Mr. Marty Neese reports

BALLARD ANNOUNCES STRATEGIC REALIGNMENT TO STRENGTHEN COMMERCIAL FOCUS AND ACHIEVE POSITIVE CASH FLOW UNDER NEW LEADERSHIP

Ballard Power Systems Inc. has launched a bold strategic realignment led by newly appointed president and chief executive officer 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 per cent in 2026 relative to the first half of 2025, through immediate work force 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-generation 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 work force reductions, the company remains committed to supporting impacted employees through the transition and honouring their contributions to its journey.

Mr. 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 Inc.

Ballard's 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.

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