Ballard Power Systems reported third‑quarter 2025 revenue of $32.5 million, a 120% year‑over‑year increase that far exceeded the $23.9 million consensus estimate. Gross margin expanded to 15%, up 71 basis points from 14.3% in the same quarter last year, while the company posted a net loss of $28.1 million on operating expenses of $34.9 million. Cash and cash equivalents stood at $525.7 million, giving the company a strong liquidity cushion and no debt obligations.
Revenue growth was driven almost entirely by the Heavy Duty Mobility segment, which generated $23.4 million—an 83% jump from $13.1 million in Q3 2024. Deliveries to bus and rail customers accounted for the bulk of the increase, and net order intake rose to $19.1 million, including a sizable marine order for eCap and Samskip. The launch of the FCMove®‑SC fuel‑cell engine at Busworld further bolstered demand, positioning Ballard as a competitive alternative to diesel in city transit fleets.
The 15% gross margin reflects a combination of product‑cost reductions, a net decrease in onerous contract provisions, and the impact of restructuring actions that began in 2024. Cash operating costs fell 40% and total operating expenses dropped 36% year‑over‑year, a 55% reduction when restructuring charges are excluded. These disciplined cost controls offset the higher revenue mix and helped the company move from a 14.3% margin in Q3 2024 to 15% in Q3 2025.
Net loss of $28.1 million translated to a GAAP EPS of –$0.09, beating the consensus of –$0.11 by $0.02. The beat was largely driven by the aggressive cost‑control program and the absence of large one‑time impairment charges that plagued the prior year. Management highlighted that the restructuring has already produced a 40% reduction in cash operating costs, a key factor in narrowing the loss.
Management reiterated its strategic focus on achieving positive cash flow by the end of 2027. CEO Marty Neese said the company is “seeing sustained interest in bus, rail and material handling, and green shoots in stationary markets as more low‑carbon projects reach final investment decision.” CFO Kate Igbalode noted that the pause in the Texas Gigafactory expansion is a deliberate response to changes in federal funding, and that existing capacity is sufficient to meet current demand. No new forward‑looking revenue guidance was issued, reflecting the company’s cautious stance amid a still‑maturing hydrogen market.
Market reaction was muted; the stock slipped 3.6% in Canadian trading on the day of the release. Analysts and investors cited the pause in the Texas Gigafactory and the lack of explicit revenue guidance as headwinds, even as the company’s strong earnings beat and margin expansion underscored its operational turnaround. The market’s cautious response highlights the importance of growth signals in a capital‑intensive industry.
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