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FE

FUELCELL ENERGY INC (FCEL)·Q4 2024 Earnings Summary

Executive Summary

  • Revenue grew 120% year over year to $49.3M on Q4 module deliveries to Gyeonggi Green Energy (GGE) and Ameresco, but profitability deteriorated with gross loss expanding to $(10.9)M and net loss per share at $(2.21) .
  • Management withdrew prior FY2025/FY2030 aspirational revenue targets and announced a global restructuring, targeting ~15% lower operating costs in FY2025 and refocusing on distributed power generation, grid resiliency, data centers, and carbon recovery .
  • Liquidity remained solid at $318.0M (cash, restricted cash, short-term investments), aided by ~$9.2M EXIM financing and ~$20.8M ATM equity proceeds; backlog increased 13.1% YoY to $1.16B, driven by the GGE Agreement .
  • The company expects “material improvement” in FY2025 revenues as remaining 36 GGE modules are commissioned through 2025 and six more in 1H26; CapEx and R&D are guided lower year over year (CapEx: $20–$25M; R&D: $40–$45M) to prioritize cash discipline and focus .
  • Estimate comparison unavailable: Wall Street consensus via S&P Global was not retrievable at the time of this analysis due to data access limits; investors should focus on execution milestones (GGE deliveries, Ameresco project, EXIM-financed Korea ramp) and restructuring cost savings as near-term stock catalysts .

What Went Well and What Went Wrong

What Went Well

  • Revenue more than doubled YoY; Product revenue rose to $25.4M on $18.0M recognized from GGE module replacements and $7.7M from Ameresco’s Sacramento Sewer biogas project .
  • Backlog expanded to $1.16B (+13.1% YoY) with clear visibility to GGE commissioning milestones (36 modules in 2025; six in 1H26), supporting FY2025 top-line improvement .
  • Liquidity and financing progress: $318.0M cash/investments; closed ~$9.2M EXIM financing; CFO emphasized balance sheet strength and disciplined capital allocation .
  • Management quote (demand drivers): “Global demand for energy remains strong… driven by data centers, AI, cryptocurrency growth, [and] the need for more resilient and reliable grids” .

What Went Wrong

  • Profitability pressure: gross loss widened to $(10.9)M, driven by costs tied to higher product revenue, a $(1.8)M derivative loss in generation (vs +$4.1M gain last year), and manufacturing overcapacity costs; net loss was $(39.6)M .
  • Service revenue variability: prior quarter benefits from module exchanges were absent in earlier periods; Q4 service swung positive to $5.6M but remains dependent on exchange timing and cost estimates .
  • Strategy recalibration: the company will not meet FY2025/FY2030 aspirational revenue targets set in FY2022; restructuring included ~13% workforce reduction in November (plus 4% in September) and reduced product development spending .

Financial Results

Consolidated Performance (Quarterly)

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($M)$22.4 $23.7 $49.3
Net Loss ($M)$(37.7) $(35.1) $(39.6)
Net Loss per Share ($)$(0.07) $(0.07) $(2.21)
Gross (Loss) ($M)$(7.1) $(6.2) $(10.9)
Adjusted EBITDA ($M)$(26.5) $(20.1) $(25.3)

Note: FCEL executed a 1-for-30 reverse split effective Nov 8, 2024; Q