Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP), a leading B.C. fuel-cell company, revealed earlier this week it plans for an “immediate reduction in workforce” to cut costs.
The company aims to reduce its annualized operating costs by about 30 per cent in 2026 and has a "core goal” to achieve positive cash flow by the end of 2027, according to its financial report for the second quarter of 2025, released on Monday.
"Our focus needs to be on real, near-term opportunities where Ballard delivers clear value along with a sustainable business model that emphasizes operational excellence and cost discipline," said Marty Neese, president and CEO of Ballard, in a Monday statement.
In addition to workforce reductions, Ballard said it will simplify its product portfolio by focusing on those with the strongest commercial traction, reduce product costs and streamline operations to cut expenses and expand margins.
"We will continue to limit capital expenditure and closely manage our cash to support our balance sheet," said Neese, who assumed the role last month.
The Burnaby-based firm, which develops and manufactures hydrogen fuel cells for transportation and stationary power, has been in the red operationally.
The company reported revenue of US$17.8 million in the quarter, up 11 per cent compared with the second quarter of last year, and total operating expenses of $31.7 million, a decrease of 12 per cent.
It also recorded a gross margin of minus eight per cent, an increase of 24 percentage points compared with the second quarter of last year. Ballard attributed the improvement largely to reduced manufacturing overhead following its 2024 restructuring.
"We continue to believe in the necessary role of hydrogen and fuel cells to decarbonize select heavy mobility and stationary power applications," said Neese.
"With $550 million in cash, no bank debt, and no financing requirement for the foreseeable future, we are well positioned to reliably serve our customers over the long term as we move forward on our mission."
