FuelCell (FCEL, Financial) has entered into a strategic Memorandum of Understanding (MOU) with Inuverse, a company known for developing advanced AI-focused hyperscale data centers. This agreement aims to explore the deployment of up to 100 megawatts of fuel cell-based energy. The project is set to begin in 2027 and will be implemented in phased stages at the AIDaegu Data Center. Inuverse is currently developing this facility with the goal of making it the largest data center in Korea.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for FuelCell Energy Inc (FCEL, Financial) is $7.38 with a high estimate of $12.00 and a low estimate of $4.50. The average target implies an upside of 31.85% from the current price of $5.60. More detailed estimate data can be found on the FuelCell Energy Inc (FCEL) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, FuelCell Energy Inc's (FCEL, Financial) average brokerage recommendation is currently 3.3, indicating "Hold" 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 FuelCell Energy Inc (FCEL, Financial) in one year is $34.62, suggesting a upside of 518.21% from the current price of $5.6. 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 FuelCell Energy Inc (FCEL) Summary page.
FCEL Key Business Developments
Release Date: June 06, 2025
- Total Revenue: $37.4 million, up from $22.4 million in the prior year quarter.
- Loss from Operations: $35.8 million, compared to $41.4 million in the prior year quarter.
- Net Loss Attributable to Common Stockholders: $38.8 million, compared to $32.9 million in the prior year quarter.
- Net Loss Per Share: $1.79, compared to $2.18 in the prior year quarter.
- Adjusted EBITDA: Negative $19.3 million, compared to negative $26.5 million in the prior year quarter.
- Cash, Restricted Cash, Cash Equivalents, and Short-term Investments: $240 million as of April 30, 2025.
- Product Revenues: $13 million, compared to no product revenues in the prior year period.
- Service Agreement Revenues: $8.1 million, up from $1.4 million in the prior year period.
- Generation Revenue: $12.1 million, down from $14.1 million in the prior year period.
- Advanced Technology Contract Revenues: $4.1 million, down from $6.9 million in the prior year period.
- Gross Loss: $9.4 million, compared to $7.1 million in the prior year quarter.
- Operating Expenses: Decreased to $26.4 million from $34.3 million in the prior year quarter.
- Backlog: Increased by approximately 18.7% to $1.26 billion from $1.06 billion as of April 30, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- FuelCell Energy Inc (FCEL, Financial) announced a restructuring plan to prioritize sales of its molten carbonate platform, aiming to accelerate the timeline to expected future profitability.
- The company is focusing on its core carbonate platform, which is aligned with the growing demand for distributed power generation in the US, Asia, and Europe.
- FuelCell Energy Inc (FCEL) has formed a strategic partnership called Dedicated Power Partners (DPP) to accelerate the deployment of its carbonate FuelCell technology in data centers and other large-scale applications.
- The company reported a significant increase in total revenues for the second quarter of fiscal year 2025, reaching $37.4 million compared to $22.4 million in the prior year quarter.
- FuelCell Energy Inc (FCEL) is committed to disciplined cost management, with a plan to reduce operating expenses by 30% on an annualized basis compared to fiscal-year 2024.
Negative Points
- FuelCell Energy Inc (FCEL) is pausing broader solid oxide R&D, which may limit future innovation in this area.
- The company's Torrington manufacturing facility is currently operating at an annualized production rate of approximately 31 megawatts, well below the target of 100 megawatts needed for positive adjusted EBITDA.
- Despite narrowing losses, FuelCell Energy Inc (FCEL) reported a net loss attributable to common stockholders of $38.8 million for the second quarter of fiscal year 2025.
- The restructuring plan includes a global workforce reduction and significant reduction of discretionary overhead spending, which may impact employee morale and operational capacity.
- Advanced technology contract revenues decreased to $4.1 million from $6.9 million, indicating potential challenges in this segment.
