FuelCell Energy, Inc. Q4 FY2025 earnings call

• Restructuring and Focus: Implemented restructuring to sharpen focus, reduce costs, and move toward profitability. - Data Center Strategy: Active in engaging with ecosystem participants for data center opportunities, with momentum in the US and Asia. - Manufacturing Scaling: Focus on higher utilization at Torrington facility; aim for positive adjusted EBITDA at 100 MW annualized production. - Financing Capacity: $25 million financing from XM as a model for future projects, with strong balance sheet entering 2026. - Emerging Power Markets: Policy certainty under the One Big Beautiful Bill Act supports project economics; core carbonate platform addresses power constraints. - Bottlenecks Addressed: Fuel cells avoid utility interconnection delays, permit risks, and emission restrictions, with faster deployment and lower noise/footprint.

Fourth Quarter of 2025: Total revenues were $55 million, up 12% from $49.3 million in the prior year. Product revenues were $30 million (up from $25.4 million), service agreement revenues $7.3 million (up from $5.6 million), generation revenues $12.2 million (up from $12 million), and advanced technology contract revenues $5.5 million (down from $6.4 million). Operating expenses decreased, and backlog increased to $1.19 billion from $1.16 billion. Fiscal Year 2025: Total revenues were $158.2 million, up 41% from $112.1 million. Driven by module deliveries to GGE. Loss from operations was $192.3 million, but adjusted EBITDA improved to negative $74.4 million from negative $101.1 million in fiscal year 2024.

• Focus on converting pipeline to executed contracts and backlog to revenue. - Aim to achieve positive adjusted EBITDA at 100 MW annualized production at Torrington facility. - Potential to scale Torrington facility to 350 MW with modest capital investment, expecting scaling in less than 18 months. - Utilize financing models like XM's to enable growth in international projects.

• Risks associated with forward-looking statements, where actual results may differ materially. - Uncertainties in market adoption, competition, and execution of business plans as outlined in SEC filings' Risk Factors sections.

Q: How does FuelCell Energy frame the 2026 growth outlook, particularly regarding data center opportunities?

A: Jason Few stated there are hundreds of megawatts of pricing proposals across the digital infrastructure ecosystem, with opportunities presenting in 2026.

Q: How long would it take to scale Torrington facility to 350 MW?

A: Jason Few mentioned it would take a fairly short cycle window, less than 18 months, with modest capital investment.

Q: Can you detail data center traction with DPP partners, including bottlenecks and opportunities?

A: Jason Few explained work with Diversified Energy for powered land solutions, strong interest in distributed generation, modularity, and integration with steam absorption chilling for data centers.

Q: Any update on ExxonMobil carbon capture opportunity?

A: Jason Few said modules for Exxon's Rotterdam refinery project will be shipped, with demonstration expected in the latter half of 2026, and potential commercial activities post-demonstration.

Q: What about data center customer readiness as a hurdle?

A: Jason Few stated it's a shift in procurement model rather than customer readiness issue, with customers shifting to on-site generation due to grid limitations.