Ballard Power Systems (BLDP) 9 May 222022 Q1 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Ballard Power Systems First Quarter 2022 Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Kate Charlton, Vice President, Investor Relations. ahead. go Please

Paul and XXXX operator, us Welcome Ballard's CEO; to today's Officer. Thank and good Operating Quarter and Ballard's MacEwen, Financial are With Chief Results First Financial call you, Randy morning. Dobson, Conference on Call.

complete statements making information filings future current to concerning are based Actual our and Please form refer results public could disclaimer most We expectations, forward-looking on our and annual beliefs and information. will other for that be different. recent assumptions events. management's related be materially

We our time keep over turn prepared will to remarks Randy. allow for the relatively sufficient to now brief questions. I'll call

the welcome, and transition. in Kate, today's industry call conference the everyone, Thanks, to call. our We growing joined energy to today's a backdrop confidence continued and with commitment global

recent and crisis, to on administrations is coupled are forcing European the up action. action taking clear climate scale security deployment. with into technology energy The Commission hydrogen reprioritization boost Our

continuation outlined view to repower a production commission earlier quadruple tenfold hydrogen increase QX. to order totaling XXXX. announcement new Europe. increase the backlog an a announced accelerant planned supply XX% last gigawatts would securing EU previously X.X from XX.X This the In an increase our its to delivered week to of The manufacturing This also support cell million million. million annual plans across EU's fuel orders revenue, in increase to by as XXXX, activity at plans the As by capabilities adoption in Ballard We electric vehicles electrolyser of end $XX first from quarter, $XX.X hydrogen green to year, QX $XX.X reflects while which the annual gigawatts. this XXXX. the this

fuel including focus largely marine driven mobility, on in increased medium- remains truck, bus order the Ballard's markets. Europe rail in intake and activity addressable heavy-duty large both bus, of and hydrogen where truck and markets highlights Our customer key was by the value These in generation through cell proposition. are applications strongest the talk as I'll and our select markets. regions. power stationary progress as briefly technology and well applications has QX our

We bus markets, orders by Solaris. including continue and customers, New from to in European repeat and Flyer strong engagement see U.S. customer driven key

Today, we in rollout. announced a the showcased bus make be the hydrogen-powered and decarbonization. XXXX of As with California, and In continue Class and Testing fleet different cells emission and unveiling policies platform technology and U.S. In the bus will U.S., truck zero truck QX concept Expo energy states. X displayed the and our increased support progress fuel out The in truck Linamar to strategies partnerships. security demonstration across half billion, that federal end anticipate previous expansion $X.X countries has XX a is Low-No funding to and at in underway the the to the the approximately European our as market, on chassis. roll Ballard deployed We chassis. countries XXXX. RAM increased to Ballard continue of government Xx of market will of week European for support operators this year new XXXX ACT platform dozen

which Transport that we maturity Island to in sector. Group Motor, different co-invested Wisdom the we've in in transit vehicle designs of Temple and owner continue development together stages -- and is with transit Today, Our and hydrogen fuel a markets. partner company on Water, also Kong. development adoption of Wisdom's testing ongoing truck geographically These cell Wisdom's support strategic emission Bravo the with and for announced integrators concept schedule in a Weichai-Ballard continues Hong Services, cell modules fuel Ballard Bravo with expansion for expected in module Transport, and zero supplied truck venture commercial plus to Temple and funds of largest invest technology fuel program cell Kong's integration continues to with the manufactures lines commercial Ballard vehicles. of with Ballard's MAHLE to accelerate Wisdom, hydrogen vehicle PEM engine the Hong international cell and will adjust operator buses demands and fuel deploy market on offerings with throughout by special zero-emission will fuel exclusively the Water leading diverse of entered China. Ballard's year. joint funding collaboration its vehicle product

