FuelCell Energy Stock Surges 31% Amid Global Restructuring, 67% Revenue Growth

FuelCell Energy reported a strong Q2 fiscal 2025 performance with revenue increasing 67% year-over-year to $37.4 million, driven by new product and service contracts. Despite this growth, the company posted a gross loss of $9.4 million and a net loss of $1.79 per share, an improvement from the prior year but wider than analyst estimates. In response to a challenging market environment, FuelCell Energy announced a global restructuring plan to reduce operating expenses by 30%, including a 22% workforce reduction, focusing on scaling its core carbonate technology platform, particularly targeting applications in AI data centers and distributed power solutions. The company is pausing R&D for its solid oxide technology to concentrate resources on carbonate-based distributed generation and aims to maintain a strong balance sheet with $240 million in cash and investments and a 19% increase in backlog to $1.26 billion. Leadership enhancements, including the appointment of Mike Hill as Chief Commercial Officer, support the company’s strategic refocus. While analysts maintain a moderate sell rating, the stock has surged over 30%, reflecting investor optimism about FuelCell Energy’s repositioning and growth prospects in the clean energy sector.