Ballard Power Systems targets profitability by end of 2027

Ballard Power Systems (NASDAQ: BLDP) outlined financial targets at its Ballard Forum event held in Vancouver, British Columbia, including a path to adjusted EBITDA profitability by the end of 2027 and full-year profitability in 2028.

According to a press release, the company is targeting a 30% compound annual growth rate in corporate revenue over the next two fiscal years. Ballard also anticipates gross margins exceeding 20% in 2027, scaling to greater than 25% by 2028.

The company plans to allocate between $80 million and $120 million in capital expenditures to expand its Hydrogen Power Unit fleet. Ballard said this investment is expected to be financed through asset-backed financing at a loan-to-value ratio of greater than 80%, which it says would minimize cash outlay.

Ballard said its business model has expanded to include Energy-as-a-Service alongside existing equipment sales and services. The company stated there is no immediate need to invest in manufacturing expansion or hydrogen production, and that cash use for operating costs is expected to decrease as margins and revenue grow.

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