Ballard Power Systems has announced consolidated financial results for the first quarter (Q1) ended 31st March (2019).

“Q1 2019 results were consistent with our expectation for a softer start to the year,” said Randy MacEwen, President and CEO.

“We delivered revenue of $16m, gross margin of 14% and ending cash reserves of $165m. Together with the Weichai-Ballard JV agreement announced earlier today, our order book and sales pipeline support the company’s 2019 plan and growth in 2020. Importantly, in Q1 we made solid progress in the execution of our corporate growth strategy across key markets.”

Weichai-Ballard JV to support FCEV deployments in China

“We are seeing early signs of internal combustion engine disruption in heavy and medium duty motive applications, including in bus, commercial truck, rail and marine. We expect fuel cell electric vehicles to offer a compelling zero-emission value proposition for use cases requiring long range, rapid refuelling, heavy payload and route flexibility, and where the barriers to hydrogen refuelling infrastructure are lowered, such as centralised depot refuelling. We see growing interest in the key geographic markets of China, Europe and California.”

“Against a backdrop of positive policy developments in China during the quarter, we continue to execute our China strategy. We made important progress on our collaboration and joint venture with Weichai Power.”

“Our Weichai-Ballard joint venture is setting the stage for a valuable platform in the large China market. We expect additional policy developments in China to promote the adoption of hydrogen fuel cell electric vehicles.”

Total revenue for Q1 was $16m, a year-over-year decrease of 20% or $4.1m, primarily the result of lower shipments of membrane electrode assemblies to China and the divestiture of Power Management assets in October (2018).

Heavy Duty Motive revenue was $2.6m, a decrease of 72% of $6.7m, due primarily to lower shipments of MEAs to China.

Revenue from the Portable Power/AUV market was $0.1m, a decrease of 94%, Material Handling revenue was $3.2m, an increase of 676% and Backup Power revenue was $0.4m, an increase of 43%.

The Technology Solutions platform generated revenue of $9.7m in the quarter, an increase of 25%.

During Q1 Ballard received $9.6m in new orders and delivered orders valued at $16m, thereby lowering the order backlog by $6.4m from the prior quarter, ending Q1 at $188.4m.