FuelCell Energy, Inc.

Second-quarter fiscal 2026 revenue was $35.6 million versus $37.4 million a year ago, down about 5% year over year. Gross margin was not stated on the call. Net loss was $77.6 million versus $37.7 million last year; net loss attributable to common stockholders was $78.7 million, or $1.45 per share, versus $38.8 million, or $1.79 per share. Loss from operations was $77.9 million versus $35.8 million, including a non-cash $42.6 million impairment charge related to the Groton project. Adjusted EBITDA was negative $17.1 million versus negative $19.3 million, a 12% year-over-year improvement. Backlog was $1.14 billion as of April 30, 2026, including $36.1 million of product backlog, $155.4 million of service backlog, $928.5 million of generation backlog, and $15.4 million of advanced technology contract backlog. The company ended the quarter with $440.9 million of total cash, cash equivalents and restricted cash, including $373.2 million of unrestricted cash. During the quarter it sold about 10.9 million shares at $9.45 for net proceeds of $100.4 million, and after quarter end it sold 4.1 million shares at $13.31 for net proceeds of $52.9 million. Management said remaining GGE module deliveries and upcoming CGN deliveries should drive consistent product revenue in the second half of fiscal 2026. The company reiterated that it is targeting adjusted EBITDA positive once it achieves consistent production volumes at or above 100 MW on an annualized basis.

Jason Few emphasized that demand for distributed baseload power is accelerating as AI and data center customers face grid constraints and need faster time to power. He framed FuelCell’s differentiation around utility-scale operating history, behind-the-meter deployment, native DC output, thermal integration, and the new 12.5 MW FuelCell Energy Block product. He also said the company is being disciplined about converting proposals into contracted backlog and expanding manufacturing only in line with backlog, market demand, and financing support.

Michael Bishop highlighted revenue of $35.6 million, adjusted EBITDA of negative $17.1 million, and a $77.9 million operating loss that included a $42.6 million non-cash impairment tied to upgrading the Groton project. He said core operating expenses declined excluding that charge, and reiterated the company’s path to sustainable positive adjusted EBITDA through cost discipline. On liquidity, he cited $440.9 million of total cash and restricted cash, noted the recent ATM raises of $100.4 million and $52.9 million net, and said the company remains essentially debt-free with no near-term maturities. He also said product margins are targeted at 10% to 20%, with service agreement margins north of 20%, depending on EPC involvement.

Analysts asked what benefits of the technology resonate most with data center customers, and management said time to power, utility-scale credibility, behind-the-meter deployment, community friendliness, and native DC architecture are key selling points. They also asked how much the 12.5 MW block has accelerated conversations; Jason Few said it has been a strong add because it improves modularity, economics, and scalability. On profitability, Mike Bishop said the company still targets adjusted EBITDA positive after reaching consistent annualized production at or above 100 MW, and on capital raises he said the balance sheet is comfortable even though the company may still use project financing, service financing, or equity markets when appropriate. Analysts also probed the 500 MW ramp and Groton repairs, and management said capacity will be unlocked incrementally rather than in one step, while Groton is viewed as the one portfolio upgrade opportunity because it is being standardized to the current energy block.