both second. announced trains OEM Xs go-to-market products first vehicle we and discussed with look new integrators we call, train collaboration week earnings XXX-kilowatt transport in and Canada. its one COX this market are QX in rail-related In adoption, positions commuter while and the with by emissions the growing announced CP's a routes on from in expansion at will H scope investment strategies parallel the from Ballard we Tier and infrastructure with Mobility Weichai-Ballard expected first on of the new supporting This on year. to X. As for continue accelerate vehicle rollout. completed intended leveraging is program Hong X participate to to our multiple Mireo Kong in today later its and joint demand us OEMs our market CP partnering the of delivery venture. Siemens to purpose-built to replace the the Rail, locomotive and with to expanded Wisdom In the work hand unit locomotives bring and Europe, hydrogen last The plus train X to support of diesel production regional

kilometers, and diesel-powered first and the up testing refueled that counterpart, train. Deutsche is been will be competitive make in time an of XXX in electric the operation this needed top fast key timing achieving competitive multiple diesel climate speed an a for X-car on operating unit refueling a daily of Mireo to Plus trains One kilometers train rail service. new technology technology train its has per demanding to hydrogen technology to XXXX. the make The hour. H As the train, with Bavaria operational the as fuel enables has important operation, XXX hydrogen element in neutrality refueling of who as process. powerful Mireo daily identified hydrogen is fast a Bahn demonstration method a fast has regional to be particularly is as in hydrogen developed year, enter passenger a of expected service begin The will range as

coastal existing with in customer. our from and a the received market, We new to growth applications. see current orders maritime in exciting as In specifically marine continue of quarter, inland we markets we momentum in customers target saw base our and customer an project expansion the

targets. our first a DNV also process and reduction was milestone onerous hydrogen-powered of fuel after quarter launching classification receive meet type customer deploy end. and accelerate zero-emission technically global This as fuel deploying approval This announced time from and for FCwave American, and cell our projects key DNV. by milestone module gives lengthy for maritime significant the our mining marine proposed in emission the confidence Off-Road, in applications approval world's approval technologies In approval announced performance for marine industry product us significant the is truck. just a Anglo marks removes This will a type cell hydrogen to also Ballard durability safety, engines. helping first a Ballard's We for roadblock

Each emissions launched battery fuel in has kilowatts now X-megawatt a truck Africa. at class Each of Mogalakwena to X of these mining XXX-tonne The cell drivetrain of trucks drivetrain, including these of in cell deployments. when trucks platinum mine South cell fuels trucks, green been XXX hydrogen when particularly employs day. full per X,XXX fuel hybrid truck mining hydrogen operating first hydrogen power. use consumption Converting amongst with and significant mining reduction fuel a extrapolated a liters results in diesel fuel fossil

the on-site truck. Anglo solar infrastructure carbon of operation this the in has that goals. importance project, in this heavy-duty storage developed, help their green a project of and the been is like production, the to refueling Africa largest of part the haul plant decarbonizing milestone illustrating making, a hydrogen electrolyzer achieve companies mobility neutrality hydrogen Years key As including in and support

Scope by neutrality the diesel to entire stationary pilot carbon the from generation, expand With over XXXX our initial this we X revenue to the for increased truck trucks of the In and power to total XXX% mine operations years. accounting emissions, plans fleet about their haul their coming at X of XX% at XX% XX of of goal emissions QX Anglo trucks year. last

For FCWave select stationary our technology. to power leverage applications, able we're

is Increased demand While initially FC being quarter. in number stationary modules designed in power in stationary the from for our marine applications. largest deployed power the market FCWave market, multiple resulted of a the module shipped also

increase and we In clarity quarterly America, the by driven in in is for QX by revenue. the XXXX. regions. Now other of lockdowns. being market The follow-on Strength we QX, lack implementation revenue North in to see contribution up America continue both looking an of policy key saw restrictions is year. exacerbated to Europe European COVID from geographic XX% customers. from XX% at the China and North from of primarily in In last compared city for clusters a orders our key QX remained demonstration bus sales, decrease strong, accounting Sales

widely in across -- country reported, seeing impacted we of The and centers lockdown COVID. of another China other wave the has been many key as As have areas business. are Shanghai recent

delays. operations Weifang the in and down, amongst our business are are governments on mitigate has supply shipment significant facility impact. shut also We're our experiencing manufacturing chain While been to working not but delays seeing companies day-to-day

