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Ballard Power Systems (TSE:BLDP)
TSX:BLDP
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Ballard Power Systems
(TSX:BLDP)
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Rating:47Neutral
Price Target:
C$3.00
▼(-5.96% Downside)
Ballard Power Systems' overall stock score is primarily impacted by its strong revenue growth and strategic product launches, which are positive indicators. However, significant challenges in profitability, negative valuation metrics, and bearish technical indicators weigh heavily on the score. The earnings call and corporate events provide some optimism, but the financial struggles and lack of profitability remain major concerns.
Positive Factors
Rapid Revenue Growth
Sustained double‑digit revenue growth driven by transit (bus/rail) deployments signals durable commercial traction with OEMs and fleet operators. Concentrated wins in heavy transport create multi‑year order potential and scale advantages in manufacturing and integration, improving long‑term revenue visibility.
Product & Tech Leadership
The FCmove‑SC launch and OEM validation indicate meaningful product differentiation: higher power density and simpler functionality lower lifecycle costs and ease OEM integration. These tech advantages support durable competitive positioning across transit and marine segments as fuel cells scale.
Strong Liquidity & Low Leverage
A large cash balance and negligible bank debt provide a multi‑quarter runway to commercialize products, fund targeted capex, and absorb restructurings without urgent external financing. This financial flexibility supports strategic investments and reduces execution risk during scale‑up.
Negative Factors
Persistent Unprofitability
Despite quarter improvements, trailing metrics show margins remain negative and ROE is deeply negative, reflecting fundamental profitability challenges. Until margins sustainably turn positive across TTM results, Ballard faces risks funding operations from core earnings rather than cash reserves or external support.
Weak Cash Generation
Persistent negative operating cash flow and declining FCF growth indicate difficulty converting sales into durable cash generation. Even with high liquidity, ongoing negative OCF undermines self‑funding of growth and increases dependence on cash reserves or outside financing to scale production and commercial deployments.
Reduced Scale & Market Access
Scaling restraints and strategic pullback from China, plus cancellation of the Texas gigafactory, reduce geographic reach and manufacturing capacity. These moves limit addressable market access and could slow OEM partnerships and order convertibility in key growth regions over the medium term.
Ballard Power Systems (BLDP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$959.36M
Dividend YieldN/A
Average Volume (3M)673.36K
Price to Earnings (P/E)―
Beta (1Y)1.80
Revenue Growth1.18%
EPS Growth62.71%
CountryCA
Employees887
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.13
Shares Outstanding300,738,650
10 Day Avg. Volume1,021,406
30 Day Avg. Volume673,356
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.74
Price to Sales (P/S)7.13
P/FCF Ratio-3.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.00Price Target Upside25.27% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ballard Power Systems Business Overview & Revenue Model
Company DescriptionBallard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products. The company offers its products for power product markets, consisting of heavy-duty motives, such as bus, truck, rail, and marine applications; material handling; and backup power. It also provides technology solutions, including engineering and technology transfer, as well as licenses and sells intellectual property portfolio and fundamental knowledge for various PEM fuel cell applications; and hydrogen fuel cell powertrain and vehicle systems integration solutions. It operates in China, Germany, the United States, the United Kingdom, Canada, Denmark, Norway, Belgium, Japan, France, Spain, Taiwan, Poland, India, Ukraine, Sweden, and internationally. The company has a strategic alliance with Linamar Corporation for the co-development and sale of fuel cell powertrains and components for class 1 and 2 vehicles in North America and Europe. Ballard Power Systems Inc. was founded in 1979 and is headquartered in Burnaby, Canada.
How the Company Makes MoneyBallard Power Systems generates revenue primarily through the sale of fuel cell products and systems, as well as through engineering services related to fuel cell integration and development. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and end-users in the transportation sector, including bus and truck manufacturers, as well as sales to the stationary power market for backup and distributed energy applications. Additionally, the company engages in joint ventures and partnerships with various industry players, which can include co-development agreements and supply agreements, contributing to its earnings. Ballard also benefits from government grants and incentives aimed at promoting clean energy technologies, which helps support its research and development efforts.
Ballard Power Systems Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a strong revenue growth and positive gross margin achievement, driven by success in the bus and rail segments. However, some challenges remain, such as the need for sustainable profitability and strategic shifts in operations. Overall, the call reflects a balanced perspective with progress in key areas tempered by ongoing restructuring and strategic realignment efforts.Q3-2025 Updates
Positive Updates
Significant Revenue Growth
Ballard Power Systems reported a 120% year-over-year revenue increase, largely driven by bus and rail segments, contributing to more than 70% of this quarter's revenue.
Positive Gross Margin Achievement
The company achieved a positive gross margin of 15%, reflecting progress in reducing product costs and a net reduction in onerous contract provisions.
Strong Balance Sheet and Cash Management
Ballard ended the quarter with $525.7 million in cash and cash equivalents, no bank debt, and no near-term financing requirements, highlighting a strong balance sheet.
FC Move SC Launch
Positive feedback from OEMs was received for the newly launched FC Move SC at Bus World, noted for its higher power density and simpler functionality.
Largest Marine Order to Date
Ballard recorded their largest marine order of 6.4 megawatts to ECAP and Samskip, marking significant progress in the marine segment.
Negative Updates
Slightly Negative Adjusted Gross Margin
Without one-time benefits, the gross margin would be slightly negative, indicating continuous work needed for sustainable profitability.
Delayed Orders and Market Challenges
Some orders have shifted to Q4 2025 or Q1 2026, requiring additional time to secure sustainable contract terms.
