The goal comes as part of a strategic realignment announced by new President and CEO Marty Neese, as the company looks to turn the tide on its finances.

Pitched as a “fundamental reset” in how the company operates, innovates, Neese said Ballard would be focusing on “the market as it is.”

“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,” he said.

A company statement said the plan would involve “difficult decisions”, including job cuts.

In 2026, the firm also intends to reduce annual operating costs by at least 30% compared to H1 2025 through headcount reductions, streamlined operations, and “tighter portfolio integration.”

It will prioritise its fuel cell products with the “strongest commercial traction”, discontinue non-core programmes, focus on system cost reduction, accelerate stack development, and drive higher margin products.

“Ballard is targeting enhanced gross margins through lower product costs, value-based pricing, and elevated customer service,” the firm said.

Furthermore, it will continue to limit capex and manage cash by optimising inventory and working capital control.

“We are building a company that is not just innovative, but commercially durable,” Neese said. “We remain steadfast in our belief that hydrogen and fuel cells are essential to decarbonising global mobility.

“This realignment ensures we can lead in this transition – not with hope in a future market, but with discipline, readiness, and focus.”

The plan marks Neese’s first major move since taking the reins at Ballard last month.

It follows previous cost reduction plans issued by the company’s former management amid slowing demand for hydrogen mobility solutions.

In its Q1 2025 results, Ballard reported a net loss of $20.5m despite cutting cash operating costs and total operating expenses by 22% and 31% respectively.

With demand in passenger vehicles and heavy-duty trucks falling, the company has refocused on the bus segment, which sees stronger subsidies and higher municipal demand.