Latest news with #FuelCellEnergy
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9 hours ago
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FuelCell Energy Inc (FCEL) Q2 2025 Earnings Call Highlights: Revenue Surge Amid Strategic ...
Total Revenue: $37.4 million, up from $22.4 million in the prior year quarter. Loss from Operations: $35.8 million, compared to $41.4 million in the prior year quarter. Net Loss Attributable to Common Stockholders: $38.8 million, compared to $32.9 million in the prior year quarter. Net Loss Per Share: $1.79, compared to $2.18 in the prior year quarter. Adjusted EBITDA: Negative $19.3 million, compared to negative $26.5 million in the prior year quarter. Cash, Restricted Cash, Cash Equivalents, and Short-term Investments: $240 million as of April 30, 2025. Product Revenues: $13 million, compared to no product revenues in the prior year period. Service Agreement Revenues: $8.1 million, up from $1.4 million in the prior year period. Generation Revenue: $12.1 million, down from $14.1 million in the prior year period. Advanced Technology Contract Revenues: $4.1 million, down from $6.9 million in the prior year period. Gross Loss: $9.4 million, compared to $7.1 million in the prior year quarter. Operating Expenses: Decreased to $26.4 million from $34.3 million in the prior year quarter. Backlog: Increased by approximately 18.7% to $1.26 billion from $1.06 billion as of April 30, 2024. Warning! GuruFocus has detected 5 Warning Signs with FCEL. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FuelCell Energy Inc (NASDAQ:FCEL) announced a restructuring plan to prioritize sales of its molten carbonate platform, aiming to accelerate the timeline to expected future profitability. The company is focusing on its core carbonate platform, which is aligned with the growing demand for distributed power generation in the US, Asia, and Europe. FuelCell Energy Inc (NASDAQ:FCEL) has formed a strategic partnership called Dedicated Power Partners (DPP) to accelerate the deployment of its carbonate FuelCell technology in data centers and other large-scale applications. The company reported a significant increase in total revenues for the second quarter of fiscal year 2025, reaching $37.4 million compared to $22.4 million in the prior year quarter. FuelCell Energy Inc (NASDAQ:FCEL) is committed to disciplined cost management, with a plan to reduce operating expenses by 30% on an annualized basis compared to fiscal-year 2024. FuelCell Energy Inc (NASDAQ:FCEL) is pausing broader solid oxide R&D, which may limit future innovation in this area. The company's Torrington manufacturing facility is currently operating at an annualized production rate of approximately 31 megawatts, well below the target of 100 megawatts needed for positive adjusted EBITDA. Despite narrowing losses, FuelCell Energy Inc (NASDAQ:FCEL) reported a net loss attributable to common stockholders of $38.8 million for the second quarter of fiscal year 2025. The restructuring plan includes a global workforce reduction and significant reduction of discretionary overhead spending, which may impact employee morale and operational capacity. Advanced technology contract revenues decreased to $4.1 million from $6.9 million, indicating potential challenges in this segment. Q: Can you provide an update on the Dedicated Power Partners (DPP) initiative and any momentum with customers and orders? A: Jason Few, President and CEO, explained that DPP is focused on data center customers, combining fuel from Diversified Energy, Fuelcell power generation, and financing through TESIAC. They are actively pursuing conversations in Northern Virginia and Kentucky and feel positive about the momentum in turning these discussions into transactions. Q: What is the timeline for reaching EBITDA neutrality, and what are the production targets? A: Michael Bishop, CFO, stated that achieving adjusted EBITDA positive is expected when the Torrington facility reaches 100 megawatts of production. Currently, the facility operates at 31 megawatts, and the timeline depends on the flow of orders. The facility has a capacity of 100 megawatts without additional capital expenditure and can expand to 200 megawatts with further investment. Q: How does the current focus on manufacturing impact the path to profitability compared to the generation portfolio? A: Michael Bishop noted that while the generation portfolio contributes to financials, the focus is on product and service sales. The company is not relying on increasing the generation portfolio but sees opportunities in selling products into DPP and other markets, including Korea, which will also include service agreements. Q: With the rising costs of gas turbines, how does this affect your pricing strategy for data center applications? A: Jason Few mentioned that the increased