Fusion Fuel Green PLC

No revenue was recognized in the first quarter. The company said €0.7 million of inflows did not yet meet revenue recognition requirements and will be recognized later in 2024. The pre-tax loss for the quarter was €5.1 million, including €0.6 million of share-based compensation, €0.7 million of depreciation and amortization, and a €0.6 million fair value loss on warrants. Legacy HEVO-Solar material sales generated €0.24 million of inflows, and the company said its operating cost base decreased by €1.5 million after excluding prior-quarter grant credits, marking a fifth consecutive quarter of cost-base reduction. Cash on hand was just over €1.5 million at March 31; since then the company received $1.15 million from Macquarie and other customer inflows. Management maintained its 2024 guidance, said 2024 revenue remains weighted toward the second half, expects between €8 million and €10 million of CapEx in 2024, and reiterated a goal of reaching cash flow break-even by the end of 2025.

Frederico Figueira de Chaves emphasized that Fusion Fuel is moving into a more relevant market niche: small- to mid-scale hydrogen projects, especially under 10 MW and self-consumption use cases. He said HEVO-Chain’s modular design, independent stacks, and ability to partially shut down for maintenance give the company a competitive advantage in availability and reliability, which matters for industrial customers. His tone was constructive and confident, especially around the first commercial cement project, the expanded pipeline, and the belief that the company can grow through follow-on business and broader market certification.

Gavin Jones focused on financing, grants, and the cost structure. He highlighted €5.9 million raised through the ATM in February, a separate grant of just above €1 million from H2tALENT, provisional approval for an estimated €5 million grant for HEVO-Aveiro, and the $1.15 million Macquarie draw after quarter-end. He said the company’s cost base fell by €1.5 million once prior-quarter grant credits were excluded, pre-tax loss was €5.1 million, and bank balance was just over €1.5 million at March 31. He also said uncertainty around capital remains the market’s biggest concern, that the company wants to exit cash burn by end-2025, and that 2024 CapEx is expected to be €8 million to €10 million.

Analysts pressed on why management did not revise 2024 revenue guidance, and Gavin answered that they are maintaining prior guidance because there has been no substantive new information and Sines-related revenues were already included but remain uncertain. Questions also focused on the NASDAQ equity deficiency notice; management said the notice is based on 2023 audited financials, does not reflect 2024 financing activity, and they are preparing a compliance plan within the allowed timeline. Other questions covered U.S. market potential, where management said the U.S. is critical but near-term focus remains on projects of 10 MW and under, and on the cement customer follow-on work, which management said likely won’t be decided until after go-live.