The following is a summary of the Ballard Power Systems Inc. (BLDP) Q1 2024 Earnings Call Transcript:
Financial Performance:
Ballard Power Systems reported a record order intake of $64.5 million in Q1 2024, bringing the total new bookings to approximately $130 million over the previous two quarters.
The company saw an increase in their backlog by 38%.
Revenue grew by 9% and gross margin improved by 5 points.
The company delivered $14.5 million in revenue in Q1, mostly due to strong growth in the bus and stationary markets.
Cash and cash equivalents at the end of quarter stood at over $720 million.
Their financials show a consistent cash burn rate of approximately $20 million per quarter due to operational costs.
Business Progress:
Ballard announced the largest order in its history: a multiyear supply agreement for 1,000 fuel cell engines to Solaris for the European bus market through to 2027.
The company also secured an order for 150 engines totaling 15 megawatts of fuel cell systems from a UK-based customer specializing in renewable off-grid power generation.
Ballard revealed plans for a new manufacturing facility in Rockwall, Texas with capacity for 8 million MEAs, bipolar plates, 20,000 fuel cell stacks and 20,000 fuel cell engines per year.
The new facility is expected to be operational by late 2027 and is projected to receive up to $94 million in funding from the US government.
To improve gross margins, Ballard targets product cost reductions and sales volume expansion against fixed costs.
The company sees growth opportunities in stationary power for the data center market.
Ballard is eyeing growth opportunities in the rail and truck market for the years ahead.
More details: Ballard Power Systems Inc IR
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