Third Fiscal Quarter 2026
Filed Sep 2, 2026FuelCell Energy Reports Third Fiscal Quarter 2026 Results; Executes First Data Center Power Agreement, Increases Annualized Production Rate & Focuses on Capacity Expansion
Committed and Awarded Capacity Backlog reached $3.6 billion and the Company added data-center-related commercial activity, but third-quarter revenue declined, gross loss widened, and Adjusted EBITDA loss increased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended July 31, 2026GAAP | $33,001 | – | (29%) |
| Total costs of revenues, three months ended July 31, 2026GAAP | $57,504 | – | – |
| Gross loss, three months ended July 31, 2026GAAP | $(24,503) | – | 377% |
| Administrative and selling expenses, three months ended July 31, 2026GAAP | $13,648 | – | – |
| Research and development expenses, three months ended July 31, 2026GAAP | $8,509 | – | – |
| Restructuring expense, three months ended July 31, 2026GAAP | - | – | – |
| Impairment expense, three months ended July 31, 2026GAAP | - | – | – |
| Total costs and expenses, three months ended July 31, 2026GAAP | $22,157 | – | – |
| Loss from operations, three months ended July 31, 2026GAAP | $(46,660) | – | (51%) |
| Interest expense, three months ended July 31, 2026GAAP | $(2,903) | – | – |
| Interest income, three months ended July 31, 2026GAAP | $3,573 | – | – |
| Other income, net, three months ended July 31, 2026GAAP | $707 | – | – |
| Net loss, three months ended July 31, 2026GAAP | $(45,283) | – | (51%) |
| Net loss attributable to common stockholders, three months ended July 31, 2026GAAP | $(45,267) | – | (51%) |
| Net loss per basic and diluted share attributable to common stockholders, three months ended July 31, 2026GAAP | $(0.64) | – | (83%) |
| EBITDA, three months ended July 31, 2026non-GAAP | $(37,273) | – | (56%) |
| Adjusted EBITDA, three months ended July 31, 2026non-GAAP | $(36,738) | – | 124% |
| Adjusted net loss attributable to common stockholders, three months ended July 31, 2026non-GAAP | $(44,732) | – | – |
| Adjusted net loss per basic and diluted share attributable to common stockholders, three months ended July 31, 2026non-GAAP | $(0.64) | – | (33%) |
| Total revenues, nine months ended July 31, 2026GAAP | $99,121 | – | – |
| Gross loss, nine months ended July 31, 2026GAAP | $(43,289) | – | – |
| Loss from operations, nine months ended July 31, 2026GAAP | $(150,863) | – | – |
| Net loss, nine months ended July 31, 2026GAAP | $(148,963) | – | – |
| Net loss attributable to common stockholders, nine months ended July 31, 2026GAAP | $(147,634) | – | – |
| Net loss per basic and diluted share attributable to common stockholders, nine months ended July 31, 2026GAAP | $(2.56) | – | – |
| EBITDA, nine months ended July 31, 2026non-GAAP | $(120,116) | – | – |
| Adjusted EBITDA, nine months ended July 31, 2026non-GAAP | $(70,823) | – | – |
| Adjusted net loss attributable to common stockholders, nine months ended July 31, 2026non-GAAP | $(98,341) | – | – |
| Adjusted net loss per basic and diluted share attributable to common stockholders, nine months ended July 31, 2026non-GAAP | $(1.71) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenue, three months ended July 31, 2026Lower product revenue resulted from fewer module deliveries to customers in Korea compared to the comparable prior year quarter. | $18,000 | – | – |
| Service revenue, three months ended July 31, 2026No segment-specific driver was reported. | $2,422 | – | – |
| Generation revenue, three months ended July 31, 2026Lower operating output from plants in the generation portfolio, including the 7.4 MW Groton Project, which was not operating pending an equipment upgrade during the quarter. | $8,801 | – | – |
| Advanced Technologies revenue, three months ended July 31, 2026No segment-specific driver was reported. | $3,778 | – | – |
Fiscal 2026 through fiscal 2028 outlook
- NoteThe Company expects to begin delivery of Fit Energy Phase 0, consisting of 30 MW of generation capacity, in the fourth quarter of fiscal year 2026.
- NoteThe Company has the goal of achieving its targeted annualized production rate of 100 MW in October 2026.
- NoteThe Company is targeting positive Adjusted EBITDA results in the fourth quarter of fiscal 2027, subject to the conversion of Awarded Capacity Backlog into Committed Backlog, customer delivery schedules and continued execution of cost reduction initiatives.
- NoteExpansion to 500 MW of annualized manufacturing capacity at the Torrington facility is scheduled for completion by June 2028.
What drove it
- The Fit Energy capital equipment purchase agreement covers fuel cell block systems with total aggregate generation capacity of up to 380 MW across four potential phases for data center applications.
- Committed Backlog was $1,296,010 and Awarded Capacity Backlog was $2,350,250 as of July 31, 2026.
- The Company signed its first Capacity Reservation Agreement with a major data center operator for a planned 75 MW project in Texas, supported by an upfront reservation payment. Financial terms were not disclosed.
- FuelCell Energy delivered all 42 fuel cell modules committed to GGE since 2024, generating $18 million of product revenue in the quarter.
- The Company delivered and installed the first two carbonate fuel cell carbon capture modules at Esso Nederland B.V.'s Rotterdam Manufacturing Complex.
- The Company signed an MOU with Siemens under which Siemens will design and supply electrical balance of plant systems for FuelCell Energy installations supporting 100+ MW commercial projects.
Concerns
- Gross loss increased to $(24,503), with product costs and manufacturing overhead currently exceeding contractual pricing under the Fit Energy CEPA.
