VANCOUVER, BC – Ballard Power Systems (NASDAQ: NASDAQ:BLDP) (TSX: BLDP), a provider of clean energy fuel cell solutions, has received a purchase order from New Flyer, a North American bus manufacturer, to supply 200 fuel cell engines. This order, part of a long-term agreement set in January 2024, is intended to power New Flyer's Xcelsior CHARGE FC™ hydrogen fuel cell buses.
The engines, which represent about 20 megawatts of power, are scheduled for delivery in 2025. They are expected to be deployed across various states in the US, including California and New York, supporting the transition to zero-emission public transportation.
David White, Executive Vice President of Supply Management at NFI, expressed enthusiasm for the extended partnership with Ballard and the advancement of zero-emission buses in the market. David Mucciacciaro, Ballard's Chief Commercial Officer, also remarked on the growing market interest in hydrogen fuel cell buses, citing their advantages like long range and rapid refueling times.
Ballard Power Systems specializes in proton exchange membrane (PEM) fuel cells that are utilized in various modes of transportation and stationary power sources, aiming for sustainable electrification.
The company's forward-looking statements indicate expectations of product deliveries, customer deployments, and market adoption, but also acknowledge risks such as economic changes and reliance on third parties.
This news is based on a press release statement from Ballard Power Systems Inc .
In other recent news, Ballard Power Systems announced Q3 2024 results conference call and a major restructuring plan aimed at reducing operating expenses by over 30%. This initiative follows slower-than-expected market adoption of its products. In the second quarter, Ballard reported revenues of $16.1 million, falling short of the expected $18.9 million consensus, and an EBITDA loss of $35.4 million. However, the management remains confident in achieving positive gross margins in the fourth quarter. Analyst firms including Roth/MKM, BMO Capital, and Lake Street Capital Markets have adjusted their outlook on Ballard, reducing their price targets. Other recent developments include reconsideration of plans for a proposed gigafactory in Texas due to slow demand increase, the launch of the ninth-generation PEM fuel cell engine, the FCmove XD, and progress with Project Forge to scale graphite bipolar plate production. These are the recent developments for Ballard Power Systems.
InvestingPro Insights
As Ballard Power Systems (NASDAQ: BLDP) secures this significant order from New Flyer, it's crucial to examine the company's financial health and market position. According to InvestingPro data, Ballard's market capitalization stands at $486.99 million, reflecting its position in the clean energy sector.
Despite the positive news of the 200 fuel cell engine order, Ballard faces some financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which could be a concern for investors considering the capital-intensive nature of the fuel cell industry. This cash burn rate might be partly explained by the company's focus on research and development to maintain its competitive edge in the evolving clean energy market.
Another relevant InvestingPro Tip reveals that Ballard "holds more cash than debt on its balance sheet." This financial cushion could provide some reassurance to investors and potentially support the company's ability to fulfill large orders like the one from New Flyer.
It's worth noting that Ballard's stock is currently trading near its 52-week low, with a significant price decline over the past year. This market performance, combined with the company's negative gross profit margin of -22.6% for the last twelve months as of Q2 2024, suggests that Ballard is still in a growth and investment phase, prioritizing market share and technological advancement over immediate profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Ballard Power Systems, providing a deeper understanding of the company's financial situation and market prospects.
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