Bloom Energy Corporation Q4 FY2025 earnings call

• Bloom delivered record revenue, gross margin, and operating margin in 2025. Product backlog grew 140% YOY to ~$6B, service backlog ~$14B with 20% Q4 service gross margin.
• Demand from data centers and C&I customers is secular and growing; C&I backlog grew over 135% YOY across verticals like telecom, manufacturing, etc.
• Geographic shift in US backlog to lower power cost states, driven by digitization, automation, etc., and Bloom's cost competitiveness there.
• 800 volts DC is a key innovation; Bloom natively produces 800V DC ready servers with backward compatibility.
• Investing in commercial team to capitalize on growing sales opportunity in 2026, with AI as a tailwind.

In the fourth quarter, revenue was $777.7 million, up 35.9% year over year. Full year 2025 revenue was a record $2 billion, up 37.3% from 2024. Product margin was 37% while service margin was approximately 20%. The product backlog increased 140% year over year to about $6 billion. The service business had a backlog of around $14 billion, and in the fourth quarter, achieved 20% gross margin in service.

• 2026 revenue expected to be $3.1 billion to $3.3 billion.
• Non-GAAP gross margin of approximately 32% and non-GAAP operating income of approximately $125 million to $475 million.
• Capital spending to be $150 million to $200 million, and cash flow from operations close to $200 million.

• Risks associated with forward-looking statements, including numerous known and unknown risks and uncertainties as detailed in SEC filings.

Q: Could you speak to the follow-on opportunities at existing customers?

A: Over two-thirds of business year over year comes from repeat customers; newer sectors like hyperscale end customers are also seeking follow-on orders, e.g., Oracle.

Q: Thoughts on further manufacturing capacity expansion?

A: Expansion is capital light, with standing orders to ramp up, and decision to expand is continuous based on large opportunities and time to power needs.

Q: Thoughts on HVDC architecture and deployment?

A: 800V DC is the right architecture, Bloom is future-proofed with 800V DC ready servers, and anticipates customers will seek this solution as they are future-proofed.

Q: Progress on combined heat and power solutions?

A: Absorption chillers using waste heat from on-site power can reduce data center electricity usage by at least 20%, are more efficient, and have environmental benefits.

Q: Speak to project wins against legacy incumbents?

A: Bloom competes well due to ability to follow loads, modular growth, and cost-effectiveness in various locations, winning large stamp size projects.

Q: Life of fuel cell stacks and service margins?

A: Service business has been profitable for eight consecutive quarters, with 20% Q4 gross margin, and using AI and digital twin to improve performance.

Q: Supplier MTAR's bullish comments on Bloom?

A: Bloom hasn't provided long-term guidance, and market is accelerating too fast for long-term predictions.

Q: Mix of backlog in non-AI business?

A: Not broken down, but US is key area with strong commercial and industrial growth.

Q: Book and ship business in 2025 and going forward?

A: '25 had significant book and ship revenue, and expects double-digit percentages going forward as a competitive advantage.

Q: AEP's fuel cell offtake?

A: AEP's sale is unconditional, and they are great partners with ongoing projects.

Q: Warrant transactions with other hyperscalers?

A: Evaluated on a case-by-case basis for enterprise value.

Q: Product margins and supply chain visibility?

A: Continuously working on cost reductions, with double-digit cost reduction in DNA, and strategic inventory management.