Overview

• US fuel cell system maker's Q2 revenue fell 5% yr/yr on lower service and generation sales

• Adjusted EPS loss narrowed to $0.53 from $1.53 a year earlier

• Net loss widened due to impairment expenses related to Groton Project equipment upgrades

Outlook

• FuelCell Energy is expanding Torrington facility to support annualized production rate up to 500 MW

• Company sees increased demand from data center and grid-constrained markets for on-site power solutions

• Sales pipeline in Q2 2026 totals 4 GW, a 267% increase from Q1 2026

Result Drivers

• SERVICE AND GENERATION REVENUE - Revenue declined due to lower service revenue from lack of module exchanges and lower generation revenue, mainly because the Groton Project was under repair

• IMPAIRMENT EXPENSES - Net loss increased primarily due to impairment expenses from upgrading Groton Project equipment

• PRODUCT DELIVERIES - Higher product revenue was recognized from module deliveries to customers in Korea

Company press release: ID:nGNXbc4824

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue		$35.59 mln
Q2 Adjusted EPS		-$0.53
Q2 EPS		-$1.45
Q2 Net Income		-$77.63 mln
Q2 Adjusted EBITDA		-$17.06 mln
Q2 EBIT		-$77.91 mln
Q2 EBITDA		-$67.07 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the renewable energy equipment & services peer group is "buy."

• Wall Street's median 12-month price target for Fuelcell Energy Inc is $7.63, about 56% below its June 5 closing price of $17.33

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