FuelCell Energy (FCEL) Q3 2026 earnings summary

Executive summary

• Secured major commercial orders, including a 75 MW capacity reservation with a Texas data center operator and a $2.6 billion CEPA with Fit Energy USA LP for up to 380 MW, driving a pipeline of approximately 10 GW for FY2026.

• Achieved operational milestones such as delivering $18 million in fuel cell products to Korea and installing the first industrial-scale carbon capture modules at ExxonMobil's Rotterdam complex.

• Manufacturing expansion is underway at the Torrington facility, targeting 100 MW annualized production by October 2026 and 500 MW by June 2028, fully funded by recent equity offerings.

• Expanded sales pipeline to ~10 GW, with data center and AI-driven demand accelerating commercial interest and backlog.

• Maintained strong liquidity with $737.3 million in cash as of July 31, 2026, supporting growth and expansion plans.

Financial highlights

• Q3 2026 revenue was $33.0 million, down 29% year-over-year, with a gross loss of $24.5 million and a net loss of $45.3 million, improved from $91.9 million in the prior year.

• Adjusted EBITDA was $(36.7) million, down from $(16.4) million, mainly due to inventory and purchase commitment charges.

• Operating expenses dropped to $22.2 million from $90.2 million, reflecting the absence of prior year impairment and restructuring charges.

• Gross margin for the quarter was (74.2)%, impacted by CEPA-related charges.

• Cash, cash equivalents, and restricted cash totaled $737.3 million at quarter-end, up from $440.9 million sequentially.

Outlook and guidance

• Targeting positive adjusted EBITDA in Q4 fiscal 2027, contingent on backlog conversion, production ramp, and cost reductions.

• Production rate expected to reach 100 MW annualized by October 2026, with expansion to 500 MW by June 2028.

• Liquidity is expected to be sufficient for at least the next 12 months, with future profitability dependent on scaling production and project execution.