Ballard Power Systems (BLDP, Financial) announced first-quarter revenue of $15.4 million, which fell short of the consensus estimate of $16.73 million. The company’s President and CEO, Randy MacEwen, emphasized the focus on controllable factors amid challenging macroeconomic and geopolitical environments. Compared to the previous year, the first-quarter revenue of 2025 showed a 6% increase, engine shipments rose by 31%, the gross margin improved by 14 percentage points, and total operating expenses decreased by 31%.
A significant portion of the quarter's revenue was driven by growth in the Bus market, accounting for 81% of revenue, marking a 41% increase from the previous year. Despite recording a robust order intake of $75.4 million in the fourth quarter, the first quarter experienced weaker order intake due to industry rationalization and tariff uncertainties. However, the company expects substantial orders in the upcoming quarters, having ended the quarter with an order backlog of $158 million, including a 12-month orderbook of $92.4 million.
Looking ahead to the rest of 2025, Ballard Power Systems plans to address uncertainties related to hydrogen policies and trade tariffs while continuing to prioritize customer focus, new orders, and gross margin expansion. The company also highlighted the financial benefits of its corporate restructuring efforts initiated last year, with cash reserves at $576.7 million and no immediate financing needs, maintaining financial discipline for long-term sustainability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Ballard Power Systems Inc (BLDP, Financial) is $1.86 with a high estimate of $5.00 and a low estimate of $1.00. The average target implies an upside of 47.68% from the current price of $1.26. More detailed estimate data can be found on the Ballard Power Systems Inc (BLDP) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Ballard Power Systems Inc's (BLDP, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ballard Power Systems Inc (BLDP, Financial) in one year is $6.04, suggesting a upside of 379.37% from the current price of $1.26. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ballard Power Systems Inc (BLDP) Summary page.
BLDP Key Business Developments
Release Date: March 13, 2025
- Revenue (Q4 2024): $24.5 million, a 42% decrease compared to Q4 2023.
- Full Year Revenue (2024): $69.7 million, a 32% decline compared to 2023.
- Gross Margin (Q4 2024): Negative 13%, an improvement of 9 percentage points from Q4 2023.
- Full Year Gross Margin (2024): Negative 32%, a decrease of 11 percentage points from 2023.
- Operating Expenses (2024): $161.3 million, including a $17 million restructuring provision.
- Projected Operating Expenses (2025): Between $100 million and $120 million, a reduction of approximately 30% from 2024.
- Capital Expenditures (2024): $27.6 million.
- Projected Capital Expenditures (2025): Between $15 million and $25 million, a reduction of approximately 38% from 2024.
- Cash Usage (2024): $147 million, down 10% from the prior year.
- Cash Position (Year-End 2024): Approximately $604 million, a reduction of 20% from the previous year.
- Order Intake (2024): $113 million, with $75.4 million in Q4.
- Order Backlog (Year-End 2024): $173.5 million, a 41% increase compared to the end of Q3.
- 12-Month Order Book (2024): $98.9 million, up 48% compared to the prior year.
- Bus Market Revenue (2024): Approximately $44 million, a 51% increase compared to 2023.
- Fuel Cell Engine Shipments (2024): Over 660 engines, a 30% increase from 2023.
- Fuel Cell Engine Megawatts Shipped (2024): 56.5 megawatts, a 10% increase from 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ballard Power Systems Inc (BLDP, Financial) achieved a record-breaking year for new order intake in 2024, securing approximately $113 million in new orders.
- The company saw a 30% increase in fuel cell engine shipments, marking the fourth consecutive year of growth.
- Ballard Power Systems Inc (BLDP) reported a significant reduction in operating costs, with a global restructuring expected to reduce annualized costs by more than 30%.
- The company launched its ninth-generation high-performance fuel cell engine, FCmove-XD, which offers improvements in reliability, durability, and efficiency.
- Ballard Power Systems Inc (BLDP) ended 2024 with over $600 million in cash and no bank debt, indicating strong financial health.
Negative Points
- Ballard Power Systems Inc (BLDP) reported a 42% decrease in Q4 revenue compared to the same period last year, reflecting broader industry challenges.
- The company faced a negative gross margin of 13% in Q4, with full-year 2024 gross margins decreasing by 11 percentage points to negative 32%.
- There is continued policy uncertainty in the US hydrogen and fuel cell industry, impacting market adoption and financing environments.
- The truck market has seen adoption timelines materially pushed out, with several business failures of smaller integrators causing challenges.
- Ballard Power Systems Inc (BLDP) has deferred any final investment decision on the proposed Texas gigafactory to 2026 due to delayed market adoption.