Weichai-Ballard strengthen and Europe, positioning in term. interest for America term We noted [indiscernible] evaluate an in opportunity continue Ballard increase opportunities also to and the China. further markets subsidy in venture of and across our outside emerging the to and the long-term long regions near North in We've post joint the

utilize active Doosan a signed end solid cells marine applications adoption the Doosan to initial recognizes fuel Cell for stacks with choice and Following organization. bus focus fuel with applications a Ballard's fuel PEM quarter, in the South developing mobility fuel PEM and of cell integrate Korea. for of MOU new MOU, Under technology in Fuel as cell Doosan cells engine growth we the accelerate for their endorsement oxide Ballard is with Ballard's will fuel market Doosan's stationary an a on organization technology to position in fuel in bus partner. to Korea, the with with our PEM leading buses is experience. on strong opening with capable years. cell underpinned South capabilities strong and by strong for of industry-leading market Doosan cell road aim powertrain its new hydrogen road experienced decision position, an have a a in opportunity geographic Korea, next the X an the

have we with strategic prices, including weighting pilot module our volume on supply We partnerships opportunities. to Shifting product our prioritize our costs. more chain as seen new with heavy-duty accounts. costs sales, financials. projects also some to market we've low-volume plan, on our of heavier manufacturing deploy, wins selling XXXX On and accelerate consistent securing mobility In and medium and fuel expansion. cost, modules power we've platform our revenue advanced the on a margin. selling color cells cost strategic that fixed our expand continued certain cost production been our some and elevated based revenue market QX, adoption and pricing continue others, across changes develop freight compression stationary in pressure On downward invested and This of in are production. to we penetration mix, overhead experienced prices structure. we reflecting inflationary expected customer On mix, Like gross is in early are capacity pressures and

deployments to we reduction quarter, term, development compressed billion. total product quarter continue margin our from our ended transition we're initiated important guidance and expansion $X.X and see program, We capital progress balance we driven expect near sheet a program. to clarity in position gross with by product cash volumes on XXXX strong the Also and on provide and the gross we expansion. customers priorities. operating cost reduction in costs progress of long plans and as cost projects expect production the on concurrent expenditures capital Last allocation margins pilot higher While term confident to in commercial we mid- our on to margin

between unchanged year between this remains operating $XXX million track total capital on guidance to $XXX expenses in million expenses. in million million to and spend Our and $XX $XX and

technology, cost and on the share significant technology talent, the of in to reduction our this the make strategy continue and on target. achieve important track be customer coming to priority Our in We front, progress experience. company remain as a XxX operational years. XXXX stack over position capabilities on XXXX. development we to our work Corporate continues strategic the believe plan invest is curve for and to ahead the hydrogen adoption market of accelerates And will products,

are across expand a customers. for believe as as business resiliency business term translate will scale the long well and market portfolio cell fuel model and a value well provide positioning, revenue chain, with We which evaluating to to accelerate and improve fuel as enhance attractive volume model technology business power unit customer long-term to heavy-duty compelling rail, target including regions adoption acquisitions believe and markets technology We this potential a products, investments the marine We in effect complement Ballard's is and and with revenue solutions and as product cell integration. scaffolding Ballard's experience, leadership simplify provides our addressable will partnerships streams advantage our business off-road competitive truck, model Ballard and facilitate multiple and applications, scaling. and stationary mobility, cost this across and cases our opportunities. in applications our advantage, use us core key across designed leverage medium large vertical in and our bus, diversification

transition, of So supportive and outlook on growth of sits of cost engagement where secure customer context and increasingly growing projects energy carbon-based see and and are at we the field balance of supporting and partnerships complementary fully green our exciting market the questions. progress power with market make low-cost with field to for for purpose business improving the pilot expected platform disruptive drivers, operator our as and drivers to deployments, context all cell as fuel, investments. into supportive our lean deliver today? policies, create accounts technology. higher fuel for a planet, back encouraging for continued wins renewables our given a the including fuel sheet stakeholders convergence data, value powerful shareholders, for turn realize strategic customer Ballard highly adoption with economics call hydrogen, increased the And strong I'll to strategic across important a our cell a customers an growing and continue sustainable we with It's progress stakeholders, all verticals, employees. across leading and the to that, We

