Author: sHq_LoGiNz

VANCOUVER, BC, May 5, 2026 /PRNewswire/ – Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial results for the first quarter ended March 31, 2026. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

Highlights (comparisons are to Q1 2025):

• Revenue of $19.4 million, up 26% year over year (“YoY”).  
• 14% gross margin a 37-point improvement from Q1 2025.
• 36% reductions in Total Operating Expenses².
• Q1 ended with $516.8 million in cash and cash equivalents.
• Positive momentum in bus market with New Flyer commercial agreement and strong traction with European OEM’s

“In Q1, we made continued progress toward positive cash flow. Quarterly revenue grew 26% year over year, driven by increased engine shipments during the period. Disciplined cost management also contributed to an improvement in gross margins, which rose to 14%,” said Marty Neese, Ballard’s President and CEO. “These results build on the momentum established in 2025 and reinforce that we are on the right path.”

“We continue to see strong momentum in the fuel cell bus market, supported by increasing long-term customer commitments. New Flyer’s multi-year 50 MW agreement highlights accelerating fleet adoption in North America. In the U.K. and E.U., we are seeing strong traction with two additional bus OEMs that are advancing next‑generation hydrogen bus platforms powered by our FCmove^®‑SC engine. They recognize the benefit of the FCmove^®-SC engine to lower total cost of ownership through higher power density, enhanced durability, and simplified installation and maintenance. Together, these advancements support improved customer economics and position us for stronger margin performance over time,” added Mr. Neese.

Mr. Neese continued, “Ballard maintains a leading position in the North American and European fuel cell bus markets, built on sustained commercial execution and technical leadership. Our engines have surpassed 300 million kilometers of real-world fleet operation, underscoring their durability and reliability in demanding applications.”

He concluded, “We ended Q1 with $516.8 million in cash and no near- or mid-term financing requirements, providing a strong foundation to execute our strategy. This financial strength enables us to continue investing in product maturity, cost reduction, and customer success—key drivers of scalable growth and long-term value creation in hydrogen mobility.”

Q1 2026 Financial Highlights
(all comparisons are to Q1 2025 unless otherwise noted)

• Total revenue was $19.4 million in the quarter, representing 26 % year‑over‑year growth, reflecting continued momentum across multiple end‑markets.
  • Bus revenue was $6.8 million, down 46% from Q1 2025, while Rail revenue increased to $5.1 million, a 4472% increase YoY.
  • Stationary revenue increased to $5.2 million, up 775% YoY, while Other Markets revenue grew to $2.4 million, up 6% YoY.
• Gross margin was 14% in the quarter, an improvement of 37-points.
• Total Operating Expenses² were $16.4 million, a decrease of 36%.
• Total Cash Used by Operating Activities was $7.8 million, compared to $24.4 million in the prior year, an improvement of 68 % YoY.
• Cash and cash equivalents were $516.8 million at the end of Q1 2026, compared to $576.7 million in the prior year.
• Adjusted EBITDA¹ was ($11.4) million, compared to ($27.5) million in Q1 2025. The improvement in Adjusted EBITDA was driven primarily by margin and operating cost improvements.
• Order Backlog at the end of Q1 2026 was $112.9 million, a decrease of 5% compared to the end of Q4 2025.
• The 12-month Orderbook was $52.8 million at end of Q1, a decrease of $1.1 million or 2% from the end of Q4 2025.

2026 Outlook

Consistent with our past practice, and in view of the early stage of hydrogen fuel cell market development, specific revenue and net income (loss) guidance for 2026 is not provided. We expect revenue in 2026 will be back-half weighted. Total Operating Expense² and Capital Expenditure³ guidance ranges for 2026 are as noted below. We continue to review and consider various options to reduce our operating cost structure and capital spend, which may result in revisions to our guidance ranges at a future date.

