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

Ballard Power Systems (NASDAQ:BLDP) (TSE:BLD) announced its quarterly earnings results on Friday. The technology company reported ($0.07) EPS for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.03), Zacks reports. Ballard Power Systems had a negative return on equity of 13.48% and a negative net margin of 78.60%.

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 Trading Down 4.3%

Shares of Ballard Power Systems stock traded down $0.12 during midday trading on Friday, reaching $2.67. 7,854,393 shares of the company’s stock traded hands, compared to its average volume of 5,993,535. The stock has a 50 day moving average of $4.07 and a 200-day moving average of $3.24. Ballard Power Systems has a 12 month low of $1.70 and a 12 month high of $6.57. The company has a market cap 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.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in BLDP. Legal & General Group Plc raised its holdings in Ballard Power Systems by 2.5% in the 3rd quarter. Legal & General Group Plc now owns 13,459,729 shares of the technology company’s stock worth $36,486,000 after purchasing an additional 326,505 shares in the last quarter. Two Sigma Investments LP boosted its stake in shares of Ballard Power Systems by 11.7% during the 3rd quarter. Two Sigma Investments LP now owns 6,282,641 shares of the technology company’s stock valued at $17,089,000 after purchasing an additional 657,107 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Ballard Power Systems by 48.6% during the 4th quarter. Invesco Ltd. now owns 4,968,824 shares of the technology company’s stock valued at $12,621,000 after purchasing an additional 1,625,542 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of Ballard Power Systems by 20.3% during the first quarter. Goldman Sachs Group Inc. now owns 4,916,541 shares of the technology company’s stock valued at $5,408,000 after buying an additional 829,012 shares during the period. Finally, CANADA LIFE ASSURANCE Co increased its position in shares of Ballard Power Systems by 1.7% during the third quarter. CANADA LIFE ASSURANCE Co now owns 2,766,262 shares of the technology company’s stock valued at $7,580,000 after buying an additional 45,379 shares during the period. 28.02% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on BLDP. TD Cowen raised their target price on shares of Ballard Power Systems from $2.50 to $4.25 and gave the stock a “hold” rating in a report on Wednesday, May 6th. Raymond James Financial increased their price target on shares of Ballard Power Systems from $2.40 to $4.00 and gave the company a “market perform” rating in a research report on Wednesday, May 6th. 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 report on Friday, July 10th. BMO Capital Markets boosted their price objective on shares of Ballard Power Systems from $1.70 to $2.10 and gave the company an “underperform” rating in a research report on Wednesday, May 6th. Finally, Lake Street Capital raised shares of Ballard Power Systems from a “hold” rating to a “buy” rating and upped their price objective for the company from $3.00 to $5.00 in a research note on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, ten have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $3.52.

Ballard Power Systems Company Profile

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.