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Ballard Power Systems (TSE:BLDP)
TSX:BLDP
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Ballard Power Systems
(TSX:BLDP)
45Neutral
Positive Factors
Backlog Growth
Ballard’s order backlog was up approximately 41% sequentially and its 12-month order book increased by about 70% from Q3.
Capital Efficiency
The company provided capital expenditure guidance below the estimate, which could indicate more efficient capital use.
Order Intake
Record order intake of $75.4mn in 4Q contributes to the highest-ever 12-month order book.
Negative Factors
Market Conditions
Challenging market conditions for adoption and financing are expected to persist for several years.
Order Backlog Decline
BLDP’s order backlog and book were down sequentially in Q3.
Profitability Challenges
BLDP's profitability remains constrained by its ability to scale beyond current levels.
Ballard Power Systems (BLDP) vs. S&P 500 (SPY)
Market Cap
$461.48M
Dividend YieldN/A
Average Volume (3M)889.97K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth-30.80%
EPS Growth-84.41%
CountryCA
Employees887
SectorIndustrials
Sector Strength63
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-1.48
Shares Outstanding299,660,340
10 Day Avg. Volume645,617
30 Day Avg. Volume889,968
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.50
Price to Cash Flow (P/CF)-3.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.76Price Target Upside13.87% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering8
Ballard Power Systems Business Overview & Revenue Model
Company DescriptionBallard Power Systems (BLDP) is a leading global company specializing in the development and production of proton exchange membrane (PEM) fuel cell products. Operating within the clean energy sector, Ballard Power Systems focuses on providing innovative solutions for various industries, including transportation, material handling, and stationary power generation. The company is committed to advancing fuel cell technology to enable zero-emission power solutions, primarily for medium and heavy-duty vehicles such as buses, trucks, trains, and marine vessels.
How the Company Makes MoneyBallard Power Systems generates revenue through the sale of its fuel cell products and systems to original equipment manufacturers (OEMs) and end-users across different sectors. Key revenue streams include the sale of fuel cell modules for transportation applications, stationary power generation systems, and backup power solutions. Additionally, Ballard earns revenue from licensing its proprietary technology and intellectual property to strategic partners. The company also benefits from government grants and funding opportunities aimed at promoting clean energy technologies. Significant partnerships with global OEMs and alliances with industry leaders contribute to its earnings by enhancing market penetration and expanding its product offerings.
Ballard Power Systems Financial Statement Overview
Summary
Ballard Power Systems is facing significant financial challenges, with declining revenues and increasing losses. Despite a strong cash position, the company's inability to generate profits or positive cash flow presents substantial risks. The balance sheet shows low leverage, but deteriorating equity and asset levels are concerning. Immediate focus on cost control and revenue growth is essential for improving financial health.Income Statement
The company has experienced declining revenue over recent years, with a revenue drop from $102.4 million in 2023 to $69.7 million in 2024. Gross profit margin is negative, indicating the cost of goods sold exceeds revenue. Net profit margin is also negative, and the company has been consistently unprofitable. There is a concerning trend of increasing net losses, from $114.4 million in 2021 to $324.2 million in 2024, reflecting challenges in cost management and revenue generation.35
Negative
Balance Sheet
The company maintains a solid cash position with cash and short-term investments of $606 million in 2024, despite declining from previous years. The debt-to-equity ratio remains low, indicating conservative leverage. However, the equity ratio has decreased significantly, pointing to a shrinkage in asset base and increased liabilities relative to equity. Return on equity is negative due to persistent losses, highlighting inefficiencies in generating shareholder value.55
