Shares of Ballard Power Systems (BLDP) tumbled over 6% in pre-market trading on Monday, following the company's release of its Q3 2024 earnings results. The fuel cell manufacturer reported a significant decline in revenue and a weak order intake, reflecting the challenging industry environment it is currently facing.

The company's Q3 revenue fell by a staggering 45% year-over-year to $14.8 million, with new orders totaling just $11.2 million in the quarter. Ballard Power's gross margin plummeted to a negative 56%, a 45-percentage-point decrease from the same period last year. Furthermore, the company incurred non-cash impairment charges of approximately $147 million, including $40 million in goodwill and $107 million related to property, plant, and equipment.

In addition to the weak financial performance, Ballard Power announced a restructuring plan that will result in a charge of $16.1 million in Q3, with an additional $2 million to $5 million expected in Q4. The company cited challenges in securing orders in the truck and marine markets, where market adoption has been slower than anticipated.