FuelCell Energy nearly doubled revenue in fiscal Q3 2025 to $46.7 million, but booked a deeper net loss of $92.5 million on restructuring and $64.5 million in non-cash impairments, while backlog rose 4% to $1.24 billion.
-
Q3 FY2025 results (to July 31): Revenue $46.7m (+97% y/y); gross loss –$5.1m (vs. –$6.2m); loss from operations –$95.4m (vs. –$33.6m); net loss –$91.9m (vs. –$35.1m); net loss to common –$92.5m or –$3.78/sh (vs. –$33.5m or –$1.99/sh).
-
Non-GAAP: Adjusted EBITDA –$16.4m (vs. –$20.1m); adjusted loss/share –$0.95 (vs. –$1.74).
-
Charges: $64.5m non-cash impairments tied to wind-down of solid-oxide efforts and asset write-downs, plus $4.1m restructuring costs.
-
Backlog: $1.24bn (+4% y/y), led by long-term generation contracts and service agreements.
-
Cash & investments: $236.9m total liquidity (including restricted cash) at quarter-end; the company also raised ~$39m during Q3 and ~$12m post-quarter via its at-the-market program.
-
Operations: Product revenue jumped on module deliveries and commissioning for Korea’s Gyeonggi Green Energy (58.8 MW) and sales to Ameresco; service revenue increased; generation revenue dipped on maintenance; advanced tech revenue declined on lower ExxonMobil/Rotterdam and government work timing.
-
Strategic pivot: Management is right-sizing operations to focus on its carbonate fuel-cell platform (now >50% efficiency) and distributed baseload power, pausing higher-risk development lines.
-
Demand tailwind: FuelCell is targeting data centers—where growing AI loads require reliable, modular, and low-emission onsite power—as a near-term growth vector.
-
Commercial pipeline: Backlog growth reflects (i) a 20-year PPA in Hartford, CT (7.4 MW) with Eversource and United Illuminating (~$167.4m lifetime revenue), (ii) long-term service and module replacement agreements in Korea with GGE and CGN-Yulchon ($159.6m and $31.7m, respectively).
-
Profitability path: The company highlights improving Adjusted EBITDA, lower admin and R&D spend, and narrowing adjusted losses as evidence its restructuring is beginning to take hold—though GAAP losses remain elevated due to impairment charges and plant maintenance.
-
Top line acceleration: Near-doubling of revenue shows execution in product and service lines, particularly international module replacement cycles.
-
Charges vs. cash: Large non-cash impairments mask underlying margin progress; liquidity of $236.9m provides runway, augmented by ongoing ATM raises.
-
Backlog quality: Generation backlog ($955m) and service contracts offer multi-year visibility, but timing depends on project build-out and uptime.
-
Data-center opportunity: If carbonate systems gain traction as scalable, dispatchable complements to grid power, FuelCell could convert sales dialogues into higher-margin deployments.
-
Watch-items: Execution on the Hartford project, module commissioning cadence in Korea, sustaining >50% efficiency in the fleet, and further operating-expense discipline.
About the Author
