Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) reported consolidated financial results for the second quarter ended June 30, 2024, showcasing a period of measured progress across key areas.
Randy MacEwen, Ballard’s President & CEO, emphasized the company’s achievements in product development, advanced manufacturing, and market expansion. A highlight was the launch of the 9th generation PEM fuel cell engine, setting a new industry standard for performance in heavy-duty mobility. This innovative FCmove®-XD engine boasts significant improvements in reliability, durability, efficiency, power density, scalability, serviceability, and total cost of ownership.
Ballard also continues to make headway with Project Forge, its program to significantly scale bipolar plate production and reduce costs for next-generation plates. The company announced a strategic partnership with Vertiv to explore the feasibility and benefits of hydrogen-powered fuel cell backup power solutions for data centers, a rapidly growing market.
Q2 revenue reached $16.0 million, representing a 4% increase compared to Q2 2023 and an 11% increase over Q1 2024. Fuel cell product sales revenue, up 48% year-over-year, contributed significantly to this growth, accounting for 84% of total revenue.
While Ballard remains confident in the long-term value proposition of hydrogen fuel cells, the company acknowledged a softer quarter for order intake, with net orders reaching $5.0 million. Despite this, Ballard maintains a strong balance sheet and continues to focus on customer needs, product development programs, and cost reduction initiatives.
Key financial highlights of Q2 2024 include:
* Total revenue of $16.0 million, a 4% increase year-over-year.
* Heavy Duty Mobility revenue of $13.2 million, a 55% increase driven by strong performance in the Bus and Truck verticals.
* Gross margin of (32%), a 5-point improvement from Q1 2024.
* Total Operating Expenses of $36.2 million, a 2% increase year-over-year.
* Cash and cash equivalents of $678.0 million.
* Order Backlog of approximately $169.5 million at the end of Q2.
Ballard continues to expect revenue in 2024 to be heavily back-half weighted. The company has revised its 2024 Capital Expenditure guidance to a range of $25 million to $40 million, reflecting a strategic decision to reduce and defer certain planned capital expenditures in light of slower market adoption.
The company will host a conference call on Monday, August 12, 2024, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to discuss second quarter 2024 operating results.
