Ballard Power Systems has released its consolidated financial results for the second quarter (Q2) ended 30th June 2019.
Commenting on the results, Randy MacEwen, President and CEO of Ballard said, “We are seeing unprecedented developments and interest in fuel cell electric mobility, as reflected in our growing order book.”
“Financial results and new contract bookings for Q2 and year-to-date were consistent with the type of first half to the year we had expected. Ballard delivered Q2 revenue of $23.7m, gross margin of 23%, Adjusted EBITDA of ($5.0) million and ending cash reserves of $163.7m.”
“During Q2 we announced two notable developments that support our business plan. First was a $44m order from the Weichai-Ballard joint venture in China. Second was our announcement that Ballard is a member in the new H2Bus Consortium, with plans to deploy 1,000 fuel cell electric buses in European cities by 2023.”
“The global megatrend toward electrification of mobility is accelerating and putting increased momentum behind fuel cell-based power for motive applications. There are clear signals that the hydrogen and fuel cell industry is at an exciting stage in its evolution.”
“As we reiterate our full-year 2019 outlook, we also note our expectations for strong growth in 2020 and beyond to underpin Ballard’s continued leadership in powering fuel cell electric vehicles.”
Revenue for the quarter was $23.7m, down 11% on a year-on-year basis, reflecting significantly lower Heavy-Duty Motive and Portable Power/UAV revenues, partially offset by increase in Technology Solutions and Power Handling.
The Power Products platform generated revenue of $9.9m, a decrease of 44%.
Heavy Duty Motive revenue was $6.5m, a decrease of 52% primarily due to lower year-on-year membrane electrode assembly (MEA) shipments to Synergy-Ballard JVCo.
The Portable Power/UAV business generated $0.2m, a decrease of 90% as a result of lower revenues generates by Protonex primarily due to the disposition of Power Management asset in Q4 (2018).
Material Handling revenue was $2.8m, an increase of 61% primarily due to higher stack shipments to Plug Power, combined with the impact of a higher average selling price due to product mix.
Telecom Backup Power revenue was $0.4m, a decrease of 8% due primarily to a minor decline in hydrogen-based backup power product and service revenues in Europe and Japan.
The Technology Solutions platform generated revenue of $13.8m, an increase of 61% due primarily to amounts from the Weichai Ballard Hy-Energy Technologies Co., Ltd.
During Q2 Ballard received $46.8m in new orders and delivered orders valued at $23.7m, increasing Order Backlog to $211.6m at end-Q2, from $188.4m in to prior quarter.