cost and timeline for gas turbines present an opportunity for Fuelcell Energy. They do not foresee significant changes in pricing to customers due to demand driven by electricity growth and intend to capitalize on this opportunity. Q: Can you elaborate on the power generation opportunities for AI and data centers and which customers are showing the most urgency? A: Jason Few highlighted that the opportunity is not solely around data centers but includes grid resiliency and reliability projects. The data center market is fragmented, with developers, hyperscalers, and gas distribution companies all showing interest. Fuelcell Energy is engaging with all these segments, focusing on delivering power blocks to get data centers operational. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
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2 days ago
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Why FuelCell Energy (FCEL) Stock Is Trading Up Today
Shares of carbonate fuel cell technology developer FuelCell Energy (NASDAQ:FCEL) jumped 27.8% in the afternoon session after the company reported impressive first quarter 2025 (fiscal Q2) results which blew past analysts' sales estimates. Most of that strength came from product sales and service deals, especially those tied to replacing modules under a long-term agreement. Its backlog kept growing too, up almost 19%, which suggests customer demand is still healthy. Still, the good news on the sales side didn't quite make its way down the income statement. Margins remained in the red, though operating losses narrowed a bit. The pressure on margins ended up pulling down both EBITDA and EPS, which missed analysts' estimates. To get things back on track, the company's cutting costs, trimming its workforce by 22%, and putting more focus on its carbonate tech that powers distributed energy projects. So while sales momentum looks solid, the quarter showed that getting to profitability remained an uphill climb. On the leadership front, FuelCell also brought on Mike Hill as its new Chief Commercial Officer, hoping his experience can help push things forward. After the initial pop the shares cooled down and closed the day at $6.47, up 24.4% from previous close. Is now the time to buy FuelCell Energy? Access our full analysis report here, it's free. FuelCell Energy's shares are extremely volatile and have had 91 moves greater than 5% over the last year. But moves this big are rare even for FuelCell Energy and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 5 months ago when the stock gained 17.8% on the news that the Biden administration announced new rules clarifying that some nuclear power plants can secure tax credits for producing clean hydrogen if the credits help keep reactors running. This announcement means more funding opportunities for hydrogen producers despite some opposition from environmental groups regarding the use of nuclear to produce hydrogen. The update also provides more certainty for investors and related companies within the clean energy space. FuelCell Energy is down 37.1% since the beginning of the year, and at $6.52 per share, it is trading 77.8% below its 52-week high of $29.37 from June 2024. Investors who bought $1,000 worth of FuelCell Energy's shares 5 years ago would now be looking at an investment worth $80.34. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
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2 days ago
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FCEL Q1 Earnings Call: Restructuring Focuses on Carbonate Fuel Cells Amid Demand Shift
Carbonate fuel cell technology developer FuelCell Energy (NASDAQ:FCEL) beat Wall Street's revenue expectations in Q1 CY2025, as sales rose 66.8% year on year to $37.41 million. Its GAAP loss of $1.79 per share increased from -$2.18 in the same quarter last year. Is now the time to buy FCEL? Find out in our full research report (it's free). Revenue: $37.41 million (66.8% year-on-year growth) Backlog: $1.26 billion at quarter end, up 18.7% year on year Market Capitalization: $118 million FuelCell Energy's first quarter performance reflected management's decisive actions to restructure the business and concentrate on its molten carbonate fuel cell platform. CEO Jason Few explained that the company is "intensifying our focus on our carbonate platform while reducing overhead to optimize our supply chain and focusing on driving efficiency." This restructuring included workforce reductions, significant cuts to discretionary overhead, and a pause in broader solid oxide research and development. The company also adjusted its Torrington manufacturing facility production schedule to match contracted demand, rather than forecasted projections, in response to a slower-than-anticipated pace of order growth. Management cited ongoing demand for