Ballard Power reports Q3 cont-op EPS (9c), consensus (10c)

Reports Q3 revenue $32.5M, consensus $24.97M. “Overall, we had a positive quarter, with year-over-year gains in revenue, gross margin expansion, significant progress in our cost reduction activities, and positive reception of our newest product, the FCmove-SC,” said Marty Neese, CEO. “We are seeing sustained interest in bus, rail and material handling, as well as “green shoots” in stationary markets as more low carbon and renewable hydrogen projects pass final investment decision, a key enabler for fuel cell market growth. In the quarter, deliveries to our bus and rail customers drove revenue of $32.5M, up 120% year-over-year, and gross margins of 15% due in part by product cost reduction efforts and a net reduction in onerous contract provisions. We saw net order intake improve compared to the previous two quarters, to $19M, driven by our largest marine order to eCap & Samskip…As we continue to enhance our cash flow, we expect to see gross margins continue to improve as pricing initiatives, additional product cost reductions, and initial sales of the FCmove-SC take effect. We also expect to develop previously untapped sources of revenue into 2027 with a focus on aftersales services coverage to support long-term sustainable growth.”