Ballard Power Systems announced consolidated financial results for the fourth quarter and the full year ended December 31, 2025.

Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial results for the fourth quarter and year ended December 31, 2025. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

Highlights:

Strong Q4 performance with revenue up 37% from Q4 2024, and full-year revenue reaching $99.4M, up 43% year over year (YoY), driven by record breaking annual engine deliveries.

Significant improvement in cost structure leading to a 17% gross margin in the quarter, a 30-point improvement YoY, and 5% gross margin for the full year, a 37-point improvement from 2024.

Cash operating costs1 for the quarter were reduced by 41% compared to the same period in 2024.

Recorded positive cash flow from operating activities in Q4, the highest value in the last 10 years, underscoring structural actions.

"2025 marked a turning point for Ballard and I'm energized by the progress our team delivered," said Marty Neese, Ballard's President and CEO. "We exited the year with strong operational execution, improved financial performance, and a more commercially disciplined foundation that positions us for sustainable growth. Q4 revenue reached $33.6 million, bringing our full year total to $99.4 million. We saw gross margins improve to 17% for the quarter and achieved positive 5% for the full year, marking significant improvements from 2024. This result was driven by nearly 40% year-over-year growth in megawatts delivered, reaching almost 800 engines, continuing our upward delivery growth trajectory and setting a new production record for Ballard." He added, "We also marked a significant agreement after the quarter with our largest recorded commitment from New Flyer for 50 MW of fuel cell engines."

Mr. Neese continued, "We have made meaningful progress on right-sizing our cost structure and it shows in our results. Cash operating costs in the quarter were reduced by 41% year-over-year, full-year cash operating costs decreased 32% from 2024, and our cash reserves increased from the previous quarter. In short, Ballard is becoming a more efficient, more focused, and more resilient company, on a pathway to sustained profitability."

"With our corporate costs well managed, we are now focused on driving revenue growth and margin expansion. Building on a foundation of thousands of fuel cells operating in the field and more than 250 million kilometers of real-world experience, we are uniquely positioned to deliver higher-value fleet services - including training, technical support, parts supply, operational monitoring, digital performance insights, and ongoing stack servicing. For our customers, this means a more reliable, optimized fleet. For Ballard, it creates a recurring revenue stream that extends well beyond the initial product delivery." Mr. Neese added, "We are actively re-engaging the materials handling market where the industry leading durability of our products is a key differentiator. We also continue to work with our partners to develop competitive stationary power solutions which include primary power and backup offerings. Our continued innovation on lower cost and advanced manufacturing, showcased most recently with our newly launched FCmove®-SC product and continued momentum with our Project Forge manufacturing process, offer a path to further expand margins."

"Commercially, we used 2025 to strengthen key customer relationships. As expected, these discussions have resulted in delays in some orders. However, the time we are investing will ensure these commercial relationships include comprehensive pricing and a balanced risk-sharing structure around tariffs, exchange rates, precious-metal pricing, and inflation. These steps increase transparency with our customers while improving our business fundamentals," added Mr. Neese.

He concluded, "As we look ahead, we are focused on building a business with consistent performance, disciplined spending, and a path to profitability. We are committed to delivering value for our customers and shareholders by scaling our products, reducing costs, and strengthening our commercial foundation. With a more stable cost structure, improving margins, and a growing commercial pipeline, Ballard is entering its next chapter with confidence and momentum."

Q4 2025 Financial Highlights

(all comparisons are to Q4 2024 unless otherwise noted)

Total revenue was $33.6 million in the quarter, up 37% year-over-year.

Heavy Duty Mobility revenue of $28.6 million, 70% higher year-over-year, driven primarily by bus and rail revenues, the latter of which grew 892% to $10.8 million.

Stationary revenue was $3.2 million, (54% lower year-over-year), and Emerging and Other Markets revenue was $1.8 million or 138% higher compared to Q4 2024.

Gross margin was 17% in the quarter, an improvement of 30-points. The improvement in gross margin compared to Q4 2024 is due primarily to a decline in onerous contract provisions, product cost reduction initiatives, and lower manufacturing overhead costs as a result of the global corporate restructurings which included a reduction in workforce and certain operational consolidation.

Total Operating Expenses2 and Cash Operating Costs1 were $16.9 million and $16.1 million, respectively, a decrease of 49% and 41%, respectively, from Q4 2024 as a result of reduced cost structure from restructuring activities.

Cash Provided by (Used in) Operating Activities was $11.4 million, compared to ($24.4) million in the prior year quarter. Cash and cash equivalents were $527.1 million at the end of 2025, compared to $603.9 million at the end of 2024.

Adjusted EBITDA1 was (11.6) million, compared to ($36.0) million in Q4 2024. The decrease in Adjusted EBITDA loss was driven primarily by the improvement in gross margin and by lower Cash Operating Costs1

Order Backlog at the end of 2025 was $119.3 million, reflecting strong Q4 shipment activity and solid new order intake of $20.1 million. Fourth-quarter deliveries grew 37%YoY, driven by continued demand for our Power Products portfolio, which now represents more than 99% of our backlog.

The 12-month Orderbook was $53.9 million at end-Q4, a decrease of $17.7 million or approximately 25%, from the end of Q3 2025 as we delivered a significant volume of fuel cell products in Q4.

2026 Outlook

Consistent with our past practice, and in view of the early stage of hydrogen fuel cell market development, specific revenue or net income (loss) guidance for 2026 is not provided. We expect revenue in 2026 will be back-half weighted. 

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