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1. Company Snapshot

1.a. Company Description

FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation.It offers SureSource1500, a 1.4-megawatt (MW) platform; SureSource 3000, a 2.8 MW platform; SureSource 4000, a 3.7 MW platform; SureSource 250, a 250- kilowatt (kW) platform; SureSource 400, a 400-kW platform; and SureSource Hydrogen, a 2.3 MW platform that is designed to produce up to 1,200 kilograms of hydrogen per day for multi-megawatt utility, microgrid, and distributed hydrogen applications, as well as on-site heat and chilling applications.It also provides SureSource Capture system that separates and concentrates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities; solid oxide fuel cell/solid oxide electrolysis cell stack technology.


The company's SureSource power plants generate clean electricity, usable heat, water, and hydrogen.In addition, it provides engineering, procurement, and construction services; project financing services; and real-time monitoring and remote operation, online support system, preventative maintenance, parts and supplies, on-site and classroom training, and power plant refurbishment/recycling services, as well as technical services in the areas of plant operation and performance, and fuel processing.It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, microgrids, food and beverage, and commercial and hospitality.


The company primarily operates in the United States, South Korea, England, Germany, and Switzerland.FuelCell Energy, Inc.was founded in 1969 and is headquartered in Danbury, Connecticut.

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1.b. Last Insights on FCEL

FuelCell Energy's recent performance was driven by a significant increase in revenue, which doubled year-over-year to $46.7 million, primarily due to product sales in Korea. The company's backlog also grew by 4% to $1.24 billion, indicating a stable pipeline of projects. Despite ongoing unprofitability, with operating losses surging to $95.4 million, the company's adjusted net loss per share improved to $(0.95) from $(1.74) in the same period last year. A decrease in short interest from 22% to 14% may also contribute to a more stable market perception.

1.c. Company Highlights

2. FuelCell Energy's Q3 2025 Earnings: Strategic Growth Amid Financial Challenges

FuelCell Energy reported Q3 2025 revenue of $46.7 million, a 97% increase, but recorded a loss of $0.95 per share, beating estimates of -$1.59 per share. The company's adjusted EBITDA was -$16.4 million. The current valuation metrics indicate a P/S Ratio of 1.28 and an EV/EBITDA of -0.2, suggesting the market is pricing in future growth expectations.

Publication Date: Sep -23

📋 Highlights
  • Revenue Growth & Operational Losses: Q3 revenue rose 97% to $46.7M, but a $95.4M operational loss was driven by $64.5M in non-cash impairments, with adjusted EBITDA at -$16.4M.
  • South Korea Strategic Partnerships: 82 modules (108 MW) in backlog with GGE/CGN and an MOU with Inuverse for 100 MW of fuel cell-based power starting in 2027.
  • Policy-Driven Growth: Leveraging U.S. ITC (2032–2035) and 45Q carbon capture incentives to scale distributed power generation for data centers and grid resiliency.
  • Financial Resilience: $236.9M in cash reserves, $38.1M in Q3 equity proceeds, and $236.9M in cash reserves to fund operations and 100 MW/year production capacity targets.
  • Restructuring & EBITDA Targets: Annual operating cost reduction of 30%, aiming for positive adjusted EBITDA and 100 MW/year production capacity by 2026.

Operational Highlights

Jason Few highlighted the company's focus on distributed power generation, driven by demand from data centers and grid resiliency needs. The company's carbonate platform is central to its growth strategy, supported by partnerships in South Korea and the U.S. The Inflation Reduction Act's ITC is a key factor, providing tax benefits until 2035.

Production and Backlog

FuelCell Energy has made progress in production, with 16 modules left for FY2025 and 8 delivered in Q3. The Torrington facility is operating at 30-40 MW, aiming for 100 MW to achieve EBITDA breakeven. The company has a backlog of 108 MW with GGE and CGN, and an MOU with Inuverse for 100 MW of fuel cell-based power starting in 2027.

Financial Performance and Guidance

Q3 revenue rose to $46.7 million, but the company recorded a $95.4 million operational loss due to non-cash impairments. Cash reserves stood at $236.9 million. The company aims to cut annual operating expenses by 30% and achieve positive adjusted EBITDA with 100 MW/year production capacity. Mike Bishop confirmed $38.1 million in Q3 equity proceeds, prioritizing cost reduction and EBITDA positivity.

Valuation and Future Prospects

With a P/S Ratio of 1.28 and an EV/EBITDA of -0.2, the market is pricing in growth expectations. Jason Few reiterated confidence in the company's role in the clean energy transition, leveraging proven technology and strategic partnerships. The company's strategic initiatives and partnerships position it for growth in the clean energy market.

