Financial Performance - Total revenues for the three months ended January 31, 2025, were $18.997 million, reflecting a 14% increase from $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%) to $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%) to $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%) to $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%[181]. - Generation backlog increased to $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%[181]. - The overall backlog increased by approximately 28.0% to $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% as part of cost-saving measures implemented in September and November 2024[202]. - The company has deferred capital spending for the Calgary expansion due to a global restructuring plan aimed at reducing operating costs and realigning resources[199]. Financing and Debt Obligations - The company is pursuing financing through a combination of long-term debt and tax equity financing to support its project asset portfolio[168]. - Total commitments and significant contractual obligations as of January 31, 2025, amount to $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% interest rate and a 7-year term maturing on March 31, 2031[225]. - The Derby Subordinated Back Leverage Loan Facility amounts to $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].

Financial Performance - Total revenues for the first quarter of fiscal 2025 were $19.0 million, a 14% increase from $16.7 million in the same quarter of fiscal 2024[6] - Net loss for the quarter was $(32.4) million, compared to $(44.4) million in the first quarter of fiscal 2024, a 27% reduction[11] - Loss from operations narrowed to $(32.9) million, down 23% from $(42.5) million in the prior year[11] - The net loss attributable to FuelCell Energy, Inc. for the three months ended January 31, 2025, was $28,326,000, compared to a net loss of $19,793,000 for the same period in 2024, reflecting a 43% increase in losses[31] - Adjusted EBITDA improved to $(21.1) million from $(29.1) million, reflecting a 28% year-over-year improvement[11] - Adjusted EBITDA for the three months ended January 31, 2025, was $(29,144,000), compared to $(21,073,000) for the same period in 2024, reflecting a worsening of 38.3%[36] Cost Management - The company expects to reduce operating costs by approximately 15% in fiscal year 2025 compared to fiscal year 2024 due to a global restructuring plan[13] - Research and development expenses decreased to $11.1 million from $14.4 million, primarily due to reduced spending on ongoing commercial development efforts[10] - Research and development expenses for the three months ended January 31, 2025, were $11,081,000, down from $14,353,000 in the same period of 2024, indicating a 22.5% reduction[31] - The company incurred restructuring expenses of $1,536,000 during the three months ended January 31, 2025[31] Backlog and Future Prospects - Backlog increased by approximately 28% to $1.31 billion as of January 31, 2025, compared to $1.03 billion a year earlier[18] - Product backlog reached $111.2 million, a significant increase from $0 in the same period last year[18] Asset and Liability Management - Total current assets decreased to $411,238,000 as of January 31, 2025, from $444,458,000 as of October 31, 2024, representing a decline of 7.5%[29] - Total liabilities decreased to $202,439,000 as of January 31, 2025, from $216,658,000 as of October 31, 2024, a reduction of 6.6%[29] - The company reported a cash and cash equivalents balance of $98,070,000 as of January 31, 2025, down from $148,133,000 as of October 31, 2024, a decrease of 33.8%[29] - The company’s total stockholders' equity decreased to $645,239,000 as of January 31, 2025, from $667,609,000 as of October 31, 2024, a decline of 3.4%[29] Derivative Gains and Losses - The company reported a derivative gain of $1.8 million in the first quarter of fiscal 2025, compared to a derivative loss of $(1.9) million in the prior year[7] - The Company recorded a mark-to-market net gain of ($1.8) million for the three months ended January 31, 2025, compared to a gain of $1.9 million for the same period in 2024[37] - The mark-to-market accounting change was related to natural gas purchase contracts, affecting the Generation cost of sales[37] Gross Loss - Gross loss decreased to $(5.2) million from $(11.7) million, representing a 56% improvement year-over-year[7] - The gross loss for the three months ended January 31, 2025, was $5,204,000, an improvement from a gross loss of $11,725,000 in the same period of 2024[31]

The Company continues to invest in capability with the goal of reducing production bottlenecks and driving productivity, including investments in automation, laser welding, and the construction of additional integrated conditioning capacity. The Company also constructed a SureSource 1500 in Torrington during fiscal year 2022, which operates as a testing facility for qualifying new supplier components and performance testing and validation of continued platform innovations, including carbon recovery. During ...

