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1. Company Snapshot

1.a. Company Description

Ballard Power Systems Inc.engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products.The company offers its products for power product markets, consisting of heavy-duty motives, such as bus, truck, rail, and marine applications; material handling; and backup power.


It also provides technology solutions, including engineering and technology transfer, as well as licenses and sells intellectual property portfolio and fundamental knowledge for various PEM fuel cell applications; and hydrogen fuel cell powertrain and vehicle systems integration solutions.It operates in China, Germany, the United States, the United Kingdom, Canada, Denmark, Norway, Belgium, Japan, France, Spain, Taiwan, Poland, India, Ukraine, Sweden, and internationally.The company has a strategic alliance with Linamar Corporation for the co-development and sale of fuel cell powertrains and components for class 1 and 2 vehicles in North America and Europe.


Ballard Power Systems Inc.was founded in 1979 and is headquartered in Burnaby, Canada.

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1.b. Last Insights on BLDP

Ballard Power Systems' recent performance has been hindered by a weak outlook. The company's recent announcements of orders for fuel cell engines, including a 5 MW deal with Manufacturing Commercial Vehicles, are overshadowed by a lack of clarity on its growth trajectory. The upcoming Q4 and full year 2024 results conference call on March 13th may provide insight into the company's performance, but the recent order wins do not seem to have significantly impacted the stock price.

1.c. Company Highlights

2. Ballard Power Systems' Q3 2025 Earnings: A Strong Revenue Growth Story

Ballard Power Systems reported a significant 120% year-over-year revenue increase to an undisclosed figure, driven primarily by bus and rail deliveries. The company's gross margin improved by 15% in the third quarter, driven by lower manufacturing overhead, continued product cost reductions, and a net reduction in onerous contract provisions. However, the company reported an EPS of -$0.1261, which was worse than the estimated -$0.075. Total operating expenses were $34.9 million, down 36% year-over-year, and adjusted EBITDA improved to negative $31.2 million.

Publication Date: Nov -26

📋 Highlights
  • Revenue Surge: 120% YoY growth driven by bus/rail deliveries
  • FC Move SC Success: High power density product received strong OEM feedback
  • Gross Margin Improvement: 15% Q3 increase with $34.9M operating expenses (-36% YoY)
  • Marine Orders: 6.4 MW record order and Stadler's Flirt H2 train launch
  • Cash Position: $25.7M cash balance with no debt and $31.2M adjusted EBITDA loss

Segment Performance

The company's bus market continues to show promising growth, with the FC Move SC product garnering positive feedback from OEMs due to its higher power density, simpler functionality, and lower total cost of ownership. The rail and marine segments are also witnessing momentum, with the recent launch of Stadler's Flirt H2 hydrogen-powered train in California and a record-breaking order for 6.4 megawatts in the marine market. As Marty Neese, President and CEO, noted, "the reception at Bus World was tremendous, with the new product being well-received by both existing OEMs and new entrants."

Strategic Realignment and Cost Management

The company is focusing on strategic realignment, including cost reductions and driving down product costs. Ballard expects to maintain a lean organizational cost structure and continue to demonstrate capital discipline in 2026, with a focus on accelerating its pathway to profitability. The company's cash and cash equivalents stood at $25.7 million, with no bank debt and no near-term financing requirements.

Valuation and Growth Prospects

Analysts estimate the company's revenue growth at 18.9% for the next year. With a P/S Ratio of 8.94 and an EV/EBITDA of -2.76, the market seems to be pricing in significant growth expectations. The company's ROE and ROIC are currently negative, at -18.66% and -20.13%, respectively, indicating that the company is still in the investment phase. As the company accelerates its pathway to profitability, investors will be watching these metrics closely.

Outlook

The company's decision not to pursue the Texas Gigafactory development underscores its commitment to capital discipline and efficient execution. With a strong order pipeline and a focus on building out sustainable commercial agreements with customers, Ballard Power Systems is poised for continued growth in the coming years.

3. NewsRoom

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How Recent Developments Are Rewriting The Ballard Power Systems Investment Story

Dec -04

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Ballard (BLDP) Upgraded to Buy: Here's What You Should Know

Dec -02

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Why The Narrative Around Ballard Power Systems Is Shifting With Fresh Analyst Insights

Nov -20

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Is Ballard Power Systems (BLDP) Outperforming Other Utilities Stocks This Year?

