FuelCell Energy(FCEL) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended January 31, 2025, were $18.997 million, reflecting a 14$16.691 million in the same period of 2024[126]. - Total costs of revenues decreased by 15% to $24.201 million for the three months ended January 31, 2025, down from$28.416 million in the prior year[126]. - Gross loss improved by 56% to $5.204 million for the three months ended January 31, 2025, compared to a gross loss of$11.725 million in the same period of 2024[126]. - Service agreements revenues increased by $0.2 million (14$1.8 million for the three months ended January 31, 2025, driven by a long-term service agreement with Gyeonggi Green Energy Co., Ltd.[132]. - Generation revenues rose by $0.9 million (8$11.3 million for the three months ended January 31, 2025, primarily due to contributions from the Derby Fuel Cell Project and SCEF Fuel Cell Project[135]. - Advanced Technologies contract revenues increased by $1.2 million (25$5.7 million for the three months ended January 31, 2025, with significant contributions from contracts with ExxonMobil and Esso[139]. - Overall gross profit from service agreements revenues improved to $0.2 million for the three months ended January 31, 2025, compared to a gross loss of$0.3 million in the prior year[133]. - Loss from operations decreased to $32.9 million for the three months ended January 31, 2025, down from$42.5 million in the same period of 2024, attributed to lower operating expenses and reduced gross loss[147]. - Net loss attributable to common stockholders was $29.1 million for the three months ended January 31, 2025, compared to$20.6 million in the same period of 2024, with a net loss per common share of $1.42[157]. Cash and Liquidity - The company believes it has sufficient liquidity to fund its operations for the next 12 months[107]. - As of January 31, 2025, unrestricted cash and cash equivalents totaled$98.1 million, down from $148.1 million as of October 31, 2024[161]. - The company received a$4.0 million contribution from East West Bank during the three months ended January 31, 2025, recorded as noncontrolling interest[162]. - The company had unrestricted cash and cash equivalents of $98.1 million as of January 31, 2025, and U.S. Treasury Securities totaling$110.3 million[186]. - As of January 31, 2025, cash and cash equivalents totaled $160.4 million, down from$208.9 million as of October 31, 2024, with unrestricted cash at $98.1 million[205]. - The company has not achieved profitable operations or sustained positive cash flow from operations, and future liquidity will depend on timely project completion and increased cash flows[166]. Project Development and Partnerships - The company signed a Joint Development Agreement with Malaysia Marine and Heavy Engineering Sdn Bhd to co-develop large-scale hydrogen production electrolysis systems across Asia, New Zealand, and Australia[120]. - A strategic partnership was formed with Diversified Energy Co. PLC and TESIAC Corp. to develop integrated fuel cell energy assets, targeting three initial projects totaling up to 360 megawatts of electric power generation[122]. - The company is focused on expanding into markets with high energy costs and poor grid reliability, aiming to leverage multiple value streams from its platforms[116]. - The company continues to invest in product development for hydrogen-based energy storage and carbon capture technologies[115]. - The company expects to complete construction of a 7.4 MW solid oxide fuel cell power generation system by December 2026 under a PPA with Eversource and United Illuminating[178]. - The company is continually assessing opportunities for growth, including potential partnerships, acquisitions, and new product development[167]. Backlog and Production Capacity - As of January 31, 2025, the service agreements backlog totaled$172.3 million, up from $140.4 million a year earlier, reflecting a growth of approximately 22$997.4 million as of January 31, 2025, compared to $861.6 million as of January 31, 2024, representing a growth of approximately 15.8$1.31 billion as of January 31, 2025, compared to $1.03 billion as of January 31, 2024[183]. - The generation operating portfolio totaled 62.8 MW as of January 31, 2025, with three additional projects representing 8.7 MW in development[171][172]. - The annualized production rate for the Torrington, CT manufacturing facility was approximately 31.2 MW for the three months ended January 31, 2025, compared to 33.2 MW for the same period in 2024[131]. - The company plans to expand its carbonate platform capacity to a maximum annualized capacity of 200 MW with additional capital investment[195]. - The company continues to invest in product development and manufacturing scale-up for solid oxide platforms, aiming for an annualized solid oxide electrolysis cell manufacturing capacity of up to 80 MW per year[199]. Cost Management and Restructuring - The company announced a global restructuring plan aimed at reducing operating costs and realigning resources due to slower-than-expected investments in clean energy, resulting in deferred spending on the Trinity and UConn projects[180]. - The company reduced its workforce by approximately 17$298.9 million, with $109.5 million due within one year[217]. - The Company secured approximately$10.1 million in project debt financing from EXIM at a fixed interest rate of 5.81%, repayable over 7 years[220]. - The Derby Senior Back Leverage Loan Facility amounts to $9.5 million, with a 7.25$3.5 million, with an 8% interest rate and a maturity date of March 31, 2038[226]. - The total amount drawn down from the Derby financing on April 25, 2024, was $13.0 million, with net proceeds of approximately$12.8 million after fees[223]. - The OpCo Financing Facility includes a term loan facility of up to $80.5 million and a letter of credit facility of up to$6.5 million[230]. - At the closing of the OpCo Financing Facility, $80.5 million was drawn down, with approximately$77.6 million remaining after transaction costs[234]. - The Company is required to maintain a minimum cash balance of $100 million as part of the credit agreement with EXIM[221]. - The Derby Holdco Borrower must maintain a "Senior" debt service coverage ratio of not less than 1.25:1.00 and a "Total" debt service coverage ratio of not less than 1.10:1.00[227]. - The Term Loan has a seven-year term, maturing on May 19, 2030, with quarterly principal amortization obligations based on a 1.30x debt service coverage ratio[237]. - A capital expenditures reserve balance of$29.0 million is required, with $14.5 million funded from the Term Loan closing advance[238]. - A debt service reserve of not less than$6.5 million is required, satisfied by an Irrevocable Letter of Credit issued by Investec Bank plc[239]. - The net interest rate across the Financing Agreement and the swap transaction is 6.366% for the first four years and 6.866% thereafter[242]. Market and Economic Factors - A $1/MMBTu increase in natural gas pricing would result in an annual cost impact of approximately$26,000[289]. - A $10/MMBTu increase in renewable natural gas pricing would lead to an annual impact of approximately$2.0 million[289]. - The company has executed various fuel supply contracts to mitigate fuel price risks, including a two-year contract for the Toyota Project[288]. - The company has four projects with fuel sourcing risk, including the Toyota Project, Derby Projects, and Yaphank Project, with contracts extending through 2025 to 2029[288].