Ballard Power Systems Q2 2023: Revenue Drops but Order Backlog Soars Amidst Hydrogen Policy Landscape

By August 9, 2023 6   min read  (954 words)

August 9, 2023 |

Ballard New Financial

VANCOUVER, BC– Ballard Power Systems today announced consolidated financial results for the second quarter ended June 30, 2023. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).


ballard power systems q2 2023 revenue drops but order backlog soars amidst hydrogen policy landscape

Ballard Power Systems Q2 Results Summary Table (CNW Group/Ballard Power Systems Inc.)

“We are making important progress on our strategic priorities as communicated at our 2023 Capital Markets Day. During Q2, we grew our order book, invested in next-generation fuel cell products, and continued to drive our product cost reduction programs,” said Randy MacEwen, President and CEO. “We continue to see growing customer interest across our market verticals, which is reflected in $25.1 million of new orders in Q2 and a growing sales pipeline. Importantly, our Power Products backlog is now up over 140% compared to the prior year period. We are particularly excited by the growing customer engagement levels in the US and European markets.”

“As a result of the increasingly constructive hydrogen policy landscape and increased market activity in the US and EU, and given the continued hydrogen and fuel cell policy uncertainties and market delays in China, we are accelerating our work on our “local for local” global manufacturing plan and related future capital allocation plans. Specifically, we are reevaluating our previously announced MEA localization plan in China pending completion of a comparative analysis on manufacturing capacity expansion options and possible sequencing prioritization in the US and/or EU markets. We expect to conclude this work in early 2024,” explained Mr. MacEwen.

“We continue to track to our full-year guidance ranges for operating and capital expenses. Our investments prioritize technology and product development programs, product cost reduction initiatives, customer platform wins, customer experience, and advanced manufacturing,” Mr. MacEwen added.

“We expect a busy second half of 2023, with sequential quarterly revenue growth as compared to first half quarters, along with continued progress on our order book to support 2024 revenue growth,” Mr. MacEwen concluded.

Q2 2023 Financial Highlights
(all comparisons are to Q2 2022 unless otherwise noted) 

  • Total revenue was $15.3 million in the quarter, down 27% year-over-year.
    • Heavy Duty Mobility revenue of $8.5 million decreased 39%, driven primarily by lower revenues from our bus, truck, and rail verticals, partially offset by higher marine revenue.
    • Stationary revenue of $3.5 million decreased 6% due primarily to lower sales of stationary power generation fuel cell modules, stacks, products, and services in Europe, partially offset by higher stationary revenues in North America.
    • Emerging and Other Markets revenue of $3.3 million was flat compared to the prior year, with higher revenues in North America mitigating lower shipments to Europe.
  • Gross margin was (21)% in the quarter, a decrease of 10-points, driven by a combination of a greater weight of power products in the revenue mix, pricing strategy, increased investment in manufacturing capacity, increases in supply and labor costs, and inventory adjustments.
  • Total Operating Expenses and Cash Operating Costs3 were $37.5 million and $32.9 million, respectively, a decrease of 3% and increase of 3%, respectively, from Q2 2022. Increases were driven primarily by higher expenditures on research, technology and product development activities, and general and administrative expenses.
  • Adjusted EBITDA3 was ($35.9) million, compared to ($35.0) million in Q2 2022, primarily as a result of the decrease in gross margin and increase in Cash Operating Costs.
  • Ballard received approximately $25.1 million of new orders in Q2, and delivered orders valued at $15.3 million, resulting in an Order Backlog of approximately $147.5 million at the end of Q2. Order Backlog growth was driven predominantly by increased orders from North America in the bus, rail, and emerging markets verticals. Backlog from customers in Europe and North America now represent close to 80% of the total backlog. Additionally, Power Products backlog increased further in Q2, and is now up over 140% compared to the prior year period.
  • The 12-month Order Book was $85.9 million at end-Q2, an increase of $12.0 million from the end of Q1 2023, an approximately 16% quarter over quarter increase.

Order Backlog ($M) Order Backlog
at End-Q1 2023
Orders Received
in Q2 2023
Orders Delivered
in Q2 2023
Order Backlog
at End-Q2 2023
Total Fuel Cell
Products & Services
$137.7 $25.1 $15.3 $147.5

2023 Outlook

In 2023, we maintain our guidance ranges for Total Operating Expense3 and Capital Expenditure4 as follows:

2023 Guidance
Total Operating Expense3 $135 – $155 million
Capital Expenditure4 $40 – $60 million

Q2 2023 Financial Summary

(Millions of U.S. dollars)  Three months ended June 30
2023 2022 % Change
Fuel Cell Products & Services:1
Heavy-Duty Mobility $8.5 $13.9 (39 %)
     Bus $6.0 $9.0 (33 %)
     Truck $1.0 $3.1 (68 %)
     Rail $1.1 $1.7 (38 %)
     Marine $0.4 $0.0 1,974 %
Stationary $3.5 $3.8 (6 %)
Emerging and Other Markets $3.3 $3.3 – %
Total Fuel Cell Products & Services Revenue $15.3 $20.9 (27) %
Gross Margin $ ($3.2) $(2.2) (45 %)
Gross Margin % (21 %) (11 %) (10)pts
Total Operating Expenses $37.5 $38.5 (3 %)
Cash Operating Costs2 $32.9 $32.1 3 %
Equity loss in JV & Associates ($0.9) ($1.6) 44 %
Adjusted EBITDA3 ($35.9) ($35.0) (3 %)
Net Loss ($30.1) ($55.8) 46 %
Loss Per Share ($0.10) ($0.19) 47 %
Cash provided by (used in) Operating Activities:
Cash Operating Loss ($23.9) ($34.3) 30 %
Working Capital Changes ($3.8) ($4.7) 19 %
   Cash used by Operating Activities ($27.7) ($39.0) 29 %
Cash and cash equivalents $815.1 $1,002.6 (19 %)

For a more detailed discussion of Ballard Power Systems’ second quarter 2023 results, please see the company’s financial statements and management’s discussion & analysis, which are available at and

Conference Call

Ballard will hold a conference call on Wednesday, August 9, 2023 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review second quarter 2023 operating results. The live call can be accessed by dialing +1.604.638.5340. Alternatively, a live audio and webcast can be accessed through a link on Ballard’s homepage ( Following the call, the audio webcast and presentation materials will be archived in the ‘Earnings, Interviews & Presentations’ area of the ‘Investors’ section of Ballard’s website (

About Ballard Power Systems

Ballard Power Systems’ (NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, and stationary power. To learn more about Ballard, please visit



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