Mr. Marty Neese reports

BALLARD REPORTS Q2 2026 RESULTS

Ballard Power Systems Inc. has released consolidated financial results for the second quarter ended June 30, 2026. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with international financial reporting standards (IFRS).

Highlights (comparisons are with Q2 2025):

• Revenue of $21-million, up 15 per cent year over year;
• Achieved 20-per-cent gross margin, an increase of 28 points year over year;
• Entered into a definitive agreement to acquire GeoPura Ltd. for 275 million British pounds in upfront consideration, subject to customary closing conditions and regulatory approvals;
• Acquisition is expected to close later in the year and would establish Ballard as an energy-as-a-service provider;
• Order intake of $64-million strengthened the company's order backlog to $157-million;
• Ended Q2 2026 with $502-million in cash and cash equivalents, compared with $550-million at the end of Q2 2025.

"This quarter marks a transformative milestone for Ballard, highlighted by our announced agreement to acquire GeoPura," said Marty Neese, Ballard's president and chief executive officer. "The acquisition is anticipated to represent a significant step forward in our strategy by combining Ballard's industry-leading fuel-cell technology with GeoPura's proven energy-as-a-service and hydrogen genset leasing model. Beyond expanding our market opportunities, we expect the transaction to strengthen our revenue visibility and increase our exposure to recurring service-based revenues in the growing market for competitive off-grid alternative power gensets. Following the forecasted acquisition completion, the realization of strategic and commercial benefits are expected to support our objective of achieving profitability by the end of 2027."

Mr. Neese continued: "We also marked the fourth consecutive quarter of positive and improving gross margins, underscoring our disciplined approach toward commercial and operational execution are yielding results. Sustained improvements are the direct result of our continued focus on cost reduction initiatives and shifting our product mix to include increased higher-margin service revenues. It is also notable that our fuel-cell products are demonstrating greater durability and field reliability, allowing for reversals of warranty provisions recorded in prior years, further lifting margins.

"Finally, we progressed commercially and financially toward our goal of becoming profitable with revenue growth, gross margin improvement and backlog expansion. Order intake in the quarter exceeded $64-million, flowing from our previously announced orders in the bus market as well as the multiyear commitment for 154 fuel-cell modules to GeoPura, once again highlighting the continued growth of the hydrogen genset market and reinforcing the expected synergies of the acquisition," added Mr. Neese.

He concluded: "Momentum across our core mobility and stationary power markets remains steady and reflects the progress we are making in executing our strategy. With our planned transformation into an energy-as-a-service provider, we anticipate more opportunities across the hydrogen ecosystem to drive revenue growth and advance toward profitability."

Completion of the GeoPura acquisition remains subject to customary closing conditions and applicable regulatory approvals.

Q2 2026 financial highlights (all comparisons are with Q2 2025 unless otherwise noted):

• Total revenue was $20.6-million in the quarter, up 15 per cent year over year:
  • Bus revenue was $9.7-million, up 9 per cent from Q2 2025.
  • Rail revenue was $4.1-million, down 43 per cent from Q2 2025.
  • Stationary revenue was $1.8-million, up 230 per cent from Q2 2025.
  • Other markets revenue (truck, marine, material handling, off-road and other applications) was $5.1-million, up 290 per cent from Q2 2025.
• Gross margin was 20 per cent in the quarter, an improvement of 28 points from (8 per cent) in Q2 2025, driven by product cost reduction initiatives and lower manufacturing overhead costs as a result of the global corporate restructuring initiated in July, 2025, and through certain non-ratable adjustments to warranty and inventory provisions.
• Total operating expenses were $20.9-million, a decrease of 34 per cent compared with Q2 2025, a result of the company's reduced global operating cost structure.
• Total cash used by operating activities was $11.4-million, compared with $20.3-million in the prior year. Cash and cash equivalents were $502.1-million at the end of Q2 2026, compared wih $550-million in the prior year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was negative $9.8-million, compared with negative $30.6-million in Q2 2025. The improvement in adjusted EBITDA was driven primarily by margin and operating cost improvements.
• Order backlog at the end of Q2 2026 was $156.6-million, an increase of 38.8 per cent compared with the end of Q1 2026.
• The 12-month order book was $74.4-million at the end of Q2, an increase of $21.6-million, or 40.8 per cent, from the end of Q1 2026.

2026 outlook

Consistent with Ballard's past practice and in view of the early stage of hydrogen fuel-cell market development, specific revenue and net income (loss) guidance for 2026 is not provided. Ballard expects revenue in 2026 will be back-half weighted. Total operating expense and capital expenditure guidance ranges for 2026 are as noted below. Ballard continues to review and consider various options to reduce the company's operating cost structure and capital spend, which may result in revisions to Ballard's guidance ranges at a future date.

For a more detailed discussion of Ballard Power Systems' second quarter 2026 results, please see the company's financial statements and management discussion and analysis, which are available on Ballard's website, SEDAR+ and EDGAR.

Conference call

Ballard will hold a conference call on Friday, July 31, 2026, at 8 a.m. Pacific Time (11 a.m. Eastern Time) to review second quarter 2026 operating results. The live call can be accessed by dialling 1-833-821-2814 (Canada/United States toll-free). Alternatively, a live audio and webcast can be accessed through a link on Ballard's website. Following the call, the audio webcast and presentation materials will be archived in the Earnings, Interviews & Presentations area of the investors section of Ballard's website.

About Ballard Power Systems Inc.

Ballard Power Systems' vision is to deliver fuel-cell power for a sustainable planet. Ballard zero-emission PEM (proton exchange membrane) fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels and stationary power.

We seek Safe Harbor.