3. NewsRoom

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FuelCell Energy Announces Fourth Quarter and Fiscal Year 2025 Results Conference Call on December 18, 2025 at 10:00 A.M. Eastern Time

Dec -04

Source: globenewswire.com

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FuelCell Energy Secures $25M in Repeat EXIM Financing for Gyeonggi Green Energy Fuel Cell Project in Korea

Dec -01

Source: globenewswire.com

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FCEL vs. BE: Which Hydrogen Power Stock Has Better Potential for Now?

Nov -28

Source: zacks.com

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FCEL Stock Outperforms Industry Past 3 Months: How to Play?

Nov -24

Source: zacks.com

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3 Alternative Energy Stocks to Watch Amid Near-Term Challenges

Nov -18

Source: zacks.com

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Rising AI Power Demand Drives S-Fuelcell's Grid-Free, On-Site PEM Expansion

Nov -14

Source: businesswire.com

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Plug Power vs. FuelCell Energy: Which Clean Energy Stock is a Stronger Pick?

Oct -20

Source: zacks.com

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FuelCell Energy (FCEL) Just Flashed Golden Cross Signal: Do You Buy?

Oct -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.24%)

6. Segments

Service Agreements and License

Expected Growth: 9.9%

FuelCell Energy, Inc.'s 9.9% growth in Service Agreements and License is driven by increasing adoption of clean energy solutions, expansion into new markets, and strategic partnerships. Additionally, growing demand for reliable and efficient power generation, coupled with government incentives for renewable energy, contribute to the segment's growth.

Generation

Expected Growth: 10.9%

FuelCell Energy, Inc.'s 10.9% growth is driven by increasing adoption of clean energy solutions, government incentives for renewable energy, and rising demand for stationary power generation. Additionally, the company's expanding project pipeline, strategic partnerships, and improving operational efficiency also contribute to its growth momentum.

Product

Expected Growth: 13.35%

FuelCell Energy's 13.35% growth is driven by increasing adoption of clean energy solutions, government incentives for renewable energy, and rising demand for stationary power generation. Additionally, the company's focus on hydrogen fuel cell technology and expansion into new markets, such as Asia, contribute to its growth momentum.

Advanced Technologies Contract

Expected Growth: 13.35%

FuelCell Energy's Advanced Technologies Contract growth is driven by increasing demand for clean energy solutions, government incentives for renewable energy adoption, and the company's strategic partnerships to develop innovative fuel cell technologies. Additionally, growing concerns about climate change and air pollution are boosting demand for FuelCell Energy's products, contributing to its 13.35% growth.

7. Detailed Products

SureSource Power Plants

Modular, scalable, and flexible power generation systems that convert chemical energy from fuel into clean electricity

SureSource Capture

Carbon capture solutions that reduce greenhouse gas emissions from industrial sources

SureSource Hydrogen

Hydrogen production systems that convert chemical energy from fuel into clean hydrogen

Service and Maintenance

Comprehensive maintenance and repair services for fuel cell power plants

Engineering and Design Services

Customized engineering and design solutions for fuel cell systems and applications

8. FuelCell Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

FuelCell Energy, Inc. faces moderate threat from substitutes, as alternative energy sources like solar and wind power are gaining popularity, but fuel cells still have a unique value proposition in terms of efficiency and reliability.

Bargaining Power Of Customers

FuelCell Energy, Inc.'s customers, primarily utilities and industrial companies, have limited bargaining power due to the specialized nature of fuel cell technology and the company's strong market position.

Bargaining Power Of Suppliers

FuelCell Energy, Inc. faces moderate bargaining power from its suppliers, as the company relies on a few key suppliers for critical components, but has some flexibility to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants is low for FuelCell Energy, Inc., as the fuel cell industry has high barriers to entry, including significant capital requirements and technical expertise.

Intensity Of Rivalry

The fuel cell industry is highly competitive, with several established players, including Bloom Energy and Plug Power, competing for market share and customers, which increases the intensity of rivalry for FuelCell Energy, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.79%
Debt Cost 5.18%
Equity Weight 84.21%
Equity Cost 23.00%
WACC 20.18%
Leverage 18.76%

11. Quality Control: FuelCell Energy, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
FuelCell Energy

A-Score: 4.5/10

Value: 9.2

Growth: 3.7

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Microvast

A-Score: 4.0/10

Value: 4.8

Growth: 5.6

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Dragonfly Energy

A-Score: 3.8/10

Value: 9.4

Growth: 2.9

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Plug Power

A-Score: 3.4/10

Value: 7.4

Growth: 1.2

Quality: 3.4

Yield: 0.0

Momentum: 8.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Orion Energy Systems

A-Score: 3.4/10

Value: 7.8

Growth: 2.9

Quality: 3.2

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
SKYX

A-Score: 3.1/10

Value: 7.0

Growth: 4.0

Quality: 3.0

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.17$

Current Price

8.17$

Potential

-0.00%

Expected Cash-Flows