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    Bloom Energy (BE)

    BE Q3 2024: Maintains Full-Year Guidance Despite SK Deal Shift to 2025

    Reported on Aug 4, 2025
    Pre-Earnings PriceN/ADate unavailable
    Post-Earnings PriceN/ADate unavailable
    Price ChangeN/A
    • Diversified Order Pipeline: The management highlighted a robust and diversified order book with opportunities across U.S. commercial & industrial, international markets, and data centers, which supports resilient revenue growth over the long term.
    • Rapid Cost Reduction & Innovation: The company is consistently achieving double-digit cost reductions while integrating new product features (such as load following and islanded microgrids) that enhance value proposition and margins.
    • Scalable Manufacturing Capacity: Expanded capacity at the Fremont facility—with planned gigawatt-level production and the flexibility to further scale in 6–9 months—positions the company to meet rising and voracious market demand.
    • Revenue Variability and Project Timing Risk: The company’s reliance on large, project-based deals means that revenue can be significantly affected by delays or accelerations in project timelines, leading to unpredictable quarter-to-quarter results.
    • Dependence on Government Incentives: With a substantial portion of the business historically tied to the ITC, its scheduled phase down poses a risk, even if management views it as a speed bump, because the loss of this boost could dampen near-term demand.
    • Uncertain Data Center Deal Timelines: The complex, multiparty negotiations in the data center segment – especially for large orders like the SK Eternix deal – result in uncertain timing for revenue recognition, with expectations for key revenue to shift into 2025 rather than being realized in the current year.
    1. Full-Year Guidance
      Q: What drives full year guidance conviction?
      A: Management is confident in meeting guidance based on a strong pipeline and specific Q4 projects, with a view that even large deals such as the SK Eternix order will transition into 2025 revenue.

    2. 2025 Outlook
      Q: How does 2025 revenue and margin look?
      A: Management sees a robust U.S. commercial pipeline and expects solid margins as both traditional projects and emerging data center opportunities gain traction, though data center news will likely come early next year.

    3. ITC Expiry Impact
      Q: Are customers worried about ITC phasing down?
      A: Though ITC has supported past business, management noted that about 40% of revenue no longer depends on it and that its absence is merely a “speed bump” given the inherent demand for reliable power.

    4. Cost Reduction Timeline
      Q: What is the plan for cost reductions?
      A: The focus remains on achieving double-digit cost reductions through improved product generations and operational efficiencies, ensuring both enhanced margins and competitiveness.

    5. Manufacturing Capacity
      Q: Why expand Fremont manufacturing capacity?
      A: The capacity expansion is aimed at meeting rapidly growing demand, with the flexibility to add another gigawatt quickly if needed, demonstrating strong execution capability.

    6. SK Long-Term Potential
      Q: What is the long-term view with SK?
      A: Management highlighted a steady performance with SK and sees potential for larger orders driven by AI and other market needs, emphasizing Korea as a key strategic market.

    7. Project Financing Significance
      Q: How important is project financing for the 80MW deal?
      A: Securing financing from a top-tier institution like Korea Development Bank underscores the creditworthiness of the deal and validates Bloom’s technology and execution track record.

    8. Sales Process Adjustments
      Q: Are new sales processes impacting cycle length?
      A: Adjustments to the sales team and processes are expected to shorten long cycle times after initial large deals, paving the way for a more efficient negotiation in future projects.

    9. Receivables Factoring Query
      Q: Does factoring include the AWS-related receivable?
      A: Although specifics aren’t detailed, management confirmed confidence in collecting the SK receivable before year-end, indicating strong cash flow management.

    10. Installation Bottlenecks
      Q: Are there downstream installation bottlenecks?
      A: Installation has been streamlined using prefabricated skids, enabling power-up in as little as a week, though permitting and local inspections can vary.

    11. Pricing Strategy
      Q: How is pricing approached versus gas turbines?
      A: Bloom emphasizes that its unique value – including rapid load following and microgrid capabilities – justifies its premium compared to conventional natural gas turbines.

    12. SK Localization Benefits
      Q: Does local manufacturing in Korea boost wins?
      A: Through a joint venture with SK, localized assembly mitigates tariff impacts and strengthens the competitive position, though core technology remains controlled by Bloom.

    Research analysts covering Bloom Energy.