Ballard Power: Strong Bookings Quarter But Prospects Remain Muted - Hold

(6min)

Summary

  • While Ballard Power Systems reported Q4 2024 results slightly below expectations, order intake surprised to the upside.
  • Total backlog increased by more than 40% on a quarter-over-quarter basis due to persistent strength in the company's bus vertical and a recent surge in rail orders.
  • However, management remained cautious on near-term industry prospects due to ongoing delays in hydrogen fuel cell adoption.
  • Even after recent cost reduction initiatives, Ballard Power Systems will continue to burn sizable amounts of cash. However, liquidity remains sufficient to carry the company into the next decade.
  • While BLDP stock trades at a 35% discount to its $600+ million cash position, investor sentiment is not likely to improve anytime soon. Reiterating "Hold" rating.
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A hydrogen fuel cell city bus concept

Scharfsinn86

I have covered Ballard Power Systems Inc. (NASDAQ:BLDP) (TSX:BLDP:CA) previously, so investors should view this as an update to my earlier articles on the company.

Ballard Power Systems Q4 Earnings Review

On Thursday, leading Canadian fuel cell systems developer

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This article was written by

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I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.

I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.

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