"We continue to focus on customers, product development programs and product cost reduction initiatives, advanced manufacturing and capacity planning, all while maintaining a strong balance sheet for long-term sustainability," Mr. MacEwen concluded.

Q2 2024 Financial Highlights
(all comparisons are to Q2 2023 unless otherwise noted)

• Total revenue was $16.0 million in the quarter, up 4%.

  • Heavy Duty Mobility revenue of $13.2 million increased 55%, driven primarily by revenues from Ballard's Bus and Truck verticals, though partially offset by weaker revenue in the Rail vertical.

  • Stationary revenue of $1.7 million decreased 53%.

  • Emerging and Other Markets revenue of $1.2 million was down 65%.

• Gross margin was (32%) in the quarter, a 5-point improvement from Q1 2024 and 11 points lower year-over-year, primarily as a result of revenue mix, including an increased proportion of revenue derived from fuel cell product revenue rather than higher margin technology solutions revenue.

• Total Operating Expenses and Cash Operating Costs¹ were $36.2 million and $30.9 million, respectively, an increase of 2% and 0% respectively.

• Net loss from continuing operations was ($31.5) million, or ($0.11) per share, compared to a net loss from continuing operations of ($28.2) million, or ($0.09) per share. The ($3.3) million change was driven primarily by changes in product mix.

• Adjusted EBITDA¹ was approximately ($35.4) million, compared to ($34.2) million, a change of (3%).

• Cash and cash equivalents were $678.0 million, a ($42.7) million decrease compared to $720.7 million at the end of Q1 2024.

• Ballard received approximately $5.0 million in net new orders in Q2, and delivered orders valued at $16.0 million, resulting in an Order Backlog of approximately $169.5 million at end-Q2, a 6% decrease from the end of Q1 2024.

• The 12-month Order Book was $75.5 million at end-Q2, a decrease of $4.2 million, or 5%, from the end of Q1 2024.

2024 Outlook

Consistent with the Company's past practice, and in view of the early stage of hydrogen fuel cell market development, specific revenue or net income (loss) guidance for 2024 is not provided. The Company expects revenue in 2024 will be heavily back-half weighted. We have reduced our 2024 Capital Expenditure² guidance from a range of $50 million to $70 million to an updated range of $25 million to $40 million, reflecting management decisions to reduce and defer certain planned capital expenditures given slower market adoption. Total Operating Expense³ and Capital Expenditure² guidance ranges for 2024 are as follows:

For a more detailed discussion of Ballard Power Systems' second quarter 2024 results, please see the company's financial statements and management's discussion & analysis, which are available at www.ballard.com/investors, www.sedar.com and www.sec.gov/edgar.shtml.

Conference Call
Ballard will hold a conference call on Monday, August 12, 2024 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review second quarter 2024 operating results. The live call can be accessed by dialing 1-844-763-8274. Alternatively, a live audio and webcast can be accessed through a link on Ballard's homepage (www.ballard.com). Following the call, the audio webcast and presentation materials will be archived in the 'Earnings, Interviews & Presentations' area of the 'Investors' section of Ballard's website (www.ballard.com/investors).

About Ballard Power Systems
Ballard Power Systems' (NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, and stationary power. To learn more about Ballard, please visit www.ballard.com.

Important Cautions Regarding Forward-Looking Statements
Some of the statements contained in this release are forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning of Canadian securities laws, such as statements concerning the markets for our products, Order Backlog, expected revenues, gross margins, operating expenses, capital expenditures, corporate development activities, impacts of investments in manufacturing and R&D capabilities and cost reduction initiatives and statements that describe any anticipated offering of securities under Ballard's Shelf Prospectus and Registration Statement or the filing of a Prospectus supplement. These forward-looking statements reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements by their nature inherently involve unknown risks, uncertainties, assumptions and other factors well beyond Ballard's ability to control or predict. Actual events, results and developments may differ materially from those contemplated by such forward-looking statements. Any such statements are based on Ballard's assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, market demand and financing needs. For a detailed discussion of the factors and assumptions that these statements are based upon, and factors that could cause our actual results or outcomes to differ materially, please refer to Ballard's most recent management discussion & analysis. Other risks and uncertainties that may cause Ballard's actual results to be materially different include general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans, achieving and sustaining profitability, Ballard's condition requiring anticipated use of proceeds to change and the timing of, and ability to obtain, required regulatory approvals. For a detailed discussion of these and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form. These forward-looking statements represent Ballard's views as of the date of this release. There can be no assurance that forward-looking statements will prove to be accurate, as actual events and future events could differ materially from those anticipated in such statements. These forward-looking statements are provided to enable external stakeholders to understand Ballard's expectations as at the date of this release and may not be appropriate for other purposes. Readers should not place undue reliance on these statements and Ballard assumes no obligation to update or release any revisions to them, other than as required under applicable legislation.

Endnotes

During the fourth quarter of 2023, we completed a restructuring of operations at Ballard Motive Solutions in the U.K. and effectively closed the operation. As such, the historic operating results (including revenue and operating expenses) of the Ballard Motive Solutions business have been removed from continuing operating results and are instead presented separately in the statement of comprehensive income (loss) as loss from discontinued operations.

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SOURCE Ballard Power Systems Inc.

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