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.


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 :


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