Fuel cell manufacturer Ballard Power Systems reported a revenue of $24.5 million, a 48% year-over-year (YoY) decline, in the fourth quarter (Q4) of 2024, reaching $24.5 million. The revenue missed analyst expectations by  $4.05 million. All business segments reported declining revenues, reflecting broader industry challenges, including prolonged policy uncertainty and funding constraints.

Heavy-duty mobility segment revenue fell 42% YoY to $16.8 million despite a 9% growth in bus revenue. The decline was attributed to reduced truck, rail, and marine sales. Stationary power segment revenue dropped 46% YoY to $6.9 million in Q4. The emerging and other markets category saw an 84% decline, generating just $0.8 million in revenue.

The company reported a loss per share of $0.16, up 5%, but missing analysts’ expectations by  $0.03.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss for the quarter improved to $36 million, compared to a loss of $44.1 million in Q4 2023. The improvement was mainly due to lower gross margin loss and reduced cash operating costs, though partially offset by higher impairment losses on trade receivables and restructuring expenses.

Net loss from continuing operations stood at $46.5 million, an increase of 5% YoY.

Full-year 2024

Full-year revenue was $69.7 million, a 32% drop from 2023. The downturn reflects broader industry challenges, including prolonged policy uncertainty and funding constraints, which have led to a multi-year delay in hydrogen project development and fuel cell adoption. The company initiated workforce reductions and cutbacks in capital expenditures.

Ballard’s 2024 deliveries of PEM fuel cell engines accounted for over 90% of its total revenue in 2024. The company shipped a total of 56.5 MW of fuel cell engines, reflecting a 10% increase from 51.2 MW in 2023.

The company reported a loss per share of $1.08, up 124% YoY. Adjusted EBITDA loss for the year increased 12% YoY to $168.1 million.

Net loss from continuing operations stood at $323.5 million, an increase of 124% YoY.

Despite financial headwinds, Ballard reported strong order activity. The company secured a new net order intake of $113 million in 2024, with Q4 alone contributing $75.4 million. This drove the company’s year-ending order backlog to $173.5 million, marking a 41% increase from Q3. The 12-month order book stood at $98.9 million at year-end, a 70% jump from Q3, reflecting strong demand for Power Products, particularly from Europe and North America.

In 2024, Ballard achieved record fuel cell engine shipments, delivering over 660 units with a total output of approximately 56 MW—nearly a 30% increase from 2023. The company advanced its product development initiatives, including the launch of its 9th-generation FCmove®-XD engine and progress on Project Forge, aimed at reducing costs on next-generation bipolar plates.

Consistent with past practice and given the early stage of hydrogen fuel cell market development, specific revenue or net income guidance for 2025 is not provided. The company expects revenue in 2025 to be back-half-weighted. The total operating expense guidance ranges from $100-120 million and capital expenditure between $15 – 25 million.

During the earnings call, Randy MacEwen, Chief Executive Officer of Ballard, noted that Ballard’s restructuring includes a sizable workforce reduction, rationalization and consolidation of certain global operations and facilities, and a reduction in certain planned capital expenditures. Given the revised industry outlook, there’s no business case for production capacity expansion investments for the foreseeable future. “Accordingly, we have deferred any final investment decision on the proposed Texas Gigafactory to 2026, pending market adoption and demand indicators.”

MacEwen noted that Ballard’s restructuring includes a sizable workforce reduction, rationalization and consolidation of certain global operations and facilities, and a reduction in certain planned capital expenditures. Given the revised industry outlook, there’s no business case for production capacity expansion investments for the foreseeable future. “Accordingly, we have deferred any final investment decision on the proposed Texas Gigafactory to 2026, pending market adoption and demand indicators.”

He noted that the continued policy and other uncertainties and other challenges in the China fuel cell market, and underperformance of the Weichai-Ballard JV, and as part of its global restructuring, the company also reduced its corporate cost structure in China, and initiated a strategic review of the Weichai-Ballard JV.

He stated that from September to January, the U.S. Department of Energy was extraordinarily busy with various funding awards for the hydrogen industry, including hydrogen hubs, grants, credits, and loans. In January, the Department of Treasury and IRS released the final rules for the 45V Clean Hydrogen Production Tax Credit. These rules were an improvement from the JAFT proposed in December 2023.

“But unfortunately, following that and with a flurry of executive orders from the White House, we’ve seen a temporary pause on IRA and IIJA funds, including the issuance of new awards and the disbursement of federal funds under open awards. We’ve seen a strong reaction to this proposed pause, including legal challenges. These developments likely mean the U.S. hydrogen fuel cell industry will experience continued policy uncertainty for the foreseeable future,” MacEwen said the temporary pauses on IRA and IIJA funds have created uncertainty for the U.S. hydrogen industry.

He noted that the next two or three years will be important for the clean hydrogen production tax credit in the U.S. marketplace.

Ballard Power Systems’ total revenue dropped 45% YoY to $14.8 million in the third quarter of 2024, impacted by softening customer demand with the adoption curve for hydrogen and proton exchange membrane fuel cells lengthening.