distributed power generation, particularly in the U.S., Asia, and Europe, as a primary driver behind the quarter's operational choices. Looking forward, FuelCell Energy's strategic roadmap is anchored by the expectation that growth in distributed power generation and rising electricity needs, especially from data centers, will create new opportunities. CEO Jason Few highlighted, "We believe that this restructuring plan will sharpen and accelerate our path to positive cash flow and growth." The company is prioritizing its carbonate platform and leveraging strategic partnerships, such as Dedicated Power Partners, to access new markets and customers. Management also sees potential in carbon capture and hydrogen-related technologies, but is clear that commercialization efforts will remain focused on products with immediate market readiness. The company's future profitability, according to CFO Mike Bishop, is closely tied to achieving higher production volumes at its Torrington facility and maintaining disciplined cost management. Management attributed the quarter's results to a strategic restructuring designed to reduce costs and prioritize proven technologies, while external factors like delayed order flow influenced operational adjustments. Restructuring to cut costs: The company announced a global restructuring plan, including workforce reductions and a significant decrease in discretionary expenses, to lower annual operating costs by 30% compared to last year. These actions are intended to support a faster path to positive cash flow. Focus on carbonate platform: FuelCell Energy shifted its primary focus to its carbonate fuel cell technology, citing immediate market demand and scalability. The solid oxide technology program has been scaled back, with R&D paused except for a targeted demonstration at Idaho National Laboratory. Manufacturing aligned with demand: The Torrington, Connecticut facility's production schedule was recalibrated to match contracted—not projected—demand, resulting in a reduced near-term annualized production rate. Management believes this demand-driven approach will position the company for sustainable growth. New strategic partnerships: The Dedicated Power Partners arrangement, formed with Diversified Energy, is expected to accelerate deployment of carbonate fuel cells for data centers and industrial customers. Management highlighted active customer discussions in regions like Northern Virginia and Kentucky. Backlog and service growth: Backlog increased year over year, aided by long-term service agreements and a new 20-year power purchase arrangement in Hartford, Connecticut. Management emphasized the importance of service contracts as a recurring revenue stream, particularly as more projects transition to a service-focused model. FuelCell Energy's outlook is shaped by expectations for rising distributed power demand, data center growth, and disciplined expense management. Data center and distributed power demand: Management believes the expanding needs of data centers and the global push for grid resilience will drive order flow for carbonate fuel cells. CEO Jason Few cited the rapid build-out of data infrastructure and growing electricity demand as "long-term mega trends" supporting the company's relevance. Execution of Dedicated Power Partners: The success of the Dedicated Power Partners initiative, which pairs FuelCell Energy's technology with strategic fuel sourcing, is seen as essential for unlocking new markets and accelerating growth. Early customer engagement in key regions is underway, but realization of meaningful volume depends on converting these discussions into orders. Path to profitability tied to volume: CFO Mike Bishop indicated that achieving positive adjusted EBITDA requires an annualized production rate of 100 megawatts at the Torrington facility. Management noted that current production is at 31 megawatts, and ramping up will depend on the timing and scale of new customer orders. Risks include slower-than-expected order intake and potential delays in project execution. In the coming quarters, our analysts will monitor (1) order conversion progress within the Dedicated Power Partners initiative, particularly in data center projects; (2) the impact of the restructuring on operating expenses and production efficiency; and (3) the pace at which the Torrington facility can scale production toward the 100 megawatt threshold. Additionally, updates on new service agreements and backlog expansion will be critical indicators of execution. FuelCell Energy currently trades at a forward price-to-sales ratio of 0.6×. Should you double down or take your chips? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 days ago
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Will the Cash Burn Reduction Strategy be a Game Changer for Plug Power?