Instructions]. [Operator

Rupert National comes question Bank. from first Merer The with

Sorry, technical difficulties.

announced has together? With group? how between that this Weichai the And existing can is there Wisdom talk relationship that you come you an deal and about today,

interesting Yes, context Rupert, this thanks for question. the together. an how It's on actually came

in So XX -- has at some Rupert, years. your at effectively, market Hong for cell personal And the experience previously, Kong know, we've fuel own Hong been looking the time. looking market hydrogen you for Kong is as actually, technology been

well as And a were Bravo, market. time Kong the the cell so company Hong spending to that Hong Kong operators fuel transit be supplier with there, including we to be introduced very a of to would positioned buses Wisdom

on XX for designed cell the we'll coming through is XX international shareholder, to I so Hong with be embed by we in the introduction, Bravo trucks Hong controlling Wisdom, for saw think that platforms will Kong buses And and this Kong. Wisdom see and these important effectively markets, in progress very into market Water including months. to fuel opportunity Ballard now And Temple both technology a really as that

involved joint other say, So Weichai Ballard-Weichai venture. than, in this the is through directly

Yes.

So Wisdom company their buses this a in China. that manufactures is

experience So have the -- and of organization. company in the the founders Weichai prior

Weichai. So effectively moving I to the through is markets. Weichai-Ballard well known great into they're Ballard think opportunity opportunity for a product to joint to And international venture this see the have

Great.

of on line this? Do What's commercial any one first time final and expectations the potential on follow-up deployment? prototypes this. have for, say, Just deliveries then they

XXXX. We'll but Yes. important project on see, public think, you'll to Wisdom demonstration take lead for wait their I the an in disclosure,

with next MacNeil TD comes from The Securities. question Aaron

it across bus And shortage to of big I cited microprocessors. isolated do pervasive EBITDA issues their of partners. wondering, on announced just guess question revenues? microprocessor or guidance year is do this like full your revenue? shortages issue you Quick additionally, you when And your customers bus one all like recently see as will recognize your I'm reduction near-term and an impact incident? this They a of typically

thanks Aaron, Yes. the for question.

fuel of and think First verticals. all, their it's there weeks key spent strong as on typically, sentiment from real-world are experience these of me. for chain that truck, the takeaways deploy just a particularly whether in seeing for battery and growing They're demand record met would marine, rail, I bus fuel in they at to as adoption OEMs fuel all bus impacts zero the based I sales cell and number selling Europe are applications, certainly, understand all the we the are And buses for as was from some And a X One to those -- OEMs transit of customers Paul cells. couple cell look it's for I that seeing side, very of OEMs levels And electric cell the activity on other the of fuel buses. verticals. with bus both electric say and emission, well impacting important they're operators. supply bus

loud clear the came that that and of So with bus OEMs met. we through all very

heard the delivery it's were or cases, thing And bill that we're very with hoses supply microprocessors, bus part we in on second impact the struggling was not having they chain. modest that just of a all of some their schedules. of material could be The it's even

of your question customers bus second ship we revenue, recognize typically The over revenue in and to that of recognize we when of do that product the for customer. asset we the terms ownership turns when part

of exacerbated delays them customers it funding would and operators ongoing processes bus China their as government of look And And a then market So what's look of is on say the in OEMs the have number on their many have deploy, just bus that these with transit tendering the have for components from happening -- couple and the delays procuring One restricting [Technical we've And they're owned ours the fronts. X do of a at seen China supply to arrangements. currently. opportunities. the when been market I there being conclude had of than by this you timing be Difficulty] have chain. projects that could challenges customer rather to in

that choice. think deployments that's we're where in see see technology. later-stage a I do strategic for we So of aerospace, markets going to of call don't near-term example, opportunities I'll what type

a by revenue can the towards those engaged. where situation I think So heavily TS think weighted where are clearly opportunities the moving plan. being But percentage think of is trend the been and you activities we'll to a transition I the revenue, as to type sales. see the And is a dominated of Ballard markets And see always TS product of later-stage TS also I revenue newer that's as well. smaller of the transition

The Craig Tuohy comes next Shere with question from Brothers.

