Fuel cell manufacturer Ballard Power Systems recorded a net loss from continuing operations in the first quarter (Q1) of 2024 amounted to $41.1 million, recording an increase of 26.8% year-over-year (YoY) compared to a net loss of $32.4 million.

The increase in net loss was primarily driven by lower finance and other income of $7.5 million, attributed mainly to higher negative mark-to-market and foreign exchange impacts on long-term financial investments.

In Q1, revenue amounted to $14.5 million, a 9% increase year over year. The bulk of this revenue came from power products, which accounted for 88% of the total, a rise from 71% Year over Year in Q1 of 2023.

The company’s Heavy Duty Mobility segment revenue was $10.6 million, a 22% increase driven by higher revenues from their bus vertical. It was offset by weaker revenue in rail and marine verticals.

The revenue from the stationary segment increased by 48% YoY to $3.7 million, driven by the European market.

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at $36.6 million, compared to $36.9 million in Q1 2023, representing a marginal change of 1%.

The company said it maintained a disciplined approach to operating expenses and maintained a strong balance sheet.

Despite inflationary pressures, cash operating costs experienced a slight decrease compared to the first quarter of 2023, with the quarter ending with $720.7 million in cash and cash equivalents.

Ballard received ~$64.5 million worth of new orders during the quarter and managed to deliver $14.5 million worth of orders. The order backlog at the end of Q1 was $180.5 million, a 38% increase from Q4 2023.

The increase in order backlog was primarily driven by the demand in the European Bus and Stationary verticals and also by the company’s long-term supply agreement with Solaris.

The company said its proposed 3 GW facility will showcase advanced manufacturing techniques for next-generation fuel cells, operating at scaled production levels while substantially lowering costs.

Ballard has secured a $40 million grant from the U.S. Department of Energy’s (DOE) Hydrogen and Fuel Cell Technologies Office and a potential award worth up to $54 million from the Qualifying Advanced Energy Project Tax Credit (48C) program, funded by the Inflation Reduction Act (IRA).

These funding sources together provide Ballard with a total potential funding of up to $94 million from the U.S. federal government.

Randy MacEwen, Ballard’s President and CEO, said, “We booked $64.5 million in new orders, increased our Order Backlog by 38%, announced total non-dilutive funding of $94 million for the planned build-out of our Rockwall Gigafactory, grew revenue by 9%, improved gross margin by 5 points, and reduced cash operating costs slightly while continuing to invest in next-generation products and product cost reduction.”

“I think with a $3 per kilogram production tax credit for clean hydrogen as that’s defined, you’re probably looking at around 50% of the cost of green hydrogen being subsidized. So, for us, we view this as a really significant enabler to the market,” MacEwen added.

The company reported a net loss of $48.9 million in Q4 2023, an increase of 77.17% YoY from a net loss of $42.9 million, as operational expenses surged.

Ballard Power Systems reported a net loss of $62.4 million (~$749,437) in Q3 2023, marking an increase of 46% YoY from a net loss of $42.9 million (~$515,238).

In January this year, Adani Enterprises signed an agreement to launch a pilot project to develop a hydrogen fuel cell electric truck with Ashok Leyland and Ballard Power. The collaboration marks Asia’s first planned hydrogen-powered mining truck, with FCET scheduled to be launched in India in 2023.