Ballard Power Systems Inc. ( BLDP ) shares are trading higher on Thursday after the company reported upbeat fourth-quarter results.

Earnings Snapshot

The company reported a loss per share of 6 cents, beating the consensus of a loss of 8 cents per share.

Revenue was $33.6 million, above the $31.21 million analyst estimate.

Gross margin improved 30 basis points to 17% in the quarter. This was aided by lower onerous contract provisions, product cost reduction initiatives, and a decline in manufacturing overhead costs.

Adjusted EBITDA was a loss of $11.6 million, versus a $36 million loss on improved margins and lower costs.

Operating cash flow stood at $11.4 million, compared with cash used in operating activities of $24.4 million.

The company ended the year with $527.1 million in cash and cash equivalents.

Segment Performance

Heavy Duty Mobility revenue rose 70% Y/Y to $28.6 million on higher bus and rail deliveries. Bus revenue remained flat Y/Y to $13.1 million.Rail revenue increased sharply to $10.8 million from $1.1 million a year ago.

Truck revenue escalated 112% Y/Y to $1.3 million, and marine revenue increased 68% Y/Y to $3.4 million.

Meanwhile, stationary revenue dropped 54% Y/Y to $3.2 million and emerging and other markets revenue increased 138% Y/Y to $1.8 million.

The order backlog at the end of the year was $119.3 million. Deliveries in the quarter rose 37% Y/Y, led by continued higher demand for the Power Products portfolio.

Management Commentary

Marty Neese, Ballard’s President and CEO, said, ”This result was driven by nearly 40% year-over-year growth in megawatts delivered, reaching almost 800 engines, continuing our upward delivery growth trajectory and setting a new production record for Ballard.”

Neese added, “We also continue to work with our partners to develop competitive stationary power solutions which include primary power and backup offerings.”

”Our continued innovation on lower cost and advanced manufacturing, showcased most recently with our newly launched FCmove®-SC product and continued momentum with our Project Forge manufacturing process, offer a path to further expand margins.”

Outlook: The company continues to expect revenue for 2025 to be back-half weighted.

BLDP Price Action: Ballard Power Systems ( BLDP ) shares were up 16.85% at $2.51 at the time of publication on Thursday, according to Benzinga Pro data.