So you covered on of deal. Do a indication lot any have investment? Rupert prospective the Wisdom total

[Technical Difficulty] of completing terms that round in anything the cetera. the in of announcing valuation, size like investment et they're things

minority this here us, not is and investor material Wisdom. a For we're investment, in a

Got the reference that picking your you. to some And best material, to potential quarter the guess XX you this up. be the does this have months? FCwave stationary power sales in next just the market. is work, foreshadowing looks I but see made time. It top the you actual not to on stationary into Do over commercial traction, more power charge line lead moving

there's strong value same think that technology these about off motive the I'd Craig. Yes. stationary applications couple I Great medium of It's proposition. we're question, things and and for designing for products highlight more us the leverage get opportunity to with power. And a heavy-duty

like the business So that aspect model. we of

there power. The that of be is -- very stationary be second it about large deployments thing stationary can power can

XXXX stand-alone a XXXX, and stream future. the So in move see, significant we and we to stationary us profit out becoming revenue power for as do

stationary see or the think forward, do projects quarter-to-quarter market will in be can power of first moving But the power the seen we recently And volatility, can scale I in stationary deploy looking So, lumpy large of here will now cells opportunities some we stationary number relatively is think, we are at in there's technology. we've for indicative because I that new market segment. think really see a trend hydrogen time. fuel where market segments this I

for us aggregate to I it And so I vary think contribute think but business this -- And pretty will have it's it it's significant model. revenue, will exciting quarter-to-quarter.

next with KeyBanc. Leo The question comes Mariani from

really of years. bit the posted little Historically, Wanted gross negative the margins up to follow had around time guess, some decent on many and the for I has in of comments margin the Ballard first kind pretty a margins. here

Just came strategy. here. it bit surprised -- just little a you I a your think was And talk maybe maybe I little can about more

And Sounds that like maybe grab below do of some to like your you'll of kind a the better as maybe talk in for flips And cost start something you're that's a that you kind we get short-term just order more about quarters. of bit. that seeing year, to end strategy the you market of or a little do kind selling of think is explain that next margins? share? products couple of Just and it year where of

Charlie, it's Paul here.

-- a higher of mentioned of and perhaps there's on downward towards a yes, really, revenue Products change TS we've it's Power some revenue much away margin few margins, pressure is the happening, than So different more that got in from the But products having TS, which some couple and mix contribution margin. traditionally. not. dynamics the -- some

actually as freight-in labor, effect. We're We've well seeing on from higher inflationary in an some having still There's TS in the materials, Power both pressure contribution margin costs, prior and of about pressure, that's chain, quarters. talked Products that. higher costs. So these also supply some

good building and it, job managing qualifying the to think new a through actually quite doing manage is inventory team help suppliers some that. I we're

seen some little some times times lead and delivery not and but out bit rise, costs amounts. by huge get So, pushed we've a

really is higher overheads about increased impact of So really there. biggest million $X.X points from and fixed is 'XX, the XX margin. of is about by QX a that team overall, which good gross the job the impact But doing

up and of what that spending is to scale spending before we've curve about with in quite overall production consistent ahead volumes. of higher disclosed growth So anticipation the

given we've guidance the with consistent on higher that's spending. So

our the in manufacturing, into investment some -- advanced margin that to areas growth of gross in going people some getting operational key in processes in more as seeing support facilities operations in we're well. upfront So

really So thing. biggest the that's

that's half of last half overhead, in year. There's received we of other the COVID subsidies, receiving of fixed a the fixed And there's haven't rent some is small other bit also on increased also half. the overheads The subleases, more that amount in a other renewed then little the really nonrecurrence, And been assets. QX which sort well. depreciation as not fixed from of increase of which spending

as remarks, So mentioned all that of was that's -- in expected. as his Randy

And so given those kind digits this sort single of trends and drivers gross of that in increased percentage margin the year. investment, be we're expecting to the of

so to is when And quite the see confident we we're volumes. expansion, going come sales higher

And so over those costs spread sales. higher

And up. occur would ramp and going be so sales as that that, volumes is we to confident

