Ballard Power inks deal for hydrogen train engines with Sierra Railway

VANCOUVER - Ballard Power Systems (BLDP), a leader in fuel cell technology trading at $1.38 per share, has signed a supply agreement with Sierra Northern Railway to provide 1.5 megawatts of fuel cell engines, slated for delivery in 2025. This deal marks a significant step in the rail operator’s mission to decarbonize its operations throughout California. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though its stock has seen significant volatility over the past year.

Under the terms of the agreement, Ballard will supply 12 of its FCmove®-XD engines to retrofit three diesel switching locomotives, transforming them into hydrogen-powered, zero-emission vehicles. These fuel cell modules are engineered for heavy-duty applications and are touted for their reliability, efficiency, and high power density. While the company’s revenue stood at $70.67 million in the last twelve months, InvestingPro analysts anticipate sales growth in the current year, with revenue projected to increase by 34%.

Randy MacEwen, Ballard’s President and CEO, expressed enthusiasm about the partnership, highlighting the adaptability of Ballard’s technology and its importance in sustainable rail solutions. MacEwen noted the company’s ongoing efforts in reducing emissions in the North American freight rail sector.

Sierra Northern Railway’s President, Kennan H. Beard III, echoed this sentiment, stating that integrating Ballard’s technology aligns with their commitment to innovation and environmental responsibility. He emphasized the initiative’s role in supporting California’s greenhouse gas reduction goals in the transportation sector.

Ballard’s fuel cells are designed to offer safe and dependable operations, boasting benefits such as long range and fast refueling capabilities. These zero-emission trains are intended to replace diesel engines on non-electrified rail lines, providing a clean alternative for various routes and conditions.

The press release also included forward-looking statements regarding expected product deliveries and market adoption, which involve risks and uncertainties that could cause actual results to differ.

This announcement is based on a press release statement from Ballard Power Systems and reflects the company’s current expectations and assumptions.

In other recent news, Ballard Power Systems has released its financial results for the fourth quarter of 2024, reporting a loss of $0.16 per share, which was $0.03 worse than analysts’ expectations. The company achieved a revenue of $24.5 million for the quarter, falling short of the anticipated $29.54 million. Despite the revenue miss, Ballard’s gross margin improved to -13%, a 9 percentage point increase year-over-year, though it remained negative. The full-year 2024 revenue was reported at $69.7 million, marking a 32% decrease from the previous year, although the bus segment experienced a 51% growth in revenue. CEO Randy MacEwen attributed the challenging year to policy uncertainty and project delays but highlighted $113 million in new orders for the year. Looking forward, Ballard anticipates that 2025 revenue will be more concentrated in the latter half of the year, with projected operating expenses between $100 million and $120 million. The company concluded 2024 with $603.9 million in cash and no debt. Additionally, Ballard Power Systems has announced a conference call scheduled for April 2025 to discuss its first-quarter financial results, emphasizing its commitment to transparency with investors.

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