FuelCell Energy Reports Wider Quarterly Loss Amid Rising Costs for Data Center Contracts
FuelCell Energy (NASDAQ:FCEL) reported a wider-than-expected third-quarter loss as rising costs outpaced revenue from its new data center power agreement. Revenue dropped 29% year-over-year to $33 million, missing analyst expectations of $41.3 million, while the adjusted loss per share was $0.64 versus an expected $0.41. The company attributed a significant increase in gross losses—up 377% from last year—to inventory and purchase-commitment charges tied to its Capacity Enablement and Power Agreement with Fit Energy. Despite these challenges, FuelCell noted growth in committed backlog, which rose 4.1% to $1.3 billion, while awarded capacity backlog reached $3.6 billion. The company also signed a new data center power agreement for a planned Texas project after the quarter ended and raised cash through recent equity offerings. FuelCell Energy aims to increase production rates and achieve positive adjusted EBITDA by late 2027.
Tickers: $FCEL
Topics: data_center_contract loss revenue_miss