Ballard Power Systems Grows Q2 2026 Revenue 15 Percent, Lifts Gross Margin to 20 Percent as Shares Come Under Pressure

Vancouver – Ballard Power Systems improved its gross margin for the fourth consecutive quarter in the second quarter of 2026 and significantly expanded its order backlog. The Canadian hydrogen specialist is also pressing ahead with its previously announced acquisition of UK-based GeoPura, a deal intended to transform Ballard into an energy-as-a-service provider.

Global data center electricity consumption is set to more than double by 2030, rising from 415 to around 945 terawatt-hours, according to the IEA, driven primarily by artificial intelligence. Because building new power plants and grid infrastructure can take up to ten years, according to Wood Mackenzie, data center operators are increasingly turning to their own on-site power generation to come online faster.

Gross Margin Rises to 20 Percent as Revenue Climbs 15 Percent

Ballard generated revenue of USD 20.6 million in the second quarter of 2026, up 15 percent from USD 17.9 million in the second quarter of 2025. Gross margin improved by 28 percentage points to 20 percent, from negative 8 percent in the year-earlier quarter. The company said this marked the fourth consecutive quarter of margin improvement, supported by cost savings, lower manufacturing overhead following the July 2025 restructuring, and adjustments to warranty and inventory provisions.

Adjusted EBITDA came in at negative USD 9.8 million, compared with negative USD 30.6 million in the second quarter of 2025. By segment, stationary power generation grew 230 percent and other applications, including trucks and marine, rose 290 percent, while rail revenue fell 43 percent. The bus segment grew 9 percent. Ballard reaffirmed its target of reaching profitability by the end of 2027. When the GeoPura acquisition was announced in June, the company had still pointed to a profitability path extending to 2028.

Order Backlog Grows to USD 157 Million

Order intake totaled USD 64 million in the second quarter, lifting the order backlog to USD 156.6 million, up 38.8 percent from the prior quarter. The increase was driven in part by previously announced bus orders and a multi-year supply agreement for 154 fuel cell modules to GeoPura. The twelve-month order book grew 40.8 percent to USD 74.4 million. Cash stood at USD 502.1 million at quarter-end, down from USD 550.0 million a year earlier.

GeoPura Acquisition Set to Expand Ballard's Business Model

The acquisition of UK hydrogen provider GeoPura, announced in June, is intended to broaden Ballard's business model. Commenting alongside the second-quarter results, Ballard CEO Marty Neese reaffirmed that combining Ballard's fuel cell technology with GeoPura's energy-as-a-service and hydrogen genset model is expected to create new business opportunities. GeoPura's HPUs are among the type of decentralized solutions for which Wood Mackenzie sees rising demand.

Ballard Shares Fall Nearly 10 Percent in Week 31

Ballard shares, listed on the renewable energy stock index RENIXX World, came under pressure last week. Between July 24 and July 31, 2026, the share price fell from EUR 2.55 to EUR 2.30, a decline of 9.8 percent. In today's trading, the stock has so far lost a further 0.7 percent to EUR 2.286. Compared with the 2025 closing price of EUR 2.18, the share is currently up nearly 5 percent.

Source: IWR Online, 03 Aug 2026