08:24 AM EST, 11/13/2025 (MT Newswires) -- Ballard Power Systems ( BLDP ) , which delivers fuel cell power, on Thursday narrowed its loss for the third quarter more than was expected on higher than expected revenues and said it continues to expect 2025 revenue will be back-half weighted.

For Q3, BLDP reported loss per share from continuing operations of US$0.09, narrowed from a loss of $0.68 in the year earlier period and beating a consensus forecast at FactSet for a loss of $0.11.

The company had Q3 2025 revenue of $32.5 million, up 120% YoY from $14.8 million, driven by bus and rail deliveries. It easily beat a consensus forecast of $24.7 million at FactSet for the latest quarter.

Among other highlights, BLDP cited a net order intake of $19.1 million and "significant" progress in cost reductions, including 40% reduction in Cash Operating Costs due to restructuring actions and 36% reduction in Total Operating Expenses, 55% reduction YoY when excluding restructuring charges. BLDP's Q3 ended with $525.7 million in cash and cash equivalents.

On 2025 outlook, BLDP said consistent with its past practice, and due to the early stage of hydrogen fuel cell market development, specific revenue and net income (loss) guidance for 2025 is not provided. The company continues to expect 2025 revenue will be back-half weighted. At this time, Total Operating Expense, excluding restructuring charges, is expected to be below the lower end of the guidance range. With restructuring charges included, Total Operating Expense is expected to be at the higher end of the guidance range. It cited a lower capital expenditure outlook range of $8-$12 million compared to previous estimate of $15-$25 million.

"Overall, we had a positive quarter, with year-over-year gains in revenue, gross margin expansion, significant progress in our cost reduction activities, and positive reception of our newest product, the FCmove-SC," said Marty Neese, President and CEO. "We are seeing sustained interest in bus, rail and material handling, as well as "green shoots" in stationary markets as more low carbon and renewable hydrogen projects pass final investment decision, a key enabler for fuel cell market growth."

Neese added: "In the quarter, deliveries to our bus and rail customers drove revenue of $32.5 million, up 120% year-over-year, and gross margins of 15% due in part by product cost reduction efforts and a net reduction in onerous contract provisions. We saw net order intake improve compared to the previous two quarters, to $19 million, driven by our largest marine order to eCap & Samskip. We are focusing on building out our order pipeline, though this is taking additional time as we work with customers to secure more sustainable terms in our contracts, delaying some orders to Q4 2025 or Q1 2026."

He continued: "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 aftersales services coverage to support long-term sustainable growth.

Mr. Neese added, "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." Mr. Neese concluded, "We continue to see hydrogen and fuel cells as essential to decarbonizing heavy-duty mobility and stationary power, and we remain committed to advancing our leadership in this sector. With $525.7 million in cash and cash equivalents, no bank debt, and no near-term financing requirements, Ballard is well positioned to support our customers and deliver on our long-term mission as we move forward with disciplined cost management."

BLDP fell 3.6% in Canada trade yesterday.