Ballard Power Systems Inc. ( BLDP ) shares are trading lower on Thursday after the company reported third-quarter FY25 earnings results.

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Ballard Power ( BLDP ) reported a net loss from continuing operations of $28.1 million, or 9 cents per share, beating Wall Street expectations for a loss of 11 cents per share.

Revenue was $32.50 million, up 120% year over year (Y/Y) and above the $23.78 million analyst estimate.

Gross margin improved to 15%, up 71 points, driven partly by product cost reductions and lower onerous contract provisions.

Adjusted EBITDA loss narrowed to $31.2 million from $60.1 million a year ago, driven by higher gross margin, reduced cash operating costs, and lower impairment losses on receivables.

Cash Used by Operating Activities came in at $22.9 million, compared with $28.6 million in the prior year.

The company ended the quarter with $525.7 million in cash and cash equivalents.

Segment Performance

Heavy Duty Mobility revenue surged 83% Y/Y to $23.4 million, driven by strong bus and rail deliveries in North America and Europe. Bus revenue grew 39% Y/Y to $15.6 million, while rail revenue jumped to $7.4 million from $1.2 million last year.

Truck revenue declined 91% Y/Y to about zero, and marine revenue increased 184% Y/Y to $0.4 million; stationary revenue increased 651% Y/Y to $3.8 million; and emerging and other markets revenue surged 269% Y/Y to $5.3 million.

The order backlog was $132.8 million, down 9% from the second quarter, and the 12-month orderbook was $71.6 million, down 15% sequentially.

CEO Marty Neese said, “As we continue to enhance our cash flow, we expect to see gross margins continue to improve as pricing initiatives, additional product cost reductions, and initial sales of the FCmove-SC take effect. We also expect to develop previously untapped sources of revenue into 2027 with a focus on after-sales services coverage to support long-term sustainable growth.”

“For our global activities, we are no longer pursuing manufacturing expansion with a Texas Gigafactory due to U.S. federal funding changes and our view that we can meet expected volumes with existing installed capacity.”

Kate Igbalode, Ballard Senior VP and Chief Financial Officer, added, “We’ve achieved a 40% reduction in cash operating costs year over year and a 36% decrease in total operating expenses in the same period, a 55% reduction when excluding restructuring costs.”

Outlook

BLDP still expects 2025 revenue to be weighted toward the second half of the year.

The company lowered its capital expenditure outlook to $8 million–$12 million from the prior $15 million–$25 million range.

BLDP Price Action: Ballard Power Systems ( BLDP ) shares were down 9.48% at $3.10 at the time of publication on Thursday, according to Benzinga Pro data.

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