Decline in Operating Expenses
Total operating expenses were down 36% year-over-year, largely due to restructuring, indicating cost-cutting measures.
Texas Gigafactory Development Canceled
The decision not to pursue the Texas Gigafactory development was made, reflecting a strategic shift and capital discipline.
Reduced Involvement in China Joint Venture
Ballard is further reducing its involvement in the China joint venture, focusing instead on North America and Europe.
Company Guidance
During the conference call, Ballard Power Systems provided guidance on several key metrics reflecting significant progress and strategic planning. The company reported a 120% year-over-year revenue increase, primarily driven by their bus and rail segments, which accounted for more than 70% of the quarter's revenue. They achieved a positive gross margin of 15%, a stark improvement from the negative 56% in the previous year, attributed to reduced manufacturing overhead and product cost reductions. Operating expenses declined by 36% year-over-year, with cash operating costs down 40%, demonstrating the impact of recent restructuring efforts. The adjusted EBITDA improved to negative $31.2 million from negative $60.1 million the previous year, and cash used by operating activities decreased to $22.9 million from $28.6 million in 2024. The company ended the quarter with $525.7 million in cash and no bank debt, emphasizing their strong balance sheet. Looking forward, Ballard expects operating expenses to be below the low end of their $100 million to $120 million guidance range, with capital expenditures revised to $8-$12 million, down from the previous $15-$25 million, reflecting disciplined capital allocation.Ballard Power Systems Financial Statement Overview
Summary
Ballard Power Systems is experiencing strong revenue growth, but profitability remains a significant challenge, with negative margins across the board. The balance sheet is stable with low leverage, but negative returns on equity highlight ongoing financial struggles. Cash flow generation is weak, with negative operating and free cash flows, although the company manages to maintain free cash flow above net income.Income Statement
Ballard Power Systems shows a significant revenue growth rate of 24.47% in the TTM, indicating positive sales momentum. However, the company struggles with profitability, as evidenced by negative gross, net, EBIT, and EBITDA margins. The gross profit margin improved from -31.52% in 2024 to -3.73% in the TTM, but it remains negative. The net profit margin also improved from -464.99% in 2024 to -132.80% in the TTM, yet it is still deeply negative, reflecting ongoing operational challenges.35
Negative
Balance Sheet
The company's balance sheet is relatively stable with a low debt-to-equity ratio of 0.037, indicating conservative leverage. However, the return on equity is negative at -18.66%, reflecting ongoing losses. The equity ratio stands at 85.43%, suggesting a strong equity base relative to total assets, which is a positive sign of financial stability.45
Neutral
Cash Flow
Ballard Power Systems faces challenges in cash flow generation, with negative operating and free cash flows. The free cash flow growth rate declined by 13.27% in the TTM, indicating worsening cash flow conditions. The operating cash flow to net income ratio is -1.23, suggesting inefficiencies in converting income into cash. However, the free cash flow to net income ratio of 1.13 indicates that free cash flow exceeds net income, which is a positive aspect.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.25M | 69.73M | 102.37M | 83.80M | 104.50M | 103.88M |
| Gross Profit | -3.37M | -21.98M | -21.83M | -13.08M | 14.01M | 20.98M |
| EBITDA | -113.73M | -309.29M | -129.42M | -145.10M | -103.32M | -40.20M |
| Net Income | -119.86M | -324.25M | -177.72M | -173.49M | -114.40M | -49.47M |
Balance Sheet | ||||||
| Total Assets | 710.46M | 777.31M | 1.08B | 1.25B | 1.44B | 975.60M |
| Cash, Cash Equivalents and Short-Term Investments | 527.85M | 606.05M | 753.24M | 915.74M | 1.13B | 765.43M |
| Total Debt | 22.56M | 23.89M | 17.90M | 15.73M | 17.12M | 17.87M |
| Total Liabilities | 103.64M | 104.32M | 86.33M | 88.17M | 112.73M | 74.71M |
| Stockholders Equity | 606.82M | 672.99M | 991.22M | 1.16B | 1.33B | 900.89M |
Cash Flow | ||||||
| Free Cash Flow | -104.33M | -135.72M | -145.94M | -166.68M | -95.18M | -55.80M |
| Operating Cash Flow | -92.00M | -108.10M | -104.57M | -132.20M | -80.48M | -42.93M |
| Investing Cash Flow | -17.32M | -36.51M | -54.28M | -75.56M | -85.63M | -36.39M |
| Financing Cash Flow | -1.40M | -1.53M | -3.68M | -2.41M | 526.91M | 696.53M |
Ballard Power Systems Technical Analysis
Negative
3.19
Price Trends
3.73
Negative
4.06
Negative
3.14
Positive
Market Momentum
-0.12
Positive
27.97
Positive
10.52
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 3.19 is below the 20-day moving average (MA) of 3.69, below the 50-day MA of 3.73, and above the 200-day MA of 3.14, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 27.97 is Positive, neither overbought nor oversold. The STOCH value of 10.52 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
47 Neutral | C$959.36M | -5.71 | -18.07% | ― | 1.18% | 62.71% | |
46 Neutral | C$49.60M | -5.00 | ― | ― | -6.83% | 46.97% | |
43 Neutral | C$45.75M | -4.13 | -2067.79% | ― | -48.39% | 9.17% | |
40 Underperform | C$40.09M | -1.61 | ― | ― | 46.49% | 42.37% |
* Industrials Sector Average
TSE:BLDP
Ballard Power Systems
3.19
1.28
67.02%
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PyroGenesis Canada
0.25
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-57.02%
TSE:NXH
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0.59
0.02
3.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.