FuelCell Energy, Inc. (NASDAQ:FCEL) Q3 2024 Results Earnings Conference Call September 5, 2024 10:00 AM ET Company Participants Tom Gelston - Senior Executive Vice President, Finance and Investor Relations Jason Few - President and Chief Executive Officer Michael Bishop - Executive Vice President, Chief Financial Officer and Treasurer Conference Call Participants George Gianarikas - Canaccord Genuity Ryan Pfingst - B. Riley Securities Saumya Jain - UBS Noel Parks - Touhy Brothers Jeffrey Campbell - Seaport ...

Company Performance - FuelCell Energy reported a quarterly loss of $0.07 per share, better than the Zacks Consensus Estimate of a loss of $0.08, and compared to a loss of $0.06 per share a year ago, indicating an earnings surprise of 12.50% [1] - The company posted revenues of $23.7 million for the quarter ended July 2024, surpassing the Zacks Consensus Estimate by 2.05%, although this represents a decline from year-ago revenues of $25.51 million [1] - Over the last four quarters, FuelCell Energy has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [1] Stock Outlook - FuelCell Energy shares have declined approximately 74.3% since the beginning of the year, contrasting with the S&P 500's gain of 15.7% [2] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $41.83 million, and for the current fiscal year, it is -$0.26 on revenues of $104.19 million [4] Industry Context - The Alternative Energy - Other industry, to which FuelCell Energy belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges for stock performance [5] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact FuelCell Energy's stock performance [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-14204 FUELCELL ENERGY, INC. (Exact name of registrant as specified in its charter) Delaware 06-0853042 (State or other juri ...

Revenue Performance - Revenue for Q3 Fiscal 2024 was $23.7 million, a decrease of 7% compared to $25.5 million in Q3 Fiscal 2023[1][3][5]. - Total revenues for the three months ended July 31, 2024, were $23.7 million, a decrease from $25.5 million in the same period of 2023, representing a decline of approximately 7%[30]. - Total revenues for the nine months ended July 31, 2024, were $62,806 million, a decrease from $100,932 million in the same period of 2023, representing a decline of approximately 37.7%[32]. Loss and Expenses - Gross loss improved to $(6.2) million, down 25% from $(8.2) million in the prior year[1][3][8]. - Loss from operations decreased by 19% to $(33.6) million from $(41.4) million year-over-year[1][3][9]. - Net loss increased to $(35.1) million, compared to $(23.6) million in Q3 Fiscal 2023, which included a one-time benefit of $15.3 million[1][11]. - The net loss attributable to common stockholders for the three months ended July 31, 2024, was $(33.5) million, compared to $(25.1) million in the same period of 2023, indicating an increase in losses[30]. - Gross loss for the nine months ended July 31, 2024, was $(25,001) million, compared to a gross loss of $(9,071) million in the prior year, indicating a significant increase in losses[32]. - Operating expenses totaled $92,455 million for the nine months ended July 31, 2024, up from $90,637 million in 2023, reflecting a rise of approximately 2%[32]. - The company incurred interest expense of $7,168 million for the nine months ended July 31, 2024, compared to $4,926 million in the previous year, indicating an increase in financing costs[32]. Cash and Assets - Cash and cash equivalents totaled $326.0 million as of July 31, 2024, down from $403.3 million as of October 31, 2023[1][13]. - Cash and cash equivalents, unrestricted, as of July 31, 2024, were $159.3 million, up from $9.7 million as of October 31, 2023[27]. - Total assets as of July 31, 2024, were $948.9 million, a decrease from $955.5 million as of October 31, 2023[27]. - Current liabilities increased slightly to $66.5 million as of July 31, 2024, compared to $65.9 million as of October 31, 2023[27]. - The company reported a current portion of long-term debt of $12.2 million as of July 31, 2024, compared to $10.1 million as of October 31, 2023[27]. Backlog and Revenue Sources - Backlog increased by approximately 12.6% to $1.20 billion from $1.06 billion year-over-year, driven by a long-term service agreement with Gyeonggi Green Energy Co., Ltd.[1][15][17]. - Generation revenues rose 22% to $13.4 million, primarily due to the Toyota and Derby projects[1][6]. - Advanced Technologies contract revenues increased to $8.6 million from $4.7 million, with significant contributions from ExxonMobil-related projects[1][7]. - Product revenues were $0.3 million, recognized under a new sales contract with Ameresco, Inc., with no product revenues in the prior year[1][5][6]. Strategic Focus - The company aims to lower quarterly spending and cash burn while pursuing financing for commercial opportunities[1][14]. - FuelCell Energy is focused on advancing sustainable clean energy technologies to address critical challenges in energy access and environmental stewardship[24]. - The company is positioned to serve a diverse customer base, including industrial and commercial businesses, utilities, and governments, with its proprietary fuel cell technology[24]. Adjusted Performance Metrics - Adjusted EBITDA for the nine months ended July 31, 2024, was $(75,768) million, worsening from $(72,052) million in the prior year, indicating a decline in operational performance[36]. - The company reported a net loss before provision for income taxes of $(117,176) million for the nine months ended July 31, 2024, compared to $(78,017) million in 2023, reflecting a substantial increase in losses[32]. - Research and development expenses for the nine months ended July 31, 2024, were $43,796 million, slightly up from $43,000 million in the same period of 2023[32]. - The basic and diluted loss per share attributable to common stockholders for the nine months ended July 31, 2024, was $(0.19), unchanged from the same period in 2023[32]. - The company recorded a mark-to-market net loss of $5.1 million related to natural gas purchase contracts for the nine months ended July 31, 2024, with no comparable loss in the prior year[38].

