Ballard Power Systems Inc.

Adjusted EBITDA

EBITDA and Adjusted EBITDA are non-GAAP measures. We use certain Non-GAAP measures to assist in assessing our financial performance. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. See reconciliation of Adjusted EBITDA to GAAP in the Supplemental Non-GAAP Measures and Reconciliations section. Adjusted EBITDA adjusts EBITDA for stock-based compensation expense, transactional gains and losses, acquisition related costs, finance and other income, recovery on settlement of contingent consideration, asset impairment charges, and the impact of unrealized gains and losses on foreign exchange contracts.

Adjusted EBITDA (see Supplemental Non-GAAP Measures and Reconciliations) for the fourth quarter of 2025 was ($11.6) million, compared to ($36.0) million for the fourth quarter of 2024. The decrease in Adjusted EBITDA loss of $24.1 million was driven primarily by the improvement in gross margin of $8.8 million, by lower Cash Operating Costs of $11.0 million, by lower impairment losses on trade receivables of $3.0 million, lower restructuring and related expenses of $1.4 million, and by lower equity in loss of investment in joint venture and associates of $1.0 million attributed to the operations of Weichai Ballard JV.