Q2 2024 Ballard Power Systems Inc Earnings Call Transcript
Key Points
- Ballard Power Systems Inc (BLDP) launched its ninth generation PEM fuel cell engine, the FCmove XD, which offers significant performance improvements and cost reductions.
- The company is making progress on Project Forge, aimed at scaling graphite bipolar plate production by approximately 10 times and reducing costs by up to 70%.
- Ballard Power Systems Inc (BLDP) announced a strategic technology partnership with Vertiv to explore fuel cell backup power solutions for data centers, showing promising initial results.
- Revenue from the bus vertical grew by 84% quarter-over-quarter, indicating strong market demand in this segment.
- The company maintains a strong balance sheet with $678 million in cash and cash equivalents, providing financial stability for future investments.
- Q2 net order intake was soft at $5 million, with certain customers deferring new orders, indicating potential volatility in future revenue.
- Gross margin was negative 32%, an 11-point decrease compared to Q2 of 2023, primarily due to a shift in revenue mix and fixed production overhead costs.
- The timeline for market adoption of hydrogen fuel cells is moving to the right, with delays in contract awards and policy uncertainties in key markets like the US, Europe, and China.
- Capital expenditures guidance for the year has been reduced to $25 million to $40 million from $50 million to $70 million, reflecting cautious investment in light of market conditions.
- The proposed production facility in Texas is still under assessment, with a final investment decision delayed to later in 2024, adding uncertainty to future production capabilities.
Thank you for standing by. This is the conference operator. Welcome to the Ballard Power Systems second quarter 2024 results conference call. (Operator Instructions).
I would now like to turn the conference over to Kate Igbalode, Vice President, Investor Relations. Please go ahead.
Thank you, operator, and good morning. Welcome to Ballard's second quarter financial and operating results conference call. With us on today's call are Randy MacEwen, Ballard's CEO; and Paul Dobson, Chief Financial Officer. We will be making forward-looking statements that are based on management's current expectations, beliefs and assumptions concerning future events. Actual results could be materially different. Please refer to our most recent annual information form and other public filings for our complete disclaimer and related information.
I'll now turn the call over to Randy.
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