BLDP Stock Forecast & Price Target

Ballard Power Systems Inc. has demonstrated significant growth in its 12-month order book, increasing by 70% quarter-over-quarter, and a total backlog that rose by 41% during the same period. The company's management has raised the revenue estimate for 2025 by 4.5%, highlighting the strength of the Motive segment driven by robust demand and policy incentives across key regions, particularly bus and rail applications, which make up a substantial portion of their backlog. Additionally, management is actively pursuing a 30% reduction in operating expenses in 2025, supported by restructuring efforts and improvements in manufacturing efficiencies, which collectively enhance the company's fiscal health and outlook.

Ballard Power Systems Inc. reported a 4Q gross margin of -13%, which was worse than expectations and indicated a significant decline in gross margins for FY 2024, down 1100 basis points from the previous year due to low product volumes. The company's total revenue also experienced a sharp drop of 48% year-over-year, falling short of both internal and consensus estimates, further highlighting challenges in revenue generation. Additionally, the company is projected to face negative earnings per share, free cash flow, and EBITDA for the foreseeable future, compounded by accumulated operating losses and material debt, raising concerns about its financial stability and growth prospects.