FuelCell Energy Reports Second Quarter of Fiscal 2025 Results
- Revenue increased 67% year-over-year to $37.4M
- Backlog grew 19% to $1.26B
- Operating loss improved 13% to $35.8M from $41.4M
- Restructuring plan targets 30% reduction in operating expenses
- Strategic focus on high-demand data center market and carbonate platform
- Gross loss increased 33% to $9.4M
- Cash position declined from $318M to $240M since October 2024
- 22% workforce reduction announced
- Current production rate of 31MW is significantly below 100MW target needed for positive Adjusted EBITDA
- Pausing R&D activities and scaling back new platform development
Insights
FCEL reports 67% revenue growth but implements 22% workforce reduction to stem losses and focus on core carbonate technology.
FuelCell Energy's Q2 fiscal 2025 results present a mixed financial picture with significant revenue growth offset by continuing operational losses. Revenue increased
The announced restructuring plan represents a critical strategic pivot. FCEL is reducing its workforce by an additional
The company's cash position has deteriorated, with cash, restricted cash and short-term investments totaling
FCEL's strategic narrowing to focus on its carbonate platform technology while pausing solid oxide development represents a significant shift. The company is prioritizing near-term commercial opportunities, particularly in distributed generation and data centers, while recalibrating manufacturing to match confirmed orders rather than forecasts. Notably, management has set a specific operational target, stating that positive Adjusted EBITDA requires reaching 100MW annual production (versus current 31MW rate).
The
Second Quarter Fiscal 2025 Summary
(All comparisons are year-over-year unless otherwise noted)
- Revenue of
$37.4 million , compared to$22.4 million , an increase of approximately67% - Gross loss of
$(9.4) million compared to$(7.1) million , an increase of approximately33% - Loss from operations of
$(35.8) million compared with$(41.4) million , a decrease of approximately13% - Net loss per share was
$(1.79) compared with$(2.18) , a decrease of approximately18% - Backlog of
$1.26 billion , compared to$1.06 billion , an increase of approximately19%
Current Business Update
- Announcing restructuring plan to reduce operating expenses by
30% on an annualized basis compared to operating expenses incurred in fiscal year 2024 - Focusing commercial efforts on carbonate-based distributed generation, including data center, grid resilience and reliability, and carbon recovery applications
- Refocusing solid oxide development efforts on electrolysis validation and demonstration – pausing R&D activity
- Addition of Mike Hill as Chief Commercial Officer
DANBURY, Conn., June 06, 2025 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (NASDAQ: FCEL) today reported financial results for its second quarter ended April 30, 2025.
“In our second fiscal quarter, we delivered sequential revenue growth and continued executing on the disciplined cost management strategy we initiated in late 2024, in recognition of the changing energy landscape,” said Jason Few, President and Chief Executive Officer. “Additionally, today we are reiterating our focused strategy that prioritizes advancement of our carbonate platform with the goal of meeting accelerating market demand driven by AI data centers, our distributed power generation solutions, and our carbon recovery and utilization applications.”
“Our strategy includes a further global restructuring across our operations in the U.S., Canada, and Germany as part of our ongoing work to concentrate our efforts on scaling our core carbonate technologies and achieving profitability,” Few continued. “We have seen increasing policy support for natural gas energy, which we believe will accelerate adoption of solutions like our carbonate platform, which is already deployed globally using natural gas and biofuels. We believe that the actions we have taken to reduce our workforce by approximately an incremental
“Our commercial efforts continue to generate meaningful opportunities, and we believe our Dedicated Power Partners strategic partnership with Diversified Energy Co. PLC and TESIAC Corp. positions us well to accelerate our entry into the data center market and expand our penetration in deployed microgrid applications,” added Few. “We also strengthened our leadership team with the addition of Mike Hill as our new Chief Commercial Officer this month. His deep experience in sustainable integrated energy solutions and strong grasp of the unique power demands of data centers will be instrumental as we work to establish FuelCell Energy’s presence in this critical growth sector.”
Michael Bishop, Executive Vice President, Chief Financial Officer and Treasurer added, “We are taking deliberate and proactive steps to maintain a strong and flexible balance sheet while continuing to sharpen our focus on cost discipline and the execution of a growth strategy centered on our carbonate platform. Our priorities remain clear: reduce our discretionary spending, decrease our cash burn, and accelerate our trajectory toward our ultimate goal of sustained, positive adjusted EBITDA. In parallel, we are actively pursuing strategic financing to support commercial execution, including our Korea repowering project, where we successfully delivered four modules this quarter,” said Bishop. “We believe our proven technology is well-positioned to meet the demands of the evolving energy integration and the accelerating need for distributed power generation—both through our established channels and our newly launched strategic partnership in Dedicated Power Partners. We remain focused on driving financial performance while enabling long-term, scalable growth.”