And policy to proposition. for understand to and value a where we clear have that industry, maps, lots translated question of the important Leo, And that and your kind maybe see I levers as a are but adopters XX early on nudges of hasn't think just countries now customer to side. address strategies it's to an hydrogen road

seen So happen, gap adopters levers. and to value seen policy the the happened solar and help we've in markets a a been haven't there's normally, number support that even in today the those in it of yet. their low to proposition is translate will It get strategies And out. hasn't yet deployments have levers early we there that but hydrogen And battery wind electric what and cost volumes. in structure

over months, Ballard their consciously OEM lean dominate the securing with experience key and on and these in, technology, that's on the looked that wins that as end X last marine, have truck, in have as to our pricing cell work and to their we've brand at the customers, platform verticals design And consciously customers seen make in who these we've platforms projects so technology, around we've that decisions this that we've whether get economics to made projects users happen. have customers pressure the do order bus, rail road, to fuel they're we

our decision that. to do very a So conscious part on

platform with us benefit to these wins. going it's think long term I

said we've these times we're that sticky. As believe in very before, platforms, many once we're

to Okay. kind for just second Would That's kind you direction? the to very for maybe expect creeps think year good then of sort it qualitatively we half? here. comment can revenue and of Or first as your the slowly And you revenue kind revenue the anything be of respect into the trend color on kind get up generally about sure. all you of with quarter low of your

Yes.

I that. history, think We usually XX-XX, years revenue similar last can really, that. we'll higher like portion think, the portion, But the We're have. the points we here if I there's have in and color to something a a data supports based to XX lower over typically on any the that. HX see going of additional this year, QX we -- see of certainly, in provide at end shift something

The Lamers next question comes from Jonathan with BMO Markets. Capital

happen an begin OEM at next relationship shown Randy, this week, can a partnership before with the vehicles. produce to needs to the Linamar-Ballard vehicle what Expo concept on the ACT commercial

question. Yes. Great

market that Class refueling. depot I return a in and is to II think trucks We're trucks we're utilization, high going here week the light-duty the Ram this Class polling, thinking Expo highlight et tolling for chassis. use Expo, centralized see a particularly base to for can is there those that and about cetera. where -- X Long work that hauling the concept opportunity and and ACT important Beach XXXX pretty this in We powertrain Linamar-Ballard

integrated storage And this so taken conformable platform. being hydrogen look like that's technology I in into at market also investing this and has good think opportunity its very is technology tank a Linamar

into to II OEMs. products going different look at the these years, OEM, powertrain getting a think Class led platforms. number XXXX going of vehicle what the of to XXXX, concept number we're sharing looking Linamar of in I take some particularly by testing see into design with Linamar the hands is and vehicle That's customer a and with to and and to that of Linamar-Ballard OEMs testing started

with If you longer-term look a a and see market this cycle, very it's that see very But at that importantly, opportunity kind we'll turnaround. a we committed. think quick partner that's of as I the is design not something attractive

Glen next The James. with comes from Raymond question Michael

for about taking Randy, you've own and business past we a look you taking think beyond. point in everything about say, influenced should when spoken that now, place, revenue has revenue inflection place your view inflection right XXXX place? taking that the at the When on

Yes.

had think of we're I customers we way are It's Michael, that point further pilot Siemens the off-road marine, develop and revenue front. stationary seen of years, verticals, H a number outlook. progressing train. Mireo all these contemplated. now this working When happening seeing about be more inflection engine Plus that some we've see that visibly activity support for some bus, truck, this At demonstrating point, strengthen fuel give across train. the that and opportunities example X.X I'll actually Siemens they'll from now and the I factors on we've Siemens year this InnoTrans launched, rail, cell applications we'll what's to think that projects you of -- and and the So for been markets. closely very inflection where conference, the These always

see different of a we I I it's that progress the verticals. say, across sample So the would think very, representative expected to

much market, the high is with vehicle than do of the in terms making. end we OEMs the can the I the more demand users they're truck intense tell So you, in interest. see investment end-user

So truck that's why accelerate to with these collaborating market adoption. and partners early-stage we're upfitters

this in steep frame that long version, XXXX. through short So growth curve and XXXX, long XXXX point yes, the We occurring yes. -- is, version very with the inflection that's a a see time

foundation. a fact verticals chip my very is to support opinion. lot this customers blue that I a variety and occurring exciting, multiple that of we so And And see geographies the think multiple with provides across this of in

speak competition about quite a development a fuel have programs. been And few bit. cell companies just pursuing go to There

the you So been that How part When Doosan. about was spoke like? And in yourselves for about with see Did terms of process companies versus aligning with example, competing a you a what Doosan? that prior you've were step-up competition you in real can -- of? was process? talk you many processes

Yes.

