Ballard Reports Q2 2025 Results
VANCOUVER, BC, Aug. 11, 2025 /PRNewswire/ - Ballard Power Systems (NASDAQ:BLDP) (TSX:BLDP) today announced consolidated financial results for the second quarter ended June 30, 2025. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).
Highlights
Ballard initiated a strategic realignment to achieve positive cash flow by year-end 2027 and included actions to reduce annualized operating costs by ~30% relative to the first half of 2025.
Revenue of $17.8 million, up 11% YoY and gross margin of (8%), a 24 point increase YoY.
27% reduction in Cash Operating Costs1 due to 2024 restructuring actions and 19% reduction in Total Operating Expenses2 driven primarily by 2024 restructuring actions, partially offset by initial restructuring costs related to the July restructuring.
Q2 ended with $550.0 million in cash and cash equivalents.
"We have made progress with respect to improving our financial performance and with our recently announced strategic realignment we have established a core goal to achieve positive cash flow by year-end 2027" said Marty Neese Ballard's newly appointed President and CEO. "Our focus needs to be on real, near-term opportunities where Ballard delivers clear value along with a sustainable business model that emphasizes operational excellence and cost discipline."
"The restructuring plan, announced in July, aims to reduce Ballard's annualized operating costs by approximately 30%, a majority of which will be driven by an immediate reduction in workforce," continued Mr. Neese. "The plan also includes product portfolio simplification focusing on our strongest products and continued product cost reduction activities. This, along with more rigorous value-based pricing strategies, will support margin expansion. We will continue to limit capital expenditure and closely manage our cash to support our balance sheet. We expect majority of restructuring charges to be recognized in the third quarter, and the full benefit of reduced operating expenses in 2026."
"Though the macro landscape continues to be dynamic, deliveries to our bus and rail customers remained on pace, driving year-over-year revenue growth of 11%. We continue to make meaningful progress on Project Forge, our high volume bi-polar plate line, and a key product cost reduction initiative. Even as Q2 order intake was challenged, we secured new orders, including one of the largest marine orders on record to eCap and Samskip that was announced after the quarter end."
Mr. Neese concluded, "We continue to believe in the necessary role of hydrogen and fuel cells to decarbonize select heavy mobility and stationary power applications and we have taken action to continue our leadership position in this space. With $550 million in cash, no bank debt and no financing requirement for the foreseeable future, we are well positioned to reliably serve our customers over the long term as we move forward on our mission."
Q2 2025 Financial Highlights(all comparisons are to Q2 2024 unless otherwise noted)
Total revenue was $17.8 million in the quarter, up 11% year-over-year.
Heavy Duty Mobility revenue of $16.1 million, 22% higher year-over-year, driven by bus and rail deliveries to North American and European customers.
Gross margin was (8%) in the quarter, an improvement of 24-points year-over-year, due to lower manufacturing overhead costs from restructuring actions taken in 2024 and a net reduction in onerous contract provisions.
Total Operating Expenses2 were $31.7 million, a decrease of 12%, as a result of our reduced global operating cost structure from our 2024 restructuring activities and includes $6.3 million in restructuring and other charges incurred in the quarter. Excluding these charges, Total Operating Expenses2 decreased by 30% year-over-year. Cash Operating Costs1 were $22.7 million, a decrease of 27%, also driven by the 2024 restructuring.
Total Cash Used by Operating Activities was $20.3 million, compared to $35.1 million in the prior year. Cash and cash equivalents were $550.0 million at the end of Q2 2025, compared to $678.0 million in the prior year.
Adjusted EBITDA1 was ($30.6) million, compared to ($35.4) million in Q2 2024, driven primarily by the improvement in gross margin, and by lower Cash Operating Costs. These improvements were partially offset by higher restructuring and related expenses and higher impairment losses on trade receivables.
Order Backlog at the end of Q2 2025 was $146.2 million, a decrease of 7% compared to the end of Q1 2025 as the result of soft order intake of $8.3 million and removal of certain high-risk orders.
The 12-month Orderbook was $84.3 million at end-Q2, a decrease of $8.0 million or 9% from the end of Q1 2025.
Order Backlog ($M)
Order Backlogat End-Q1 2025
Orders Received in Q2 2025
Orders Removedor Adjusted in Q2 2025
Orders Deliveredin Q2 2025
Order Backlogat End-Q2 2025
Total Fuel CellProducts & Services
$158.0
$8.3
$2.2
$17.8
$146.2
2025 Outlook
Consistent with our past practice, and in view of the early stage of hydrogen fuel cell market development, specific revenue and net income (loss) guidance for 2025 is not provided. We expect revenue in 2025 will be back-half weighted. Restructuring actions taken in July 2025 may result in revisions to our guidance ranges to be updated at a future date. At this time, Total Operating Expense2, excluding restructuring charges, and Capital Expenditure3 are expected to be at the low end of their respective guidance ranges. With restructuring charges included, Total Operating Expense2 is expected to be at the high end of the guidance range. Total Operating Expense2 and Capital Expenditure3 guidance ranges for 2025 are as follows:
2025
Guidance
Total Operating Expense3
$100 - $120 million
Capital Expenditure3
$15 - $25 million
Q2 2025 Financial Summary
(Millions of U.S. dollars)
Three months ended June 30
2025
2024
% Change
