Ballard Power Systems (NASDAQ:BLDP) Issues Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Key Points

• Ballard Power Systems reported a quarterly EPS loss of $0.07, missing the consensus estimate by $0.03. The company posted a negative net margin of 78.6% and shares fell 4.3% to $2.67.
• Ballard agreed to acquire GeoPura for £275 million, expanding into hydrogen power units and energy-as-a-service. Management expects the transaction to generate approximately $25 million in annual run-rate EBITDA synergies by 2028, subject to approval and closing in the second half of 2026.
• Operating performance improved, with revenue up 15% year over year to $20.6 million, gross margin rising to 20%, and adjusted EBITDA losses narrowing substantially. Order intake exceeded $64 million, while Ballard ended the quarter with more than $502 million in cash and reiterated its goal of profitability by the end of 2027.

Ballard Power Systems (NASDAQ:BLDP - Get Free Report) TSE: BLD posted its earnings results on Friday. The technology company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.03), Zacks reports. Ballard Power Systems had a negative net margin of 78.60% and a negative return on equity of 13.48%.

Here are the key takeaways from Ballard Power Systems' conference call:

• Ballard agreed to acquire GeoPura for £275 million, expanding into hydrogen power units, hydrogen production, and energy-as-a-service. Management expects the deal to accelerate growth, broaden the addressable market, and generate approximately $25 million in annual run-rate EBITDA synergies by 2028, subject to regulatory approval and an anticipated second-half 2026 closing.
• GeoPura’s integrated rental-and-fuel model is expected to provide recurring, higher-margin revenue and capture substantially more value per deployed megawatt than standalone fuel-cell engine sales. Ballard also sees expansion opportunities in North America, data centers, construction, events, and heavy-duty mobility.
• Q2 revenue rose 15% year over year to $20.6 million, while gross margin improved to 20% from negative 8% and operating expenses fell 34%. Adjusted EBITDA loss narrowed to $9.8 million from $30.6 million, and operating cash usage declined to $11.4 million from $20.3 million.
• Quarterly order intake exceeded $64 million, supported by transit-bus orders and a multi-year commitment for more than 150 fuel-cell modules for GeoPura. Ballard ended the quarter with more than $502 million in cash and said it has no near-term financing requirements.
• Management reiterated its goal of reaching profitability by the end of 2027 but provided no specific revenue, net income, or margin guidance, citing the early stage of market development. Full-year revenue is expected to remain approximately 60% back-half weighted, with operating expenses of $65 million to $75 million and capital expenditures of $5 million to $10 million.

Ballard Power Systems Stock Down 4.3%

Shares of NASDAQ:BLDP traded down $0.12 during trading on Friday, hitting $2.67. The company's stock had a trading volume of 7,037,918 shares, compared to its average volume of 5,993,535. The business has a 50 day moving average price of $4.07 and a two-hundred day moving average price of $3.24. The company has a market capitalization of $804.95 million, a PE ratio of -9.89 and a beta of 2.25. The company has a debt-to-equity ratio of 0.03, a quick ratio of 9.90 and a current ratio of 10.70. Ballard Power Systems has a fifty-two week low of $1.70 and a fifty-two week high of $6.57.

Institutional Trading of Ballard Power Systems

Hedge funds have recently modified their holdings of the stock. Intesa Sanpaolo S.p.A. acquired a new position in Ballard Power Systems during the 4th quarter worth $28,000. Aigen Investment Management LP acquired a new stake in Ballard Power Systems in the 4th quarter valued at about $53,000. CIBC Asset Management Inc purchased a new position in shares of Ballard Power Systems in the 4th quarter valued at about $89,000. Scientech Research LLC boosted its stake in shares of Ballard Power Systems by 162.4% in the 3rd quarter. Scientech Research LLC now owns 35,237 shares of the technology company's stock valued at $96,000 after buying an additional 21,808 shares during the period. Finally, Schonfeld Strategic Advisors LLC acquired a new position in shares of Ballard Power Systems during the fourth quarter worth about $91,000. 28.02% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on BLDP. TD Cowen lifted their price objective on Ballard Power Systems from $2.50 to $4.25 and gave the company a "hold" rating in a research note on Wednesday, May 6th. Weiss Ratings reissued a "sell (d-)" rating on shares of Ballard Power Systems in a research note on Friday, July 17th. ATB Cormark Capital Markets raised their target price on Ballard Power Systems from $3.50 to $4.30 and gave the company a "sector perform" rating in a report on Wednesday, May 6th. Lake Street Capital raised Ballard Power Systems from a "hold" rating to a "buy" rating and lifted their target price for the company from $3.00 to $5.00 in a research report on Tuesday, May 5th. Finally, Susquehanna cut their price target on shares of Ballard Power Systems from $4.25 to $3.50 and set a "neutral" rating on the stock in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $3.52.

About Ballard Power Systems

Ballard Power Systems NASDAQ: BLDP is a Canadian technology company specializing in the development and manufacture of proton exchange membrane (PEM) fuel cell products. Headquartered in Vancouver, British Columbia, Ballard designs and sells fuel cell stacks and modules that enable zero-emission power generation for a variety of applications, including heavy-duty motive systems, backup power, material handling equipment, and portable power solutions.

Since its founding in 1979, Ballard has built a strong intellectual property portfolio and a track record of innovation in PEM fuel cell technology.

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