Ballard Power Systems, a fuel cell manufacturer, announced a net loss of $62.4 million in the third quarter of 2023, representing a 46% YoY increase from the previous year's net loss of $42.9 million. This uptick in net loss is primarily attributed to the proposed restructuring of operations at Ballard Motive Solutions, resulting in non-cash impairment charges of $26.3 million for goodwill and intangible assets recognised during the quarter.
The company also reported revenue of $27.6 million, marking a 29% YoY increase from $21.3 million. The heavy-duty mobility segment, driven by higher revenues from the rail and marine sectors, contributed $21.1 million, showing a YoY increase of 67%.
During the third quarter, Ballard secured new orders worth $14.8 million and delivered orders totalling $27.6 million, resulting in an order backlog of $134.6 million by the end of the quarter. The majority of these orders came from customers in Europe and North America, with power products accounting for nearly 80% of the total order backlog.
The company recorded earnings before interest, taxes, depreciation, and amortisation loss of $36.2 million, reflecting a 3% YoY increase from the previous year, primarily due to a higher loss associated with the Weichai Ballard joint venture and increased cash operating costs.
President and CEO Randy MacEwen stated, "In Q3, we achieved substantial revenue growth, with shipments to our core mobility markets significantly improving both annually and sequentially. Power products generated nearly 80% of total revenues in the quarter, aligning with the consistent rise in product revenues as a proportion of our total order backlog."
In the second quarter, Ballard Power Systems reported a net loss of $30.1 million, marking a 46% YoY decrease from the previous year's net loss of $55.8 million, as new orders saw a significant surge.
In January of the same year, Adani Enterprises entered into an agreement to launch a pilot project for developing a hydrogen fuel cell electric truck in collaboration with Ashok Leyland and Ballard Power. This partnership represents Asia's first planned hydrogen-powered mining truck, with the FCET expected to be launched in India in 2023.