Neutral
Cash Flow
Operating cash flow is negative, reflecting cash outflows from operational activities. Free cash flow has also deteriorated, with a negative trend from $145.9 million in 2023 to $135.7 million in 2024. The operating cash flow to net income and free cash flow to net income ratios are unfavorable, indicating challenges in converting income into cash. Capital expenditures have been reduced, but not enough to improve the cash flow situation.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 69.73M | 102.37M | 83.80M | 104.50M | 103.88M | Gross Profit |
| -21.98M | -21.83M | -13.08M | 14.01M | 20.98M | EBIT |
| -183.30M | -162.90M | -158.90M | -87.97M | -41.16M | EBITDA |
| -309.29M | -129.42M | -145.10M | -103.32M | -40.20M | Net Income Common Stockholders |
| -324.25M | -177.72M | -173.49M | -114.40M | -49.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 606.05M | 753.24M | 915.74M | 1.13B | 765.43M | Total Assets |
| 777.31M | 1.08B | 1.25B | 1.44B | 975.60M | Total Debt |
| 23.89M | 17.90M | 15.73M | 17.12M | 17.87M | Net Debt |
| -580.05M | -733.23M | -898.00M | -1.11B | -745.56M | Total Liabilities |
| 104.32M | 86.33M | 88.17M | 112.73M | 74.71M | Stockholders Equity |
| 672.99M | 991.22M | 1.16B | 1.33B | 900.89M |
| Cash Flow | Free Cash Flow | |||
| -135.72M | -145.94M | -166.68M | -95.18M | -55.80M | Operating Cash Flow |
| -108.10M | -104.57M | -132.20M | -80.48M | -42.93M | Investing Cash Flow |
| -36.51M | -54.28M | -75.56M | -85.63M | -36.39M | Financing Cash Flow |
| -1.53M | -3.68M | -2.41M | 526.91M | 696.53M |
Ballard Power Systems Technical Analysis
Negative
1.55
Price Trends
1.86
Negative
2.05
Negative
2.33
Negative
Market Momentum
-0.07
Positive
32.75
Neutral
4.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLDP, the sentiment is Negative. The current price of 1.55 is below the 20-day moving average (MA) of 1.75, below the 50-day MA of 1.86, and below the 200-day MA of 2.33, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.75 is Neutral, neither overbought nor oversold. The STOCH value of 4.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BLDP.
Ballard Power Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$915.04M | 7.55 | 26.63% | 4.51% | 12.14% | 26.17% | |
73 Outperform | $4.84B | 17.98 | 6.48% | 6.61% | 5.08% | ― | |
66 Neutral | C$14.90M | ― | -5.60% | ― | -10.37% | 95.22% | |
64 Neutral | C$2.66B | 74.02 | 2.23% | 2.54% | -16.54% | -53.85% | |
62 Neutral | $7.24B | 12.39 | 3.08% | 3.39% | 3.63% | -14.35% | |
51 Neutral | $5.29B | ― | 1.65% | 7.19% | -6.72% | -6766.85% | |
45 Neutral | $461.48M | ― | -38.88% | ― | -30.80% | -84.41% |
* Industrials Sector Average
Performance Comparison
TSE:BLDP
Ballard Power Systems
1.55
-2.89
-65.09%
TSE:NPI
Northland Power
18.29
-2.93
-13.82%
TSE:AQN
Algonquin Power & Utilities
6.69
-1.44
-17.68%
TSE:PSI
Pason Systems
11.13
-5.21
-31.88%
TSE:BLX
Boralex Inc Cl A
26.16
-1.68
-6.03%
TSE:GRN
Greenlane Renewables Inc
0.08
-0.02
-20.00%
Ballard Power Systems Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -11.93% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
Ballard Power Systems experienced significant achievements in order intake and product innovation amidst a challenging market environment with declining revenues and continued policy uncertainty. While operational and product milestones show positive long-term potential, immediate financial performance and market adoption face headwinds.Highlights
Record-Breaking Order Intake
Ballard Power Systems achieved a record-breaking year for total new order intake for power products, securing approximately $113 million during 2024, with $75.4 million in Q4 alone. The year-ending order backlog reached $173.5 million, a 41% increase compared to the end of Q3.
Growth in Product Shipments
Delivery of fuel cell engines in 2024 grew by approximately 30%, from over 500 engines in 2023 to more than 660 in 2024, with PEM fuel cell engines accounting for over 90% of total revenue.
Significant Operating Cost Reductions
Ballard initiated a global corporate restructuring in September 2024 to reduce total annualized operating costs by more than 30%, realizing substantial reductions in 2025.
