5 Must-Read Analyst Questions From FuelCell Energy’s Q2 Earnings Call

FuelCell Energy’s second quarter results prompted a significant positive market response, despite missing Wall Street’s revenue expectations. Management attributed the sharp year-on-year sales growth to robust product deliveries in South Korea, particularly module shipments to Goyne Green Energy and new service agreements. CEO Jason Few credited decisive restructuring actions, stating these moves are “lowering costs, sharpening our focus on distributed power generation, and positioning us for investment in technologies and partnerships that can unlock future growth.” The company also emphasized cost control measures and increased focus on its core carbonate power generation platform.

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• Revenue: $46.74 million vs analyst estimates of $49.58 million (97.3% year-on-year growth, 5.7% miss)

• Adjusted EPS: -$1.02 vs analyst estimates of -$1.63 (37.5% beat)

• Adjusted EBITDA: -$16.38 million vs analyst estimates of -$14.8 million (-35% margin, 10.7% miss)

• Operating Margin: -204%, down from -142% in the same quarter last year

• Backlog: $1.24 billion at quarter end, up 4% year on year

• Market Capitalization: $150.2 million

While we enjoy listening to the management’s commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

• Matt (J.P. Morgan) asked for an update on data center pipeline momentum and the Inuverse partnership; CEO Jason Few detailed active discussions with hyperscalers and emphasized strong U.S. and Korean demand.

• Jeffrey Osborne (TD Cowen) requested clarification on legacy commercial business opportunities post-tax credit reinstatement; Few explained ongoing distributed power generation deals and the advantages of easier permitting.

• Osborne also inquired about the cadence of module deliveries to Goyne Green Energy and CGN; CFO Mike Bishop confirmed schedules are currently driven by Torrington plant production rates.

• Osborne questioned the manufacturing scale necessary for EBITDA and gross margin breakeven; Bishop stated 100 megawatts annualized output is needed for adjusted EBITDA break-even, with current run rates below that threshold.

• Ryan Pfingst (B. Riley) asked about the timing for converting the Inuverse MOU to an order and milestones for the ExxonMobil Rotterdam carbon capture project; Few cited ongoing offtake agreement negotiations and anticipated module shipments as the next step.