FuelCell Energy posts Q3 loss, lands first data center deal

FuelCell Energy (NASDAQ: FCEL) reported a net loss of $45.3 million for its fiscal third quarter ended July 31, 2026, compared with a net loss of $91.9 million in the same period a year earlier, according to a company press release. Revenue fell 29% to $33.0 million from $46.7 million, primarily due to fewer fuel cell module deliveries to customers in South Korea and lower output from its generation portfolio.

The company signed its first Capacity Reservation Agreement with an unnamed major data center operator for a planned 75 MW project in Texas. The agreement includes an upfront reservation payment and covers six 12.5 MW fuel cell block systems. Financial terms were not disclosed.

During the quarter, FuelCell Energy also entered a capital equipment purchase agreement with Fit Energy USA LP to supply carbonate fuel cell systems with up to 380 MW of total generation capacity across four potential phases, intended for data center baseload power. The initial phase of 30 MW is expected to begin delivery in the fourth quarter of fiscal 2026. Fit Energy holds options to elect the remaining three phases, which together represent 350 MW and an estimated $2.4 billion in awarded capacity backlog. Total committed backlog rose 4.1% to $1.3 billion as of July 31, 2026.

Gross loss widened to $24.5 million from $5.1 million a year earlier, partly reflecting $17.0 million in inventory and purchase commitment charges tied to the Fit Energy agreement's Phase 0 pricing. The company's annualized production rate was approximately 37.1 MW during the quarter, below the level at which it expects product costs to align with contracted pricing.

FuelCell Energy is targeting an annualized production rate of 100 MW by October 2026 and is expanding its Torrington, Connecticut manufacturing facility to 500 MW of annualized capacity, with completion expected by June 2028. The company also signed a memorandum of understanding with Siemens to co-develop integrated fuel cell power systems for projects exceeding 100 MW.

Cash, cash equivalents, and restricted cash totaled $737.3 million as of July 31, 2026, up from $341.8 million as of October 31, 2025, reflecting a public stock offering that raised approximately $245.5 million in net proceeds in July 2026.

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