Ballard Announces Strategic Realignment to Strengthen Commercial Focus and Achieve Positive Cash Flow Under New Leadership

Rhea-AI Summary

Ballard (NASDAQ:BLDP) has announced a comprehensive strategic realignment under new President and CEO Marty Neese. The plan focuses on achieving positive cash flow by year-end 2027 through enhanced cost discipline and market prioritization. Key initiatives include reducing annualized operating costs by 30% in 2026 compared to H1 2025, streamlining operations, and implementing workforce reductions.

The company will prioritize fuel cell products with proven commercial traction while discontinuing non-core programs. With $550 million in cash as of June 30, 2025, Ballard aims to maintain financial strength through disciplined capital management and working capital optimization. The strategy represents a shift from aspirational growth to commercially validated execution, emphasizing Total Cost of Ownership and scalability.

Positive

• Strong balance sheet with $550 million in cash reserves
• Targeted 30% reduction in annualized operating costs by 2026
• Clear path to positive cash flow by end of 2027
• Strategic focus on proven products and commercial opportunities

Negative

• Immediate workforce reductions and restructuring required
• Discontinuation of non-core programs and products
• Extended timeline to achieve positive cash flow (2027)
• Current operations not financially sustainable without restructuring

News Market Reaction

-2.19%

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-2.19% News Effect

On the day this news was published, BLDP declined 2.19%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

VANCOUVER, BC, July 31, 2025 /PRNewswire/ - Ballard today announced the launch of a bold strategic realignment led by newly appointed President and CEO, Marty Neese, to position the Company for disciplined growth, sharper market execution, and stronger financial performance in line with current commercial realities. This decisive shift reflects an important leadership agenda and marks a fundamental reset in how the Company operates, prioritizes innovation, and delivers value to customers, given the current market dynamics.

"Today's plan is not about waiting for a market to emerge — it's about focusing on the market that is," said Mr. Neese. "We are aligning the Company around real, near-term opportunities where we have proven product-market fit and clear customer value, while driving toward a sustainable business model rooted in operational excellence and margin discipline."

The realignment is grounded in a robust assessment of customer needs, market dynamics, and Ballard's own capabilities. With a strong balance sheet, high-performing products, and world-class customers, Ballard is shifting from aspirational growth to commercially validated execution which emphasizes Total Cost of Ownership, scalability, and measurable returns for customers.

Key elements of the strategic realignment include:

• Path to Positive Cash Flow: A core outcome of the realignment is a structured plan to achieve positive cash flow by year-end 2027, through enhanced cost discipline, market prioritization, pricing improvements, and optimized working capital.
• Operational Efficiency: Ballard expects to reduce annualized operating costs by at least 30% in 2026 relative to the first half of 2025, through immediate workforce adjustments, tighter portfolio integration, and streamlined operations.
• Sharpened Market and Product Focus: Ballard plans to prioritize fuel cell products with the strongest commercial traction, discontinue non-core programs, and focus product development on efforts to reduce system costs, accelerate next-gen stack readiness, and drive higher-margin offerings.
• Margin Expansion Initiatives: Ballard is targeting enhanced gross margins through lower product costs, value-based pricing, and elevated customer service.
• Disciplined Capital and Cash Management: Ballard plans to continue limiting capital expenditures and rigorously manage cash, with a focus on inventory optimization and working capital control, to sustain financial strength. As of June 30, 2025, the Company held approximately $550 million in cash and cash equivalents.

"Our strategy is grounded in focus, execution, and value," Mr. Neese continued. "We are building a company that is not just innovative, but commercially durable. One that serves customers today with clarity and delivers shareholder value through prudent growth."

While the plan involves difficult decisions, including workforce reductions, the Company remains committed to supporting impacted employees through the transition and honoring their contributions to its journey.

Marty Neese concluded, "We remain steadfast in our belief that hydrogen and fuel cells are essential to decarbonizing global mobility. This realignment ensures we can lead in this transition — not with hope in a future market, but with discipline, readiness, and focus."

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.

This release contains forward-looking statements concerning, anticipated outcomes of restructuring activities, product development efforts, product pricing initiatives, and impacts to cash flow, operating expenses and capital expenditures. 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. Any such forward-looking statements are based on Ballard's assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand.

These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. 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. Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward-looking statements, other than as required under applicable legislation.

Further Information

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

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SOURCE Ballard Power Systems Inc.

FAQ

What are the main elements of Ballard's (BLDP) strategic realignment in 2025?

The realignment includes 30% reduction in operating costs, workforce adjustments, focus on core fuel cell products, and a path to positive cash flow by 2027, with emphasis on operational efficiency and margin expansion.

When does Ballard (BLDP) expect to achieve positive cash flow?

Ballard plans to achieve positive cash flow by the end of 2027 through enhanced cost discipline, market prioritization, pricing improvements, and optimized working capital.

How much cash does Ballard (BLDP) have as of June 2025?

Ballard held approximately $550 million in cash and cash equivalents as of June 30, 2025.

Who is the new CEO of Ballard (BLDP) leading the strategic realignment?

Marty Neese has been appointed as the new President and CEO of Ballard, leading the company's strategic realignment.

What cost reductions is Ballard (BLDP) planning in 2026?

Ballard plans to reduce annualized operating costs by at least 30% in 2026 compared to the first half of 2025 through workforce adjustments and streamlined operations.