- Charges totaling $17.0 million reflected contractual pricing provisions associated with specific inventory and firm purchase commitments arising from Phase 0 of the CEPA.
- The annualized production rate was approximately 37.1 MW during the quarter, below the production volume at which the Company expects its cost structure to align with market-based pricing for orders of this scale.
- Awarded Capacity Backlog is not contracted backlog, firm order backlog or a guarantee of future revenue. Fit Energy may elect to proceed with Phases 1, 2 and 3 at its sole option.
- The Groton Project was not operating pending an equipment upgrade during the quarter.
What to watch
- Initial delivery of the 30 MW Fit Energy Phase 0 in the fourth quarter of fiscal year 2026.
- Progress toward the targeted annualized production rate of 100 MW in October 2026.
- Conversion of Awarded Capacity Backlog into Committed Backlog and the timing of customer delivery schedules.
- The planned 75 MW Texas data center project as the parties finalize definitive project agreements.
- Completion of the Torrington expansion to 500 MW of annualized manufacturing capacity by June 2028.
- The Company’s target of positive Adjusted EBITDA results in the fourth quarter of fiscal 2027.
Balance sheet and cash flow
- Cash and cash equivalents, unrestricted were $658,082 as of July 31, 2026, compared with $278,099 as of October 31, 2025.
- Restricted cash and cash equivalents, short-term were $24,911 as of July 31, 2026, compared with $16,601 as of October 31, 2025.
- Restricted cash and cash equivalents, long-term were $54,327 as of July 31, 2026, compared with $47,092 as of October 31, 2025.
- Cash and cash equivalents and restricted cash and cash equivalents totaled $737.3 million as of July 31, 2026, compared to $341.8 million as of October 31, 2025.
- Current portion of long-term debt was $18,801 as of July 31, 2026, compared with $15,847 as of October 31, 2025.
- Long-term debt and other liabilities were $146,676 as of July 31, 2026, compared with $115,227 as of October 31, 2025.
- On July 9, 2026, the Company completed an underwritten public offering of 12,321,429 shares at a price to the public of $21.00 per share, generating net proceeds of approximately $245.5 million.
- During the three months ended July 31, 2026, approximately 4.1 million shares were sold under the Open Market Sale Agreement at an average sale price of $13.31 per share, generating net proceeds of approximately $52.9 million.
Analysis
FuelCell Energy reported third-quarter revenue of $33,001, down from $46,743 in the prior-year quarter. Product revenue was $18,000, service revenue was $2,422, generation revenue was $8,801 and Advanced Technologies revenue was $3,778. Management attributed the revenue decline to fewer module deliveries to Korea and lower generation output, including the 7.4 MW Groton Project, which was offline pending an equipment upgrade.
Profitability deteriorated at the gross-profit line. Gross loss was $(24,503), compared with $(5,134), while Adjusted EBITDA was $(36,738), compared with $(16,380). The Company said product costs and manufacturing overhead exceeded contractual pricing under the Fit Energy CEPA and recorded $17.0 million of charges tied to specific Phase 0 inventory and firm purchase commitments. The annualized production rate was approximately 37.1 MW during the quarter, and management expects higher production volumes, purchasing scale and cost-reduction initiatives to improve unit economics.
The GAAP net loss narrowed to $(45,283) from $(91,896), and loss from operations narrowed to $(46,660) from $(95,364), principally because the prior-year period included impairment and restructuring expense. The net loss per basic and diluted share attributable to common stockholders was $(0.64), compared with $(3.78); the Company attributed the per-share improvement primarily to a higher number of weighted average shares outstanding following share issuances. During the quarter, the Company raised approximately $245.5 million in net proceeds in an underwritten offering and approximately $52.9 million through its Open Market Sale Agreement.
Commercial backlog expanded, with Total Committed and Awarded Capacity Backlog of $3,646,260 as of July 31, 2026. This included $1,296,010 of Committed Backlog and $2,350,250 of Awarded Capacity Backlog related to Fit Energy options for Phases 1, 2 and 3. The release explicitly states that Awarded Capacity Backlog is not contracted backlog, firm order backlog or a guarantee of future revenue. The Company also signed a capacity reservation agreement for a planned 75 MW Texas data center project, but financial terms were not disclosed and definitive project agreements remain to be finalized.
Management expects to begin the initial 30 MW Fit Energy delivery in the fourth quarter of fiscal year 2026, has a goal of reaching a 100 MW annualized production rate in October 2026, and plans to complete the Torrington expansion to 500 MW of annualized capacity by June 2028. It is targeting positive Adjusted EBITDA in the fourth quarter of fiscal 2027, subject to backlog conversion, delivery schedules and cost-reduction execution. Cash, cash equivalents, restricted cash and restricted cash equivalents totaled $737.3 million as of July 31, 2026.
Management, verbatim
During the third quarter, FuelCell Energy accelerated the commercial execution of our data center strategy while continuing to expand the manufacturing capacity we believe is required to support long-term growth.
Jason Few, President and CEO of FuelCell Energy
The expansion of our Committed and Awarded Capacity Backlog to $3.6 billion reflects increasing customer demand for reliable, scalable infrastructure that reduces dependence on constrained transmission systems, simplifies permitting, and enables AI driven compute to be deployed faster.
Jason Few, President and CEO of FuelCell Energy
Demand for electricity is accelerating, driven by AI, data centers, and the broader electrification of the economy.
Jason Few, President and CEO of FuelCell Energy
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported quarterly metrics were not provided.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditure was not reported.
- Share repurchases and dividends to common stockholders were not reported.
- Revenue, gross margin, operating-expense and tax-rate guidance were not provided.
- Financial terms for the planned 75 MW Texas data center project were not disclosed.
- A previous outlook section was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.