FuelCell Energy (NASDAQ:FCEL) Releases Earnings Results, Misses Expectations By $0.23 EPS

FuelCell Energy (NASDAQ:FCEL) released its earnings results on Wednesday. The energy company reported ($0.64) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.23), FiscalAI reports. FuelCell Energy had a negative return on equity of 18.55% and a negative net margin of 113.60%.The firm had revenue of $33.00 million for the quarter, compared to analyst estimates of $38.79 million.

Here are the key takeaways from FuelCell Energy’s conference call:

• Positive Sentiment: FuelCell Energy secured its first data-center order, covering up to 380 MW across four phases, including an initially committed 30-MW phase. It also announced a subsequent 75-MW capacity reservation with a major colocation operator, though definitive agreements and timing remain pending.
• Positive Sentiment: Total committed and awarded capacity backlog reached $3.6 billion, comprising $1.3 billion of firm committed backlog and $2.4 billion of awarded capacity reservations. Management cautioned that awarded capacity is not guaranteed revenue and may not fully convert to contracts.
• Positive Sentiment: The company ended the quarter with a record $737.3 million in cash and restricted cash, including $658.1 million of unrestricted cash, and said its planned Torrington expansion is fully funded. Production capacity is targeted to increase from a 37-MW annualized rate to 100 MW in October 2026 and ultimately 500 MW by June 2028.
• Negative Sentiment: Third-quarter revenue fell 29% to $33 million, while gross loss widened to $24.5 million. Results included $17 million of charges tied to the Fit Energy agreement because current production costs and overhead exceed contractual pricing.
• Neutral Sentiment: Management is targeting positive adjusted EBITDA in the fourth quarter of fiscal 2027, contingent on converting awarded capacity into firm contracts, matching customer delivery schedules, ramping production, and achieving planned manufacturing cost reductions.

FuelCell Energy Trading Up 1.9%

Shares of FuelCell Energy stock opened at $14.67 on Friday. FuelCell Energy has a twelve month low of $3.81 and a twelve month high of $37.88. The firm’s 50-day moving average price is $21.57 and its 200 day moving average price is $15.92. The company has a current ratio of 8.59, a quick ratio of 7.20 and a debt-to-equity ratio of 0.18. The firm has a market capitalization of $1.17 billion, a PE ratio of -4.28 and a beta of 2.35.

Analyst Ratings Changes

Several analysts have commented on the stock. Jefferies Financial Group restated a “buy” rating on shares of FuelCell Energy in a research note on Thursday. Weiss Ratings restated a “sell (d-)” rating on shares of FuelCell Energy in a research report on Monday, August 17th. Canaccord Genuity Group reaffirmed a “buy” rating and issued a $30.00 price target on shares of FuelCell Energy in a report on Thursday. UBS Group upgraded FuelCell Energy from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $22.00 to $27.00 in a research note on Tuesday, July 14th. Finally, TD Cowen reissued a “hold” rating and issued a $16.00 price objective (up from $9.00) on shares of FuelCell Energy in a report on Tuesday, June 9th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $22.83.

Insider Activity

In other news, EVP Shankar Achanta sold 2,500 shares of FuelCell Energy stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $28.71, for a total value of $71,775.00. Following the sale, the executive vice president directly owned 2,618 shares of the company’s stock, valued at $75,162.78. The trade was a 48.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 5.46% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On FuelCell Energy

Large investors have recently modified their holdings of the business. Two Sigma Investments LP purchased a new position in shares of FuelCell Energy in the third quarter worth about $5,348,000. Invesco Ltd. grew its position in shares of FuelCell Energy by 75.4% in the fourth quarter. Invesco Ltd. now owns 1,505,430 shares of the energy company’s stock valued at $11,005,000 after purchasing an additional 647,151 shares in the last quarter. Trexquant Investment LP lifted its position in FuelCell Energy by 162.3% during the fourth quarter. Trexquant Investment LP now owns 894,800 shares of the energy company’s stock worth $6,541,000 after buying an additional 553,660 shares in the last quarter. Deutsche Bank AG increased its stake in shares of FuelCell Energy by 2,207.5% in the 4th quarter. Deutsche Bank AG now owns 423,580 shares of the energy company’s stock worth $3,096,000 after acquiring an additional 405,223 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of FuelCell Energy by 115.3% during the 4th quarter. Geode Capital Management LLC now owns 592,390 shares of the energy company’s stock worth $4,333,000 after acquiring an additional 317,301 shares during the period. Hedge funds and other institutional investors own 42.78% of the company’s stock.

Key Stories Impacting FuelCell Energy

Here are the key news stories impacting FuelCell Energy this week:

• Positive Sentiment: FuelCell Energy reported a committed backlog of approximately $1.3 billion and total committed and awarded capacity backlog of roughly $3.6 billion. The company also signed its first capacity reservation agreement with a major data-center operator for a planned 75-megawatt Texas project, supported by an upfront payment. FuelCell Energy Reports Third Fiscal Quarter 2026 Results
• Positive Sentiment: The company ended the quarter with $737.3 million in cash and restricted cash and is targeting a 100-megawatt annualized production rate in October 2026, with 500 megawatts of manufacturing capacity planned by June 2028. Management expects positive adjusted EBITDA in fiscal fourth-quarter 2027, subject to backlog conversion and execution. FuelCell Energy Q3 Earnings Call Focuses on Data Center Conversion
• Positive Sentiment: Canaccord Genuity reaffirmed its buy rating and maintained a $30 price target, citing potential upside from FuelCell Energy’s long-term growth opportunities. FuelCell Energy CEO Discusses AI Power Demand

About FuelCell Energy

FuelCell Energy, Inc (NASDAQ: FCEL) is a publicly traded company that designs, manufactures and operates turnkey molten carbonate fuel cell power plants. These stationary, on-site energy solutions generate electricity and heat through an electrochemical process that combines natural gas or biogas with oxygen, producing power with lower greenhouse gas emissions than traditional fossil fuel-based generation. The company’s fuel cell technology is engineered for continuous, baseload operation and can be integrated into microgrid architectures and industrial power systems to provide reliable, around-the-clock energy.

The company’s core product suite, marketed under the SureSource brand, encompasses both power generation and integrated carbon capture or hydrogen production capabilities.