Yahoo Finance Ballard Power stock rises as new orders climb more than 100%
CEO Randy MacEwen says company is set up for a strong second half of 2023
Ballard Power Systems (BLDP.TO)(BLDP) shares climbed on Wednesday as the fuel cell-maker for buses, trucks, trains, and more told investors that its swelling order book will keep growing.
The Vancouver-based company, which keeps its books in U.S. dollars, reported second-quarter financial results before the opening bell. Ballard saw a net loss of US$30.1 million as revenue dropped across most of its heavy-duty mobility portfolio. However, the company boasted US$25.1 million in new orders in Q2, up from US$12.3 million in the same quarter last year.
"We believe Ballard is set up for a strong second half of 2023, with sequential quarterly revenue growth, and continued progress on our order book to support 2024 revenue," chief executive officer Randy MacEwen told analysts on a post-earnings conference call.
His tone marks a significant departure from this time last year, when he referenced an "uncertain macroeconomic environment" as the company pared back its investment plans.
Toronto-listed Ballard shares climbed 3.49 per cent to $6.52 as at 1:34 p.m. ET on Wednesday. The stock has been under pressure over the last 12 months, falling about 44 per cent.
Last week, Ballard announced a deal with Ford's (F) heavy commercial truck brand to work on a hydrogen fuel cell-powered vehicle prototype. MacEwen said on Wednesday that he sees the relationship with the Detroit automaker expanding far beyond the prototype stage.
“What we see at the conclusion of this project is Ballard being very well-positioned . . . to be a long-term supplier to Ford,” Ballard Power Systems CEO Randy MacEwen
"What we see at the conclusion of this project is Ballard being very well-positioned with this Ford relationship to be a long-term supplier to Ford," he said. "We have work to do, obviously, to validate that. But we are confident in our solutions."
Ballard also recently announced an order of 96 hydrogen fuel cell engines from European bus maker Solaris Bus & Coach, adding to the more than 110 Ballard-powered buses the company has deployed to date. MacEwen says he expects "material new orders for our bus customers over the next 12 months."
Ballard is intensifying its focus on the European and U.S. markets as it evaluates its future in China. The company is reviewing its previously announced plan to build a $130 million manufacturing facility at the Jiading Hydrogen Port, in one of China's leading automotive industry clusters.
On Wednesday, MacEwen reaffirmed Ballard's long-term commitment to that region.
"In my mind, it's not a question of if we have MEA (membrane electrode assembly) production in China, it's a question of when," he said. "It is the largest market for production and use of hydrogen today, and based on my recent visits there, I expect that to continue through 2030 and 2050."
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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