(All comparisons are year-over-year unless otherwise noted) Revenue of $23.7 million compared to $25.5 millionGross loss of $(6.2) million compared to $(8.2) millionLoss from operations of $(33.6) million compared with $(41.4) millionNet loss per share was $(0.07) compared with $(0.06) which included a $0.04 one-time debt extinguishment benefit in the third quarter of 2023 DANBURY, Conn., Sept. 05, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (NASDAQ: FCEL) today reported financial results for its third q ...

Core Insights - FuelCell Energy participated in the Investing in Green Hydrogen 2024 summit, focusing on scaling critical technologies in hydrogen production [1][5] - The company showcased its Solid Oxide Electrolyzer platform, which achieves nearly 90% electrical efficiency and can reach 100% efficiency with excess heat [2][3] - FuelCell Energy's Tri-gen platform produces hydrogen, power, and water from renewable biogas, LNG, or natural gas, offering a lower carbon footprint compared to conventional methods [3] Company Overview - FuelCell Energy is a global leader in sustainable energy technologies, holding 531 fuel cell technology patents [6] - The company provides sustainable products and solutions to businesses, utilities, governments, and municipalities [6] Event Highlights - Investing in Green Hydrogen 2024 brought together over 800 decision-makers from more than 55 countries to discuss hydrogen's role in achieving a sustainable future [5] - The summit included forums on long-term offtake agreements and decarbonization across various industries, including aviation and chemicals [5]

DANBURY, Conn., Aug. 22, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc., (Nasdaq: FCEL), a global leader in sustainable energy technologies for the delivery of energy and emissions management, announced that a $5.9 million CAD grant from Natural Resources Canada’s Clean Fuels Fund (CFF) will finance two projects utilizing its electrolyzer technology to produce synthetic fuel (power-to-liquid (PtL)) or “eFuel.” These innovative projects are being carried out with Canadian Nuclear Laboratories (CNL), Expander ...

Core Viewpoint - FuelCell Energy is significantly undervalued on Wall Street, presenting a potential investment opportunity as the company is poised for a "snapback effect" in its stock price [1]. Group 1: Partnerships and Collaborations - FuelCell Energy has established a partnership with Exxon Mobil to develop a carbon-capture technology pilot plant [2]. - The company is collaborating with the University of Connecticut to provide solid oxide fuel cell technology, indicating a commitment to sustainability [2]. - In Korea, FuelCell Energy has agreed to sell 42 upgraded carbonate fuel cell modules to Gyeonggi Green Energy, which is part of the world's largest fuel cell power platform [3]. Group 2: Financial Position and Market Context - As of April 30, FuelCell Energy reported cash and cash equivalents totaling $313.2 million, indicating a strong capital position despite market challenges [5]. - The stock has been negatively impacted by a high-interest-rate environment, leading investors to favor larger, more stable companies over smaller startups [4]. - There are signs that the market may soon recognize FuelCell Energy's true value as inflation trends suggest potential interest rate cuts [4]. Group 3: Stock Valuation - FuelCell Energy's stock is currently trading below $1, which is considered an attractive entry point for investors [6]. - The stock is viewed as "senselessly cheap," especially near the 50 cents mark, making it a compelling investment opportunity [6].

Group 1 - FuelCell Energy is experiencing positive momentum in the Korean market following a successful event on June 28, which focused on accelerating Korea's energy transition with advanced fuel cell solutions [1] - The company's president and CEO, Jason Few, expressed satisfaction with the interest shown by the Korean energy industry and indicated plans for further market growth after 20 years of supplying carbonate fuel cells in the Asia region [1] Group 2 - Following the positive reception of the event, FuelCell Energy's stock (FCEL) saw a trading increase, with over 49.6 million shares changing hands, surpassing its daily average of approximately 48.3 million shares [2] - As of Thursday afternoon, FCEL stock rose by 6.4%, although it has declined by 58.6% since the beginning of the year [2]

STORRS, Conn. and DANBURY, Conn., June 25, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq: FCEL) and the University of Connecticut (UConn) have announced that UConn will use FuelCell Energy’s solid oxide fuel cell technology for its Innovation Partnership Building (IPB) at the UConn Tech Park on its Storrs Campus. Four of FuelCell Energy’s 250-kilowatt solid oxide fuel cells, with a combined one megawatt of electricity generation capability, will provide power and thermal energy to support current a ...