TLDR
- FCEL drops 11.59% as Q3 revenue falls 29% despite total backlog reaching $3.6B
- FuelCell Energy posts deeper Q3 losses while total backlog expands to $3.6B
- FCEL slides pre-market as gross loss widens sharply in fiscal third quarter
- FuelCell Energy adds major data center deals as quarterly revenue declines 29%
- FCEL targets manufacturing growth after backlog jumps to roughly $3.6B in Q3
FuelCell Energy (FCEL) shares fell 11.59% to $15.10 pre-market after the company reported weaker third-quarter revenue and deeper operating pressure. Revenue dropped 29% to $33.0 million, while gross loss widened sharply to $24.5 million from $5.1 million. However, the company expanded total committed and awarded capacity backlog to $3.65 billion, driven largely by Fit Energy commitments.
FCEL Stock Falls After Revenue Decline
FuelCell Energy recorded a $45.3 million net loss, down from a $91.9 million loss one year earlier. Still, adjusted EBITDA weakened to a $36.7 million loss, compared with a $16.4 million loss last year. The company linked the decline mainly to inventory valuation charges tied to the initial Fit Energy project phase.
Product revenue fell as FuelCell Energy delivered fewer modules to Korean customers than during the comparable quarter. Generation revenue also declined because several plants produced less electricity, including the Groton Project at a Connecticut submarine base. The company reported $18 million in product revenue from completed module deliveries at South Korea’s Gyeonggi Green Energy park.
FuelCell Energy ended July with $737.3 million in cash and restricted cash, up significantly from October 2025. Unrestricted cash reached $658.1 million, while restricted balances totaled $79.2 million at quarter-end, supporting planned manufacturing investments and operations. The company strengthened liquidity through a July stock offering and additional shares sold through its open market agreement.
FuelCell Energy Backlog Reaches $3.65 Billion
Committed backlog rose 4.1% to $1.30 billion, compared with $1.24 billion during the previous year. FuelCell Energy also added $2.35 billion in awarded capacity backlog linked to Fit Energy’s optional expansion phases. Those awards cover up to 350 megawatts, while Fit Energy must elect each phase before payment obligations begin.
The Fit Energy agreement could cover 380 megawatts across four phases for data center power projects. FuelCell Energy expects to begin delivering the initial 30-megawatt phase during the fourth quarter of fiscal 2026. The company also signed a reservation agreement for a planned 75-megawatt Texas data center project after quarter-end, with upfront payment.
Beyond backlog growth, FuelCell Energy continued expanding its Torrington manufacturing plant toward 500 megawatts of annual production capacity. The company expects to reach a 100-megawatt annualized production rate by October 2026 and complete expansion by June 2028. It also advanced projects with Siemens and ExxonMobil, supporting larger power deployments and industrial carbon capture development.
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