Ballard Power Systems - The SiLLC Assembly

Ballard Power Systems Q1 2023 Financial Performance: A Mixed Bag Amid Hydrogen Market Growth

May 10, 2023 [crocon media – msch] – Ballard Power Systems, a leader in hydrogen fuel cell technology, recently announced its Q1 2023 financial results, showcasing a mixed performance with both promising and challenging aspects.

Positive Developments

On the positive side, Ballard reported a healthy order intake of $17.6 million, surpassing their quarterly revenue. This promising trend suggests potential growth in the future. The company also boasts a significant order backlog of $137.7 million, twice the amount reported a year ago, reflecting an increase in customer platform wins and a promising outlook for the second half of 2023.

Furthermore, Ballard ended the quarter with a sizeable cash reserve of $863.8 million, providing a measure of financial stability in a volatile market. The company’s 12-month order book also demonstrated robust growth, increasing by approximately 29% quarter over quarter. This increase offers a positive outlook for the company’s near-term revenue growth.

Significantly, Ballard has outlined plans to invest in their business ahead of the hydrogen growth curve, a strategy that could position them for increased market share and long-term profitability.

Areas of Concern

Despite the positive indicators, Ballard’s Q1 2023 financials also revealed some areas of concern. Total revenue for the quarter came in at $13.3 million, representing a 37% year-over-year decrease, indicating a considerable slowdown in sales. Revenue decreases were reported across all segments, including Heavy Duty Mobility, Stationary, and Emerging and Other Markets.

The company’s gross margin was significantly negative in Q1 2023, falling to negative 42%. This decrease was driven by a change in revenue mix, pricing strategy, and increased investment in manufacturing capacity, among other factors. Operating expenses and cash operating costs also rose, contributing to a worse adjusted EBITDA compared to Q1 2022.

Furthermore, Ballard’s cash reserves have decreased by 19% since Q1 2022, and cash used in operating activities has increased. The company also reported equity losses in JV & Associates. Despite the promising aspects related to order intake and backlog, Ballard has not provided revenue or net income guidance for 2023, possibly indicating uncertainty about future performance.

Conclusion

Ballard Power Systems’ Q1 2023 financial performance presents a mixed picture. While there are positive signs related to future orders and investment in growth, the company also faces challenges related to revenue decline and negative gross margin. How Ballard navigates these challenges and capitalizes on the opportunities will be key to its success in the rapidly evolving hydrogen fuel cell market.

Read the original press release for more details : https://www.newswire.ca/news-releases/ballard-reports-q1-2023-results-860042223.html

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Disclaimer
All transactions are carried out by The SiLLC Assembly, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to provide general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions, and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relate to The SiLLC Assembly International.

Ballard Power Systems Announces Cost Reduction Plan and Disruptive Manufacturing Technology for Next-Gen Graphite Bipolar Plates

[Preston, United Kingdom , crocon media , msch , June 12 , 2023] — Ballard Power Systems, a leading provider of zero-emission PEM fuel cells, has unveiled its ambitious plan to significantly reduce costs and expand production capacity for next-generation graphite bipolar plates. This strategic move includes the introduction of disruptive manufacturing technology that aims to revolutionize the fuel cell industry.

The announcement comes as a natural progression following Ballard’s successful completion of two critical milestones: the development of thin flexible graphite bipolar plates and the expansion of its membrane electrode assembly (MEA) manufacturing capacity in Canada. As part of Ballard’s ongoing “3 by 3” stack cost reduction program, this project focuses on addressing the substantial cost associated with bipolar plates, which is the second-largest expense after MEAs in a fuel cell stack.

By implementing advanced plate manufacturing processes and incorporating new, lower-cost material suppliers, Ballard anticipates cost savings of up to 70%. These savings are expected to be realized following the commissioning of the project, which is slated for late 2025.

Ballard’s next-generation thin flexible graphite bipolar plates are designed to significantly reduce material usage while enabling high power density stacks. This feature is particularly critical for heavy-duty mobility applications where durability, reusability, and power density are paramount. Furthermore, graphite bipolar plates offer the added benefit of being the most cost-effective option at current and scaled volumes.

Beyond the cost savings associated with this project, Ballard’s plate manufacturing capacity is expected to increase approximately tenfold. This growth will be accompanied by improvements in graphite and resin material yield, as well as reduced production time. The company has also developed innovative manufacturing processes that enable full automation of bipolar plate production, resulting in enhanced quality throughput, reduced energy consumption, and the elimination of water usage. These advancements are poised to be replicated in any future expansion of Ballard’s global bipolar plate production footprint.

