TLDR
- FCEL posted a Q2 net loss of $77.6 million, more than double the $37.7 million loss from a year ago
- Revenue slipped 5% to $35.6 million, driven by lower service and generation output
- A $42.6 million impairment charge tied to equipment upgrades at the Groton Project drove the bulk of the loss
- The company is expanding its Torrington, CT manufacturing plant to 500 MW capacity at a cost of up to $275 million
- Its sales pipeline jumped 267% quarter-over-quarter to 4 gigawatts, mostly from data center customers
FuelCell Energy (FCEL) stock dropped 19% after the company reported a wider-than-expected Q2 loss and falling revenue.
The net loss for the quarter ended April 30, 2026 came in at $77.6 million, up from $37.7 million in the same period last year. Revenue fell 5% year-over-year to $35.6 million, missing analyst expectations.
The loss per share was $1.45, down from $1.79 in the prior year quarter. The improvement in per-share figures came from a higher share count, not better performance.
$FCEL reported Q2 revenue of $35.6M, down 5% YoY, with backlog falling 9.9% to $1.14B. Sales pipeline expanded to 4 GW, up 267% from Q1. FuelCell also plans to expand its Torrington facility to support up to 500 MW of annualized production, at an estimated cost of $200M-$275M…
— Wall St Engine (@wallstengine) June 8, 2026
A large chunk of the loss — $42.6 million — came from an impairment charge. That was tied to the company’s decision to upgrade equipment at its 7.4 MW Groton Project in Connecticut, a fuel cell installation on a U.S. Navy submarine base.
The Groton Project was also offline for repairs during the quarter, which hit generation revenue. Module exchange activity was limited, dragging service revenue lower too.
Adjusted EBITDA came in at -$17.1 million, an improvement from -$19.3 million a year ago. The company said that reflected lower cash operating costs.
Manufacturing Expansion
Despite the headline losses, FCEL is pushing ahead with a major capacity build-out. The company raised its target for its Torrington, CT manufacturing facility from 350 MW to 500 MW of annualized production.
The expanded plan carries a price tag of $200 million to $275 million and is expected to take 24 months to complete. Work has already begun, including installation of a new high-volume tape caster and the commissioning of a new conditioning room as of May 31, 2026.
The company also launched a standardized 12.5 MW power block product aimed at data center operators dealing with grid constraints. It says the off-the-shelf design is intended to cut time-to-power for AI and data center developers.
Pipeline and Liquidity
The sales pipeline surged 267% from Q1 to 4 gigawatts in Q2. FCEL said the jump was largely driven by data center customers. That pipeline figure represents commercial discussions, not signed contracts.
Backlog, which does represent signed agreements, fell roughly 10% to $1.14 billion from $1.26 billion a year earlier.
Cash and equivalents stood at $440.9 million as of April 30, up from $341.8 million at the end of October 2025. The company raised $100.4 million during the quarter by selling around 10.9 million shares at an average of $9.45 per share.
After the quarter ended, FCEL sold another 4.1 million shares at an average of $13.31 per share, generating an additional $52.9 million in net proceeds.
Jefferies maintained a Hold rating on the stock but cut its price target from $9.00 to $7.20 following the revenue miss. The firm had projected $35 million in revenue; the company came in at $35.6 million for Q2 but had previously reported $30.5 million in a separate period that missed the $42 million consensus.
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