Financial Data and Key Metrics Changes - In the second quarter of fiscal year 2025, total revenues increased to $37.4 million from $22.4 million in the same quarter of the previous year [32] - The loss from operations narrowed to $35.8 million compared to $41.4 million in the second quarter of fiscal year 2024 [33] - The net loss attributable to common stockholders was $38.8 million, compared to $32.9 million in the prior year, with a net loss per share of $1.79 versus $2.18 [33] - Adjusted EBITDA improved to negative $19.3 million from negative $26.5 million year-over-year [33] - Cash, restricted cash, cash equivalents, and short-term investments totaled $240 million as of April 30, 2025 [34] Business Line Data and Key Metrics Changes - Product revenues were $13 million, a significant increase from zero in the prior year [34] - Service agreement revenues rose to $8.1 million from $1.4 million, driven by module exchanges under a long-term service agreement [34] - Generation revenue decreased to $12.1 million from $14.1 million due to lower power output from maintenance activities [35] - Advanced Technology contract revenues fell to $4.1 million from $6.9 million [35] - Operating expenses decreased to $26.4 million from $34.3 million, with R&D expenses down to $9.9 million from $16.6 million [37] Market Data and Key Metrics Changes - Backlog increased by approximately 18.7% to $1.26 billion compared to $1.06 billion as of April 30, 2024, partly due to a long-term service agreement [39] - The company anticipates significant demand for distributed power generation in the U.S., Asia, and Europe [30] Company Strategy and Development Direction - The company announced a restructuring plan focusing on the carbonate platform, aiming to reduce operating expenses by 30% annually [30][31] - The strategy includes optimizing the supply chain and enhancing efficiency while preserving long-term flexibility for carbon capture opportunities [6][10] - The company is targeting positive adjusted EBITDA once the Torrington facility reaches an annualized production rate of 100 megawatts [10][31] Management's Comments on Operating Environment and Future Outlook - Management emphasized the strong global demand for power and the structural trends driving the need for clean energy solutions [12][13] - The company is focused on leveraging its carbonate technology to meet the growing demand for distributed energy and grid resilience [23][27] - Management expressed confidence in the restructuring efforts and the potential for future profitability [18][28] Other Important Information - The company is intensifying its focus on its carbonate platform while pausing broader solid oxide R&D efforts [7][8] - The partnership with Diversified Energy and TESSIAC aims to accelerate the deployment of carbonate fuel cells in data centers and large-scale applications [16][17] Q&A Session Summary Question: Can you discuss the momentum in procuring customers and orders for DPP? - Management indicated active conversations with data center customers and positive momentum in the partnership [44] Question: When can we expect to reach EBITDA neutral at 100 megawatts production? - Management stated that achieving 100 megawatts is dependent on order flow, with no additional capital needed to reach that capacity [46][47] Question: How does the manufacturing side drive profitability compared to generation? - Management clarified that the focus is on product and service sales rather than solely increasing the generation portfolio [52] Question: Will future bookings for data center applications reflect similar pricing to past orders? - Management expects stable pricing and views the increasing costs of gas turbines as an opportunity [55] Question: What types of customers are moving fastest in the power generation opportunity for AI and data centers? - Management noted a fragmented market with various customer segments, including traditional REITs and hyperscalers [60][62] Question: What will the agreements with gas distribution customers look like? - Management explained that DPP will generally involve power purchase agreements, with options for long-term service agreements [66]

Core Insights - FuelCell Energy and Malaysia Marine and Heavy Engineering (MMHE) have signed a Joint Development Agreement (JDA) to co-develop large-scale hydrogen production systems across Asia, New Zealand, and Australia [1][2] - The collaboration aims to advance clean hydrogen production and support global decarbonization goals [2][6] - The JDA will leverage FuelCell Energy's solid oxide electrolyzer (SOEC) technology and MMHE's large-scale fabrication expertise to create modular solutions for commercial hydrogen production [3][5] Company Collaboration - The partnership builds on a memorandum of understanding from February 2023, focusing on developing hydrogen production facilities [4] - A Detailed Feasibility Study (DFS) will be conducted in Malaysia to evaluate low-carbon fuel production using SOEC technology with carbon dioxide and water as feedstocks [5][6] - The collaboration includes working with KBR LLC to utilize its proprietary low-carbon fuel synthesis technology [5] Strategic Goals - The project aligns with Malaysia's ambition to achieve net-zero carbon emissions by 2050 and enhance its national hydrogen value chain [6] - FuelCell Energy's CEO emphasized the significance of this collaboration in establishing a strong presence in the hydrogen and low-carbon fuels market [7] - MMHE's CEO highlighted the readiness to undertake larger-scale projects, leveraging both companies' strengths to deliver scalable solutions [8]