Nov -18

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Ballard Power Systems (TSX:BLDP): Evaluating Valuation After Recent Share Price Surge

Nov -15

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Why Bloom Energy Stock Is Bouncing Back Today and Soaring Higher

Nov -14

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Ballard Power Systems Inc (BLDP) Q3 2025 Earnings Call Highlights: Record Revenue Growth and ...

Nov -14

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Ballard Power (BLDP) Q3 2025 Earnings Transcript

Nov -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.61%)

6. Segments

Bus

Expected Growth: 13.93%

Ballard Power Systems Inc.'s 13.93% growth is driven by increasing adoption of clean energy, government incentives for fuel cell technology, and growing demand for zero-emission buses. Additionally, partnerships with major automotive companies and expansion into new markets contribute to the company's rapid growth.

Stationary

Expected Growth: 13.93%

Ballard Power Systems Inc.'s stationary segment growth of 13.93% is driven by increasing adoption of clean energy solutions, rising demand for backup power systems, and growing need for reliable and efficient power generation in data centers and telecom industries.

Rail

Expected Growth: 14.07%

Ballard Power Systems Inc.'s 14.07% growth in Rail segment is driven by increasing adoption of clean energy solutions, government incentives for zero-emission transportation, and rising demand for efficient rail transportation. Additionally, partnerships with key industry players and investments in research and development are contributing to the segment's growth.

Emerging Markets and Other

Expected Growth: 13.35%

Ballard Power Systems Inc.'s 13.35% growth in Emerging Markets and Other is driven by increasing adoption of clean energy solutions, government incentives for fuel cell technology, and growing demand for backup power systems in regions with unreliable grid infrastructure.

Truck

Expected Growth: 24.23%

Ballard Power Systems Inc.'s 24.23% growth in truck segment is driven by increasing adoption of fuel cell electric vehicles, government incentives for clean energy, and rising demand for zero-emission transportation solutions in the logistics industry.

Marine

Expected Growth: 22.4%

Ballard Power Systems Inc.'s Marine segment growth of 22.4% is driven by increasing adoption of zero-emission vessels, government regulations and incentives for green shipping, rising demand for hybrid and fuel-cell powered boats, and the company's expanding partnerships with shipbuilders and operators.

7. Detailed Products

Fuel Cell Stacks

Ballard's fuel cell stacks are the core component of a fuel cell system, converting chemical energy into electrical energy.

Fuel Cell Modules

Pre-assembled fuel cell modules that integrate Ballard's fuel cell stacks with other necessary components.

Power Products

Electrical power conversion and control systems that optimize fuel cell performance and efficiency.

System Engineering Services

Customized engineering services to integrate Ballard's fuel cell technology into customer applications.

Hydrogen Fueling Solutions

Comprehensive hydrogen fueling solutions for fuel cell electric vehicles and other applications.

Technology Solutions

Licensing of Ballard's fuel cell intellectual property and technology to other companies.

8. Ballard Power Systems Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ballard Power Systems Inc. faces moderate threat from substitutes, as alternative clean energy sources like solar and wind power are gaining popularity, but fuel cells still have a unique value proposition in terms of efficiency and reliability.

Bargaining Power Of Customers

Customers have limited bargaining power due to the specialized nature of Ballard's products and the company's strong relationships with its customers.

Bargaining Power Of Suppliers

Suppliers have moderate bargaining power due to the availability of alternative suppliers, but Ballard's long-term contracts and strategic partnerships mitigate this risk.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for clean energy solutions and the increasing investment in fuel cell technology, making it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established players and new entrants in the fuel cell market, leading to intense competition for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.77%
Debt Cost 6.17%
Equity Weight 98.23%
Equity Cost 12.11%
WACC 12.01%
Leverage 1.81%

11. Quality Control: Ballard Power Systems Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Broadwind

A-Score: 3.9/10

Value: 8.2

Growth: 5.0

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

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Helios Technologies

A-Score: 3.8/10

Value: 3.0

Growth: 4.0

Quality: 5.8

Yield: 1.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Ballard Power Systems

A-Score: 3.7/10

Value: 7.0

Growth: 0.8

Quality: 3.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

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Babcock & Wilcox Enterprises

A-Score: 3.6/10

Value: 7.8

Growth: 3.2

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 0.0

1-Year Total Return ->

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CVD Equipment

A-Score: 3.6/10

Value: 6.6

Growth: 3.6

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

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TPI Composites

A-Score: 3.0/10

Value: 10.0

Growth: 3.2

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.91$

Current Price

3.91$

Potential

-0.00%

Expected Cash-Flows