BLDP

Ballard Power Systems

DOUBTFUL — SCREEN DOES NOT PASSstock

Is BLDP Halal?

Hydrogen fuel-cell technology is generally permissible, but the latest annual financial screen fails on liquidity and investment-income ratios.

What You Should Know

Ballard Power Systems' December 31, 2025 Form 40-F reports $682.388 million of assets, $2.092 million of borrowings, $527.052 million of cash, $24.202 million of receivables and $99.370 million of revenue. Debt/assets is 0.31%, but liquidity/assets is 77.24% and receivables-plus-cash/assets is 80.78%; investment income was $24.534 million, or 24.69% of revenue, used as a conservative upper bound. Hydrogen fuel cells remain a generally permissible core activity, while pre-profit execution and government end uses require qualitative review.

⚠️ Concerns

  • Liquidity/assets of 77.24% exceeds the examined limits
  • Receivables-plus-cash/assets of 80.78% exceeds the examined limits
  • Investment income is 24.69% of annual revenue on a conservative upper-bound basis
  • Pre-profit and cash-burn risk
  • Government and transportation end uses require qualitative review

Current quantitative Sharia screen

Based on 40-F figures for the period ended 2025-12-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
0.31%Within limit
Below 33.333% under FTSE Yasaar

2.092 / 682.388

Cash + interest-bearing securities / assets
77.24%Above limit
Below 33.333% under FTSE Yasaar

527.052 / 682.388

Receivables + cash / assets
80.78%Above limit
Below 50% under FTSE Yasaar

551.254 / 682.388

Non-compliant income / revenue (upper bound)
24.69%Above limit
No more than 5% under FTSE Yasaar

24.534 / 99.37

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Liquidity/assets is 77.24% and receivables-plus-cash/assets is 80.78%, above the examined limits; conservative investment income is 24.69% of revenue.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Liquidity/assets is 77.24% and receivables-plus-cash/assets is 80.78%, above the examined MSCI limits.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Identifiable cash and liquidity are above the examined Malaysia ratio limit; this is not an official SAC classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A licensed and reproducible historical market-cap series is not stored.

Business-activity disclosure

Ballard develops hydrogen fuel-cell products for mobility and stationary power. Clean-energy technology is generally permissible, while government contracts, product deployment and investment income require continuing qualitative review.

Limitation: The filing does not provide a universal prohibited-revenue numerator across customers, contracts and end uses.

Purification

Investment income is disclosed, but no scholar-approved purification percentage or complete prohibited-revenue numerator is asserted.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Ballard's December 31, 2025 Form 40-F financial statements.
  • The filing reports approximately $2.092 million of borrowings; lease liabilities are not added to interest-bearing debt without a comparable carrying-value presentation.
  • Cash and cash equivalents are $527.052 million; no separate interest-bearing securities balance is identified.
  • Trade and other current receivables are $24.202 million and annual revenue is $99.370 million.
  • Investment income of $24.534 million is used as a conservative upper-bound income numerator; it includes investment results beyond pure interest.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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