I about, of these are vehicle talking we're verticals Michael, very think So all the that sophisticated. different OEMs

technology ABB, Cat the user customers are sophisticated very And on example, end that and is very others. our went think deployments. yes, homework as think do all with their project through this fuel Marine referred Doosan. CP or as with And partners about data Microsoft excited to diligence or field on at about and product about like in So working against that and cells. Siemens look the illustrative Ballard about test partnership we're I Doosan on sophisticated almost an and technology the we're the process, assessing very their just think they an

I'd Doosan for let us, for designing say we'll provides and on cell comment lot any manufacturing details that is what that we're stacks our on them is publicly to effectively think a is, fuel own leverage But process. of because be this already more engine. that I going using

in bus So they'll for the strategy and their stack market be control designing engines our the their Korean engines market, technology. around

on, Doosan So it I opens geographic a new And goodwill a being that other Ballard X companies. leverage there'll think, for the lots to developed based us market. think I collaborate gives lot is opportunities and between strong it very be of of and

competitive having lead So a is we're to validating improved We to increasingly we a strong lead, working disciplined a see point, that and as market, Ballard and cost. hard your process, very through lower have But volumes in think, to a partner experience extend field where them believe the it structured, they Korean us. with technology I them and market. and that speaks technology

Wainright. comes question Sameer with next The from Joshi H.C.

and different for what Can developments stack margin these on you talked more markets. the at next-generation level, here? developments the are Are I that? think speak press development engines the In little release, about stacks level, target a bit of you fuel to

Yes.

existing rail for designing platforms, also we're next-generation talked that and we've for So additionally. same Stack modules And and and stationary in we example, power, that module stacks off-road, different markets these about, stack we we leverage look while next-generation truck, investments for use see marine. the technology in example, verticals, ability for of where to make to verticals continue these bus, that

all talking about have been. higher-performing just And always higher focused the most products as things power we products here we're output we're in cases, So actually on well.

high balance those across standardized cetera. including et across that's more standardized of So compressors, market and like market more components, the product, humidifiers, efficiency, leverage these segments different power high-power power getting off density, and different plant the ranges things ranges segments

more what strongly And think road this very share later will on that's these year on. see Investor position at verticals which we that Day across I So we're geographies. map, working we'll a us and our product Analyst these across and

it. then And Got just one on revenues.

able Is think you various in any that are may that million chance million expect of be of to you Europe? your this accelerate? there because there $XX or backlog Or I $XX.X you to risks issues have around delays year. of deliver

accelerate Yes, see We opportunities year. Sameer, book see deliveries order this both. we for the to certainly

We also delays, potential as see risks well. some

of QX, front, for think, the just supply lead clearly, opportunities the some some and are puts -- platform. projects have invariably for provide our across how But number for update on isn't are right industry, their see us This a on are both, vehicle the the we QX. risk for significantly. would out there but there opportunities can now, and as I customers call But more chain, to I taking the and end our clearly, we'll So have the we'll at that before times takes, next in -- just accelerant next the materials And longer. also there. and say moved highlight of quarter

next So important an that's over be I think to fact to going watch X to the months. X

comes . question with Brown Street from Markets. Lake next The Capital Rob

development project of And that trying is of expansion Randy. steps on that effort. expansion. drove of is address? How the is And sort Rail CP project My the expansion? next -- to what on the what's question kind that sort how

question. for Rob, thanks the

we switchers on And freight out is they so and I'll call goods call transporting out segments, started at market actually What line long started CP, looking lines. with what X them, so locomotives, they've added when additional, I'd shunters.

