Q2 FY2026
Filed Jul 31, 2026Ballard reported Q2 2026 revenue of $20.6 million, up 15% year-over-year, with gross margin improving to 20% from (8%) and Adjusted EBITDA improving to ($9.8) million from ($30.6) million.
Revenue, gross margin, operating expenses, operating cash use and Adjusted EBITDA all improved year-over-year, while the company remained loss-making and expects 2026 revenue to be back-half weighted.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Fuel Cell Products & Services Revenueother | $20.6 million | – | 15 % |
| Gross Marginother | $4.1 million | – | 373 % |
| Gross Margin %other | 20 % | – | 28pts |
| Total Operating Expensesother | $20.9 million | – | (34 %) |
| Equity loss in JV & Associatesother | - | – | 100 % |
| Adjusted EBITDAnon-GAAP | ($9.8) million | – | 68 % |
| Net Loss from Continuing Operationsother | ($20.3) million | – | 16 % |
| Loss Per Share from Continuing Operationsother | ($0.07) | – | 16 % |
| Cash Operating Lossother | ($10.3) million | – | 51 % |
| Working Capital Changesother | ($1.1) million | – | (321 %) |
| Cash used by Operating Activitiesother | ($11.4) million | – | 44 % |
| Cash and cash equivalentsother | $502.1 million | – | (9 %) |
| Order Backlogother | $156.6 million | 38.8% | – |
| 12-month Orderbookother | $74.4 million | 40.8% | – |
| Orders Received in Q2 2026other | $64.4 million | – | – |
| Orders Delivered in Q2 2026other | $20.6 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| BusNot separately disclosed. | $9.7 million | – | 9 % |
| RailNot separately disclosed. | $4.1 million | – | (43 %) |
| StationaryNot separately disclosed. | $1.8 million | – | 230 % |
| Other MarketsTruck, marine, material handling, off-road, and other applications. | $5.1 million | – | 290 % |
2026 outlook
- Operating expenses$65 - $75 million
- NoteCapital Expenditure: $5 - $10 million
- NoteSpecific revenue and net income (loss) guidance for 2026 is not provided.
- NoteWe expect revenue in 2026 will be back-half weighted.
What drove it
- Gross margin improvement was driven by product cost reduction initiatives, lower manufacturing overhead costs resulting from the global corporate restructuring initiated in July 2025, and certain non-ratable adjustments to warranty and inventory provisions.
- The company cited increased higher-margin service revenues, fuel cell product durability and field reliability, and reversals of warranty provisions recorded in prior years as margin contributors.
- Order intake exceeded $64 million, including previously announced bus-market orders and a multi-year commitment for 154 fuel cell modules to GeoPura.
- Ballard entered a definitive agreement to acquire GeoPura Limited for £275 million in upfront consideration, subject to customary closing conditions and regulatory approvals.
Concerns
- Rail revenue was $4.1 million, down (43 %) from Q2 2025.
- Net Loss from Continuing Operations was ($20.3) million and Loss Per Share from Continuing Operations was ($0.07).
- The GeoPura acquisition remains subject to customary closing conditions and applicable regulatory approvals.
- Specific revenue and net income (loss) guidance for 2026 is not provided.
- The company expects 2026 revenue to be back-half weighted.
What to watch
- Closing of the proposed GeoPura acquisition later in the year and the realization of its anticipated strategic, operational and financial benefits.
- Execution against the $65 - $75 million Total Operating Expense guidance range and $5 - $10 million Capital Expenditure guidance range.
- Revenue conversion from the $156.6 million Order Backlog and $74.4 million 12-month Orderbook.
- Sustainability of gross-margin improvement, including the effects of product cost reductions, service-revenue mix, and warranty and inventory provision adjustments.
- Progress toward the company's objective of achieving profitability by the end of 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $502.1 million at the end of Q2 2026, compared to $550.0 million in the prior year.
- Cash used by Operating Activities was ($11.4) million, compared to ($20.3) million in the prior year.
- Cash Operating Loss was ($10.3) million, compared to ($20.8) million in the prior year.
- Working Capital Changes were ($1.1) million, compared to $0.5 million in the prior year.
Analysis
Ballard delivered improved Q2 2026 operating results under IFRS. Total Fuel Cell Products & Services Revenue was $20.6 million, up 15 % from $17.8 million in Q2 2025. Growth was broad outside rail: Bus revenue rose 9 %, Stationary revenue rose 230 %, and Other Markets revenue rose 290 %. Rail revenue declined (43 %), making it the principal reported area of revenue weakness.
Profitability improved substantially from the prior year. Gross Margin was $4.1 million and Gross Margin % was 20 %, compared with ($1.5) million and (8 %) in Q2 2025. Management attributed the improvement to product cost-reduction initiatives, lower manufacturing overhead following the global corporate restructuring initiated in July 2025, and certain non-ratable warranty and inventory provision adjustments. The company also cited increased higher-margin service revenues, product durability, field reliability, and reversals of warranty provisions recorded in prior years.
Cost actions reduced Total Operating Expenses to $20.9 million from $31.7 million, while Adjusted EBITDA improved to ($9.8) million from ($30.6) million. The company nevertheless recorded a Net Loss from Continuing Operations of ($20.3) million and Loss Per Share from Continuing Operations of ($0.07). Operating cash use also improved, with Cash used by Operating Activities of ($11.4) million compared with ($20.3) million, and cash and cash equivalents ended the quarter at $502.1 million compared with $550.0 million in the prior year.
Commercial indicators strengthened. Orders Received in Q2 2026 were $64.4 million and Order Backlog reached $156.6 million, up 38.8% from $112.9 million at the end of Q1 2026. The 12-month Orderbook was $74.4 million, an increase of $21.6 million or 40.8% from the end of Q1 2026. Management linked the intake to bus-market orders and a multi-year commitment for 154 fuel cell modules to GeoPura.
For 2026, Ballard retained Total Operating Expense guidance of $65 - $75 million and Capital Expenditure guidance of $5 - $10 million, but does not provide specific revenue or net income (loss) guidance. It expects revenue to be back-half weighted. The announced acquisition of GeoPura Limited for £275 million in upfront consideration is expected to close later in the year, subject to closing conditions and regulatory approvals, and management expects it to increase revenue visibility and recurring service-based revenue exposure. The company continues to state an objective of achieving profitability by the end of 2027.
Management, verbatim
The acquisition is anticipated to represent a significant step forward in our strategy by combining Ballard's industry-leading fuel cell technology with GeoPura's proven energy-as-a-service and hydrogen genset leasing model.
Marty Neese, Ballard's President and CEO
We also marked the fourth consecutive quarter of positive and improving gross margins, underscoring our disciplined approach toward commercial and operational execution are yielding results.
Marty Neese, Ballard's President and CEO
Momentum across our core mobility and stationary power markets remains steady and reflects the progress we are making in executing our strategy.
Marty Neese, Ballard's President and CEO
Not in the filing
stated, not guessed- Debt balance and debt maturities were not reported.
- Free cash flow was not reported.
- Capital returns, including dividends and share repurchases, were not reported.
- Operating income was not reported.
- Total net income or net loss was not reported separately from Net Loss from Continuing Operations.
- Tax rate was not reported.
- Gross-margin guidance was not reported.
- Prior-quarter comparisons were not reported for revenue, segment revenue, gross margin, operating expenses, Adjusted EBITDA, net loss, loss per share, operating cash flow, or cash and cash equivalents.
- Prior guidance was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.