Core Insights - The company is positioned as a leader in the fuel cell industry, emphasizing its experienced products with the lowest total cost of ownership and innovations in power density and functionality [1][2][3] - The market for fuel cell buses is growing, with nearly 60% of new bus sales being zero-emission, indicating a shift away from combustion engines [3][4] - The company reported a significant revenue increase of 120% year-over-year, primarily driven by bus and rail segment deliveries, and achieved a positive gross margin of 15% [4][15] Product and Market Developments - The FC Move SC product was launched at Bus World, receiving positive feedback from OEMs, highlighting its potential to lower total cost of ownership [1][4] - The company is enhancing its product offerings with additional services such as digital operations, maintenance services, and extended warranties, which are expected to improve customer engagement [5][11] - The company has made strides in the rail and marine segments, with a notable order of 6.4 megawatts for marine applications, indicating growth in these markets [6][30] Financial Performance - For Q3 2025, the company reported revenue of $32.5 million, a 120% increase from the previous year, with gross margin improving significantly from negative 56% to 15% [15][16] - Total operating expenses decreased by 36% year-over-year, reflecting the benefits of restructuring actions [16][18] - The company ended the quarter with $25.7 million in cash and no bank debt, indicating a strong balance sheet and financial health [18][19] Strategic Focus - The company has decided not to pursue the Texas Gigafactory development, believing existing manufacturing capacity can meet forecasted volumes, demonstrating a commitment to capital discipline [12] - There is a strategic shift to reduce involvement in the joint venture in China, allowing a focus on North America and Europe [12] - The company aims to achieve cash flow positivity and is making progress towards this goal through disciplined capital spending and product innovation [11][20]

Financial Data and Key Metrics Changes - For Q3 2025, Ballard Power Systems reported revenue of $32.5 million, a 120% year-over-year increase, primarily driven by bus and rail deliveries [15] - Gross margin improved to 15% compared to negative 56% in Q3 2024, reflecting a 71-point improvement due to lower manufacturing overhead and product cost reductions [15] - Total operating expenses decreased by 36% year-over-year to $34.9 million, or 55% lower when excluding restructuring costs [15] - Cash operating costs declined by 40% year-over-year, indicating the effectiveness of restructuring actions [16] - Adjusted EBITDA improved to negative $31.2 million from negative $60.1 million in the prior year [16] Business Line Data and Key Metrics Changes - The bus and rail segments accounted for more than 70% of the quarter's revenue, highlighting the importance of the bus market [3][4] - The marine segment saw its largest order ever, totaling 6.4 megawatts, indicating growth in this early-stage market [8] - The stationary power market is evolving, with a focus on backup power solutions to replace diesel generators, and unit volumes are expected to increase [9][10] Market Data and Key Metrics Changes - The interest in electrification for buses has significantly increased, with nearly 60% of new bus sales now being zero-emission [4] - In Europe, there is steady progress in the adoption rates for fuel cells, while North America remains flat year-over-year [20][21] Company Strategy and Development Direction - The company is focused on becoming cash flow positive and is making progress on its strategic realignment, including significant reductions in cash operating costs [10][12] - Ballard is enhancing its product offerings with additional services, including digital operations and maintenance services, to improve customer engagement [6] - The decision not to pursue the Texas Gigafactory reflects a commitment to capital discipline and efficient execution [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the bus market, particularly as infrastructure constraints for battery electric vehicles shift dynamics in favor of fuel cells [20] - The company anticipates further improvement in gross margins and growth in the material handling market, with a focus on durability and service obligations [11][12] - Management emphasized the importance of maintaining a strong balance sheet and capital discipline to support long-term sustainability [17] Other Important Information - The company is reducing its involvement in the Weichai Ballard joint venture in China to concentrate resources on North America and Europe [12] - The FC Move SC product was launched at Bus World, receiving positive feedback from OEMs, indicating strong market interest [5] Q&A Session Summary Question: Thoughts on growth rates in the bus market - Management noted tremendous reception at Busworld and highlighted the changing dynamics favoring fuel cells due to infrastructure constraints for battery electric vehicles [20] Question: Gross margin expectations - Management confirmed that the slightly negative gross margin, adjusted for one-time benefits, is expected to improve in the future, with low to mid-single digits anticipated for 2026 [22][23] Question: Importance of the Texas facility for restructuring targets - Management clarified that Project Forge is independent of the Texas facility and is focused on automation and materials efficiency, which is progressing well [26] Question: Strategy on material handling - Management indicated that there is near-term interest in air-cooled systems with additional durability, resonating well with new customers [27] Question: Evolution of the largest marine order - Management discussed the long development process for the Samskip order and emphasized the importance of customer collaboration and understanding their hydrogen supply needs [30][32]