So all fuel have they to cell hydrogen now diesel powered they're technology. different X transitioning locomotives, that

validate in what opportunity would designs different for an to I and think so cell will be refurbishment. locomotive hydrogen start with to as it displacing refurbishment in technology they that X these diesel look XXXX a fuel XXXX important And typically a be

that has profile that's and use diesel emission say to high that's kind of and the a fuel. of #X very I So decarbonize, to GHG at the look have, the they commitment would level of expansion how CP

that market hydrogen can So only believe we're cells. be I very is fuel market excited and served opportunity, this by about this a

rollout. And of ultimately, But development, point? of OEM towards Good. line of terms time sort does vehicles know then I Okay. the steps to in EU market the kind things. demonstration and start of do you've in when that next see you're and terms look this got working then How your product partners we at

Yes. activity, Great say on question. pretty rail. seeing bus, and We're significant I truck would

into bus posture over is for term market that of I the in well have think and buses you'll projects strong opportunity the really What being opportunities as see deployment. cell developments translate and I market some order fuel exciting think long-term their is planned additional from this as book. seeing year XXX terms OEMs that we're near very

that that we than in see seeing to again, hundreds we're and moving eventually this book the to stronger So do to the and order And it's been. is thousands posture ever pipeline and eventually revenue. sales

encouraged XXXX number number And we're different Ballard the first-time XXXX, see market, you're truck in very with what similarly, truck I with to in on Europe -- on think there. and the fuel by So cell we're a of going deployments a of front. partners market technology seeing

pretty excited more partners think market to the this than scale, projects but get to I demonstration from and front opportunity to on you'll out. longer bus And about see take to market in truck Ballard announcements on going So XXXX. the the we're we've these side. got move That's

[Operator Wolfe Instructions]. The with comes Kania from Alex next question Research.

to they kind more update the out I things there with are most came know a be this of maybe policy a on EU Just a, months European ago. that maybe at that opportunities Repower of hydrogen they we due on important for should of you with the to most respect I looking couple other about guess, or here. question that Are that components thinking a detailed statement. strategy focused that

Yes.

points. energy some affordable, this also it's you acceleration still, of for but of plan adoption couple low trend EU around would about energy a the there, of over I Alex, significantly secure permitting levers we're the think renewable has hydrogen, very energy. very what of interesting Obviously, in see So has going around And not renewable This and projects. just last to scaled decade. RePower compared to forward. of going say, just But volume the sustainable

electrification It's and supporting going energy for in jurisdictions of new renewable electric And the electric. and battery as grids the grids. for many the greening is well so mobility lowest-cost power opportunity supporting on to

critically So important. on I is think opportunity renewable energy the

the the numbers been talking What year some currently, industrial most deployment in my Europe. to electrolysis-based production given about vehicles the the fairly XXX, is somewhere but been a hydrogen. and we've level we And going the for maybe see fuel on support hydrogen key around adoption help for even that have believe can hydrogen over Of encouraging. hydrogen of very fuel is cell we're the an hydrogen would developments In across role we occurring of this hydrogen some think green In just access accelerate volume green I been green of here of contemplated adoption course, industry globally time seeing the storage playing accelerated going renewable XXXX. higher to front, would And you our about mind, will that's I've are cell I vehicles I and the green the at a volumes by the opportunities, XXXX. investors activity last that's lot energy high-volume in Repower acceleration And And is than decarbonize hydrogen. to energy. really What XXXX my modest. XXX market say very important of hydrogen need green applications, of to the for provide saying gigawatts capacity low-cost EU production the planned decarbonize see much program mind, hydrogen that there. to that variable to

the that my conundrum we think, fueling we're So market, about is well. for refueling. focused talked years. lever have will this and the chicken been course, that quarters to the production And of that's I and returned egg refueling important be market depot in of we're you hydrogen that's most for excited support as very primarily that see we will truck where about required build-out longer green truck long-haul remove or support centralized freight on But base that for hydrogen XX opportunity the applications support to have mind, for and truck can infrastructure,

conference question-and-answer This to closing for the the concludes MacEwen, Randy I back remarks. like turn any CEO, would session. over to

and you for next to Thank look with Great. again. all today. I Kate quarter. speaking And Thanks Paul, us joining forward you

This conference concludes call. today's

for and you Thank lines. a your participating, have disconnect may You pleasant day.