FuelCell Energy, Inc. Q1 FY2026 earnings call

• Commercial: Data centers driving demand, value proposition based on accelerated time to power, scalability, capital preservation, AI-native architecture, and revenue/return acceleration. Submitted over 1.5 gigawatts of proposals with data centers making up over 80% of the pipeline. - Operational: South Korea remains important with module deliveries and projects demonstrating scale. Moving carbon capture from concept to deployment with ExxonMobil Rotterdam project. Initial phases of U.S. manufacturing scale-up at Torrington facility. - Financial: Strong liquidity position, with cash, restricted cash, and cash equivalents of $379.6 million as of January 31, 2026.

In the first quarter of fiscal year 2026, total revenues were $30.5 million, an increase of approximately 61% from the prior year quarter. Product revenues were $12 million, reflecting module deliveries. Service agreement revenue increased to $3.2 million. Generation revenues decreased slightly. Advanced technology contract revenues decreased. Product revenues were $12 million, contributing to about 39.3% of total revenue. Service agreement revenue was $3.2 million, contributing about 10.5%. Generation revenues were $11 million, contributing about 36.1%. Advanced technology contract revenues were $4.3 million, contributing about 14.1%.

• Targeting future achievement of positive adjusted EBITDA once the Torrington facility reaches an annualized production rate of 100 megawatts per year. - Projects with SDCL identified up to 450 megawatts of discrete data center and distributed generation opportunities globally. - Focus on converting pipeline of opportunities and driving operational leverage through higher utilization of the Torrington facility.

Your first question comes from Dushant Alani with Jefferies regarding 1.5 gigawatts of proposals. Answer: Everything in backlog are firm committed orders before going into backlog, team is finalizing technical details, working through initial formalities, and in active negotiations. Next question from Jason Tilchen with Canaccord Genuity about MOU with Inuverse. Answer: Key milestone was land purchase agreement, next phase is working through offtakers and designing power delivery. Next question from Manav Gupta with UBS about benefits of absorption chillers. Answer: Leveraging absorption chilling reduces power required for cooling, increases IT load power, and provides incremental value. Next question from Ryan Finkst with B Reilly about breakdown of 1.5 gigawatts of proposals and next milestone for carbon capture modules. Answer: Vast majority weighted toward U.S., average sizes 50 - 300 megawatts; next milestone is shipping modules to Rotterdam and demonstrating carbon capture. Next question from Colin Rush with Oppenheimer about modular design and operational leverage. Answer: Modular design is 1.25 megawatt building blocks, leveragable as proof point for sales; operational leverage with scale and expansion plans. Next question from Noel Parks with Tuohy Brothers about contract negotiations and financing. Answer: No resistance to service agreements, conversations around duration; planning for financing as part of capacity expansion planning.