Q1 2026 Financial Summary

For a more detailed discussion of Ballard Power Systems’ first quarter 2026 results, please see the company’s financial statements and management’s discussion & analysis, which are available at www.ballard.com/investors, www.sedarplus.ca and www.sec.gov/edgar.shtml.

Conference Call
Ballard will hold a conference call on Tuesday May 5, 2026 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review first quarter 2026 operating results. The live call can be accessed by dialing +1-844-763-8274 (Canada/US toll free). 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, and impacts of investments in manufacturing and R&D capabilities and cost reduction initiatives. 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, level of achievement of our business plans, achieving and sustaining profitability, changes that affect how long our cash reserves will last 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.

Further Information
Sumit Kundu –Investor Relations +1.604.453.3517 or investors@ballard.com

Endnotes

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SOURCE Ballard Power Systems Inc.

NEWARK, Del., May 5, 2026 /PRNewswire/ — According to the latest market analysis by Future Market Insights, the PEM small capacity electrolyzer market is entering a phase of steady, policy-supported expansion, underpinned by rising demand for decentralized hydrogen production and renewable energy integration. The market is valued at USD 141.7 million in 2025 and is projected to reach USD 265.9 million by 2035, reflecting a compound annual growth rate (CAGR) of 6.5% over the forecast period.

Quick Stats Snapshot (PEM Small Capacity Electrolyzer Market)

• Market Size (2025): USD 141.7 million
• Forecast (2035): USD 265.9 million
• CAGR (2025–2035): 6.5%
• Leading Capacity Segment (2025): ≤ 100 kW (47.3% share)
• Largest Application Segment (2025): Power Generation (44.9% share)
• Fastest Growing Region: Asia-Pacific (led by China and India)

Detailed market forecasts, competitive benchmarking, and pricing trends:  https://www.futuremarketinsights.com/reports/sample/rep-gb-24107

Market Size and Forecast: Steady Expansion Underpinned by Hydrogen Infrastructure Buildout

The PEM small capacity electrolyzer market is projected to grow from USD 141.7 million in 2025 to USD 265.9 million by 2035, reflecting a stable 6.5% CAGR over the forecast period. Growth is expected to remain consistent rather than cyclical, supported by long-term energy transition policies and gradual scaling of hydrogen ecosystems.

Between 2025 and 2030, the market is forecast to expand from USD 141.7 million to USD 194.1 million, driven by early-stage commercialization of distributed hydrogen systems and pilot deployments in renewable-heavy grids. By the end of the decade, small-scale PEM electrolyzers are expected to transition from demonstration assets to operational components within microgrids, refueling hubs, and industrial energy systems.

Key Growth Drivers Reshaping Market Demand

1. Shift Toward Distributed Hydrogen Production

A defining structural driver is the decentralization of hydrogen generation. Industries and utilities are increasingly moving away from centralized hydrogen supply chains toward on-site production models, particularly in remote or grid-constrained environments. PEM small capacity systems, due to their compact design and rapid responsiveness, are well suited for these deployments.

2. Integration with Renewable Energy Systems

The coupling of electrolyzers with solar and wind assets is becoming a core strategy for managing renewable intermittency. Excess electricity is increasingly being converted into hydrogen for storage or later reconversion to power, strengthening the role of PEM systems in grid stabilization.

3. Policy-Led Hydrogen Acceleration

National hydrogen strategies across Europe, Asia, and North America are channeling subsidies, tax incentives, and infrastructure funding into electrolysis technologies. These policies are particularly supportive of early-stage, small-scale deployments that can be scaled over time.

