Posted on 08 May 2025
Canadian fuel cell manufacturer Ballard Power Systems has posted a revenue increase but confirmed it will halt investment in China after conducting a strategic review.
Last September, Ballard began a global corporate restructuring, including job and capex cuts as well as a board reshuffle, which is expected to cut annual operating costs by over 30%. It also delayed the final investment decision for its Texas gigafactory expansion programme to 2026 to observe fluctuations in market demand.
On Tuesday, the group said it will not “make any additional significant investments in China… for the foreseeable future” due to challenges in the Chinese fuel cell market and underperformance of the Weichai Ballard joint venture. It also warned of an unpredictable trade environment due to tariffs.
This year, the group forecasts capital expenditures and total operating expenses of $15-25 million and $100-120m, respectively. The company says this guidance is partly based on its $158m order backlog as of the end of March, which it admits is comprised of a “relatively limited” number of contracts and customers.
The order backlog was 9% lower compared to the end of Q4 2024 as revenue in Q1 was larger than new orders received.
“While certain sales opportunities were delayed as the hydrogen and fuel cell industry continues to undergo rationalisation and compounded by tariff uncertainties, we expect significant orders over the coming quarters,” says president and ceo Randy MacEwen. “We will continue to focus on our customers, new order intake, on-time delivery of quality products, gross margin expansion initiatives, and prioritised product development and cost reduction programmes.”
In the three months to 31 March, total revenue increased by 6% to $15m, driven by growth in the bus segment, while the truck, rail and stationary verticals declined. No marine fuel cell sales were recorded, compared to $200,000 in the same period last year.
Net loss nearly halved to $21m, Kallanish understands. Cash and cash equivalents at the end of the period were $576m, which means the company will not need to raise financing in the mid-term, MacEwen says.
Nasdaq-listed shares closed 4% lower on Tuesday.
Source:Kallanish
