Financial Data and Key Metrics Changes - Total revenues for Q1 2026 were $30.5 million, a 61% increase from $19 million in Q1 2025, driven by module deliveries under long-term service agreements [22] - Loss from operations improved to $26.3 million from $32.9 million year-over-year, reflecting a 20% improvement [22] - Net loss attributable to common stockholders was $23.7 million or $0.49 per share, compared to $29.1 million or $1.42 per share in the prior year [23] - Adjusted EBITDA totaled negative $17 million, an improvement from negative $21.1 million in Q1 2025 [23] Business Line Data and Key Metrics Changes - Product revenues were $12 million, reflecting the delivery of 4 modules, while service agreement revenue increased to $3.2 million from $1.8 million [24] - Generation revenues slightly decreased to $11 million from $11.3 million, and advanced technology contract revenues decreased to $4.3 million from $5.7 million [25] - Backlog decreased approximately 10.8% to $1.17 billion year-over-year, primarily due to revenue recognized during the period [27] Market Data and Key Metrics Changes - The company submitted over 1.5 GW of proposals, with data centers now making up over 80% of the pipeline, indicating a structural shift in customer demand [14] - South Korea remains a significant market, with module deliveries driving product revenue and demonstrating utility-scale deployments [15][16] Company Strategy and Development Direction - The company emphasizes proof over promise, focusing on disciplined execution and long-term value creation [7] - Strategic collaboration with Sustainable Development Capital (SDCL) aims to identify up to 450 MW of data center and distributed generation opportunities globally [13] - The company is advancing carbon capture technology, with a project at ExxonMobil's refinery in Rotterdam expected to demonstrate the capability of capturing carbon while generating power [17][18] Management's Comments on Operating Environment and Future Outlook - Management highlighted the urgent need for scalable power solutions due to the explosive growth of AI and digital infrastructure [6] - The company is focused on converting its pipeline of opportunities into contracted projects and driving operational leverage through higher utilization of its Torrington facility [29] - Management remains committed to achieving positive adjusted EBITDA as production scales to 100 megawatts per year [29] Other Important Information - The company plans to invest $20 million-$30 million in fiscal year 2026 to support manufacturing optimization and capacity expansion [20] - Liquidity remains strong, with cash and equivalents of $379.6 million as of January 31, 2026 [28] Q&A Session Summary Question: What are the next steps for the 1.5 gigawatts of proposals submitted? - Management clarified that projects will not move to backlog until all contracts are finalized, and the team is actively negotiating technical details and contracts [31][32] Question: Can you discuss the MOU with Inuverse and its milestones? - Key milestones include solidifying land agreements and working on power delivery architecture for the AI Daegu Data Center [33] Question: How does the partnership with SDCL impact project timelines? - SDCL brings experience in delivering large-scale infrastructure projects, which enhances the company's ability to execute [38][39] Question: What is the current run rate at the Torrington facility? - The current run rate is in the 40-41 megawatt range, with plans to increase as new commercial opportunities are secured [40] Question: What are the benefits of absorption chillers in your offerings? - Absorption chillers enhance overall system efficiency by leveraging thermal properties, reducing power required for cooling, and increasing power available for IT loads [44][45] Question: Can you break down the 1.5 gigawatts of proposals by geography? - The majority of proposals are in the US market, with average project sizes typically in the 50-300 MW range [53] Question: What are the next milestones for the carbon capture modules? - The modules will be shipped to Rotterdam for integration, demonstrating the ability to capture carbon while producing power and thermal energy [55][56] Question: Can you discuss the modular design for data centers? - The company uses a 1.25 megawatt modular block design, allowing for scalable power delivery that matches customer needs [60][61]

Strategic Partnerships and Projects - FuelCell Energy partnered with Diversified Energy for data center power solutions, potentially supplying up to 360 MW of electricity[7, 14] - A joint development agreement with MMHE aims to co-develop large-scale hydrogen production systems across Asia, New Zealand, and Australia[7, 19] - A 7.4 MW project in Hartford, CT, was announced in January 2025, adding approximately $167 million to the generation revenue backlog[7, 25] Technology and Development - Module production for the carbon capture and storage project at the Port of Rotterdam is complete, with shipment expected in mid-2025[25] - The first at-scale fully-integrated electrolyzer system arrived at Idaho National Laboratory for demonstration[7, 25] - Production of GGE replacement modules is underway, with deliveries expected in the second half of 2025 and in 2026[7, 25] Financial Performance (Q1 Fiscal Year 2025) - Total revenue was $190 million, compared to $167 million in Q1 2024[28] - Loss from operations was $(329) million, an improvement from $(425) million in Q1 2024[28] - Net loss attributable to common stockholders was $(291) million, compared to $(206) million in Q1 2024[28] - Adjusted EBITDA was $(211) million, compared to $(291) million in Q1 2024[28] - Total cash and short-term investment position was $2707 million as of January 31, 2025[28] Restructuring and Investment - The company is targeting a reduction of approximately 15% in total operating costs in fiscal year 2025[45] - Capital expenditure target range for fiscal year 2025 is $20 million to $25 million, focused on expanding manufacturing capacity[46] - R&D expenditure target range for fiscal year 2025 is $40 million to $45 million, aimed at accelerating commercialization of advanced technologies[48]