Consolidated Financial Metrics
| Three Months Ended April 30, | ||||||||||
| (Amounts in thousands, except per share data) (1) | 2025 | 2024 | Change | |||||||
| Total revenues | $ | 37,406 | $ | 22,420 | 67 | % | ||||
| Gross loss | (9,438 | ) | (7,074 | ) | 33 | % | ||||
| Loss from operations | (35,810 | ) | (41,361 | ) | (13 | %) | ||||
| Net loss | (37,749 | ) | (37,656 | ) | (0 | %) | ||||
| Net loss attributable to common stockholders | (38,849 | ) | (32,940 | ) | 18 | % | ||||
| Net loss per basic and diluted share | $ | (1.79 | ) | $ | (2.18 | ) | (18 | %) | ||
| EBITDA * | (24,920 | ) | (31,809 | ) | (22 | %) | ||||
| Adjusted EBITDA * | $ | (19,310 | ) | $ | (26,489 | ) | (27 | %) | ||
(1) All historic per share figures have been retroactively adjusted to reflect the Company’s reverse stock split that became effective on November 8, 2024.
* A reconciliation of non-GAAP measures EBITDA and Adjusted EBITDA is contained in the appendix to this press release.
Second Quarter of Fiscal 2025 Results
(All comparisons are between second quarter of fiscal 2025 and second quarter of fiscal 2024 unless otherwise noted)
Second quarter revenue of
- Product revenues were
$13.0 million compared to no product revenues recognized for the comparable prior year period. - Service agreements revenues increased to
$8.1 million from$1.4 million . The increase in service agreements revenues during the three months ended April 30, 2025 was primarily driven by module replacement revenue recognized under the Company’s long-term service agreement with United Illuminating. There were three module replacements, one of which was fulfilled with a used module, during the three months ended April 30, 2025, and no module replacements during the comparable prior year period. - Generation revenues decreased to
$12.1 million from$14.1 million . The decrease in generation revenues for the three months ended April 30, 2025 reflects lower power output resulting from maintenance activities during the quarter. - Advanced Technologies contract revenues decreased to
$4.1 million from$6.9 million . Advanced Technologies contract revenues recognized under our Joint Development Agreement with ExxonMobil Technology and Engineering Company (“EMTEC”) were approximately$2.3 million , revenues arising from the purchase order received from Esso Nederland B.V. (“Esso”), an affiliate of EMTEC and Exxon Mobil Corporation, related to the Rotterdam project were approximately$1.2 million and revenue recognized under government contracts and other contracts were approximately$0.6 million for the three months ended April 30, 2025. This compares to Advanced Technologies contract revenues recognized under our Joint Development Agreement with EMTEC of approximately$2.7 million , revenue recognized under the Esso purchase order of approximately$2.1 million and revenue recognized under government contracts and other contracts of approximately$2.1 million for the three months ended April 30, 2024.
Gross loss for the second quarter of fiscal 2025 totaled
Operating expenses for the second quarter of fiscal 2025 decreased to
Net loss was
Adjusted EBITDA totaled
The net loss per share attributable to common stockholders in the second quarter of fiscal 2025 was
Restructuring and Operational Update
Today, the Company is announcing its global restructuring plan with respect to its operations in the U.S., Canada and Germany. This plan aims to further reduce operating costs, realign resources toward advancing the Company’s core carbonate technologies, and protect the Company’s competitive position amid slower-than-expected market investments in clean energy. As part of this restructuring plan, on June 5, 2025, the Company reduced its workforce by approximately
This restructuring plan follows a November 2024 global restructuring of operations. The goal of the November 2024 restructuring plan was to reduce operating costs by approximately
Key actions under our new restructuring plan include: (i) a global workforce reduction (as described above), (ii) a significant reduction of discretionary overhead spending, (iii) recalibration of our Torrington manufacturing facility production schedule to align with contracted demand, rather than forecasted demand, which, without continued growth in our closed order book, would result in a decrease in our annualized production rate, (iv) the deferral of certain compensation and benefit obligations, (v) the cessation of the majority of development efforts with respect to our solid oxide technology, and (vi) other targeted cost-saving measures.
