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BALLARD Ballard Power Systems Inc. Ballard Reports Q2 2021 Results For Immediate Release - August 5 , 2021 News Release VANCOUVER , CANADA - Ballard Power Systems ( NASDAQ : BLDP ; TSX : BLDP ) today announced consolidated financial results for the second quarter ended June 30 , 2021. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards ( IFRS ) . " The second quarter and first half of this year have highlighted our ability to navigate a challenging global environment , while continuing to invest in our business to capitalize on the exciting momentum occurring across the hydrogen sector , " said Randy MacEwen , President and CEO . In Q2 , Ballard achieved revenue of $ 25.0 million , gross margin of 15 % and ending cash reserves of $ 1.24 billion . Mr. MacEwen added , " Global policy announcements supporting decarbonization continue to move at record pace . The Fit for 55 initiative in Europe , and Hydrogen Earth Shot program in the U.S. , both represent clear commitments to accelerate the expansion of a clean hydrogen economy . These policies , and with further clarity regarding the China hydrogen and fuel cell policy still to come , will support future order growth from our customers and scaling of our business across key market segments . " Mr. MacEwen continued , “ During Q2 we continued to make progress in the execution of our strategy , with significant order growth over Q1 . Throughout 2021 , we have seen important follow - on customer orders from Solaris , New Flyer and Tata in the German , California and India bus markets , respectively , as well as meaningful progress with CP Rail and Siemens in the North America and Europe rail markets , respectively . " " We are pleased to announce the substantial completion of our investment in advanced manufacturing in our Burnaby MEA manufacturing capabilities , including increased MEA production capacity by approximately six times . We believe our increased investment in people , technology , products , proprietary advanced manufacturing capabilities and customer experience position Ballard to support the expected growth of customer deployments . These investments also enable us to maintain technological leadership while reducing product costs as global momentum in hydrogen markets takes hold . " concluded Mr. MacEwen . Q2 2021 Financial Highlights ( all comparisons are to Q2 2020 unless otherwise noted ) Total revenue was $ 25.0 million in the quarter , down 3 % year - over - year . о Power Products generated revenue of $ 15.8 million in the quarter , approximately flat year over year : 。 Heavy Duty Motive revenue was $ 11.0 million , a decrease of 12 % or $ 1.5 million , due primarily to lower shipments of fuel cell products to customers in China ; Material Handling revenue was $ 2.0 million , a decrease of 12 % or $ 0.3 million , primarily the result of lower shipments to Plug Power ; and Backup Power revenue was $ 2.8 million , an increase of 125 % or $ 1.6 million , due primarily to an increase in sales of hydrogen - based backup power fuel cell stacks to Europe and Asia , combined with a minor increase in hydrogen - based backup power systems and service revenues in Europe . • Technology Solutions generated revenue of $ 9.1 million in the quarter , a decrease of 7 % or $ 0.6 million , due primarily to decreased amounts earned on certain programs . • Gross margin was 15 % in Q2 , a decrease of 6 - points , driven primarily by the decrease in total revenues , combined with a shift to lower overall product margin and service revenue mix . Here for life ™ Ballard Power Systems Inc. Phone 604.454.0900 9000 Glenlyon Parkway Burnaby , BC V5J 5J8 Canada ballard.com