Core Insights - Ballard Power Systems reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.11, and improved from a loss of $0.19 per share a year ago, resulting in an earnings surprise of +18.18% [1] - The company achieved revenues of $32.5 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 35.85%, compared to revenues of $14.76 million in the same quarter last year [2] - Ballard's stock has increased by approximately 106.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The future performance of Ballard's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $31.63 million, and for the current fiscal year, it is -$0.35 on revenues of $88.45 million [7] Industry Context - The Utility - Electric Power industry, to which Ballard belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Page 1 of 44 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This document contains forward-looking statements about expected events and the financial and operating performance of Ballard Power Systems Inc. ("Ballard", "the Company", "we", "us" or "our"). Forward-looking statements include any statements that do not refer to historical facts. Forward-looking statements are based on the beliefs of management and reflect our current expectations as contemplated under the safe harbor provisions of Section 21E of ...

Core Insights - Ballard Power Systems reported a strong third quarter for 2025, with significant year-over-year revenue growth and improvements in gross margins, driven by increased deliveries in the bus and rail sectors [3][4][8] - The company launched its new FCmove®-SC fuel cell engine, which has received positive feedback from customers and is expected to enhance cost efficiency for both the company and its clients [3][4][8] - Ballard has made substantial progress in reducing operating costs, achieving a 40% reduction in cash operating costs and a 36% decrease in total operating expenses year-over-year [3][4][8] Financial Performance - Revenue for Q3 2025 was $32.5 million, representing a 120% increase compared to Q3 2024, primarily due to bus and rail deliveries [4][8] - Gross margin improved to 15%, a 71-point increase year-over-year, attributed to cost reduction efforts and lower manufacturing overhead [4][8] - Net order intake reached $19.1 million, with an order backlog of $132.8 million at the end of Q3 2025, reflecting a decrease of 9% from the previous quarter [4][8] Cost Management - The company achieved a 40% reduction in cash operating costs and a 36% decrease in total operating expenses, with a 55% reduction when excluding restructuring costs [3][4][8] - Total operating expenses for Q3 2025 were reported at $34.9 million, down from $54.9 million in Q3 2024 [4][8] - Cash and cash equivalents at the end of Q3 2025 stood at $525.7 million, down from $635.1 million in the prior year [4][8] Product Development - The FCmove®-SC engine, launched at Busworld, is designed to lower total cost of ownership for customers while reducing Ballard's manufacturing costs [3][4][8] - The new engine features integrated DC/DC functionality, a 25% improvement in power density, and higher operating temperatures, which have been positively received by bus OEMs [3][4][8] Market Outlook - The company anticipates continued growth in the hydrogen and fuel cell market, particularly in heavy-duty mobility and stationary power sectors [3][4][8] - Ballard is focusing on building its order pipeline, although some orders may be delayed to Q4 2025 or Q1 2026 as the company seeks more sustainable contract terms [3][4][8]

Core Points - Ballard Power Systems has announced a change in its transfer agent from Computershare Trust Company to Odyssey Trust Company, effective August 11, 2025 [1] - Shareholders are not required to take any action regarding this change [1] Company Information - Ballard Power Systems focuses on delivering fuel cell power solutions aimed at creating a sustainable planet, with applications in various sectors including mobility and stationary power [3] - The company specializes in zero-emission PEM fuel cells that facilitate the electrification of buses, commercial trucks, trains, and marine vessels [3] Contact Information - Shareholders and interested parties can direct inquiries related to shareholder records and transfers to Odyssey Trust Company, with contact details provided for both direct and toll-free communication [2][4]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Overview: Ballard Power Systems (BLDP) - Ballard Power Systems currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4] Price Performance - BLDP shares have increased by 28.36% over the past week, significantly outperforming the Zacks Utility - Electric Power industry, which rose by only 0.7% [6] - Over the past month, BLDP's price change is 57.97%, compared to the industry's 3.14% [6] - In the last quarter, shares of BLDP have surged by 73.02%, and over the past year, they have gained 93.49%, while the S&P 500 has only increased by 4.67% and 14.71%, respectively [7] Trading Volume - The average 20-day trading volume for BLDP is 10,122,398 shares, indicating strong market interest [8] Earnings Outlook - In the past two months, two earnings estimates for BLDP have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.36 to -$0.35 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, BLDP is positioned as a promising investment opportunity [12]