Plug Power Inc. PLUG has been plagued by its inability to turn a profit, which has required it to raise outside capital for funding its operations. The company has been persistently suffering due to a high cash burn rate and negative gross margins over the past several this, the leading hydrogen company's first-quarter 2025 results showed some signs of recovery. PLUG generated revenues of $133.7 million, an increase of 11.1% year over year, driven by growth in electrolyzer deliveries, sustained demand in materials-handling and the ongoing deployments in its cryogenic platform. However, PLUG's inability to generate positive gross margins and cash inflows over the long term has been a major the first quarter of 2025, the company incurred a net loss of almost $197 million (21 cents per share), which was more than its revenues. On a positive note, the metric reflected an improvement from $295.6 million loss it reported in the year-ago quarter. Meanwhile, its operating cash outflow totaled $105.6 million in first-quarter 2025 compared with $167.7 million in year-ago recorded a gross margin of negative 55% in the first quarter compared with a gross margin of negative 132% in the year-ago-quarter. Although negative, the gross margin improvement was driven by the its cost reduction and supply-chain optimization efforts, price increases and progress in leveraging its hydrogen efforts aided Plug Power to slow down its cash burn rate in the quarter, which declined nearly 50% year over year. In first-quarter 2025, PLUG launched Project Quantum Leap, targeting to generate more than $200 million in annualized savings. As part of the project, it expects to benefit from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform. It expects the project to boost its cash flow and reduce the cash burn rate in the quarters ahead. Among Plug Power's major peers, FuelCell Energy, Inc. FCEL is a well-known producer of stationary fuel cell and electrolysis platforms that helps in decarbonization of power and hydrogen production. Exiting second-quarter fiscal 2025, FuelCell Energy had cash and cash equivalents (unrestricted) of $116.1 million compared with the current portion of long-term debt of $17.1 million. In the first six months of fiscal 2025, FuelCell Energy used net cash of $75.6 million from operating activities, down 21% year over another peer, Bloom Energy Corporation BE is a leading provider of solid-oxide fuel cell systems for on-site power generation. Bloom Energy exited first-quarter 2025 with cash and cash equivalents of $794.8 million, higher than $584.4 million of current liabilities. Bloom Energy used net cash of $110.7 million from operating activities, down 24.8% year over year. Shares of Plug Power have lost 59.1% in the year-to-date period compared with the industry's decline of 8.3%. Image Source: Zacks Investment Research From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 1.69X against the industry average of 22.83X. PLUG carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for PLUG's bottom line for second-quarter 2025 and 2025 has increased in the past 60 days. Image Source: Zacks Investment Research PLUG stock currently carries a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plug Power, Inc. (PLUG) : Free Stock Analysis Report FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report Bloom Energy Corporation (BE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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2 days ago
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FuelCell Energy (FCEL) Reports Q2 Loss, Tops Revenue Estimates
FuelCell Energy (FCEL) came out with a quarterly loss of $1.79 per share versus the Zacks Consensus Estimate of a loss of $1.51. This compares to loss of $2.10 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -18.54%. A quarter ago, it was expected that this fuel cell power plant maker would post a loss of $1.52 per share when it actually produced a loss of $1.42, delivering a surprise of 6.58%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. FuelCell Energy , which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $37.41 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 9.65%. This compares to year-ago revenues of $22.42 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FuelCell Energy shares have lost about 42.5% since the beginning of the year versus the S&P 500's gain of 1%. While FuelCell Energy has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FuelCell Energy: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$1.26 on $64.11 million in revenues for the coming quarter and -$5.76 on $164.23 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Oils-Energy sector, Sunnova Energy (NOVA), has yet to report results for the quarter ended March 2025. This residential solar company is expected to post quarterly loss of $0.74 per share in its upcoming report, which represents a year-over-year change of -29.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sunnova Energy's revenues are expected to be $201.73 million, up 25.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report Sunnova Energy International Inc. (NOVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
