FuelCell Energy posts $78.7M loss as revenue misses $42M consensus

FuelCell Energy reported Q2 revenue of $35.6 million, missing the $42 million consensus, as a $42.6 million impairment charge widened its net loss.

Jefferies lowered its price target on FCEL to $7.20 from $9.00, maintaining a Hold rating after the revenue shortfall, the firm said in a research note.

Revenue declined 5% from $37.4 million a year earlier. The net loss attributable to common stockholders was $78.7 million, or $1.45 a share, compared with $38.8 million, or $1.79 a share, in the prior-year period. The impairment expense related to equipment upgrades at the company's 7.4 MW Groton Project in Connecticut.

The results come as FuelCell Energy pursues a strategic pivot toward AI data center customers. The company's sales pipeline expanded to 4 gigawatts, a 267% increase from the first quarter, driven largely by data center demand. Shares fell 19% to $17.33 following the report.

The company's backlog fell approximately 10% to $1.14 billion as of April 30, from $1.26 billion a year earlier. FuelCell Energy announced plans to expand its Torrington, Connecticut manufacturing facility to support an annualized production rate of up to 500 MW, up from a prior target of 350 MW. The expansion is estimated to cost between $200 million and $275 million over 24 months.

During the quarter, the company sold approximately 10.9 million shares at an average price of $9.45 each, generating net proceeds of $100.4 million. Cash and cash equivalents totaled $440.9 million as of April 30, up from $341.8 million as of Oct. 31, 2025.

FuelCell Energy also introduced standardized 12.5 MW power blocks designed for data center deployment, addressing grid constraints and power availability challenges. The company shipped its first two carbon capture modules to Rotterdam, Netherlands, as part of a collaboration with ExxonMobil Technology and Engineering.

The widening loss and revenue miss pressure near-term sentiment, but the 4 GW pipeline tied to AI data center demand points to a potential growth inflection. Investors will watch for customer conversions from the pipeline and the progress of the Torrington expansion over the next 24 months.

This article is for informational purposes only and does not constitute investment advice.