Core Viewpoint - Ballard Power Systems' stock surged by 25.1% following H.C. Wainwright's significant price target increase for its competitor Plug Power, despite no direct mention of Ballard in the report [1][2]. Summary by Sections Price Target Changes - H.C. Wainwright raised its price target for Plug Power from $3 to $7 per share, which is more than a 100% increase [2][4]. Market Dynamics - The increase in electricity prices is expected to drive demand for electricity produced by fuel cells, which is a key argument made by Wainwright [4]. - Plug Power has a high short interest, with 31% of its shares sold short, making it a candidate for a potential short squeeze [5]. Comparison with Ballard Power - In contrast, only 4% of Ballard's shares are sold short, indicating a lower likelihood of a short squeeze compared to Plug Power [5]. - Ballard Power is currently unprofitable, and projections suggest it may not achieve profitability until at least 2031, leading to a negative outlook on its stock [6]. Analyst Recommendations - Analysts from The Motley Fool Stock Advisor have identified ten stocks they believe are better investment opportunities than Ballard Power Systems [9].

Group 1: Super League Enterprise, Inc. - Super League Enterprise, Inc. announced a $10 million strategic equity investment from Evo Fund, leading to a sharp increase in its stock price [1] - Shares of Super League Enterprise rose 200% to $9.83 in pre-market trading following the announcement [1] Group 2: Other Notable Gainers - Professional Diversity Network, Inc. gained 88.8% to $5.40 in pre-market trading after a previous rise of around 4% [4] - STRATA Skin Sciences, Inc. rose 80% to $3.06 in pre-market trading after an 8% increase on Monday [4] - Jiuzi Holdings, Inc. jumped 50.9% to $1.69 in pre-market trading after a 5% gain on Monday [4] - New Era Energy & Digital, Inc. gained 47.2% to $0.8941 in pre-market trading after a surge of around 12% on Monday [4] - Better Home & Finance Holding Company increased by 30% to $64.95 in pre-market trading, following a 46% jump on Monday [4] - MicroCloud Hologram Inc. surged 29% to $7.17 in pre-market trading after announcing a breakthrough in quantum technology [4] - Cassava Sciences, Inc. rose 24.1% to $2.88 in pre-market trading after CEO Richard Barry purchased shares at an average price of $2.25 [4] - SES AI Corporation surged 10.3% to $2.04 in pre-market trading after a 17% increase on Monday [4] - Ballard Power Systems Inc. gained 8.3% to $3.12 in pre-market trading after a 5% rise on Monday [4] Group 3: Notable Decliners - Psyence Biomedical Ltd. dipped 19.6% to $3.65 in pre-market trading after a decline of around 5% on Monday [4] - Diginex Limited shares fell 17.7% to $14.60 in pre-market trading after a jump of over 30% on Monday [4] - Addentax Group Corp. declined 16.5% to $0.9021 in pre-market trading after gaining more than 30% on Monday [4] - Boxlight Corporation fell 15.5% to $4.03 in pre-market trading after a significant jump of 205% on Monday [4] - Reliance Global Group, Inc. dropped 15.5% to $0.9122 in pre-market trading after a 47% increase on Monday [4] - Qualigen Therapeutics, Inc. declined 14.1% to $4.75 in pre-market trading after a 95% jump on Monday [4] - Fly-E Group, Inc. fell 13.1% to $0.8773 in pre-market trading after announcing a securities purchase agreement [4] - Firefly Aerospace Inc. dropped 12.5% to $43.29 in pre-market trading after reporting a second-quarter loss [4] - Opendoor Technologies Inc. dipped 6.3% to $7.85 in pre-market trading after a 12% fall on Monday [4] - Symbotic Inc. fell 4.8% to $57.80 in pre-market trading after a gain of more than 6% on Monday [4]

Group 1 - Uber Technologies is partnering with Flightrex to launch autonomous drone deliveries for Uber Eats in the US by year end, integrating Flightrex's FAA certified drones and 200,000 delivery track record with Uber's global logistics platform [1] - The deal aims to cut delivery times, costs, and emissions while expanding its multimodal network beyond cars, bikes, and sidewalk robots [2] - Lyft and Whimo will launch a fully autonomous ride-hailing service in Nashville in 2026, with rides available first through the Whimo app and later integrated into Lyft's network [3] Group 2 - Lyft's Flex Drive unit will handle end-to-end fleet management, including a new AV facility to maximize vehicle uptime and provide a seamless experience for riders on both platforms [3] - Ballard Power Systems will debut its SC Move SC fuel cell module in October, offering 30% more end-of-life power, higher power density, and improved durability for city buses [3] - The 75 kW system simplifies vehicle integration, cuts life cycle costs, and is designed for a 25,000-hour service life to rival diesel performance [4]