Despite shipping a record number of fuel cell engines in 2024, Ballard Power Systems saw revenues slump by 32% amid a downturn in hydrogen project development.
The Canadian firm’s revenues fell by 20% across its heavy-duty mobility segment, with rail seeing the biggest loss of 86%. This was followed by Trucks at 66% and marine losing 61%.
Buses, however, saw a significant increase of 51% to $44.2m over the year.
The company’s stationary and emerging markets were also hit with 41% and 74% falls respectively.
That’s despite Ballard shipping “record” fuel cell engines in 2024, representing 56MW of power – almost 30% up on 2023.
It also now sits on a “record” order backlog of $173.5m, thanks to $98.9m of orders in 2024. Its power products account for 98% of the backlog.
The results come as the company grapples with wider market challenges, which President and CEO, Randy MacEwen, said are characterised in a “multi-year pushout” in hydrogen project development and fuel cell deployment.
“With this backdrop, compounded by a difficult funding environment, an industry rationalisation is underway,” he added.”
However, Ballard was able to make some progress. Its Q4 cash operating costs decreased by 6% year-on-year, as a result of its restructuring launched in September.
The plan set out job cuts, streamlining operations and halting Chinese investments to save over 30% in spending as the hydrogen market slows down.
“We will continue to closely monitor factors impacting the commercial adoption of our markets and products, and reassess our investment plans, cost structure and cash usage based on these factors,” MacEwen said.
The CEO also pointed to Ballard’s $603.9m in cash reserves – down 20% from 2023 – no bank debt and lack of mid-term financing requirements.
Resilience tested: Ballard’s restructure to survive the hydrogen slowdown
Canadian fuel cell maker Ballard Power Systems’ biggest challenge this past year has been advancing its technology while securing commercial traction in a turbulent hydrogen market, says its President and CEO.
Randy MacEwen told H2 View that prolonged policy uncertainty, unpredictable election cycles, and funding constraints had “tested the resilience” of the hydrogen and fuel cell industry.
Compounding those factors, the Ballard President and CEO said investors “largely withdrew” from hydrogen, which led to liquidity constraints and “restricted access” to new capital.
Ballard’s leadership in hydrogen fuel cells stems from its 45-year history, performance, and deployment track record. In fact, despite a testing 2024, its total module deliveries grew by 29% in 2024 to 669.
Over the past five years, the company has further diversified its applications, adding to its mainstay focus of hydrogen buses. It has powered the first liquid hydrogen ferry in Norway and expanded sales for hydrogen trains and mining trucks.
To date, it claims to have invested over $1.5bn in fuel cell technology R&D and has produced over 1GW of PEM fuel cell products. That growth paved the way for the firm to secure over $94m in US federal funding to develop a 3GW hydrogen fuel cell factory in Texas.
But the harsh reality of the clean hydrogen sector hit the manufacturer – forcing it to implement tough financial measures to weather the storm of uncertainty…
