Ballard Reports Q4 2023 Results



VANCOUVER, BC, March 11, 2024 /PRNewswire/ – Ballard Power Systems (NASDAQ:BLDP) (TSX:BLDP) today announced consolidated financial results for the fourth quarter ended December 31, 2023. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

“Our transition to a commercial products company is gaining momentum, with growing market acceptance of our fuel cell engines across our verticals,” said Randy MacEwen, President and CEO. “We shipped a record number of fuel cell engines in the quarter, allowing us to close out the year with Q4 revenue of $46.8 million, up 132% year-over-year. We also booked $64.7 million of new orders in Q4, resulting in a product-based Order Backlog now 15% higher than the same period last year.”

“Supported by revenue scaling in the quarter, we were able to improve gross margins by eight percentage points compared to the prior year period,” said Mr. MacEwen. “Notably, excluding non-cash inventory provisions, underlying gross margin almost achieved breakeven, demonstrating continued success in our product cost reduction initiatives and the impact of operating leverage.”

“Excluding discontinued operations, revenue in 2023 was $102.4 million, up 25% compared to the prior year, while total megawatts (MW) and number of modules shipped increased by 17% and 37%, respectively, to 74 MW and 540 modules. We increased the proportion of 2023 revenue and year-ending Order Backlog from Power Products, standing at 72% and 84% respectively,” stated Mr. MacEwen. “We increased our diversification across our verticals, geographic regions, and customer base. We supported numerous customers in maturing their fuel cell platforms, while also securing new customer platform wins across our verticals. We launched our next-generation bipolar plate project to enable further product cost reduction and production scaling and also proved the maturity of our technology with outstanding field reliability.”

“We continue to prioritize focused and disciplined cash management and balance sheet strength. Cash operating costs in Q4 were roughly flat compared to the prior year, while total operating costs and capital expenditures for the full year were in line with our 2023 guidance ranges. Total cash used in 2023 was down almost $48 million compared to 2022. We ended the year with cash and cash equivalents of $751 million,” Mr. MacEwen added.

“Looking forward, we believe the transition of hydrogen policy announcements to implementation will provide mid-term momentum for the availability of low-cost, low-carbon hydrogen, enabling accelerated adoption of fuel cells. In the context of an increasingly constructive policy environment, a growing sales pipeline and Order Backlog, along with our continued investments in product cost reduction and advanced manufacturing, we are well positioned for strong long-term market share. We are excited with our set-up for 2024, as we expect continued growth in our Order Backlog, major order announcements from customers in our bus and stationary power verticals, and the announcement of our next manufacturing facility, each of which will serve as important milestones on our journey to scaled adoption of hydrogen fuel cells.”

Q4 2023 Financial Highlights

(all comparisons are to Q4 2022 unless otherwise noted)

Total revenue was $46.8 million in the quarter, up 132% year-over-year.

Heavy Duty Mobility revenue of $29.0 million increased 219%, driven by higher revenues from bus, truck, rail, and marine verticals.
Stationary revenue of $12.8 million increased 105% primarily due to higher shipments to customers in Europe.
Emerging and Other Markets revenue of $4.9 million was flat compared to the prior year, as increased revenues from off-highway customers were offset by a decrease in Technology Solutions revenue.
Gross margin was (22)% in the quarter, an increase of 8-points, driven by higher revenues and product cost reduction initiatives. Excluding non-cash inventory provisions, gross margin in the quarter was (1)%.
Total Operating Expenses and Cash Operating Costs3 were $35.0 million and $29.0 million, respectively, an increase of 16% and (0%), respectively, from Q4 2022. The increase in Total Operating Expenses was driven primarily by higher expenditures on research and product development.
Total Cash Used by Operating Activities was $18.3 million, compared to $21.2 million in the prior year, while Total Cash Used by Investing Activities was $10.8 million, compared to $20.1 million in Q4 2022. Cash and cash equivalents was $751.1 million at the end of 2023, compared to $913.7 million in the prior year.
Adjusted EBITDA3 was ($44.1) million, compared to ($40.1) million in Q4 2022, primarily as a result of a higher gross margin loss driven by inventory impairment charges.
Ballard recorded non-cash impairments to the value of its long-term financial investments in the amount of $10.3 million in the quarter, primarily due to a reduction in valuations across the clean energy and zero-emission vehicle universe.
Order Backlog at the end of 2023 was $130.5 million, down 3% compared to the end of Q3. While we achieved strong new order intake of $64.7 million in Q4, this was more than offset by a reduction of $47.1 million due to record engine shipments during the quarter and the removal of $21.7 million from our Order Backlog of previously booked orders from a specific customer experiencing financing and program delays. Orders from Power Products represent more than 80% of the Order Backlog, while orders from customers in Europe and North America represent almost 80% of the Order Backlog.
The 12-month Order Book was $66.6 million at end-Q4, a decrease of $6.1 million or approximately 8% from the end of Q3 2023. While we achieved strong new order intake of $60.4 million added to the Order Book in Q4, this was more than offset by record engine shipments during the quarter and the removal of $19.4 million from our Order Book of previously booked orders from a specific customer experiencing financing and program delays.

Order Backlog ($M)

Order Backlog
at End-Q3 2023

Orders Received
in Q4 2023

Orders Delivered
in Q4 2023

Order Backlog
at End-Q4 20235

Total Fuel Cell
Products & Services






2024 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 2024 is not provided. We expect revenue in 2024 will be back-half weighted, with roughly 30% in the first half and 70% in the second half, similar to 2023. Total Operating Expense3 and Capital Expenditure4 guidance ranges for 2024 are as follows:



Total Operating Expense1

$145 – $165 million

Capital Expenditure2

$50 – $70 million

Q4 2023 Financial Summary

(Millions of U.S. dollars)

 Three months ended December 31



% Change


Fuel Cell Products & Services:3

Heavy-Duty Mobility



219 %




341 %




135 %




163 %




250 %




105 %

Emerging and Other Markets



1 %

Total Fuel Cell Products & Services Revenue



132 %


Gross Margin $



(67 %)

Gross Margin %

(22 %)

(30 %)


Total Operating Expenses



(16 %)

Cash Operating Costs4



(0 %)

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