Ballard Power's Q3 Results Show Revenue Surge, Yet Net Losses Show An Upward Trend

Ballard Power Systems Inc BLDP reported a third-quarter FY23 revenue growth of 29% year-over-year to $127.6 million, beating the consensus of $26.20 million.

The company reported a gross loss of $(2.8) million compared to $(4.8) million a year ago. The gross margin was (10)% versus (22)% in 3Q22.

EPS loss was $(0.21) down from $(0.14) in the third quarter of 2022, missing the consensus of $(0.13).

Adjusted EBITDA loss expanded to $(36.2) million in the quarter, from ($35.1) million a year ago, due to higher loss attributable to the Weichai Ballard JV, the increase in Cash Operating Costs and partially offset by the improvement in gross margin loss.

Ballard received ~$14.8 million of new orders in the third quarter and delivered orders valued at $27.6 million, resulting in an Order Backlog of ~$134.6 million at the end of the quarter.

The 12-month Order Book was $72.7 million at the end of the third quarter, a decrease of ~15%.

Ballard's cash used in operating activities narrowed to $(22) million, compared to $(30.3) million a year ago.

The company held cash and cash equivalents of $781.0 at the end of the quarter.

"Revenue generated from Power Products represented close to 80% of total revenues in the quarter, tracking the consistent increase in product revenues as a proportion of our total Order Backlog," said Randy MacEwen, president and CEO.

"We are encouraged by constructive hydrogen policy developments in the U.S. and Europe. The U.S. Department of Energy announced $7 billion in funding for seven selected regional clean hydrogen hubs, six of which have use cases aligned with our target verticals. We expect these hydrogen hubs to support the mid-term availability of low-cost, low-carbon hydrogen — a key enabler for fuel cell adoption," added MacEwen.

FY23 Outlook, reaffirmed: Ballard Power sees total operating expenses of $135 million-$155 million and capital expenditure of $40 million-$60 million.

BLDP Price Action: Ballard Power Systems shares are trading lower by 2.25% at $3.48 on the last check Tuesday.