FuelCell Energy(US:FCEL) ZACKSยท2025-01-31 17:45Core Viewpoint - FuelCell Energy (FCEL) is currently experiencing a bearish trend, with shares down 44.8% over the past six months, contrasting with a 41.1% increase in its industry [1][2]. Financial Performance - FCEL reported a negative earnings surprise in Q4 of fiscal 2024, but operations are expected to improve in 2025 due to a global restructuring focusing on core technologies [2]. - The Zacks Consensus Estimate for FCEL's fiscal 2025 earnings per share indicates a year-over-year growth of 29.44%, while revenues are expected to grow by 61.16% [10]. Operational Developments - The company is undergoing a global restructuring in the U.S., Canada, and Germany to lower operating costs and realign resources towards core technologies [7]. - FCEL has received a contract to build a 7.4 MW fuel cell power plant in Hartford, CT, which is projected to add over $160 million to its future revenue backlog, which stood at $1.16 billion at the end of fiscal 2024, reflecting a year-over-year growth of 12.6% [8]. Research and Development - FCEL continues to invest in R&D, holding 167 U.S. patents and 375 patents in other jurisdictions related to fuel cell technology, which supports its innovation and revenue diversification [9]. Financial Ratios - The trailing 12-month return on equity (ROE) for FCEL is -18.58%, significantly lower than the industry average of 8.27% [13]. - FCEL has a current debt to capital ratio of 16.79%, which is much lower than the industry average of 61.17%, indicating a more conservative approach to debt [15]. Market Position - The increasing backlog and demand for fuel cell technology suggest a positive long-term outlook for FCEL, despite current lower returns compared to the industry and expected losses in upcoming quarters [17].