FuelCell Energy(FCEL) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q1 fiscal year 2025, total revenues were reported at $19 million, an increase from$16.7 million in the prior year quarter [38] - Loss from operations improved to $32.9 million compared to$42.5 million in Q1 fiscal year 2024 [38] - Net loss attributable to common stockholders was $29.1 million, compared to$20.6 million in the same quarter last year, resulting in a net loss per share of $1.42, up from$1.37 [39][40] - Adjusted EBITDA totaled negative $21.1 million, an improvement from negative$29.1 million in the prior year [41] - Cash, restricted cash, cash equivalents, and short-term investments amounted to $270.7 million as of January 31, 2025 [50] Business Line Data and Key Metrics Changes - Product revenues were$0.1 million, compared to no product revenue recognized in the prior year [42] - Service agreement revenues increased to $1.8 million from$1.6 million, driven by long-term service agreements with GGE [43] - Generation revenues increased by 8.1% to $11.3 million from$10.5 million [44] - Advanced technology contract revenues rose to $5.7 million from$4.6 million [44] - Gross loss decreased to $5.2 million from$11.7 million, primarily due to reduced construction costs related to the Toyota project [45] Market Data and Key Metrics Changes - Backlog increased to $1.31 billion as of January 31, 2025, compared to$1.03 billion a year earlier, reflecting new agreements and projects [48] Company Strategy and Development Direction - The company launched a global restructuring plan aimed at reducing operating costs by approximately 15% in fiscal year 2025 [37][22] - A partnership with Diversified Energy was announced to address energy demands of AI and high-performance computing data centers, aiming to deliver up to 360 megawatts of electricity [13][14] - A joint development agreement with Malaysia Marine and Heavy Engineering was signed to co-develop large-scale hydrogen production systems across Asia, New Zealand, and Australia [15][30] - The company is focused on advancing its core technologies while managing costs and pursuing growth opportunities [23][34] Management's Comments on Operating Environment and Future Outlook - Management believes Q1 fiscal year 2025 marks the low watermark for revenue, with expectations for growth as module deliveries increase [9][38] - The company is optimistic about its strategic partnerships and the potential for increased revenue from data center opportunities [27][52] - Management acknowledged some uncertainty in the market due to regulatory changes but remains confident in the company's positioning and customer engagement [90][91] Other Important Information - The company is actively managing cash and capital allocation while pursuing growth objectives [51][52] - The Hartford project is back in backlog with a firm 20-year power purchase agreement, expected to be constructed in the 2026 timeframe [87] Q&A Session Summary Question: Can you elaborate on the Diversified Energy deal? - The partnership focuses on leveraging existing gas assets and includes both greenfield and brownfield opportunities, with a financing structure involving project financing and tax equity [56][59] Question: What updates are there on the tri-gen project? - Clean hydrogen in the transportation sector has faced delays, but discussions continue with existing and potential customers [72][74] Question: What is the timeline for the Hartford project? - The project is back in backlog and is expected to be constructed in 2026, with a $160 million backlog commitment [84][87] Question: How will the company be compensated for the JDA project? - Compensation will include product sales, long-term service opportunities, and potential cash flows from the joint venture [98] Question: Can you explain the net zero power technology mentioned in the JDA? - The technology allows for the use of coal mine methane, enabling a net zero solution, with opportunities for carbon capture and utilization [100][103]