FuelCell Energy Reports Q1 Miss, Highlights Lower Losses And Positive Momentum From Global Restructuring Plan

FuelCell Energy Inc. FCEL stock is trading lower after the company reported worse-than-expected first-quarter 2025 financial results.

FCEL reported a first-quarter revenue increase of 14% year-over-year to $18.997 million, missing the consensus of $33.49 million.

FuelCell’s gross loss was $5.203 million, an improvement from the previous year’s loss of $11.725 million. The company reported a loss per share of $1.42, missing the consensus loss of $1.35.

The decrease in gross loss was mainly due to lower generation costs, driven by a $1.8 million derivative gain versus a $1.9 million derivative loss year over year. Lower expensed construction costs for the Toyota Project also contributed, dropping to $0.3 million from $3.5 million year over year.

Service agreement revenue rose to $1.8 million from $1.6 million YoY, driven by the company’s long-term contract with GGE’s 58.8 MW fuel cell plant in Korea.

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Generation revenue rose to $11.3 million from $10.5 million YoY, driven by new output from two Derby, Connecticut projects, partially offset by lower output at other plants due to maintenance.

Operating expenses decreased to $27.6 million from $30.8 million year over year. Administrative and selling expenses fell to $15.0 million from $16.4 million, due to reduced compensation costs following recent restructuring efforts. Adjusted EBITDA loss improved to $21.1 million from a loss of $29.1 million.

In November 2024, the company launched a global restructuring across the U.S., Canada, and Germany to cut costs, refocus on core technologies, and adapt to slower clean energy investments. The plan includes a 13% workforce reduction and aims to lower operating costs by about 15% in FY25 compared to FY24.

Total cash, restricted cash, and short-term investments were $270.7 million at the end of the quarter, down from $318.0 million on October 31, 2024. This included $98.1 million in unrestricted cash, $110.3 million in short-term investments, and $62.4 million in restricted cash.

As of January 31, 2025, the backlog rose 28% year over year to $1.31 billion, driven by the GGE service agreement and a new 20-year power purchase deal for a 7.4 MW plant in Hartford, CT.

During the quarter, the company sold ~0.7 million shares at an average price of $9.19, generating $6.3 million in gross proceeds and $5.9 million in net proceeds after commissions and fees.

Recently, Diversified Energy, FuelCell Energy, and TESIAC formed a strategic partnership to supply up to 360 MW of net-zero power to data centers in Virginia, West Virginia, and Kentucky.

“Looking ahead, we expect this quarter will be the low-water mark for our quarterly revenue for fiscal year 2025 based on our expected production and module shipment schedule, especially as it relates to our module deliveries to our customers in Korea,” commented Jason Few, President and Chief Executive Ocer.

Price Action: FCEL shares are trading lower by 4.19% at $6.065 at the last check Tuesday.

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