With our enhanced focus on our core technologies, specifically the manufacture and sale of our carbonate platforms, and the growing demand for distributed power generation in the U.S., Asia, and Europe, we are targeting the future achievement of positive Adjusted EBITDA once our Torrington, CT manufacturing facility reaches an annualized production rate of 100 MW per year. However, for the six months ended April 30, 2025, the facility operated at an annualized production rate of approximately 31 MW, and our annualized production rate may decrease in the near term as part of our restructuring plan.
Cash, Restricted Cash and Short-Term Investments
Cash and cash equivalents, restricted cash and cash equivalents, and short-term investments totaled
During the three months ended April 30, 2025, approximately 1.6 million shares of the Company’s common stock were sold under the Company’s Open Market Sale Agreement, as amended, at an average sale price of
Backlog
| As of April 30, | ||||||||||
| (Amounts in thousands) | 2025 | 2024 | Change | |||||||
| Product | $ | 98,184 | $ | 12,307 | $ | 85,877 | ||||
| Service | 164,417 | 145,100 | 19,317 | |||||||
| Generation | 967,388 | 852,933 | 114,455 | |||||||
| Advanced Technologies | 29,608 | 51,112 | (21,504 | ) | ||||||
| Total Backlog | $ | 1,259,597 | $ | 1,061,452 | $ | 198,145 | ||||
As of April 30, 2025, backlog increased by approximately
Backlog represents definitive agreements executed by the Company and our customers. Projects for which we have an executed power purchase agreement (“PPA”) or hydrogen power purchase agreement (“HPPA”) are included in generation backlog, which represents future revenue under long-term PPAs and HPPAs. The Company’s ability to recognize revenue in the future under a PPA or HPPA is subject to the Company’s completion of construction of the project covered by such PPA or HPPA. Should the Company not complete the construction of the project covered by a PPA or HPPA, it will forgo future revenues with respect to the project and may incur penalties and/or impairment charges related to the project. Projects sold to customers (and not retained by the Company) are included in product sales and service agreements backlog, and the related generation backlog is removed upon sale. Together, the service and generation portion of backlog had a weighted average term of approximately 18 years as of April 30, 2025, with weighting based on the dollar amount of backlog and utility service contracts of up to 20 years in duration at inception.
Conference Call Information
FuelCell Energy will host a conference call today beginning at 10:00 a.m. ET to discuss second quarter of fiscal year 2025 results as well as key business highlights. Participants can access the live call via webcast on the Company’s website or by telephone as follows:
- The live webcast of the call and supporting slide presentation will be available at www.fuelcellenergy.com. To listen to the call, select “Investors” on the home page located under the “Our Company” pull-down menu, proceed to the “Events & Presentations” page and then click on the “Webcast” link listed under the June 6th earnings call event, or click here.
- Alternatively, participants can dial 888-330-3181 and state FuelCell Energy or the conference ID number 1099808.
The replay of the conference call will be available via webcast on the Company’s Investors’ page at www.fuelcellenergy.com approximately two hours after the conclusion of the call.
Cautionary Language
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding future events or our future financial performance that involve certain contingencies and uncertainties. The forward-looking statements include, without limitation, statements with respect to the Company’s anticipated financial results and statements regarding the Company’s plans and expectations regarding the continuing development, commercialization and financing of its current and future fuel cell technologies, the expected timing of completion of the Company’s ongoing projects, the Company’s business plans and strategies, the implementation, effect, and potential impact of the Company’s restructuring plans, the Company’s plan to reduce operating costs, the Company’s plan to increase its annualized production rate at its Torrington manufacturing facility in the future, the Company’s plans for and ability to achieve positive Adjusted EBITDA, the capabilities of the Company’s products, and the markets in which the Company expects to operate. Projected and estimated numbers contained herein are not forecasts and may not reflect actual results. These forward-looking statements are not guarantees of future performance, and all forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation: