Ballard Power Narrows Losses, Unveils Aggressive Cost-Cutting Plan Under New CEO

Author: Akanksha Bakshi | August 11, 2025 11:16am

Ballard Power Systems Inc. (NASDAQ:BLDP) on Monday reported a second-quarter net loss from continuing operations of $24.3 million, or 8 cents per share, beating Wall Street expectations for a loss of 10 cents per share.

• Revenue was $17.8 million, up 11% year over year and above the $17.54 million analyst estimate. Gross margin improved to negative 8% from negative 32%, reflecting lower manufacturing overhead and reduced onerous contract provisions.
• Heavy Duty Mobility revenue rose 22% to $16.1 million on higher bus and rail deliveries to North American and European customers. Bus revenue fell 20% to $8.8 million, while rail revenue increased sharply to $7.2 million from zero a year ago.
• Truck revenue declined 95% to $100,000, marine revenue decreased 94% to about zero; stationary revenue dropped 67% to $500,000; and emerging and other markets revenue was flat at $1.2 million.
• Adjusted EBITDA was a loss of $30.6 million, compared with a $35.4 million loss in the prior-year quarter, as improved margins and lower costs were partially offset by higher restructuring expenses and impairment losses on trade receivables.
• Cash used in operating activities was $20.3 million, compared with $35.1 million in the prior year. The company ended the quarter with $550.0 million in cash and cash equivalents, down from $678 million a year earlier, and had no bank debt.
• The order backlog was $146.2 million, down 7% from the first quarter, and the 12-month orderbook was $84.3 million, down 9%. Order intake in Q2 was $8.3 million, and the backlog was reduced by $2.2 million in high-risk orders.

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In Q2 2025, Ballard Power Systems, under new CEO Marty Neese, launched a restructuring plan aimed at achieving positive cash flow by late 2027 and cutting annual operating costs by 30% in 2026 compared to early 2025.

The plan includes immediate workforce reductions, a streamlined product portfolio, cost-cutting measures, and value-based pricing to boost margins.

Capital spending is capped at $15–$25 million for 2025, with operating expenses expected at the low end of $100–$120 million. With $550 million in cash, no debt, and no near-term financing needs, Ballard says it's positioned for long-term stability while focusing on high-demand products.

Outlook:

The company noted that revenue for 2025 is expected to be back-half weighted. After quarter-end, Ballard secured one of its largest marine orders on record to eCap and Samskip and announced a board change, with Yingbo Wang stepping down and Huajie Wang appointed as a Weichai nominee director.

Price Action: BLDP shares are trading lower by 1.11% at $1.78 at the last check on Monday.

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Posted In: BLDP