FuelCell Power (FCEL 4.20%), a developer of unpolluted power gasoline cell applied sciences for electrical energy, hydrogen, and carbon seize, reported its third quarter fiscal 2025 earnings on September 9, 2025. The principle spotlight was a pointy rise in income in Q3 FY2025 as a result of lumpy product gross sales, whilst headline profitability deteriorated due to massive asset impairment and restructuring bills. Adjusted working losses narrowed yr over yr. The quarter showcased each early advantages of value discount measures and the corporate’s ongoing battle to generate constant, diversified development.
MetricQ3 2025(Three Months Ended July 31, 2025)Q3 2024(Three Months Ended July 31, 2024)Y/Y ChangeAdjusted Web Loss Per Share (Non-GAAP)$(0.95)$(1.74)45.4percentRevenue$46.7 million$23.7 million97percentGross Loss$(5.1) million$(6.2) million-17.7percentLoss from Operations$(95.4) million$(33.6) million-184percentAdjusted EBITDA$(16.4) million$(20.1) million-18percentTotal Backlog$1.24 billion$1.20 billion4%
About FuelCell Power’s Enterprise and Focus
FuelCell Power builds and operates large-scale gasoline cell energy methods for companies, utilities, and governments. Its expertise permits clients to generate electrical energy and hydrogen from pure gasoline or renewable sources with decrease emissions than conventional combustion energy crops. It has product households centered on carbonate gasoline cells for distributed technology, in addition to ongoing analysis into strong oxide methods for hydrogen manufacturing and carbon seize.
Lately, the corporate sharpened its concentrate on commercializing carbonate gasoline cell expertise, decreasing spending on next-generation analysis, and rising its backlog in each distributed technology and knowledge middle segments. Key success elements embody successful long-term service agreements, ramping manufacturing to a scale that helps profitability, securing repeat orders from companions, and sustaining wholesome liquidity whereas investing in cost-cutting and core platform enhancements.
Quarter Highlights and Monetary Developments
Income practically doubled yr over yr, reaching $46.7 million, due to massive product shipments beneath a long-term settlement with Gyeonggi Inexperienced Power, a Korean companion. Of this, product income (from delivering full gasoline cell modules) made up the most important share at $26.0 million, reflecting a extremely concentrated income profile. Service agreements introduced in $3.1 million—one other improve, once more linked to Korean exercise. Nonetheless, income from electrical energy technology fell 7.5% as a result of routine plant upkeep, and superior applied sciences income dropped 39%, reflecting lowered authorities and companion funding.
Headline losses sharply widened as a result of non-cash write-downs and restructuring. Working bills rose to $90.2 million, largely as a result of the corporate wrote down $64.5 million of analysis and growth and stuck property associated to its strong oxide (hydrogen and carbon seize) platforms. Money restructuring bills reached $4.1 million. Web loss attributable to frequent stockholders elevated to $(92.5) million. Nonetheless, on an adjusted foundation—excluding these one-off costs—internet loss per share improved to $(0.95), giving some proof of early progress from the corporate’s cost-cutting program. Adjusted EBITDA loss additionally narrowed to $(16.4) million, as reductions in administrative prices and analysis and growth spending took impact.
Trying deeper, gross margin improved however remained unfavourable at $(5.1) million, as losses within the superior expertise and repair segments continued. Administration straight credited the income development to the Korean contract, stating, “Third quarter income of $46.7 million represents a rise of 97% from the comparable prior yr quarter.”
The corporate’s backlog—a measure of future enterprise beneath contract—ticked up by 4% to $1.24 billion total. Era backlog, which covers long-term electrical energy gross sales contracts, grew to $955.0 million after successful a 20-year contract for the Hartford Undertaking in Connecticut. In contrast, product and repair backlogs declined, reflecting a shortfall of latest gear and upkeep orders. Superior applied sciences backlog dropped by practically half.
FuelCell Power issued 6.8 million new shares, elevating about $38 million, and one other 2.7 million shares after quarter’s finish for an additional $12.1 million in gross proceeds. This transfer supported liquidity, with unrestricted money at $174.7 million and whole money, restricted money, and short-term investments at $236.9 million. The share rely rose to 29.6 million, indicating shareholder dilution. This liquidity helps fund operations however underscores the corporate’s ongoing have to stability money burn and capital-raising in opposition to future development.
There have been no materials new regulatory or authorities incentive disclosures in the course of the quarter. Administration reiterated its expectation of a tailwind from the continued U.S. concentrate on clear power infrastructure.
Strategic and Product Context
FuelCell Power’s foremost industrial product is its carbonate gasoline cell platform, used for distributed energy technology and on-site power provide. It additionally offers superior expertise merchandise, together with strong oxide gasoline cells and carbon seize methods, although it has largely lowered funding in these areas this quarter.
During the last yr, the corporate labored to construct its place in knowledge middle energy options, advertising modular energy block merchandise on to U.S. clients. The Devoted Energy Companions pipeline—a set of focused gross sales efforts for knowledge middle and enormous industrial clients—stays a major focus, though no reported contract wins have but materialized as income. Partnerships with ExxonMobil for carbon seize analysis and with Gyeonggi Inexperienced Power for module supply contributed to the corporate’s income, however the scale stays small and largely outdoors the corporate’s core U.S. market.
Outlook and What to Watch
Administration didn’t present formal ahead monetary steering for the rest of FY2025. As a substitute, it careworn that inner cost-cutting, a renewed concentrate on the core carbonate platform, and investments in strengthening the corporate’s gross sales pipeline place it for future development and potential profitability. Any constructive inflection in monetary outcomes will depend upon successful new large-scale contracts, significantly within the U.S. knowledge middle and distributed energy segments. Till the corporate can reliably convert its gross sales pipeline into income, future development stays unsure.
Trying forward, necessary areas for traders embody the tempo of latest contract wins, replenishment of product and repair backlogs, the corporate’s means to curb money burn with out extreme shareholder dilution, and whether or not its innovation efforts—now closely focused on carbonate gasoline cells—will probably be sufficient to compete for future clear power market demand. Any modifications within the degree or nature of U.S. or worldwide clear power incentives might additionally shortly alter the enterprise outlook.
FCEL doesn’t at present pay a dividend.
Income and internet revenue offered utilizing U.S. typically accepted accounting rules (GAAP) until in any other case famous.
