VANCOUVER - Ballard Power Systems (NASDAQ: NASDAQ:BLDP) (TSX: BLDP) has secured orders for 70 of its FCmove®-HD hydrogen fuel cell engines from Wrightbus, a UK-based bus manufacturer. The engines are slated for delivery in 2024, with the buses expected to be operational in the UK and Germany by 2025.
The purchase from Wrightbus represents a strengthening of the existing partnership between the two companies and supports the expansion of hydrogen-powered public transportation in Europe. Ballard's fuel cell engines will be used to power both single- and double-decker buses, contributing to the efforts to decarbonize public transport systems.
Oben Uluc, Ballard's Vice President of Sales & Marketing for the EMEA region, expressed satisfaction with the growing acceptance of fuel cell buses in Europe. He highlighted the advantages of this technology, including the ability to cover long distances, rapid refueling times, and the scalability of the necessary refueling infrastructure.
Ballard Power Systems specializes in proton exchange membrane (PEM) fuel cells, which are considered zero-emission and contribute to the electrification of various forms of mobility, such as buses, trucks, trains, marine vessels, and stationary power sources.
This order represents a step forward in the adoption of sustainable transportation solutions, as European transit operators increasingly look to hydrogen fuel cells as a viable option for reducing carbon emissions.
Information about this order is based on a press release statement from Ballard Power Systems.
InvestingPro Insights
As Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) celebrates the new order for its FCmove®-HD hydrogen fuel cell engines, investors and industry observers are closely watching the company's financial health and market performance. The latest data from InvestingPro provides a snapshot of Ballard's current standing in the market.
With a market capitalization of 834.81 million USD, Ballard Power Systems is navigating through challenging financial waters. The company's Price to Earnings (P/E) ratio stands at -4.66, reflecting investor skepticism about future profitability, especially considering the adjusted P/E ratio for the last twelve months as of Q4 2023 worsens to -6.37. This is in line with the company's revenue growth of 25.05% during the same period, which, despite being positive, is overshadowed by a gross profit margin of -21.33%, indicating that the company is not currently generating profit from its revenues.
InvestingPro Tips highlight that Ballard Power Systems is quickly burning through cash and suffers from weak gross profit margins. Additionally, the company's stock price is known for its volatility and is trading near its 52-week low, which could be a concern for risk-averse investors. However, on a more positive note, the company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, offering some financial stability in the short term.
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