FuelCell Energy(FCEL) Stock: Surges 21% on Korea Contracts and Data Center Energy Demand

TLDR

• FuelCell Energy surges 21% on Korean deals, data center power demand rise.
• Revenue nearly doubles as FuelCell leans on Korea contracts, AI-driven power.
• FuelCell Q3 revenue soars 97% with Korean LTSA boost and data center focus.
• Korean contracts, AI data center demand fuel strong growth for FuelCell Q3.
• FuelCell cuts costs, secures $1.24B backlog as AI and Korea drive momentum.

FuelCell Energy Inc. (NASDAQ: FCEL)  shares rise by over 21% to $5.24 following its Q3 2025 earnings report.

FuelCell Energy Inc. (FCEL) 

The company nearly doubled revenue year over year and emphasized new Korean partnerships and data center energy opportunities. The restructuring efforts and strategic realignment appear to be having an early financial impact.

Korea Service Contracts Drive Revenue Growth

FuelCell Energy reported revenue of $46.7 million for Q3 2025, marking a 97% increase from $23.7 million in Q3 2024. The surge stemmed mainly from the Gyeonggi Green Energy (GGE) contract in Korea, which contributed $24 million. Additional gains came from a $2 million contract with Ameresco and rising service revenue from GGE.

Service revenue rose to $3.1 million from $1.4 million as the Korea LTSA rollout accelerated. The generation segment, however, saw a slight decline, with revenue slipping to $12.4 million due to routine maintenance. Advanced technologies revenue dropped to $5.3 million, driven by shifts in contributions from ExxonMobil-linked agreements.

FuelCell completed delivery of 12 modules to GGE by Q3 and plans to deliver 24 more by fiscal year-end 2026. Furthermore, a long-term service agreement with CGN added another $31.7 million to the backlog. These multi-year contracts have elevated the company’s backlog to $1.24 billion, up 4% from the prior year.

AI-Driven Power Demand Opens New Markets

Increased energy demand from high-performance computing centers is reshaping FuelCell’s growth outlook. The company highlighted its modular carbonate fuel cell systems as key to powering data centers with high energy reliability. These systems, which now reach over 50% efficiency, offer scalability critical to AI workloads and cloud infrastructure.

CEO Jason Few emphasized the growing sales pipeline targeting this sector as a new frontier for distributed generation. By focusing on energy-dense server rack demands, the company seeks to position itself for long-term gains. Market trends support this, as data center growth aligns with rising grid stress and the need for flexible on-site power.

FuelCell’s 20-year Hartford Project, a 7.4 MW installation in Connecticut, will supply utilities Eversource and United Illuminating. This initiative, added to generation backlog, is valued at $167.4 million and will begin contributing in upcoming quarters. As the company deepens focus on its carbonate platform, it signals an intent to scale with industry demands.

Restructuring Reduces Costs, Aims for Profitability

Despite a net loss of $91.9 million, FuelCell saw progress in adjusted metrics driven by strategic restructuring. Adjusted EBITDA improved to $(16.4) million from $(20.1) million, and adjusted net loss per share narrowed to $(0.95) from $(1.74). These improvements reflect cost-cutting, portfolio streamlining, and shifting away from low-margin R&D initiatives.

The company recorded $64.5 million in non-cash impairment charges, including asset write-downs across equipment, inventory, and intangible assets. These charges significantly widened the GAAP loss but are excluded from adjusted performance metrics. Additionally, operating expenses increased to $90.2 million, driven by restructuring and impairments.

Cash reserves declined to $236.9 million from $318 million, despite raising $38.1 million from stock sales during the quarter. Following quarter-end, FuelCell secured another $11.8 million in equity sales. Management continues to balance liquidity needs while investing in scalable, revenue-generating infrastructure aligned with market momentum.

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