Mark Biznek, Chief Operating Officer of Ballard, expressed enthusiasm about the project, highlighting the economic and environmental value it brings. In addition to reducing costs and improving customer economics, the project aligns with Ballard’s commitment to sustainable practices by significantly reducing energy, water, and material resources.

Lee Sweetland, Vice President of Transformational Projects, emphasized the positive impact of the company’s previous cost reduction efforts and their contribution to the development of flexible graphite technology. By investing further in next-gen manufacturing processes, Ballard anticipates an additional 70% cost reduction for its proprietary bipolar plates, aligning with the US Department of Energy’s target of $5/kW for the bipolar plate.

Ballard plans to invest approximately $18 million in bipolar plate manufacturing from 2023 through 2025. The expected spending for this project in 2023 was already accounted for in Ballard’s capital allocation plan and does not affect the company’s planned capital expenditure for the year.

As a leader in fuel cell technology, Ballard Power Systems continues to drive innovation and sustainability in the industry. With its cost reduction plan and disruptive manufacturing technology, the company is poised to strengthen its position in the market and advance the adoption of fuel cells for a more sustainable future.

Note: This article is for informational purposes only and should not be considered as financial advice. Please conduct thorough research and consult with a professional before making any investment decisions.

Read the original press release : https://www.newswire.ca/news-releases/ballard-announces-plan-to-scale-production-amp-reduce-costs-of-next-generation-bipolar-plates-856089473.html?fbclid=IwAR0rlLUMjPyUkfI4s1JYYbncvC1k5dujL7RpWwTs4L-GYbtRMptv9tFmMqU

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Disclaimer
This article may contain forward-looking statements that are subject to risks and uncertainties. Readers are advised to refer to Ballard Power Systems’ most recent Annual Information Form for a detailed discussion of potential risk factors that could impact the company’s future performance.

All transactions are carried out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to provide general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions, and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relate to The SiLLC Assembly International.

Ballard Power Systems: A Bright Future in the Hydrogen Fuel Cell Market

[Preston, United Kingdom , crocon media for TSA , msch , August 10 , 2023] — The hydrogen fuel cell industry is undergoing a significant transformation, and Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) stands at the forefront of this change. The company’s recent Q2 financial results reveal a strategic shift towards the US and European markets, reflecting the growing potential of these regions in the hydrogen landscape.

Strategic Growth Amidst Challenges

Despite a 27% year-over-year decrease in total revenue, amounting to $15.3 million for the quarter, Ballard Power Systems has shown resilience and adaptability. The company’s Heavy Duty Mobility revenue saw a decline of 39%, primarily due to reduced revenues from bus, truck, and rail verticals. However, this was somewhat offset by an uptick in marine revenue. The Stationary revenue, which encompasses stationary power generation fuel cell modules, stacks, products, and services, witnessed a 6% decline, primarily attributed to reduced sales in Europe. Yet, this was balanced by higher stationary revenues in North America.

A Shift in Focus

The company’s strategic pivot towards the US and European markets is evident in their recent decisions. With an increasingly favorable hydrogen policy landscape in these regions, Ballard is accelerating its “local for local” global manufacturing plan. This move is particularly significant given the ongoing uncertainties in the Chinese hydrogen and fuel cell market. The company’s decision to reevaluate its MEA localization plan in China underscores its commitment to harnessing the potential of the US and EU markets.

Investing in the Future

Ballard’s commitment to innovation and growth is evident in its investment decisions. The company continues to prioritize technology and product development programs, product cost reduction initiatives, and advanced manufacturing. These investments are geared towards enhancing customer experience and securing platform wins. With a focus on driving product cost reduction and investing in next-generation fuel cell products, Ballard is well-positioned to lead the market in the coming years.

Promising Outlook

The latter half of 2023 is expected to be bustling for Ballard, with anticipated sequential quarterly revenue growth. The company’s order book is also set to support revenue growth in 2024. The Q2 results showcased an impressive Order Backlog of approximately $147.5 million, predominantly driven by increased orders from North America. Notably, the backlog from customers in Europe and North America now constitutes nearly 80% of the total backlog. Furthermore, the Power Products backlog has surged, marking an increase of over 140% compared to the previous year.

Conclusion

The future of hydrogen fuel cells is bright, and Ballard Power Systems is poised to play a pivotal role in this burgeoning industry. While challenges persist, the company’s strategic decisions, investments in innovation, and focus on key markets position it for sustained growth. As the hydrogen industry evolves, Ballard’s commitment to excellence and adaptability will undoubtedly drive its success in the global market.

Read the original press release : https://www.ballard.com/about-ballard/newsroom/news-releases/2023/08/09/ballard-reports-q2-2023-results

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