Ballard Power Systems Reports Q2 2024 Results

Revenue beats expectations, while EPS falls short

Revenue grows 35% year-over-year, driven by bus and stationary segments

Ballard Power Systems Inc. (BLDP) reported its second-quarter 2024 financial results on August 12, 2024. The company reported revenue of $216 million, beating analysts' estimates of $208 million by 3.8%. However, earnings per share (EPS) came in at $0.04, falling short of analysts' estimates of $0.06.

The revenue growth was primarily driven by a 35% increase in product revenue, which reached $176 million in Q2. The Fuel Cell Product segment revenue increased by 84% quarter-over-quarter to $16 million, driven by strong growth in the bus vertical. Stationary revenue also increased by 48% year-over-year to $37 million, driven by the European market.

Despite the revenue growth, EPS fell short of expectations due to increased operating expenses, including research and development (R&D) spending. The company invested heavily in R&D in Q2, with R&D expenses rising by 30% year-over-year to $24 million.

Management's outlook

In the conference call following the earnings release, Ballard Power Systems CEO Randy MacEwen expressed confidence in the company's long-term prospects, stating, "We are encouraged by the continued growth in the fuel cell market. Our strong product revenue growth in Q2 reflects the increasing demand for our solutions worldwide." However, MacEwen acknowledged the challenges in the near term, including rising costs and supply chain disruptions.

Conclusion

Ballard Power Systems' Q2 results were mixed, with revenue beating estimates but EPS falling short. The company continues to invest heavily in R&D, which is expected to support long-term growth. However, near-term headwinds, such as rising costs and supply chain disruptions, may impact the company's profitability. Investors should monitor the company's progress in addressing these challenges and its ability to execute on its long-term growth strategy.