Ballard Power Systems Sets 2027 Target for Adjusted Profitability

The company plans to shift its financial trajectory by prioritizing margin expansion over immediate capital expenditure. Management confirmed there is no current requirement for further manufacturing investment, signaling a focus on squeezing efficiency from existing capacity. By targeting gross margins of 20% in 2027 and exceeding 25% by 2028, Ballard intends to reduce the cash burn that has characterized recent quarterly results.

To support this transition, the firm is integrating an energy-as-a-service model alongside its traditional equipment sales. A planned $80 million to $120 million investment to grow its hydrogen fleet will rely heavily on asset-backed financing, with loans covering more than 80% of the value to protect cash reserves. Although second-quarter revenue grew 15% to $20.6 million, the path to sustained annual profitability in 2028 depends entirely on successfully scaling these margins while keeping operational costs in check.