At a Glance
- FuelCell Energy reported second fiscal quarter 2026 revenue of $22.5 million, a decrease from the prior year.
- The company posted a net loss of $32.2 million and a gross loss of $1.1 million for the quarter.
- Management emphasized its ongoing strategy to target the data center market and distributed hydrogen production.
FuelCell Energy, Inc. (Nasdaq: FCEL) today announced its second fiscal quarter 2026 financial results, revealing a revenue of $22.5 million, a decline from $35.3 million in the same period last year. The company reported a net loss of $32.2 million, an increase compared to the $31.0 million net loss in the second fiscal quarter of 2025. Amidst these financial outcomes, FuelCell Energy highlighted its strategic initiatives, particularly its intensified focus on the data center power market and advancements in hydrogen production.
Financial Performance Overview
The company’s gross loss for the second fiscal quarter of 2026 stood at $(1.1) million, a shift from a gross profit of $0.1 million in the comparable prior-year period. This change was primarily attributed to lower service and generation revenues, coupled with increased manufacturing costs.
Product sales for the quarter were $10.0 million, a significant rise from $1.6 million in the prior year, driven by the sale of a module to the U.S. Navy. Service agreements and license revenues, however, decreased to $7.1 million from $17.6 million, mainly due to fewer module exchanges.
Generation revenues also saw a decrease, falling to $4.7 million from $15.7 million, impacted by the sale of the 7.4 MW Long Island Power Authority (LIPA) Yaphank project. Adjusted EBITDA for the quarter was $(24.0) million, consistent with $(24.1) million in the second fiscal quarter of 2025.
The company's total backlog was $1.06 billion as of April 30, 2026, slightly down from $1.09 billion at the end of the first fiscal quarter. This backlog includes service agreements, generation projects, and product sales, providing a foundation for future revenue.
"During the second fiscal quarter of 2026, we continued to advance our strategy, with a particular focus on the data center market, distributed hydrogen production, carbon capture, and long-duration energy storage."
— Jason Few, President and CEO at FuelCell Energy
Strategic Initiatives and Market Focus
FuelCell Energy is making progress on its strategy to provide power solutions for the rapidly expanding data center sector. The company is actively developing new products specifically designed to meet the high power and reliability demands of data centers. This strategic pivot aims to position FuelCell Energy as a key supplier in this growing market.
The company also received $1.8 million from the U.S. Department of Energy (DOE) for the continued development of advanced technology for hydrogen production. This funding underscores the ongoing commitment to hydrogen as a clean energy carrier and FuelCell Energy’s role in its production.
Project milestones included the completion of a 1.4 MW fuel cell project for Pfizer in Connecticut, which achieved commercial operation. Furthermore, the 7.4 MW project for the U.S. Navy at the Naval Submarine Base in Groton, Connecticut, is proceeding with its development timeline.
These initiatives align with the company's broader objective to deliver sustainable and reliable energy solutions. The focus on distributed generation, hydrogen, and carbon capture represents key areas for future growth and market penetration for FuelCell Energy.
FuelCell Energy's second fiscal quarter results reflect a period of focused strategic execution despite a decline in overall revenue and a continued net loss. The company's emphasis on the data center market, alongside advancements in hydrogen technology and project completions, indicates a clear direction for future growth. Management remains committed to delivering sustainable energy solutions, aiming to capitalize on high-growth sectors and enhance operational efficiency in the coming quarters.