general risks associated with product development and manufacturing; general economic conditions; changes in interest rates, which may impact project financing; supply chain disruptions; changes in the utility regulatory environment; changes in the utility industry and the markets for distributed generation, distributed hydrogen, and fuel cell power plants configured for carbon capture or carbon separation; potential volatility of commodity prices that may adversely affect our projects; availability of government subsidies and economic incentives for alternative energy technologies; our ability to remain in compliance with U.S. federal and state and foreign government laws and regulations; our ability to maintain compliance with the listing rules of The Nasdaq Stock Market; rapid technological change; competition; the risk that our bid awards will not convert to contracts or that our contracts will not convert to revenue; market acceptance of our products; changes in accounting policies or practices adopted voluntarily or as required by accounting principles generally accepted in the United States; factors affecting our liquidity position and financial condition; government appropriations; the ability of the government and third parties to terminate their development contracts at any time; the ability of the government to exercise “march-in” rights with respect to certain of our patents; our ability to successfully market and sell our products internationally; delays in our timeline for bringing commercially viable products to market; our ability to develop additional commercially viable products; our ability to implement our strategy; our ability to reduce our levelized cost of energy and deliver on our cost reduction strategy generally; our ability to protect our intellectual property; litigation and other proceedings; the risk that commercialization of our new products will not occur when anticipated or, if it does, that we will not have adequate capacity to satisfy demand; our need for and the availability of additional financing; our ability to generate positive cash flow from operations; our ability to service our long-term debt; our ability to increase the output and longevity of our platforms and to meet the performance requirements of our contracts; our ability to expand our customer base and maintain relationships with our largest customers and strategic business allies; the risk that our restructuring plans and workforce reductions will not result in the intended benefits or savings; the risk that our restructuring plans and workforce reductions will result in unanticipated costs; the risk that our restructuring plans will yield unintended consequences to our remaining workforce and results of operations; our ability to reduce operating costs; our ability to increase our annualized production rate at our Torrington manufacturing facility in the future; and our ability to achieve positive Adjusted EBITDA in the future, as well as other risks set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2025. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement contained herein to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ: FCEL): FuelCell Energy is a global leader in delivering environmentally responsible distributed baseload energy platform solutions through our proprietary fuel cell technology. FuelCell Energy is focused on advancing sustainable clean energy technologies that address some of the world’s most critical challenges around energy access, security, resilience, reliability, affordability, safety and environmental stewardship. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers worldwide with sustainable products and solutions for industrial and commercial businesses, utilities, governments, municipalities, and communities.
SureSource, SureSource 1500, SureSource 3000, SureSource 4000, SureSource Recovery, SureSource Capture, SureSource Hydrogen, SureSource Storage, SureSource Service, SureSource Capital, FuelCell Energy, and FuelCell Energy logo are all trademarks of FuelCell Energy, Inc.
Contact:
FuelCell Energy, Inc.
ir@fce.com
203.205.2491
| FUELCELL ENERGY, INC. | |||||||
| Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| (Amounts in thousands, except share and per share amounts) | |||||||
| April 30, 2025 | October 31, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents, unrestricted | $ | 116,061 | $ | 148,133 | |||
| Restricted cash and cash equivalents – short-term | 12,339 | 12,161 | |||||
| Investments – short-term | 60,908 | 109,123 | |||||
| Accounts receivable, net | 10,033 | 11,751 | |||||
| Unbilled receivables | 45,404 | 36,851 | |||||
| Inventories | 123,541 | 113,703 | |||||
