FuelCell Energy Q4 Earnings Call Highlights

FuelCell Energy (NASDAQ:FCEL) outlined a strategy centered on distributed, always-on, low-emission power as it reported fourth-quarter and full-year fiscal 2025 results, pointing to growing demand from data centers and continued activity in South Korea as key drivers for its pipeline and manufacturing plans.

Strategic focus: distributed power for data centers

President and CEO Jason Few said the company spent the last 12 months executing restructuring measures intended to sharpen focus, lower costs, and strengthen business fundamentals. He framed the current market backdrop as a major opportunity, citing accelerating electricity demand driven by AI, data centers, and digital infrastructure.

Few said FuelCell Energy is concentrating on its carbonate fuel cell platform, describing it as “commercially ready” and proven at scale. He argued the platform addresses customer constraints such as long utility interconnection timelines (described as five to seven years or more), multi-year procurement and construction timelines for traditional gas turbines, emissions restrictions, and siting limitations.

In discussing why the company believes its approach fits data center needs, management highlighted modularity (1.25 MW power blocks), baseload reliability, and permitting advantages. Few also noted the company is seeing interest in integrating steam absorption chilling to reduce cooling-related loads at data centers, and cited “NIMBY” concerns as another factor that could favor quieter, lower-emission distributed generation.

Manufacturing scale and path to positive Adjusted EBITDA

Few reiterated that higher utilization at the Torrington, Connecticut manufacturing facility is central to the company’s profitability goals. He said FuelCell Energy expects to achieve positive Adjusted EBITDA once it reaches an annualized production rate of 100 megawatts per year. On the call, he described the company as roughly 40% of the way to that goal, and later clarified in Q&A that current run-rate production is about 41 MW.

Looking beyond 100 MW, Few said the Torrington facility could support an estimated annualized capacity of up to 350 MW with additional capital investment across equipment, tooling, labor, outsourcing of certain processes, and inventory. In response to an analyst question, he said the company believes it can scale to 350 MW within the current facility footprint and expects the buildout could be completed in less than about 18 months once underway.

CFO Michael Bishop added that the company has completed planning for expanding Torrington and has begun steps to enable that expansion. For fiscal 2026, Bishop said FuelCell Energy expects capital expenditures of $20 million to $30 million to “get us started on that expansion path,” with further details to be provided as additional backlog is secured.

Fiscal Q4 and full-year results show revenue growth, narrower quarterly losses

Bishop reported fourth-quarter fiscal 2025 revenue of $55.0 million, up from $49.3 million a year earlier. Operating loss narrowed to $28.3 million from $41.0 million, with the quarter including a $1.3 million non-cash impairment related to restructuring. Net loss attributable to common stockholders was $30.7 million versus $42.2 million in the prior-year quarter, and net loss per share was $0.85 compared with $2.21. Adjusted EBITDA improved to negative $17.7 million from negative $25.3 million.

For fiscal 2025, revenue rose 41% to $158.2 million from $112.1 million, which Bishop said was largely driven by module deliveries to Gyeonggi Green Energy Company Limited (GGE) under a long-term service agreement. FuelCell Energy delivered 22 modules to GGE during the year. Operating loss was $192.3 million versus $158.5 million in fiscal 2024, which Bishop attributed mainly to $65.8 million of non-cash impairment expenses and $5.3 million of restructuring expenses. Net loss attributable to common stockholders was $191.1 million compared with $129.2 million a year earlier, while net loss per share was $7.42 versus $7.83. Adjusted EBITDA improved to negative $74.4 million from negative $101.1 million.

Backlog rises; South Korea remains a key market

In the fourth quarter, product revenue increased to $30.0 million from $25.4 million, driven primarily by revenue recognized for delivery and commissioning of 10 modules under the GGE service agreement. Service agreement revenue rose to $7.3 million from $5.6 million, also tied primarily to GGE. Generation revenue increased to $12.2 million from $12.0 million, reflecting higher output from the company’s generation operating portfolio, while advanced technology contract revenue declined to $5.5 million from $6.4 million.

Backlog increased about 2.6% to $1.19 billion at October 31, 2025, from $1.16 billion a year earlier. Bishop said the increase primarily reflected additions including the Hartford Project and a long-term service agreement with CGN Yulchon Generation Company Limited, partially offset by revenue recognized during the year.

Few said FuelCell Energy has established itself as a partner in South Korea, which he described as the largest fuel cell market in the world. He said the company has more than 100 MW of power projects in South Korea in backlog and another 100 MW under an MOU. Management also referenced an earlier-announced MOU with Innoverse tied to what the partner anticipates would be the largest data center in Korea, though Few declined to provide specific conversion timing, saying the company expects to have more to share as it moves through fiscal 2026.

Liquidity, financing activity, and carbon capture update

FuelCell Energy ended fiscal 2025 with $341.8 million in cash, restricted cash, and cash equivalents. During the quarter, the company sold about 16.4 million shares under an amended open-market sale agreement at an average price of $8.33, generating net proceeds of approximately $134.1 million. After quarter-end, it sold another 1.6 million shares at an average price of $8.37, generating approximately $13.1 million in net proceeds.

Bishop also noted that after the quarter the company announced a new $25 million debt financing transaction with the Export-Import Bank of the United States (EXIM), which he said supports international deployments such as the collaboration with GGE in Korea. On a question about the company’s at-the-market program, Bishop said FuelCell Energy has historically kept an ATM on file and he did not anticipate that changing, while also stating the company was “quite comfortable” with its liquidity position.

On carbon capture, Few said the company has completed construction of modules to be shipped to Rotterdam for a demonstration with Exxon at an Esso refinery. He said the project aims to demonstrate capturing “90%+” of CO₂ while producing power and hydrogen, and that the company expects the project to be up and running in the latter half of 2026. He added that, following a successful demonstration, FuelCell Energy would work with Exxon on pursuing commercial opportunities.

About FuelCell Energy (NASDAQ:FCEL)

FuelCell Energy, Inc (NASDAQ: FCEL) is a publicly traded company that designs, manufactures and operates turnkey molten carbonate fuel cell power plants. These stationary, on-site energy solutions generate electricity and heat through an electrochemical process that combines natural gas or biogas with oxygen, producing power with lower greenhouse gas emissions than traditional fossil fuel-based generation. The company’s fuel cell technology is engineered for continuous, baseload operation and can be integrated into microgrid architectures and industrial power systems to provide reliable, around-the-clock energy.

The company’s core product suite, marketed under the SureSource brand, encompasses both power generation and integrated carbon capture or hydrogen production capabilities.