FuelCell Energy Inc. (NASDAQ:FCEL) stock fell Wednesday after the company reported weaker-than-expected third-quarter results.
The company reported an adjusted loss of 64 cents per share. That missed the consensus estimate for a loss of 41 cents.
Revenue fell 29% year over year to $33 million. It also missed the consensus estimate of $38.83 million.
Lower module deliveries to customers in Korea weighed on product revenue. Generation revenue also declined due to lower plant output. The 7.4-megawatt Groton Project at the U.S. Navy submarine base in Connecticut was offline for an equipment upgrade.
FuelCell Energy’s gross loss widened nearly fivefold to $24.5 million from $5.1 million a year earlier. The decline largely reflected $17 million in charges tied to the initial phase of its FIT Energy agreement, including a $4 million inventory write-down and $13 million in losses on firm purchase commitments. The company said its current production costs and manufacturing overhead exceed the contract’s pricing.
Its operating loss narrowed to $46.7 million from $95.4 million. Adjusted EBITDA was negative $36.7 million, compared with negative $16.4 million a year earlier. Inventory valuation charges drove the decline.
The net loss attributable to common stockholders narrowed to $45.3 million from $92.5 million. The year-ago period included impairment and restructuring costs.
FuelCell Energy ended the quarter with $737.3 million in cash, cash equivalents and restricted cash.
Backlog Grows As FuelCell Lands Data Center Deal
FuelCell Energy’s committed backlog reached $1.3 billion as of July 31, up 4.1% year over year. The backlog includes Fit Energy USA LP’s commitment to purchase systems representing 30 megawatts of capacity.
Fit Energy also holds an option to purchase systems representing up to 350 additional megawatts. That option added $2.4 billion to FuelCell Energy’s awarded capacity backlog.
The company signed a memorandum of understanding with Siemens to support faster and lower-cost deployment of projects exceeding 100 megawatts. It also delivered its first two carbon capture modules to ExxonMobil Technology and Engineering Co. in Rotterdam.
FuelCell Energy is expanding its Torrington, Connecticut, manufacturing facility. The company expects the site to reach 500 megawatts of annual production capacity by June 2028.
After the quarter ended, FuelCell Energy signed its first capacity reservation agreement with a major data center operator. The agreement covers a planned 75-megawatt project in Texas and includes an upfront payment.
The company said its fiscal 2026 sales pipeline reached about 10 gigawatts.
CEO Highlights AI Power Demand
During the earnings call, FuelCell Energy CEO Jason Few said the AI economy will be constrained by access to electricity, not silicon. He said rapid growth in AI and high-density computing is creating power needs that the existing grid cannot meet quickly enough, making electricity access a critical barrier to data center development.
He also highlighted the Fit Energy agreement, which covers up to 380 megawatts across four potential phases. Few said the deal shows FuelCell Energy’s ability to meet rising demand for utility-scale, behind-the-meter power. He also pointed to growing electricity demand from artificial intelligence, data centers and electrification.
FCEL Price Action: FuelCell Energy shares were down 16.51% at $14.25 at the time of publication on Wednesday, according to Benzinga Pro data.
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