Ballard Power outlines fleet investment plans and growth targets

Ballard Power has announced plans to expand its HPU fleet with projected capital expenditures ranging from $80 million to $120 million. The company intends to utilize an asset-backed financing structure with a loan-to-value ratio exceeding 80% to support this expansion.

As part of its long-term strategy, Ballard aims for an average annual revenue growth of 30% over the next two fiscal years, with a target gross margin exceeding 20% by 2027. The company has maintained flexibility regarding the pace of these investments to ensure they align with financial stability and profitability goals.

In response to these developments, Jefferies has lowered its price target for Ballard Power from $2.52 to $1.68, maintaining a “Hold” rating. The adjustment reflects concerns regarding integration risks and the ability of the company to translate its expansion and financing plans into measurable operational results and profitability by 2027 or 2028.