Product Innovation and Development Milestones
Launched the ninth-generation high-performance fuel cell engine, FC Move XD, and completed the initial development phase of Project Forge, aimed at reducing bipolar plate costs and increasing manufacturing capacity.
Strong Performance in Bus and Rail Verticals
Bus market revenue increased by 51% to approximately $44 million in 2024. Ballard secured orders from seven bus OEMs for more than 1,600 fuel cell engines. A landmark supply agreement with CPKC was signed for 98 fuel cell engines for freight locomotives.
Lowlights
Revenue Decline and Negative Margins
Ballard reported $24.5 million in revenue for Q4, reflecting a 42% decrease compared to the same period last year. For the full year, revenue totaled $69.7 million, a 32% decline compared to 2023. The full year 2024 gross margin was negative 32%.
Challenges in Truck Market
Adoption timelines for the truck market have been materially pushed out, with several business failures of smaller integrators of zero-emission trucks causing challenges.
Delays in Policy Implementation
The U.S. hydrogen fuel cell industry faces continued policy uncertainty, impacting market adoption and financing environment.
Company Guidance
In the recent call, Ballard Power Systems provided comprehensive guidance for its future outlook, detailing several critical metrics. The company achieved a record-breaking new order intake of approximately $113 million for 2024, with a significant $75.4 million in Q4 alone, contributing to a year-end order backlog of $173.5 million, marking a 41% increase from Q3 and a 48% rise in the twelve-month order book compared to the previous year. Ballard reported a 30% growth in fuel cell engine shipments, delivering over 660 engines and 56.5 megawatts in 2024, supported by a compound annual growth rate (CAGR) of approximately 40% over four years. Despite facing a challenging market environment, Ballard initiated a global restructuring to reduce operating costs by over 30%, projecting 2025 operating expenses between $100 million and $120 million and capital expenditures ranging from $15 million to $25 million. The company ended 2024 with a strong cash position of over $600 million, ensuring no near or mid-term financing needs. Furthermore, Ballard achieved significant product development milestones, including the launch of the FC Move XD engine, and continued advancements in its Project Forge initiative, aiming for substantial cost reductions in bipolar plate manufacturing by 2026.Ballard Power Systems Corporate Events
Business Operations and StrategyFinancial Disclosures
Ballard Power Systems Faces 2024 Challenges but Achieves Key Milestones
Neutral
Mar 13, 2025
Ballard Power Systems reported a challenging year in 2024, with revenue declines due to prolonged policy uncertainty and a difficult funding environment in the hydrogen and fuel cell industry. Despite these challenges, Ballard achieved significant commercial milestones, including a record order backlog and advancements in product development and cost reduction programs. The company also initiated a global restructuring to reduce operating expenses and halted further investments in the China market. Looking forward, Ballard aims to maintain financial strength and focus on customer needs and product development amidst ongoing industry rationalization.
Product-Related AnnouncementsBusiness Operations and Strategy
Ballard Power Systems Secures 5 MW Fuel Cell Engine Order for EU Bus Market
Positive
Mar 4, 2025
Ballard Power Systems has announced a multi-year supply agreement with Manufacturing Commercial Vehicles (MCV) in Egypt for approximately 5 MW of fuel cell engines. This agreement, which includes an initial order of 35 units out of a total of 50 FCmove-HD+ engines, marks a significant step in Ballard’s ongoing relationship with MCV and supports projects in the EU. The order is part of Ballard’s broader strategy to decarbonize public transit globally, building on their success of powering over 1,800 fuel cell buses worldwide. This move is expected to further solidify Ballard’s position in the growing fuel cell bus market.
Business Operations and StrategyFinancial Disclosures
Ballard Power Systems Schedules 2024 Earnings Call
Neutral
Feb 6, 2025
Ballard Power Systems announced it will hold a conference call on March 13, 2025, to discuss its fourth quarter and full year 2024 financial results. This call provides stakeholders with insights into the company’s operational performance and its strategic positioning within the sustainable energy market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.