0001628280-26-017045
SEC filingBallard Power Systems reported a 43% revenue increase to $99.4M and a significantly reduced net loss of $90.9M, driven by higher Heavy-Duty Mobility sales and lower operating expenses following restructuring.
Ballard Power Systems Inc. reported a significant improvement in its financial performance for the fiscal year ended December 31, 2025, compared to the prior year. Total revenue reached $99.4 million, a 43% increase from $69.7 million in 2024. This growth was primarily fueled by the Heavy-Duty Mobility segment, which saw a 52% surge in revenue to $81.0 million, driven by higher sales of rail, bus, and marine fuel cell products. The Emerging and Other markets segment also contributed significantly, with revenue growing 184% to $10.2 million. These gains were partially offset by a 36% decline in Stationary segment revenue, which fell to $8.1 million.
Gross margin turned positive, reaching $5.5 million (5% of revenue), a substantial improvement from a negative gross margin of ($22.0) million (-32% of revenue) in 2024. This positive swing was attributed to a decline in onerous contract provisions, product cost reduction initiatives, and lower manufacturing overhead costs resulting from restructuring activities.
Net loss from continuing operations narrowed dramatically by 72% to $90.9 million, or ($0.30) per share, compared to a loss of $323.5 million, or ($1.08) per share, in 2024. The improvement was driven by higher revenue, improved gross margins, and a 35% reduction in total operating expenses, which fell to $108.9 million. The decrease in operating expenses was largely due to the global corporate restructurings initiated in July 2025 and September 2024, which included workforce reductions and program rationalization. These improvements were partially offset by $23.0 million in restructuring and related charges and a $4.6 million impairment charge to fully write down the equity investment in the Weichai Ballard JV.
As of December 31, 2025, Ballard maintained a strong liquidity position with cash and cash equivalents of $527.1 million, down from $603.9 million at the end of 2024. The company has no bank debt. Total assets were $682.4 million, compared to $777.3 million in the prior year. The decrease in cash was primarily driven by cash used in operating activities of $56.2 million, capital expenditures of $10.2 million, and long-term financial investments of $8.7 million.
Total equity stood at $589.9 million, a decrease from $673.0 million at the end of 2024, reflecting the net loss for the year. The company's liquidity objective is to maintain cash balances sufficient to fund at least six quarters of forecasted cash used by operating activities and contractual commitments. Management believes it has adequate liquidity to achieve this objective and is targeting a path to positive cash flow by year-end 2027.
Cash used in operating activities was $56.2 million in 2025, a significant improvement from the $108.1 million used in 2024. This improvement was driven by a lower net loss and favorable changes in working capital, including a $10.1 million decrease in inventory and a $6.0 million decrease in trade receivables. Investing activities used $20.9 million, primarily for capital expenditures ($10.2 million) and contributions to long-term investments ($8.7 million). Financing activities used $2.6 million, mainly for lease liability payments.
The company's capital allocation strategy remains focused on disciplined spending. Capital expenditures for 2025 were $10.2 million, and the outlook for 2026 is for a further reduction to between $5 million and $10 million. The company has committed to being a limited partner in several hydrogen infrastructure and growth equity funds, with remaining commitments of approximately $28.0 million as of year-end.
Management's outlook for 2026 reflects a continued focus on disciplined capital allocation and cost management. The company expects total operating expenses to be between $65 million and $75 million, a significant decrease from the $108.9 million reported in 2025. This is supported by a 12-month Order Book of approximately $53.9 million, derived from an Order Backlog of $119.3 million. Revenue in 2026 is expected to be back-half weighted.
The strategic realignment announced in July 2025 under new CEO Marty Neese is central to the company's forward view. Key elements include a structured plan to achieve positive cash flow by year-end 2027, a sharpened focus on markets and products with stronger commercial traction, and margin expansion initiatives. The company also highlighted the launch of its next-generation FCmove-SC fuel cell module, designed to lower lifecycle costs for transit buses.
Key risks to the outlook include potential restructuring expenses in excess of expectations, customer or program delays, adverse macroeconomic and political conditions, and changes in government subsidy programs. The company also noted the ongoing uncertainty in the hydrogen and fuel cell market, which may lead to further industry rationalization.
The company operates in a single reportable segment, Fuel Cell Products and Services. Geographically, revenue growth was strongest in North America, which increased 179% to $50.2 million, while revenue from Europe decreased 7% to $43.6 million. Revenue from China fell 41% to $1.5 million.
Significant non-recurring items impacting results included $23.0 million in restructuring charges related to the July 2025 strategic realignment and a $4.6 million impairment charge on the Weichai Ballard JV equity investment. The company also recorded a net positive impact of $6.0 million from inventory impairment and onerous contract provision adjustments. The company's long-term financial investments, which include holdings in hydrogen infrastructure funds, saw a net increase in fair value of $1.7 million.