Fuel cell manufacturer Ballard Power Systems’ revenue surged 26% year-over-year (YoY) to $19.4 million in the first quarter (Q1) of 2026, from $15.4 million on the back of higher deliveries to its rail and bus verticals.

Marty Neese, Ballard’s President and CEO, said that increased engine shipments drove the company’s revenue growth in the quarter.

Revenue from the rail segment increased to $5.1 million from $100,000 in the same quarter last year. Revenue from the stationary power business rose to $5.2 million from $600,000 last year.

The company highlighted that the growth of the stationary power vertical was driven largely by growth in its diesel generator replacement business.

However, revenue from the bus segment declined 46% YoY to $6.8 million from $12.5 million.

Ballard’s net loss narrowed by 46% YoY to $11.4 million from $21 million.

Adjusted earnings before interest, tax, depreciation, and amortization loss narrowed by 59% YoY to $11.4 million from $27.5 million.

The loss per share came in at $0.04, compared with $0.07 in Q1 2025. The EPS within the quarter beat analyst estimates by $0.02.

The company reported a 37% YoY increase in revenue to $33.6 million from $24.5 million in Q4 2025, and it surged by 120% YoY in Q3 2025.

Ballard had an order backlog of $112.9 million at the end of Q1. During the quarter, it received orders valued at $12.9 million and delivered orders worth $19.4 million.

Neese said the company plans to strengthen its partnership with bus original equipment manufacturers in key geographies, improving and expanding its fleet service capabilities and offerings.

During the quarter, Ballard signed a multi-year agreement with New Flyer, representing approximately 50 MW of fuel cell engine supply. In the UK, Wrightbus selected the Ballard to power its next-generation hydrogen bus platform using the company’s newest FCmove-SC engine.

In the EU, Ballard was selected by Solaris as the fuel cell supplier for its hydrogen bus platform, including the FCmove-SC engine for its 12-meter bus.

Neese said that the company is moving from being only a module supplier to becoming a data-driven fleet partner, and the new offerings are designed to deliver up to 98% fleet availability.

Ballard also said it has additional business development activities underway in rail, material handling, and stationary power. The company said its stationary power business has significant potential to improve grid stability and energy resilience, including in defense applications for NATO nations.

During the earnings call, Neese said that the traditional gray hydrogen market has become the incumbent, and green hydrogen is growing as renewables penetrate around the globe.

Ballard expects total operating expenses for 2026 to range from $65 million to $75 million, and capital expenditures to range from $5 million to $10 million.