Ballard Power Systems 2025 Q3 Earnings Record Revenue Growth and Narrowed Losses

Ballard Power Systems (BLDP) reported Q3 2025 earnings with a 120% year-over-year revenue surge to $32.5 million, exceeding analyst estimates by 34.63%, and narrowed its net loss to $28.07 million, or $0.09 per share, a 86.3% improvement from 2024. The company provided 2026 guidance for gross margins in low to mid-single digits and operating expenses below $120 million.

Revenue

Ballard’s total revenue surged 120.3% to $32.50 million, driven by robust demand in key segments. Bus revenue led the charge at $15.58 million, while rail deliveries jumped to $7.39 million from $1.2 million in the prior year. Emerging markets and other segments contributed $5.27 million, reflecting a 269% year-over-year increase. Stationary revenue grew 651% to $3.82 million, and marine markets added $423,000. Truck segment revenue, however, declined sharply to $25,000.

Earnings/Net Income

The company narrowed its net loss to $-28.07 million in Q3 2025, a 86.3% reduction from $-205.02 million in Q3 2024. Earnings per share improved to -$0.09 from -$0.68, a 86.8% improvement. Despite these gains, the company has posted losses for nine consecutive years, underscoring persistent financial challenges.

Post-Earnings Price Action Review

The stock price of Ballard Power Systems declined 5.48% in the latest trading day, 10.14% for the week, and 19.85% month-to-date. A strategy of buying shares on the earnings announcement date and holding for 30 days has historically yielded poor returns. The stock initially dropped 7% in pre-market trading following the earnings beat, and the negative sentiment persisted for 30 days. This reaction may reflect concerns about the company’s long-term prospects, including its decision to abandon the Texas Gigafactory development and ongoing struggles to achieve sustainable profitability.

CEO Commentary

CEO Marty Neese highlighted progress in cost reduction and product innovation, stating, “We are taking the right steps to grow our business in areas that make strategic sense.” The company emphasized its focus on hydrogen technology for heavy-duty mobility and stationary markets, with plans to leverage automation and materials efficiency to drive future growth.

Guidance

Ballard anticipates 2026 gross margins to remain in the low to mid-single digits, with revenue expected to be back-half weighted. Operating expenses are projected to stay below $100-$120 million, and capital expenditures will be reduced to $8-$12 million. The company aims to achieve cash flow positivity through strategic market expansion and cost management.

Additional News

1. Texas Gigafactory Decision: Ballard announced it would not pursue the Texas Gigafactory, citing manufacturing capacity limitations and shifting strategic priorities.

2. Product Launch: The company launched the FC Move SC at Bus World, receiving strong market feedback for its higher power density and integrated functionality.

3. Marine Market Expansion: Ballard secured its largest marine order to date—6.4 megawatts—signaling growing traction in the sector.

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