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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$4.00
▲(2.56% Upside)
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
Revenue Growth
The substantial revenue growth, driven by bus and rail segments, indicates strong demand and market penetration, supporting long-term business expansion.
Positive Gross Margin
Achieving a positive gross margin reflects improved operational efficiency and cost management, enhancing profitability prospects over time.
Strong Balance Sheet
A strong balance sheet with significant cash reserves and no debt provides financial stability and flexibility for future investments and growth.
Negative Factors
Profitability Challenges
Ongoing profitability challenges with negative margins indicate operational inefficiencies that could hinder long-term financial performance.
Cash Flow Issues
Weak cash flow generation and declining free cash flow growth rate suggest difficulties in sustaining operations and funding future growth without external financing.
Market Challenges
Delays in order fulfillment and market challenges could impact revenue consistency and strain customer relationships, affecting long-term market position.
Ballard Power Systems (BLDP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.17B
Dividend YieldN/A
Average Volume (3M)569.73K
Price to Earnings (P/E)―
Beta (1Y)1.76
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. Volume501,584
30 Day Avg. Volume569,733
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$3.81Price Target Upside-2.37% Downside
Rating ConsensusHold
Number of Analyst Covering6
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 faces significant financial challenges, with persistent losses and negative cash flows. Despite a low debt-to-equity ratio, the company's inability to generate profits and positive cash flow raises concerns about its financial sustainability.Income Statement
Ballard Power Systems has experienced declining profitability with negative gross and net profit margins over the TTM. Despite a slight revenue growth of 2.6% in the TTM, the company continues to face significant losses, as evidenced by negative EBIT and EBITDA margins. The consistent negative margins highlight ongoing challenges in achieving operational efficiency and profitability.Balance Sheet
The balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the company has a negative return on equity, reflecting poor profitability relative to shareholder investments. The equity ratio remains stable, but the negative ROE suggests that the company is not effectively utilizing its equity base to generate profits.Cash Flow
Cash flow analysis reveals negative operating and free cash flows, with a declining trend in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Although the free cash flow to net income ratio is above 1, it is due to significant net losses rather than strong cash generation.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.51M | 69.73M | 102.37M | 83.80M | 104.50M | 103.88M |
| Gross Profit | -16.55M | -21.98M | -21.83M | -13.08M | 14.01M | 20.98M |
| EBITDA | -287.55M | -309.29M | -129.42M | -145.10M | -103.32M | -40.20M |
| Net Income | -296.81M | -324.25M | -177.72M | -173.49M | -114.40M | -49.47M |
Balance Sheet | ||||||
| Total Assets | 735.86M | 777.31M | 1.08B | 1.25B | 1.44B | 975.60M |
| Cash, Cash Equivalents and Short-Term Investments | 552.14M | 606.05M | 753.24M | 915.74M | 1.13B | 765.43M |
| Total Debt | 23.73M | 23.89M | 17.90M | 15.73M | 17.12M | 17.87M |
| Total Liabilities | 99.91M | 104.32M | 86.33M | 88.17M | 112.73M | 74.71M |
| Stockholders Equity | 635.95M | 672.99M | 991.22M | 1.16B | 1.33B | 900.89M |
Cash Flow | ||||||
| Free Cash Flow | -120.29M | -135.72M | -145.94M | -166.68M | -95.18M | -55.80M |
| Operating Cash Flow | -97.74M | -108.10M | -104.57M | -132.20M | -80.48M | -42.93M |
| Investing Cash Flow | -30.22M | -36.51M | -54.28M | -75.56M | -85.63M | -36.39M |
| Financing Cash Flow | -1.52M | -1.53M | -3.68M | -2.41M | 526.91M | 696.53M |
Ballard Power Systems Technical Analysis
Positive
3.90
Price Trends
4.04
Negative
3.93
Negative
3.00
Positive
Market Momentum
-0.03
Negative
54.49
Neutral
80.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLDP, the sentiment is Positive. The current price of 3.9 is above the 20-day moving average (MA) of 3.70, below the 50-day MA of 4.04, and above the 200-day MA of 3.00, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$1.17B | -6.91 | -18.07% | ― | 1.18% | 62.71% | |
46 Neutral | C$57.61M | -5.61 | ― | ― | -6.83% | 46.97% | |
43 Neutral | C$45.75M | -4.36 | -2067.79% | ― | -48.39% | 9.17% | |
40 Underperform | C$35.33M | -1.51 | ― | ― | 46.49% | 42.37% |
* Industrials Sector Average
TSE:BLDP
Ballard Power Systems
3.86
1.61
71.56%
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-52.59%
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-0.02
-4.31%
Ballard Power Systems Corporate Events
Other
Ballard Power Systems Updates Transfer Agent to Odyssey Trust Company
Neutral
Oct 15, 2025
Ballard Power Systems has announced a change in their transfer agent, with Odyssey Trust Company replacing Computershare Trust Company as of August 11, 2025. This change does not require any action from shareholders and is expected to streamline shareholder inquiries and correspondence, potentially enhancing the efficiency of shareholder services.
The most recent analyst rating on (TSE:BLDP) stock is a Hold with a C$3.30 price target. To see the full list of analyst forecasts on Ballard Power Systems stock, see the TSE:BLDP Stock Forecast page.
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.