FuelCell Energy: AI-Driven Future

FuelCell Energy Reports $77.6M Q2 Loss While AI Demand Fuels 4 GW Sales Pipeline

FuelCell Energy reported a wider net loss for its fiscal second quarter ended April 30, 2026, with revenue falling to about $35.6 million as results were pressured by project impairments tied to repairs at its Groton facility. The company said the writedown followed a decision to replace older equipment with newer 2.5-megawatt fuel-cell units, while revenue declines reflected fewer module exchanges and lower generation output. Despite the losses, management highlighted a major jump in its sales pipeline to 4 gigawatts, driven largely by surging demand from AI-focused, high-density compute customers, and it noted that data-center opportunities make up most submitted proposals. FuelCell also plans to expand its Torrington, Connecticut manufacturing capacity to up to 500 megawatts from 350 megawatts, targeting phased execution and estimating the expansion will cost roughly $200 million to $275 million. Analysts’ expectations were missed, including a non-GAAP EPS loss of about $0.53 versus an estimated loss of roughly $0.52, and the company’s backlog reportedly declined to about $1.14 billion. Separately, investor coverage pointed to limited insider activity, with insider selling noted over the prior three months.

Key Points

Topics