Ballard Power Systems Inc . (NASDAQ:BLDP), a leader in the design and manufacture of proton exchange membrane fuel cell products, announced today that it has received a substantial purchase order. The company is set to supply 200 fuel cell engines to New Flyer, a prominent North American bus manufacturer, as detailed in a recent SEC Form 6-K filing.
The agreement, outlined in the company's latest regulatory filing, marks a significant transaction for Ballard, which specializes in clean energy products for a variety of markets, including heavy-duty motive and portable power. This purchase order from New Flyer is a testament to Ballard's growing influence in the clean energy sector and its role in powering zero-emission public transportation.
Ballard's Chief Financial Officer, Kate Igbalode, signed off on the filing today, underscoring the company's commitment to expanding its footprint in the sustainable transportation space. The filing did not disclose the financial terms of the deal or the expected delivery dates for the fuel cell engines.
Ballard Power Systems, headquartered in Burnaby, Canada, operates globally, with the company's shares traded on NASDAQ. The recent filing continues to build on Ballard's reputation as a key player in the clean energy sector, particularly within the realm of heavy-duty transportation.
In other recent news, Ballard Power Systems secured a significant order from New Flyer for 200 fuel cell engines, marking a major development in the adoption of clean energy solutions. This order is part of a long-term agreement set in 2024 and is expected to power New Flyer's hydrogen fuel cell buses. The engines, representing about 20 megawatts of power, are scheduled for delivery in 2025.
In financial news, Ballard announced a major restructuring plan aimed at reducing operating costs by over 30%, following slower-than-expected market adoption of its products. In Q2, Ballard reported revenues of $16.1 million, falling short of the expected $18.9 million consensus, and an EBITDA loss of $35.4 million. Despite this, the management remains confident in achieving positive gross margins in the fourth quarter. Analyst firms including Roth/MKM, BMO Capital, and Lake Street Capital Markets have adjusted their outlook on Ballard.
Other recent developments include reconsideration of plans for a proposed gigafactory in Texas due to slow demand increase, the launch of the ninth-generation PEM fuel cell engine, the FCmove XD, and progress with Project Forge to scale graphite bipolar plate production. These updates provide a snapshot of recent developments for Ballard Power Systems.
InvestingPro Insights
While Ballard Power Systems Inc. (NASDAQ:BLDP) secures a significant purchase order for 200 fuel cell engines, InvestingPro data reveals a complex financial picture for the company. Despite the positive news, BLDP's market cap stands at $515 million, with the stock trading near its 52-week low. The company's revenue for the last twelve months as of Q2 2024 was $104.27 million, showing a substantial growth of 52.35% year-over-year. However, this growth hasn't translated into profitability, as evidenced by the negative gross profit of $23.57 million over the same period.
InvestingPro Tips highlight that BLDP holds more cash than debt on its balance sheet, which could provide some financial flexibility as it fulfills this new order. However, the company is also quickly burning through cash, which investors should monitor closely. The stock is currently trading at a low Price / Book multiple of 0.53, potentially indicating undervaluation, but this should be weighed against the company's negative earnings and cash flow trends.
For readers interested in a deeper analysis, InvestingPro offers 13 additional tips for BLDP, providing a more comprehensive view of the company's financial health and market position. These insights could be particularly valuable as Ballard Power Systems navigates the expanding clean energy market and works to capitalize on opportunities like the New Flyer order.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.