Ballard Reports Q4 2024 Results

VANCOUVER, BC, March 13, 2025 /PRNewswire/ – Ballard Power Systems (NASDAQ:BLDP) (TSX:BLDP) today announced consolidated financial results for the fourth quarter ended December 31, 2024. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

“2024 was a tough year for the hydrogen and fuel cell industry,” stated Randy MacEwen, Ballard’s President and CEO. “Amidst prolonged policy uncertainty, there was a multi-year push-out in the development of hydrogen projects and the deployment of fuel cell applications. With this backdrop, compounded by a difficult funding environment, an industry rationalization is underway.”

“Our Q4 and full-year 2024 financial results reflect the industry challenges,” said Randy MacEwen. “Q4 revenue was $24.5 million, down 48% compared to Q4 2023. Full-year revenue of $69.7 million was down 32%, although we had a standout year in our Bus vertical, with revenue growth of 51%. Q4 gross margin improved by 9 points year-over-year to (13%), while full-year gross margin of (32%) was 11 points lower than in 2023. Q4 cash operating costs1 decreased by 6% year-over-year as a result of restructuring activities initiated in September, with significant further reductions expected in 2025.”

Mr. MacEwen continued, “Notwithstanding this very challenging industry context, Ballard is winning in the market. We achieved important commercial milestones in 2024, including new strategic customer platform wins, repeat business from existing customers, and strong order intake. We secured new net order intake of approximately $113 million during 2024, punctuated by new order intake of $75.4 million in Q4, positioning us with a record year-ending Order Backlog of $173.5 million, an increase of 41% compared to the end of Q3, and a 12-month Orderbook of $98.9 million, a record for Power Products, up 48% compared to the prior year.”

Mr. MacEwen added, “We also made measured progress and took necessary actions across our global operations. We achieved record shipments of fuel cell engines in 2024, with over 660 engines representing approximately 56 MW shipped to customers, up nearly 30% compared to 2023. We made significant progress on the development of our next-generation PEM fuel cell stacks and engines, including the launch of our 9th generation, high-performance engine, FCmove®-XD. We advanced our product cost reduction programs, including milestones on Project Forge, our program to significantly reduce the costs on next-generation bipolar plates. Importantly, we initiated a global corporate restructuring to lower our 2025 Total Operating Expenses by more than 30%. We halted any further investments in the China market, including the Weichai Ballard JV.”

Mr. MacEwen concluded, “As we look ahead, we see continued policy uncertainty along with further industry rationalization. Notably, we started 2025 with $603.9 million in cash, no bank debt, and no mid-term financing requirements. We will continue to closely monitor factors impacting the commercial adoption of our markets and products, and reassess our investment plans, cost structure, and cash usage based on these factors. Our focus is on our customers and our controllables, including prioritized product development and product cost reduction programs, while also maintaining disciplined spending and balance sheet strength for long-term competitiveness and sustainability.”

Q4 2024 Financial Highlights
(all comparisons are to Q4 2023 unless otherwise noted)

Total revenue was $24.5 million in the quarter, down 48% year-over-year.
Heavy Duty Mobility revenue of $16.8 million, 42% lower year-over-year, driven by bus revenues which grew 9% but were offset with lower revenue from truck, rail, and marine verticals.
Stationary revenue was $6.9 million, (46%) year-over-year, and Emerging and Other Markets revenue was $0.8 million or (84%) compared to Q4 2023.
Gross margin was (13%) in the quarter, an improvement of 9-points. The negative gross margin in the fourth quarter of 2024 was driven primarily by the impacts of revenue scaling and manufacturing cost absorption. Improvement in gross margin over prior year largely due to reduced impairment adjustments and expiration of warranty obligations.
Total Operating Expenses2 and Cash Operating Costs1 were $33.1 million and $27.2 million, respectively, a decrease of 5% and 6%, respectively, from Q4 2023 as a result of reduced cost structure from restructuring activities.
Total Cash Used by Operating Activities was $24.4 million, compared to $18.3 million in the prior year. Cash and cash equivalents was $603.9 million at the end of 2024, compared to $751.1 million in the prior year.
Adjusted EBITDA1 was ($36.0) million, compared to ($44.1) million in Q4 2023. The decrease in Adjusted EBITDA loss was driven primarily by decrease in gross margin loss and lower Cash Operating Costs1. These improvements were partially offset by increased impairment losses on trade receivables and higher restructuring and related expenses.
Ballard recorded non-cash impairments to the value of its long-term financial investments in the amount of $7.6 million in the quarter.
Order Backlog at the end of 2024 was $173.5 million, an increase of 41% compared to the end of Q3 driven by record order intake of $75.4 million and deliveries of $24.5 million. Orders from Power Products represent more than 98% of the Order Backlog, overwhelmingly driven by customers in Europe and North America, representing almost 99% of the Order Backlog.
The 12-month Orderbook was $98.9 million at end-Q4, an increase $40.7 million or approximately 70% from the end of Q3 2024.

2025 Outlook

Consistent with our past practice, and in view of the early stage of hydrogen fuel cell market development, specific revenue or net income (loss) guidance for 2025 is not provided. We expect revenue in 2025 will be back-half weighted. Total Operating Expense2 and Capital Expenditure3 guidance ranges for 2025 are as follows:

Q4 2024 Financial Summary

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