Ballard Power (NASDAQ:BLDP) -4.8% pre-market after reporting a larger than expected Q1 GAAP loss while revenues rose 19% Y/Y to $21M, which nevertheless came in short of analyst consensus estimates.
Q1 adjusted EBITDA fell to negative $27.5M from negative $14M in the year-earlier quarter, as gross margin fell to negative 1% from positive 15%, driven by higher fixed overhead costs, a shift in revenue mix, and increased labor, supply, and freight expenses.
Q1 operating expenses and cash operating costs totaled $30.3M and $26.1M, up 69% and 82% respectively, due mostly to higher expenditure on research, technology and product development activities.
Q1 revenues by segment: Power Products +41% Y/Y to $13.3M, driven by higher shipments of fuel cell products; Technology Solutions -5% to $7.8M, due primarily to variance in timing of underlying program requirements; Heavy Duty flat at $6.9M, Stationary Power Generation +447% to $4.1M, supported by an increase in sales of stationary power generation fuel cell modules, stacks, products and service revenues.
Ballard's 12-month order book fell to $65.8M at the end of Q1 from $67.4M at the end of Q4 2021.
The company maintained full-year estimates for total operating expense of $140M-$160M and capital spending of $40M-$60M.
"While we expect compressed gross margin in the near-term, we are confident in margin expansion in the mid- to long-term driven by higher production volumes as customers transition from pilot projects to commercial deployment and as we continue to progress on our product cost reduction program," the company said.
Ballard Power Systems' (BLDP) stock price has slumped 37% YTD and 48% during the past year.