FuelCell Energy Earnings Call: Growth Surge, Losses Persist

Fuelcell Energy ((FCEL)) has held its Q4 earnings call. Read on for the main highlights of the call.

FuelCell Energy’s Latest Earnings Call Balances Strong Growth With Persistent Losses

The latest earnings call from FuelCell Energy struck a cautiously optimistic tone. Management highlighted sharp revenue growth, meaningful progress on cost reductions, and a strengthening position in key international markets, especially South Korea. At the same time, the discussion acknowledged ongoing challenges, including sizable net losses and hefty noncash impairment and restructuring charges that continue to weigh on reported results.

Revenue Growth Fueled by Korean Module Deliveries

FuelCell Energy reported a 41% year-over-year revenue increase, with total revenues rising from $112.1 million in fiscal 2024 to $158.2 million in fiscal 2025. This surge was driven largely by module deliveries to Goji Green Energy Company Limited in South Korea, underscoring the importance of this partner and market to the company’s near-term growth profile. For investors, the strong top-line trajectory signals improving commercial traction, even as profitability remains a work in progress.

Restructuring Delivers Cost Cuts and Smaller EBITDA Loss

Management pointed to restructuring actions as a key driver of improved cost efficiency. Operating expenses fell to $21.7 million from $30.1 million in the prior year, reflecting tighter spending discipline and organizational streamlining. As a result, FuelCell’s adjusted EBITDA loss improved by more than $25 million year-over-year. While the company is not yet profitable, these moves suggest a more sustainable cost base that could better support future revenue growth.

South Korea Emerges as a Strategic Growth Hub

South Korea is shaping up as a cornerstone of FuelCell Energy’s international strategy. The company has more than 100 megawatts of power projects in its South Korean backlog and another 100 megawatts under a memorandum of understanding. This growth pipeline is further supported by $25 million in new export credit financing, which helps de-risk project development and deployment. For shareholders, the Korean portfolio represents both a tangible demand driver and a proof point for the scalability of FuelCell’s technology in a major global market.

Manufacturing Expansion Aims at Scale and Profitability

FuelCell Energy laid out plans to expand its manufacturing capacity, targeting 350 megawatts per year with relatively modest additional capital investment. A key milestone is the ramp-up of its Torrington facility to 100 megawatts per year, a level at which management expects to achieve positive adjusted EBITDA. This shift toward larger-scale production is central to the company’s path to profitability, as higher volumes should enhance economies of scale and improve unit economics.

Net Loss Widens Despite Operational Progress

Despite revenue growth and reduced operating costs, the company’s bottom line deteriorated. FuelCell Energy reported a net loss attributable to common stockholders of $191.1 million in fiscal 2025, up from $129.2 million in fiscal 2024. The widening loss underscores the tension between improving operations and the heavy financial drag from noncash charges and ongoing investments. For investors, it serves as a reminder that the turnaround remains incomplete and that the transition to consistent profitability is still ahead.

Impairment and Restructuring Charges Weigh on Results

FuelCell’s fiscal 2025 performance was significantly affected by noncash impairment expenses of $65.8 million and restructuring expenses of $5.3 million. These items, while not directly tied to current cash outflows, materially impacted reported earnings and contributed to the large net loss. Management positioned these charges as necessary steps to reset the company’s asset base and cost structure, aiming to clear the way for more efficient growth in the future.

Forward-Looking Guidance and Strategic Focus

Looking ahead, FuelCell Energy emphasized its strategic push into fast-growing segments such as data centers, where demand for clean, reliable on-site power is accelerating. The company expects continued momentum into 2026, driven by its carbonate fuel cell platform, which it highlighted for modular scalability and low emissions. FuelCell plans to scale Torrington manufacturing to 100 megawatts per year as a stepping stone to positive adjusted EBITDA, with potential expansion to 350 megawatts as market demand materializes. Management also views its recent $25 million project financing as a template for future deals, particularly in emerging markets and other capital-intensive deployments, suggesting a more repeatable funding model for growth.

In sum, FuelCell Energy’s earnings call painted a picture of a company advancing on key strategic fronts—revenue growth, cost discipline, and international expansion—while still grappling with sizable losses and legacy charges. For investors, the story remains that of a high-potential clean energy player at an inflection point: execution on manufacturing scale-up, project pipeline in South Korea and beyond, and continued demand from data centers will be critical in turning today’s operational progress into tomorrow’s sustainable profitability.