| Other current assets | 16,178 | 12,736 | |||||
| Total current assets | 384,464 | 444,458 | |||||
| Restricted cash and cash equivalents – long-term | 50,716 | 48,589 | |||||
| Inventories – long-term | 2,743 | 2,743 | |||||
| Project assets, net | 228,202 | 242,131 | |||||
| Property, plant and equipment, net | 138,188 | 130,686 | |||||
| Operating lease right-of-use assets, net | 7,566 | 8,122 | |||||
| Goodwill | 4,075 | 4,075 | |||||
| Intangible assets, net | 14,131 | 14,779 | |||||
| Other assets | 53,758 | 48,541 | |||||
| Total assets (1) | $ | 883,843 | $ | 944,124 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Current portion of long-term debt | $ | 17,137 | $ | 15,924 | |||
| Current portion of operating lease liabilities | 795 | 807 | |||||
| Accounts payable | 22,552 | 22,585 | |||||
| Accrued liabilities | 24,952 | 30,362 | |||||
| Deferred revenue | 2,918 | 4,226 | |||||
| Total current liabilities | 68,354 | 73,904 | |||||
| Long-term deferred revenue | 4,203 | 3,010 | |||||
| Long-term operating lease liabilities | 8,352 | 8,894 | |||||
| Long-term debt and other liabilities | 124,138 | 130,850 | |||||
| Total liabilities (1) | 205,047 | 216,658 | |||||
| Redeemable Series B preferred stock (liquidation preference of | 59,857 | 59,857 | |||||
| Total equity: | |||||||
| Stockholders’ equity: | |||||||
| Common stock ( | 2 | 2 | |||||
| Additional paid-in capital | 2,318,607 | 2,300,031 | |||||
| Accumulated deficit | (1,707,925 | ) | (1,641,550 | ) | |||
| Accumulated other comprehensive loss | (1,507 | ) | (1,561 | ) | |||
| Treasury stock, Common, at cost (31,596 and 12,543 shares as of April 30, 2025 and October 31, 2024, respectively) | (1,314 | ) | (1,198 | ) | |||
| Deferred compensation | 1,314 | 1,198 | |||||
| Total stockholders’ equity | 609,177 | 656,922 | |||||
| Noncontrolling interests | 9,762 | 10,687 | |||||
| Total equity | 618,939 | 667,609 | |||||
| Total liabilities, redeemable Series B preferred stock and total equity | $ | 883,843 | $ | 944,124 | |||
| (1) As of April 30, 2025 and October 31, 2024, the combined assets of the variable interest entities (“VIEs”) were | |||||||
| FUELCELL ENERGY, INC. | ||||||||||
| Consolidated Statements of Operations and Comprehensive Loss | ||||||||||
| (Unaudited) | ||||||||||
| (Amounts in thousands, except share and per share amounts) | ||||||||||
| Three Months Ended April 30, | ||||||||||
| 2025 | 2024 | |||||||||
| Revenues: | ||||||||||
| Product | $ | 13,027 | $ | - | ||||||
| Service | 8,144 | 1,369 | ||||||||
| Generation | 12,124 | 14,118 | ||||||||
| Advanced Technologies | 4,111 | 6,933 | ||||||||
| Total revenues | 37,406 | 22,420 | ||||||||
| Costs of revenues: | ||||||||||
| Product | 16,261 | 2,938 | ||||||||
| Service | 9,067 | 1,267 | ||||||||
| Generation | 18,411 | 21,424 | ||||||||
| Advanced Technologies | 3,105 | 3,865 | ||||||||
| Total costs of revenues | 46,844 | 29,494 | ||||||||
| Gross loss | (9,438 | ) | (7,074 | ) | ||||||
| Operating expenses: | ||||||||||
| Administrative and selling expenses | 16,470 | 17,660 | ||||||||
| Research and development expenses | 9,896 | 16,627 | ||||||||
| Restructuring | 6 | - | ||||||||
| Total costs and expenses | 26,372 | 34,287 | ||||||||
| Loss from operations | (35,810 | ) | (41,361 | ) | ||||||
| Interest expense | (2,548 | ) | (2,275 | ) | ||||||
| Interest income | 1,825 | 3,390 | ||||||||
| Other (expense) income, net | (1,132 | ) | 2,590 | |||||||
| Loss before provision for income taxes | (37,665 | ) | (37,656 | ) | ||||||
| Provision for income taxes | (84 | ) | - | |||||||
| Net loss | (37,749 | ) | (37,656 | ) | ||||||
| Net income (loss) attributable to noncontrolling interest | 300 | (5,516 | ) | |||||||
| Net loss attributable to FuelCell Energy, Inc. | (38,049 | ) | (32,140 | ) | ||||||
| Series B preferred stock dividends | (800 | ) | (800 | ) | ||||||
| Net loss attributable to common stockholders | $ | (38,849 | ) | $ | (32,940 | ) | ||||
| Loss per share basic and diluted: | ||||||||||
| Net loss per share attributable to common stockholders | $ | (1.79 | ) | $ | (2.18 | ) | ||||
| Basic and diluted weighted average shares outstanding | 21,740,193 | 15,099,482 | ||||||||
| FUELCELL ENERGY, INC. | |||||||||
| Consolidated Statements of Operations and Comprehensive Loss | |||||||||
| (Unaudited) | |||||||||
| (Amounts in thousands, except share and per share amounts) | |||||||||
| Six Months Ended April 30, | |||||||||
| 2025 | 2024 | ||||||||
| Revenues: | |||||||||
| Product | $ | 13,099 | $ | - | |||||
| Service | 9,992 | 2,986 | |||||||
| Generation | 23,470 | 24,611 | |||||||
| Advanced Technologies | 9,842 | 11,514 | |||||||
| Total revenues | 56,403 | 39,111 | |||||||
| Costs of revenues: | |||||||||