Market Challenges

• High upfront capital requirements limit adoption among smaller operators
• Maintenance complexity due to membrane degradation and system servicing needs
• Hydrogen cost competitiveness still lags behind fossil-based alternatives in some regions
• Supply chain constraints for critical materials used in PEM stacks

Emerging Opportunities

• Modular and scalable electrolyzer systems enabling flexible deployment
• Renewable-powered microgrids for off-grid and remote applications
• Expansion of hydrogen refueling infrastructure for mobility applications
• Industrial decarbonization across steel, chemicals, and refining sectors, enabling new distributed energy business models

Segmentation Insights

By Capacity

• ≤ 100 kW (Dominant Segment – 47.3% share in 2025):
  Widely adopted for pilot projects, research facilities, and localized hydrogen generation. Its appeal lies in low footprint, fast installation, and operational flexibility.
• 100–300 kW:
  Increasingly used in medium-scale industrial and mobility applications.
• 300–500 kW:
  Emerging for larger distributed energy hubs and industrial clusters.

By Application

• Power Generation (44.9% share in 2025):
  Leads the market due to hydrogen’s growing role in energy storage and grid balancing.
• Transportation:
  Supports early hydrogen refueling infrastructure development.
• Industrial Energy & Feedstock:
  Gaining traction in hard-to-abate sectors seeking low-carbon alternatives.

Speak to Analyst: Customize insights for your business strategy: https://www.futuremarketinsights.com/customization-available/rep-gb-24107

Regional Analysis: Diverging Growth Trajectories Across Markets

Asia-Pacific: Fastest Expansion Zone

China and India are leading global growth, driven by aggressive hydrogen roadmaps, industrial expansion, and state-backed infrastructure programs. China’s CAGR of 8.8% reflects its scale advantage in industrial hydrogen deployment, while India (8.1% CAGR) is accelerating through policy-driven clean energy initiatives.

Europe: Policy-Driven Hydrogen Ecosystem

Germany, France, and the UK continue to anchor Europe’s hydrogen transition. Germany, at 7.5% CAGR, remains the regional technology and deployment leader, supported by strong industrial demand and regulatory alignment with net-zero targets.

North America: Steady but Mature Growth

The United States is expanding at a more moderate 5.5% CAGR, driven by private-sector investment in clean hydrogen hubs and transportation applications. Growth is steady but shaped by infrastructure pacing rather than demand constraints.

Competitive Landscape: Technology Leadership and Modular Innovation Define Positioning

The market remains moderately consolidated, with established industrial gas and clean energy firms dominating early deployments.

Key players include:

• Air Products and Chemicals, Inc.
• Nel ASA
• ITM Power PLC
• Siemens Energy
• Linde plc
• Plug Power Inc.
• McPhy Energy S.A.
• Elogen
• Giner Inc.
• Hydrogenics

Future Outlook: From Pilot Projects to Distributed Hydrogen Networks

By 2035, PEM small capacity electrolyzers are expected to transition from niche deployment tools to foundational components of distributed hydrogen infrastructure. Their role will extend beyond production into energy system balancing, industrial feedstock supply, and mobility fueling ecosystems.

The long-term trajectory suggests a shift toward hybrid energy networks, where electricity and hydrogen systems operate in parallel, optimizing resilience and decarbonization outcomes.

Executive Takeaways

• The market is on a stable 6.5% growth path, reaching USD 265.9 million by 2035
• ≤ 100 kW systems dominate adoption, driven by flexibility and low entry barriers
• Power generation remains the primary demand anchor, reflecting grid balancing needs
• Asia-Pacific is the global growth engine, led by China and India
• Competitive advantage is shifting toward modular, integrated hydrogen solutions rather than standalone equipment
• Long-term opportunity lies in distributed hydrogen infrastructure networks, not isolated deployments

Unlock 360° insights for strategic decision making and investment planning:  https://www.futuremarketinsights.com/checkout/24107

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About Future Market Insights (FMI)

Future Market Insights (FMI) delivers actionable, decision-maker-focused research, offering deeper insights beyond traditional market data. Its reports include:

• Pricing and cost benchmarking
• Consumer behavior and procurement analysis
• Supply chain intelligence
• Technology and trend forecasting

FMI combines industry expertise with real-world data inputs to provide practical, validated, and business-ready insights, helping organizations make informed strategic decisions in evolving global markets.

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SOURCE Future Market Insights