Bloom Energy (BE, Financial) reported impressive financial results for the first quarter of 2025, achieving a remarkable revenue of $326.0 million, which exceeded the market expectation of $293.4 million. This outstanding performance highlights the company's robust execution and the solid trust it has garnered from its customer base.
Leadership at Bloom Energy, including KR Sridhar, the Founder, Chairman, and CEO, expressed confidence in the firm's strategic positioning. As global demand for power surges, driven by advancements in artificial intelligence, data center expansion, and industrial electrification, Bloom Energy is optimally positioned to cater to these growing markets.
Chief Financial Officer Dan Berenbaum also remarked on the record-breaking revenue achievements during the quarter, citing a strong commercial environment as a catalyst. He conveyed confidence in the future opportunities awaiting Bloom Energy and extended his best wishes to all employees for continued success.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Bloom Energy Corp (BE, Financial) is $25.37 with a high estimate of $35.00 and a low estimate of $10.00. The average target implies an upside of 38.51% from the current price of $18.32. More detailed estimate data can be found on the Bloom Energy Corp (BE) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Bloom Energy Corp's (BE, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bloom Energy Corp (BE, Financial) in one year is $21.69, suggesting a upside of 18.4% from the current price of $18.32. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bloom Energy Corp (BE) Summary page.
BE Key Business Developments
Release Date: February 27, 2025
- Q4 2024 Revenue: $572 million, a 60% increase over Q4 2023.
- Full Year 2024 Revenue: $1.47 billion, up 10.5% from 2023.
- Q4 2024 Non-GAAP Gross Margin: 39.3%, up from 27.4% in Q4 2023.
- Full Year 2024 Non-GAAP Gross Margin: 28.7%, up from 25.8% in 2023.
- Q4 2024 Non-GAAP Operating Profit: $133 million, an increase of $106 million from Q4 2023.
- Full Year 2024 Non-GAAP Operating Profit: $108 million, up $88 million from 2023.
- Q4 2024 Non-GAAP EPS: $0.43.
- Full Year 2024 Cash Flow from Operations: $92 million.
- Q4 2024 Cash Flow from Operating Activities: $484 million.
- Full Year 2024 Service Business Non-GAAP Gross Profit: $4 million, compared to a $33 million loss in 2023.
- 2025 Revenue Guidance: $1.65 billion to $1.85 billion.
- 2025 Non-GAAP Gross Margin Guidance: Approximately 29%.
- 2025 Non-GAAP Operating Income Guidance: Approximately $150 million.
- 2025 Cash Flow from Operations Guidance: Expected to be around the same level as 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bloom Energy Corp (BE, Financial) achieved record revenue and profits for both the fourth quarter and the entire year of 2024, with a significant increase in revenue to $1.47 billion, up 10.5% from 2023.
- The company turned free cash flow positive for the first time since 2019, generating $92 million in cash flow from operations.
- Bloom Energy Corp (BE) achieved a record full-year gross margin of 28.7%, up from 25.8% in 2023, demonstrating strong operational efficiency.
- The service business was profitable every quarter in 2024, with a $4 million full-year non-GAAP gross profit, compared to a $33 million loss in 2023.
- Bloom Energy Corp (BE) has a strong and diverse sales funnel, particularly in the data center segment, which is expected to be a significant growth engine moving forward.
Negative Points
- The company faces challenges related to the unpredictability of tariffs and their potential impact on costs, although they are working to mitigate these through supply chain diversification.
- Despite strong performance, the guidance for 2025 indicates a flat gross margin compared to 2024, suggesting limited margin expansion in the near term.
- The competitive landscape includes other technologies such as gas turbines, which are also in high demand, potentially impacting Bloom Energy Corp (BE)'s market share.
- The company's growth is heavily reliant on the timely execution of projects, which can be affected by external factors such as infrastructure readiness and regulatory approvals.
- There is uncertainty around the timing and scale of future agreements with utilities, which could impact the company's ability to capitalize on new market opportunities quickly.
