FuelCell Energy reported fourth‑quarter 2025 revenue of $55.0 million, up 11.6% year‑over‑year from $49.3 million and exceeding analyst estimates of $47.2 million by $7.8 million. The growth was driven by strong demand for data‑center and AI‑infrastructure contracts, notably the Gyeonggi Green Energy and CGN‑Yulchon Generation agreements, which added new long‑term service revenue streams.
The company’s adjusted EBITDA loss narrowed to $17.7 million from $25.3 million a year earlier, reflecting improved cost discipline and a higher mix of higher‑margin service agreements. The improvement signals progress toward the company’s goal of positive adjusted EBITDA at 100 MW production.
Non‑GAAP earnings per share were $0.83, beating the consensus estimate of $-0.97 by $1.80. The beat is largely attributable to a $1.2 million reduction in R&D spend, lower operating expenses, and a favorable mix shift toward higher‑margin product and service revenue.
Unrestricted cash rose to $278.1 million, up from $318.0 million at the end of fiscal 2024, providing a solid liquidity cushion. Backlog increased to $1.19 billion, a 2.6% rise from $1.16 billion, driven by new long‑term service agreements and the expansion of the Gyeonggi contract.
Management reiterated its 2025 revenue guidance of $158.2 million, unchanged from the prior forecast, and emphasized continued focus on scaling data‑center deployments. CEO Jason Few highlighted that reaching 100 MW production is a key milestone for turning adjusted EBITDA positive and that the company remains committed to cost discipline while pursuing high‑growth opportunities.
Analysts noted the revenue and EPS beats as evidence of stronger execution, and the company’s focus on data‑center markets aligns with the broader AI and decarbonization trends. Investors view the improved cash position and backlog as positive signs, though the company’s ongoing unprofitability and negative gross margin remain concerns.
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