FuelCell Energy Q3 2026 Results Show Wider Loss

FuelCell Energy, Inc. (FCEL) reported third-quarter 2026 results on Sept. 2, showing revenue declined 29% to $33 million and a net loss per share of $(0.64). The company attributed the wider loss to lower deliveries and $17 million of charges tied to a new data-center power agreement.

Third Quarter Results and Charges

The company’s press release detailed a gross loss of $24.5 million, an operating loss of $46.7 million, and a net loss of $45.3 million for the quarter. Adjusted EBITDA deteriorated to about $(36.7) million, mainly due to inventory valuation charges and related items.

Management said on the earnings call that the primary driver was roughly $17 million in charges: about $4 million to reduce the carrying value of certain inventories to net realizable value and approximately $13 million in losses on firm purchase commitments. These charges stem from contractual pricing under a data-center power agreement that currently falls short of manufacturing and overhead costs.

The results also reflected fewer module deliveries to customers in South Korea and lower generation revenue, including downtime at the 7.4 MW Groton project in Connecticut, which is awaiting equipment upgrades.

Data Center Agreements and Production Expansion

FuelCell announced a capital equipment purchase agreement (CEPA) with Fit Energy to supply up to 380 MW of carbonate fuel cell block systems across four phases. The initial Phase 0 order is for 30 MW, with deliveries expected to start in the fourth quarter of fiscal 2026. Later phases, totaling 350 MW, are optional and subject to Fit Energy’s election.

The company also signed a capacity reservation agreement with a major colocation operator in Texas for a planned 75 MW project using six 12.5 MW Block systems. This agreement includes an upfront reservation payment and priority access to manufacturing capacity; financial terms were not disclosed.

As of July 31, FuelCell reported a committed backlog of $1.3 billion and an awarded capacity backlog of $2.4 billion, combining to about $3.6 billion. The company held $737.3 million in cash, cash equivalents, and restricted cash at that date and raised roughly $298 million in net proceeds from stock sales during the quarter to support manufacturing expansion.

Management said the year-to-date sales pipeline totaled about 10 gigawatts, with roughly 97% of the third-quarter pipeline tied to data-center applications, reflecting a focus on AI and other large-scale baseload workloads.

The Torrington, Connecticut factory operated at an annualized production rate near 37 MW during the quarter. The company expects to raise that rate to 100 MW by October 2026, targeting about 500 MW by 2028. Management said the Torrington expansion is fully funded, with capital needs to reach longer-term capacity estimated in the low hundreds of millions of dollars.

Shareholder Rights Investigation

At 12:31 p.m. ET on Sept. 2, shareholder-rights law firm Johnson Fistel, PLLC announced an investigation into potential securities claims related to FuelCell’s recent public offering and subsequent disclosure of significant costs and losses tied to a commercial agreement. The firm invited investors who purchased FuelCell securities and experienced losses to seek further information.