| Product | 19,297 | 5,329 | |||||||
| Service | 10,735 | 3,155 | |||||||
| Generation | 33,705 | 42,318 | |||||||
| Advanced Technologies | 7,308 | 7,108 | |||||||
| Total costs of revenues | 71,045 | 57,910 | |||||||
| Gross loss | (14,642 | ) | (18,799 | ) | |||||
| Operating expenses: | |||||||||
| Administrative and selling expenses | 31,500 | 34,060 | |||||||
| Research and development expenses | 20,977 | 30,980 | |||||||
| Restructuring | 1,542 | - | |||||||
| Total costs and expenses | 54,019 | 65,040 | |||||||
| Loss from operations | (68,661 | ) | (83,839 | ) | |||||
| Interest expense | (5,155 | ) | (4,613 | ) | |||||
| Interest income | 4,213 | 7,457 | |||||||
| Other expense, net | (448 | ) | (1,060 | ) | |||||
| Loss before provision for income taxes | (70,051 | ) | (82,055 | ) | |||||
| Provision for income taxes | (84 | ) | - | ||||||
| Net loss | (70,135 | ) | (82,055 | ) | |||||
| Net loss attributable to noncontrolling interest | (3,760 | ) | (30,122 | ) | |||||
| Net loss attributable to FuelCell Energy, Inc. | (66,375 | ) | (51,933 | ) | |||||
| Series B preferred stock dividends | (1,600 | ) | (1,600 | ) | |||||
| Net loss attributable to common stockholders | $ | (67,975 | ) | $ | (53,533 | ) | |||
| Loss per share basic and diluted: | |||||||||
| Net loss per share attributable to common stockholders | $ | (3.22 | ) | $ | (3.55 | ) | |||
| Basic and diluted weighted average shares outstanding | 21,110,664 | 15,076,778 | |||||||
Appendix
Non-GAAP Financial Measures
Financial results are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Management also uses non-GAAP measures to analyze and make operating decisions on the business. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA are non-GAAP measures of operations and operating performance by the Company.
These supplemental non-GAAP measures are provided to assist readers in assessing operating performance. Management believes EBITDA and Adjusted EBITDA are useful in assessing performance and highlighting trends on an overall basis. Management also believes these measures are used by companies in the fuel cell sector and by securities analysts and investors when comparing the results of the Company with those of other companies. EBITDA differs from the most comparable GAAP measure, net loss attributable to the Company, primarily because it does not include finance expense, income taxes and depreciation of property, plant and equipment and project assets. Adjusted EBITDA adjusts EBITDA for stock-based compensation, restructuring charges, non-cash (gain) loss on derivative instruments and other unusual items, which are considered either non-cash or non-recurring.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these measures. The measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation. The Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP.
The following table calculates EBITDA and Adjusted EBITDA and reconciles these figures to the GAAP financial statement measure Net loss.
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
| (Amounts in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net loss | $ | (37,749 | ) | $ | (37,656 | ) | (70,135 | ) | (82,055 | ) | ||||||
| Depreciation and amortization (1) | 10,890 | 9,552 | 20,836 | 18,151 | ||||||||||||
| Provision for income taxes | 84 | - | 84 | - | ||||||||||||
| Other expense (income), net (2) | 1,132 | (2,590 | ) | 448 | 1,060 | |||||||||||
| Interest income | (1,825 | ) | (3,390 | ) | (4,213 | ) | (7,457 | ) | ||||||||
| Interest expense | 2,548 | 2,275 | 5,155 | 4,613 | ||||||||||||
| EBITDA | $ | (24,920 | ) | $ | (31,809 | ) | $ | (47,825 | ) | $ | (65,688 | ) | ||||
| Stock-based compensation expense | 4,824 | 3,002 | 6,966 | 5,878 | ||||||||||||
| Unrealized loss (gain) on natural gas contract derivative assets (3) | 780 | 2,318 | (1,066 | ) | 4,177 | |||||||||||
| Restructuring | 6 | - | 1,542 | - | ||||||||||||
| Adjusted EBITDA | $ | (19,310 | ) | $ | (26,489 | ) | $ | (40,383 | ) | $ | (55,633 | ) | ||||
| (1) | Includes depreciation and amortization on our Generation portfolio of |
| (2) | Other expense (income), net includes gains and losses from transactions denominated in foreign currencies, interest rate swap income earned from investments and other items incurred periodically, which are not the result of the Company’s normal business operations. |
| (3) | The Company recorded a mark-to-market net loss (gain) of |
FAQ
What were FuelCell Energy's (FCEL) Q2 2025 financial results?
What restructuring measures is FCEL implementing in 2025?
How much cash does FuelCell Energy (FCEL) have as of Q2 2025?
What is FCEL's current production capacity and target for profitability?
What markets is FuelCell Energy (FCEL) focusing on in 2025?
