- Ballard Power Systems’ (TSX:BLDP) Total revenue rose 11 per cent year-over-year to US$17.8 million, driven by a 22 per cent increase in heavy-duty mobility, especially in bus and rail deliveries across North America and Europe
- Gross margin improved by 24 percentage points, while cash operating costs dropped 27 per cent to US$22.7 million, reflecting the impact of 2024 restructuring efforts
- Order backlog declined 7 per cent to US$146.2 million due to soft intake and removal of high-risk orders
- Ballard Power Systems stock (TSX:BLDP) opened trading at C$2.49
Ballard Power Systems (TSX:BLDP) announced its consolidated financial results for the second quarter ended June 30, 2025.
The company reported notable year-over-year improvements in revenue and operating efficiency, reflecting the impact of its 2024 restructuring initiatives.
This article is disseminated in partnership with Ballard Power Systems Inc. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Q2 2025 financial highlights
- Total revenue rose to US$17.8 million, an 11 per cent increase compared to Q2 2024, driven primarily by growth in the Heavy-Duty Mobility segment.
- Heavy-duty mobility revenue reached US$16.1 million, up 22 per cent year-over-year, with strong deliveries in bus and rail applications across North America and Europe.
- Gross margin improved significantly to (8 per cent), a 24-point increase from the prior year, attributed to reduced manufacturing overhead and fewer onerous contract provisions.
- Total operating expenses were US$31.7 million, down 12 per cent, including US$6.3 million in restructuring and other charges. Excluding these charges, expenses fell 30 per cent year-over-year.
- Cash operating costs dropped 27 per cent to US$22.7 million, reflecting the leaner global cost structure.
- Cash used by operating activities was US$20.3 million, a sharp improvement from US$35.1 million in Q2 2024.
- Adjusted EBITDA improved to (US$30.6) million, compared to (US$35.4) million last year, driven by better margins and lower operating costs.
Order backlog and market outlook
The hydrogen fuel cell solution provider’s order backlog stood at US$146.2 million at the end of Q2, down 7 per cent from Q1 2025 due to soft order intake and the removal of high-risk orders. The 12-month Orderbook declined to US$84.3 million, a 9 per cent decrease from the previous quarter.
Despite the backlog decline, Ballard remains optimistic about the second half of 2025. The company expects revenue to be back-half weighted, with further updates to guidance anticipated following additional restructuring actions taken in July.
2025 guidance ranges
- Total operating expense (excluding restructuring): US$100 – US$120 million
- Capital expenditure: US$15 – US$25 million
Ballard did not provide specific revenue or net income guidance, citing the early-stage nature of the hydrogen fuel cell market.
Segment performance
- Bus revenue fell 20 per cent to US$8.8 million, while rail revenue surged to US$7.2 million, up from zero in Q2 2024.
- Truck and marine segments saw steep declines, while stationary and emerging markets remained relatively flat.
Leadership commentary
“We have made progress with respect to improving our financial performance and with our recently announced strategic realignment we have established a core goal to achieve positive cash flow by year-end 2027” Marty Neese, Ballard’s new president and CEO said in a news release. “Our focus needs to be on real, near-term opportunities where Ballard delivers clear value along with a sustainable business model that emphasizes operational excellence and cost discipline.”
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) opened trading 0.40 of a per cent lower at C$2.49 and has risen 3.35 per cent since the year began but has lost 1.59 per cent since time last year.
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