Ballard Power (BLDP) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, March 12, 2026 astatine 11:12 AM CDT 24 min read

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Thursday, March 12, 2026 astatine 11 a.m. ET

• Chief Executive Officer — Marty Neese

• Chief Financial Officer — Kate Igbalode

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Marty Neese: Thank you, Sumit, and bully morning, everyone. Today, I volition reappraisal 4th fourth and afloat twelvemonth results. Additionally, I would similar to locomotion you done the structural changes underway astatine Ballard Power Systems Inc. and the foundations we are laying and gathering towards sustained affirmative currency travel implicit the adjacent 2 years. Let maine statesman with past year's performance. I americium pleased with our results successful Q4 and crossed the afloat year. In 2025, we delivered grounds motor shipments, approaching 800 engines and much than 75 megawatts of power. That represents 38% maturation successful megawatts shipped compared to 2024. The bulk of these shipments were into Europe and North America, with peculiarly beardown enactment successful Canada.

These shipments translated into afloat twelvemonth gross of $99 million-plus, up 43% twelvemonth implicit year. We besides secured our largest marine bid to date, a 6.4-megawatt grant from ECAP Marine and Samskip, and connected Tuesday, announced our largest commercialized statement with New Flyer of 50 megawatts. But the existent displacement successful 2025 was not conscionable growth. It was structural advancement toward our extremity of becoming currency travel affirmative wrong the adjacent 2 years. We person made decisive changes to align our outgo operation with marketplace realities and presumption Ballard Power Systems Inc. for durable, sustainable performance. We reduced our currency operating costs successful Q4 by 41% compared to the aforesaid play past year, fundamentally resetting our outgo base.

We are present seeing the fiscal interaction of that reset. In Q4, we achieved a affirmative 17% gross borderline and a affirmative 5% for the afloat year, some representing meaningful betterment twelvemonth implicit year. While quarterly show is not yet ratable owed to seasonality, the borderline illustration of the concern is strengthening and is foundational for america to execute our profitability goals. Most notably successful Q4, we generated $11 cardinal successful currency travel from operating activities, which underscores our structural actions are working, and we are making measurable advancement towards our profitability targets. With important improvements successful our outgo operation and operating discipline, the adjacent signifier is clear: expanding gross and gross margins.

Our program centers connected 5 near-term absorption areas: improving commercialized terms, merchandise outgo reductions, enhanced fleet work offerings, expanding merchandise reach, and concern exemplary innovations. Let maine concisely interaction connected each. First, commercialized terms. Throughout 2025, we strengthened our commercialized foundation. Our newer agreements bespeak much broad pricing structures and balanced commercialized terms, including protections against tariff exposure, speech rates, inflation, and precious metallic volatility. These changes amended transparency with our customers, heighten borderline visibility, trim net variability, and enactment stronger semipermanent partnerships. Our customers person been constructive successful these discussions arsenic they are navigating akin outgo pressures with their customers. In immoderate cases, finalizing these improved structures has shifted definite bid announcements into 2026.