Ballard Power Systems Inc ( BLDP ) shares are trading lower after it reported the fourth-quarter FY23 results.

The company reported fourth-quarter sales growth of 132% year-on-year to $46.80 million, beating the analyst consensus estimate of $34.07 million.

Heavy-Duty Mobility revenue increased 219% to $29 million and Stationary grew 105% to $12.8 million.

Total operating expenses for the quarter totaled $35 million, a 16% increase Y/Y.

Adjusted EBITDA3 was $(44.1) million, compared to $(40.1) million a year ago, primarily due to a higher gross margin loss driven by inventory impairment charges.

Order backlog at the end of 2023 was $130.5 million, down 3% compared to the end of third quarter. 

Cash used in operating activities totaled $(18.3) million compared to $(21.2) million last year.

EPS of $(0.16) missed the consensus estimate of $(0.13).

Ballard held $751.1 million in cash and equivalents as of December 31, 2023.

Outlook: Ballard sees FY24 operating expenses of $145 million – $165 million. It expects FY24 capital expenditure of $50 million – $70 million.

Price Action: BLDP shares are trading lower by 7.59% at $3.05 on the last check Monday.