Review of the Ballard Forum

Ballard sees no immediate need to invest in manufacturing expansion or hydrogen production.

Rhea-AI Summary

Ballard Power Systems (BLDP) outlined financial targets at its Ballard Forum, including adjusted EBITDA profitability by the end of 2027. The company targets full-year adjusted EBITDA profitability throughout 2028 and 30% compound annual revenue growth over the next two fiscal years, with gross margins exceeding 20% in 2027 and greater than 25% by 2028. Adjusted EBITDA is an adjusted earnings measure before interest, taxes, depreciation and amortization.

Ballard has expanded its business model to add Energy-as-a-Service alongside equipment sales and services. It plans $80 million to $120 million in capital expenditures to expand its Hydrogen Power Unit fleet, with flexibility in investment pace. Ballard expects asset-backed financing at greater than 80% loan to value to fund the investment and operating cash use to decrease as revenue and margins grow.

7 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Adjusted EBITDA profitability targeted by the end of 2027, sustained throughout full-year 2028.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Corporate revenue growth targeted at a 30% compound annual rate over the next two fiscal years.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Gross margins expected to exceed 20% in 2027, reaching greater than 25% by 2028.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Operating cash use expected to decrease over time as margins and revenue grow.
• Minor pointBusiness model expanded to add Energy-as-a-Service alongside equipment sales and services.

2 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Hydrogen Power Unit fleet expansion planned, with flexibility in investment pace.
• Minor pointManufacturing expansion and hydrogen production require no immediate investment.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Fleet expansion requires planned capital expenditures of $80 million to $120 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fleet investment expected to rely on asset-backed financing at greater than 80% loan to value.

Key Figures

Revenue CAGR target: 30% Gross margin target: Exceeding 20% Gross margin target: Greater than 25% +4 more

Revenue CAGR target

30%

Corporate revenue over the next two fiscal years

Gross margin target

Exceeding 20%

2027 target

Gross margin target

Greater than 25%

2028 target

HPU fleet capital expenditures

$80 million to $120 million

Planned fleet expansion; investment pace remains optional

Asset-backed financing loan-to-value

Greater than 80%

Expected financing for the HPU fleet investment

Adjusted EBITDA profitability target

By the end of 2027

Targeted timing

Adjusted EBITDA profitability

Full year 2028

Targeted to be sustained throughout the year

Historical Context

2 past events · Latest: Jul 31

2 events

1. Jul 31

   Q2 earnings

   24h Move

   -4.3%

   Revenue rose, gross margin reached 20%, and the Adjusted EBITDA loss narrowed.

2. Aug 28

   GeoPura acquisition

   24h Move

   -3.9%

   Closed GeoPura acquisition, adding Hydrogen Power Units and Energy-as-a-Service capabilities.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

compound annual growth rate, asset-backed finance, loan to value

3 terms

compound annual growth rate financial

"targeting a 30% Compound Annual Growth Rate (CAGR) in corporate revenue"

The compound annual growth rate (CAGR) shows how much an investment or value has grown, on average, each year over a specific period. It considers the effect of growth that compounds or builds upon itself, similar to how interest accumulates in a savings account. Investors use CAGR to compare different investments’ long-term performance and to understand how steady or consistent their growth has been over time.

asset-backed finance financial

"financed through asset-backed finance at greater than 80% loan to value"

A method of raising money where a borrower or issuer uses specific assets—such as loans, receivables, property, or equipment—as collateral so lenders or investors are repaid from the cash those assets produce. Think of it like lending against a car or renting out a building: the asset’s income or resale value backs the financing. Investors care because the quality and performance of those underlying assets determine the risk, expected return and how quickly they can get paid back.

loan to value financial

"asset-backed finance at greater than 80% loan to value"

Loan-to-value (LTV) is the percentage that compares the size of a loan to the current market value of the asset securing it (for example, a property used as collateral). For investors, LTV signals how much risk a lender or borrower is carrying—higher LTVs mean less equity buffer and greater potential loss if asset prices fall, affecting interest rates, lending decisions and recovery prospects; think of it like how much of a car’s sticker price is still owed versus owned.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Ballard is targeting to become adj. EBITDA positive by the end of 2027 and full year 2028.

VANCOUVER, BC, Oct. 22, 2026 /PRNewswire/ -- Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today held the Ballard Forum. Notable highlights included:

• Expanded Business Model: Ballard's business model has grown to add Energy-as-a-Service to existing equipment sales and services. 
• Accelerating Revenue Growth: Ballard is targeting a 30% Compound Annual Growth Rate (CAGR) in corporate revenue over the next two fiscal years.
• Expanding Margin Profile: The Company anticipates gross margins exceeding 20% in 2027, scaling to greater than 25% by 2028.
• Strategic Fleet Expansion: Ballard plans to allocate $80 million to $120 million in capital expenditures to expand its Hydrogen Power Unit (HPU) fleet, with optionality in pace of investment. This investment is expected to be financed through asset-backed finance at greater than 80% loan to value, minimizing the cash outlay.
• Prudent Capital Allocation and Cash Management: There is no immediate need to invest in manufacturing expansion or hydrogen production. Cash use for operating costs is expected to decrease over time as margins and revenue grow.
• Path to Profitability: Ballard is targeting Adjusted EBITDA profitability by the end of 2027, sustaining full-year profitability throughout 2028.

About Ballard Power Systems
Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) is a global leader in zero-emission hydrogen energy solutions and an integrated Energy-as-a-Service (EaaS) provider. Together, with its wholly owned subsidiary, GeoPura Ltd., Ballard delivers turnkey, vertically integrated hydrogen ecosystem solutions spanning hydrogen production, logistics, refueling, zero-emission fuel cell engines, and stationary Hydrogen Power Units.

Ballard powers critical off-grid, stationary applications - including construction, events, film sets, healthcare, defense, temporary power infrastructure, and supplies fuel cell engines for heavy-duty mobility applications such as bus, rail, and marine. With an EaaS model, combined with cutting-edge technology across the hydrogen value chain, Ballard decarbonizes mission-critical operations worldwide. To learn more about Ballard, visit www.ballard.com.

This release contains forward-looking statements concerning anticipated product and service attributes, product deliveries, and deployments. 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 +1.604.360.9714 or investors@ballard.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/review-of-the-ballard-forum-302916655.html

SOURCE Ballard Power Systems Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When does Ballard Power Systems target adjusted EBITDA profitability?

Ballard targets adjusted EBITDA profitability by the end of 2027 and sustained full-year profitability on that basis throughout 2028. These are company targets, not reported results.

How much does Ballard plan to invest in its Hydrogen Power Unit fleet?

Ballard plans $80 million to $120 million in capital expenditures to expand its Hydrogen Power Unit fleet, with flexibility in the pace of investment. The company expects asset-backed financing at greater than 80% loan to value to minimize the cash outlay.

Does Ballard need to invest immediately in manufacturing expansion or hydrogen production?

Ballard has no immediate need to invest in manufacturing expansion or hydrogen production.