Q3 2026 Fuelcell Energy Inc Earnings Call Transcript
Key Points
- FuelCell Energy Inc (FCEL) secured its first order for fuel cell energy blocks to supply baseload power for data center applications, increasing committed backlog to $1.3 billion and adding $2.4 billion of awarded capacity backlog, totaling $3.6 billion.
- The company closed a 75-megawatt capacity reservation agreement with a major co-location data center operator for a Texas project subsequent to the quarter end, demonstrating continued commercial momentum.
- FuelCell Energy Inc (FCEL) successfully completed the repowering of the 42-module Gyeonggi Green Energy project in South Korea, validating its technology replacement cycle and capability to manage complex utility-scale projects.
- The company delivered and installed the first two carbonate fuel cell carbon capture modules at ExxonMobil's Rotterdam complex, marking a pivotal operational milestone for its jointly developed carbon capture technology.
- FuelCell Energy Inc (FCEL) ended the quarter with its strongest cash position in history at $737.3 million, with no corporate convertible or high-yield debt, and its manufacturing capacity expansion to 500 megawatts is fully funded.
- The company signed an MOU with Siemens to design and supply electrical balance of plant systems, aiming to accelerate deployment and lower costs for large-scale projects exceeding 100 megawatts.
- FuelCell Energy Inc (FCEL) recorded a gross loss of $24.5 million in Q3 fiscal 2026, primarily driven by $17 million in charges related to inventory write-downs and losses on firm purchase commitments for the Fit Energy Phase 0 agreement.
- Total revenue declined 29% year-over-year to $33 million, reflecting fewer module deliveries to South Korea and lower output from generation plants, including the Groton project which was out of service for the full quarter.
- The company's current product costs and manufacturing overhead exceed the contractual pricing established under the Fit Energy agreement, highlighting a cost structure misalignment at the current production rate of 37 megawatts.
- Adjusted EBITDA was negative $36.7 million, a significant decline from negative $16.4 million in the prior year quarter, driven by the Phase 0 charges.
- The awarded capacity backlog of $2.4 billion is not contracted firm order backlog and may not convert to committed backlog or revenue, with conversion timing and amounts subject to customer elections and other uncertainties.
- FuelCell Energy Inc (FCEL) faces execution risks in achieving its target of positive Adjusted EBITDA by Q4 fiscal 2027, which depends on converting awarded capacity backlog, aligning with customer delivery schedules, and achieving manufacturing cost reductions.
Thank you for standing by. My name is Jaylen, and I'll be your conference operator today. At this time, I would like to welcome everyone to the FuelCell Energy third quarter of fiscal 2026 financial results Conference Call. (Operator Instructions) I would now like to turn the conference over to Michael Bishop, Chief Financial Officer. You may begin.
Thank you, Operator. Good morning, everyone, and thank you for joining us on the call today. This morning, FuelCell Energy released our financial results for the third quarter of fiscal year 2026, and our earnings press release is available in the Investors section of our website at fuelcellenergy.com. In addition to this call and our earnings press release, we have posted a slide presentation on our website. The webcast is being recorded and will be available for replay on our website approximately 2 hours after we conclude.
Before we begin, please note that some information that you will hear or be provided
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
