Ballard Power Systems Inc.

Q2 revenue was $20.6 million, up 15% versus Q2 2025. Gross margin was 20%, compared with -8% in the prior-year period, a 28-point improvement. Adjusted EBITDA was negative $9.8 million versus negative $30.6 million a year ago, and cash used in operating activities was $11.4 million versus $20.3 million last year. Total operating expenses were $20.9 million, down 34% year over year. Order intake exceeded $64 million. Ballard ended with over $502 million in cash and cash equivalents. For the full year, management reiterated revenue should be roughly 60% back-half weighted, total operating expenses are expected between $65 million and $75 million, and capital expenditures between $5 million and $10 million. The company said it will update guidance after the GeoPura acquisition closes, which it expects later this year.

Marty Neese framed GeoPura as a transformative acquisition that expands Ballard beyond engine supply into a broader Energy-as-a-Service model spanning hydrogen supply, power generation and recurring rentals. He said the deal strengthens the path to profitability by end-2027, citing the target's existing cost parity in some markets, expected 15-year asset life and under-3-year payback. His tone was notably upbeat and strategic, emphasizing that the combined business can capture more of the value chain, grow faster and lower total customer cost of ownership.

Kate Igbalode highlighted continued operating improvement in the quarter: revenue of $20.6 million, gross margin of 20% versus -8% last year, operating expenses of $20.9 million, adjusted EBITDA of negative $9.8 million and cash used in operations of $11.4 million. She also noted order intake above $64 million, including more than 150 fuel cell modules for GeoPura, and said the company ended with over $502 million in cash and cash equivalents. On capital allocation, she said Ballard has significant liquidity and no near-term financing requirements, while management expects to use additional guidance updates after the GeoPura close.

Analysts focused on how Ballard would expand GeoPura into North America, whether the recurring rental-and-fuel model would be replicated there, and whether larger multi-megawatt solutions are needed for data centers and similar uses. Management said it would likely pursue multinational customers already using GeoPura in the U.K. and EU, especially in film, TV, live events and construction, and would replicate the recurring model outside the U.K. and EU. On scale, Marty Neese said the team is studying larger power-density solutions and optimal multi-megawatt configurations, but no specific product roadmap was given. Another question addressed balance sheet needs for the Energy-as-a-Service model; Marty said Ballard is considering asset-backed financing structures to supplement its cash balance.