FuelCell Energy, Inc. (NASDAQ:FCEL) Q4 2024 Earnings Conference Call December 19, 2024 10:00 AM ET Company Participants Tom Gelston - Investor Relations Jason Few - President & Chief Executive Officer Mike Bishop - Executive Vice President, Chief Financial Officer & Treasurer Conference Call Participants George Gianarikas - Canaccord Genuity Saumya Jain - UBS Noel Parks - Tuohy Brothers Dushyant Ailani - Jefferies Operator Good morning, ladies and gentlemen, and thank you for standing by. My name is Abby, a ...

Restructuring Plan - FuelCell Energy, Inc. announced a restructuring plan and workforce reduction, aiming to reduce operating costs and align its workforce with business needs[3] - The company reduced its workforce by approximately 13%, equating to 75 employees, with the restructuring expected to be substantially completed by the end of Q1 fiscal year 2025[5] - Estimated restructuring-related costs are projected to be between $1.7 million and $2.0 million, primarily for severance payments and employee termination benefits[6] - The restructuring plan is part of a broader strategy to enhance operational efficiency across the U.S., Canada, and Germany[5] - The restructuring is aimed at better aligning the workforce with customer needs, indicating a focus on customer-centric operations[5] - The company will record the restructuring charges in the first quarter of fiscal year 2025[6] Financial Impact and Guidance - Forward-looking statements indicate potential risks and uncertainties regarding the effectiveness and financial impact of the restructuring plan[8] - The restructuring plan may incur unanticipated costs, which could affect the overall financial performance of the company[8] - The company has not provided specific guidance on future revenue or performance metrics following the restructuring announcement[8] Financial Reporting - The company is expected to report its total cash and cash equivalents, restricted cash, and short-term investments as of October 31, 2024, in a forthcoming press release[3]

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 ...

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].

• • • Key Milestones JDA Creates Multiple Opportunities Focus on Commercial Deployment • • • FCEL • FCEL ExxonMobil • • • ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were $22.4 million, down from $38.3 million in the prior year quarter [25] - Net loss for Q2 2024 was $37.7 million compared to a net loss of $33.9 million in Q2 2023 [25] - Adjusted EBITDA totaled negative $26.5 million in Q2 2024, slightly worse than negative $26 million in Q2 2023 [26] - Cash and short-term investments stood at approximately $313.2 million as of April 30, 2024 [26] Business Line Data and Key Metrics Changes - Service agreement revenues decreased to $1.4 million from $26.2 million due to no module exchanges in Q2 2024 [27] - Generation revenues increased 67% to $14.1 million from $8.4 million, driven by revenue from the Toyota and Derby projects [28] - Advanced technology contract revenues rose to $6.9 million from $3.7 million, with contributions from government contracts and a purchase order from Esso [28] Market Data and Key Metrics Changes - Backlog increased to $1.06 billion as of April 30, 2024, compared to $1.02 billion a year earlier [31] - Significant commercial wins included a $160 million agreement with Gyeonggi Green Energy in South Korea [12] Company Strategy and Development Direction - The company is focused on its Powerhouse Business Strategy, emphasizing growth through technological solutions and collaborations with major global companies [8] - A disciplined approach to capital allocation and cost management is being maintained to support growth while managing expenses [9][15] - The extension of the joint development agreement with ExxonMobil through 2026 aims to enhance carbon capture technology [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on global energy transition policies and incentives [15] - The company anticipates that smaller-scale carbon capture projects may progress faster than larger-scale projects [69] Other Important Information - The company is exploring opportunities in the data center sector, leveraging its ability to provide reliable, large-scale power solutions [23] - The partnership with Ameresco for biogas projects is expected to expand as the market for anaerobic digestion grows [46] Q&A Session Summary Question: Reduction in spending and project timelines - Management confirmed that project spending is expected to extend into fiscal 2025 due to delays in the Trinity project [42] Question: Ameresco partnership and future projects - The company anticipates further opportunities with Ameresco as the trend towards anaerobic digestion continues [46] Question: Data center opportunities - Management is engaged in discussions with potential data center customers, highlighting the advantages of their large-scale platforms [51][52] Question: R&D spending focus - R&D investments are primarily directed towards solid oxide solutions and carbon capture technologies [59] Question: Carbon capture technology applications - The company is actively pursuing smaller-scale carbon capture opportunities and has designs ready for implementation [66][68]