What happened

Shares of fuel cell company Ballard Power Systems Inc. (NASDAQ:BLDP) jumped 6.5% in August, according to data provided by S&P Global Market Intelligence, after earnings topped the market's expectations. Ballard is still losing money, but if it can keep up a torrid pace of revenue growth this might be a good long-term energy play for investors.

So what

Second-quarter revenue rose 50% to $26.5 million on the back of a 93% increase in revenue from the technology solutions arm of the business. This is the business that has a joint venture in China and is seeing demand from bus and tram programs in the country.

Profile of a car made with leaves, signifying clean energy from fuel cells.

Image source: Getty Images.

Gross margin improved by 6% to 35% and drove a $5.1 million improvement on the bottom line to an adjusted net loss of $0.04 million, or breakeven on a per share basis. Analysts were expecting a $0.02 loss per share and revenue of $25.9 million, so results easily passed expectations.

Now what

Ballard has built a fairly diverse business with heavy-duty, portable power, material handling, and backup power. And the company's joint venture in China is driving fuel cell technology adoption for large transportation projects that could make their way around the world if they're successful. After years of financial losses, Ballard Power may finally see a brighter financial future. In fuel cell stocks, this is one company that appears to be playing its cards right.

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.