FuelCell Energy (FCEL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 42% year-over-year to $22.4 million, with sequential growth and a net loss per share of $(0.07) versus $(0.09) last year.

• Generation revenues rose 67% to $14.1 million, driven by new projects, while service revenues fell sharply due to no module exchanges.

• Backlog increased 3.8% year-over-year to $1.06 billion, boosted by new agreements, including a $160 million deal with Gyeonggi Green Energy.

• Strategic partnerships expanded, including an updated carbon capture agreement with ExxonMobil and a new project with Ameresco in California.

• Maintained disciplined cost management and capital allocation to support growth and liquidity.

Financial highlights

• Q2 2024 revenue was $22.4 million, down from $38.3 million in Q2 2023.

• Net loss for Q2 2024 was $(37.7) million, compared to $(33.9) million in Q2 2023.

• Adjusted EBITDA was $(26.5) million, nearly flat year-over-year.

• Cash, restricted cash, and short-term investments totaled $313.2 million as of April 30, 2024.

• Backlog reached $1.06 billion as of April 30, 2024.

Outlook and guidance

• Capital expenditures for FY24 revised down to $45–$60 million from prior guidance.

• Internally funded R&D for FY24 now projected at $60–$65 million, down from earlier estimates.

• Project asset investment for FY24 lowered to $10–$15 million due to project timing shifts.

• Some planned spending deferred to FY25, including the Tri-gen project.

• Management expects liquidity to be sufficient for at least 12 months, with plans to use cash, project receipts, and financing to fund operations.