Ballard Power Systems 2025 Q3 Earnings Revenue Surges 120%, Loss Narrows 86.3%

Ballard Power Systems (BLDP) reported Q3 2025 earnings with a 120% year-over-year revenue increase and a significant reduction in losses. The company beat revenue estimates by 34.63% and narrowed its net loss by 86.3% compared to 2024 Q3. Guidance for 2026 includes gross margins in the low to mid-single digits and revenue expected to be back-half weighted.

Revenue

Ballard’s total revenue surged to $32.50 million in Q3 2025, driven by robust growth in the bus and rail segments. The bus division led with $15.58 million, while rail revenue jumped to $7.39 million from $1.2 million a year ago. Emerging markets and other segments contributed $5.27 million, and stationary revenue rose 651% to $3.82 million. Despite these gains, truck revenue declined sharply to $25,000.

Earnings/Net Income

The company narrowed its net loss to $-28.07 million (or $0.09 per share) in Q3 2025, an 86.3% improvement from $-205.02 million ($0.68 per share) in 2024 Q3. While this reflects progress, the 9-year streak of quarterly losses underscores ongoing financial challenges. The reduced losses, however, indicate cost-cutting measures and operational efficiencies are taking hold.

Post-Earnings Price Action Review

The strategy of buying BLDP shares on earnings announcement dates has historically underperformed. Q3 2025 saw an immediate 7% drop in pre-market trading, with the decline persisting for 30 days. Over three years, this approach yielded negative returns, reflecting market skepticism about the sustainability of Ballard’s revenue growth and long-term profitability. Investors remain cautious despite improved margins and reduced losses.

CEO Commentary

CEO Marty Neese highlighted progress in cost reductions and product innovation, such as the FC Move SC launch. He emphasized strategic focus on North American and European markets and noted infrastructure challenges favoring fuel cell adoption. “We are taking the right steps to grow our business in areas that make strategic sense,” Neese stated, while acknowledging competition and market development hurdles.

Guidance

Ballard expects 2026 gross margins to remain in the low to mid-single digits, with revenue anticipated 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 pricing initiatives and cost reductions.

Additional News

1. Texas Gigafactory Decision: Ballard opted not to pursue the Texas Gigafactory, citing manufacturing limitations. Instead, it will focus on automation and materials efficiency under Project Forge, independent of the Texas facility.

2. Marine Market Growth: The company secured its largest marine order to date, totaling 6.4 megawatts, signaling expanding opportunities in this segment.

3. After-Sales Services: Ballard plans to develop after-sales services by 2027 to support long-term revenue streams, aiming to capitalize on its growing installed base.