FuelCell Energy Reports Second Quarter of Fiscal 2025 Results

Current Business Update - FuelCell Energy reported a revenue of $37.4 million for the second quarter of fiscal 2025, representing a 67$22.4 million in the same quarter of the previous year [5][7] - The company is focusing on its carbonate platform to meet the growing market demand driven by AI data centers and distributed power generation solutions [3][5] - A global restructuring plan has been initiated to reduce operating expenses by 30% annually, with a workforce reduction of approximately 22% [5][14][16] Financial Performance - Gross loss for the second quarter was $(9.4) million, an increase of approximately 33$(7.1) million in the prior year [5][8] - Loss from operations decreased to $(35.8) million, a 13$(41.4) million in the same quarter last year [5][12] - Net loss per share improved to $(1.79) from$(2.18), reflecting an 18% decrease in loss per share [5][13] Backlog and Revenue Streams - Total backlog increased by approximately 19% to $1.26 billion, up from$1.06 billion in the previous year [5][20] - Product revenues were $13.0 million, a significant increase from no product revenues in the comparable prior year period [10] - Service agreement revenues rose to$8.1 million from $1.4 million, driven by module replacement revenue [10] Operational Changes - The company is recalibrating its manufacturing facility production schedule to align with contracted demand rather than forecasted demand [16] - Research and development expenses decreased to$9.9 million, primarily due to reduced spending on solid oxide power generation and electrolysis platforms [9][11] - The addition of Mike Hill as Chief Commercial Officer is expected to enhance the company's focus on sustainable integrated energy solutions [3][5] Cash and Investments - As of April 30, 2025, the company had cash and cash equivalents totaling $240.0 million, down from$318.0 million as of October 31, 2024 [18] - Unrestricted cash and cash equivalents were $116.1 million, with short-term investments at$60.9 million [18] Strategic Partnerships - The company has formed a strategic partnership with Diversified Energy Co. PLC and TESIAC Corp. to enhance its entry into the data center market [3][5] - A long-term service agreement with Gyeonggi Green Energy Co., Ltd. contributed to the increase in backlog [20]