog stood at US$132.8 million, down 9 per cent from Q2 2025, with a 12-month Orderbook of US$71.6 million, a 15 per cent decline. The company attributed this to timing delays in contract finalizations, with some orders expected to shift to Q4 2025 or Q1 2026.
A key highlight of the quarter was the launch of the FCmove-SC, Ballard’s ninth-generation fuel cell engine. Introduced at Busworld, the product received positive feedback for its integrated DC/DC functionality, 25 per cent power density improvement, smaller footprint, and higher operating temperatures.
2025 outlook
Ballard reaffirmed its stance of not providing specific revenue or net income guidance due to the early-stage nature of the hydrogen fuel cell market. However, it expects revenue to be back-half weighted in 2025. Operating expenses, excluding restructuring charges, are projected to be below the lower end of the guidance range (US$100–US$120 million), while capital expenditures have been revised downward to US$8–US$12 million, from the previous US$15–US$25 million.
Shifting priorities
Ballard also announced it will no longer pursue manufacturing expansion via a Texas Gigafactory, citing changes in U.S. federal funding and sufficient existing capacity to meet demand.
“For our global activities, we are no longer pursuing manufacturing expansion with a Texas Gigafactory due to U.S. federal funding changes and our view that we can meet expected volumes with existing installed capacity.” Ballard’s president and CEO, Marty Neese, explained in a news release. “We continue to see hydrogen and fuel cells as essential to decarbonizing heavy-duty mobility and stationary power, and we remain committed to advancing our leadership in this sector. With $525.7 million in cash and cash equivalents, no bank debt, and no near-term financing requirements, Ballard is well positioned to support our customers and deliver on our long-term mission as we move forward with disciplined cost management.”
About Ballard Power Systems Inc.
Ballard manufactures zero-emission fuel cells for buses, commercial trucks, trains, marine vessels and stationary power.
Ballard Power Systems stock (TSX:BLDP) last traded at C$4.79 and has risen 100.42 per cent since the year began.
Join the discussion: Find out what the Bullboards are saying about Ballard Power Systems and check out Stockhouse’s stock forums and message boards.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
