en.Wedoany.com Reported - FuelCell Energy (FCEL) has partnered with Siemens to develop scalable fuel cell power solutions. On the day of the announcement, the company's stock surged over 11%. Under the collaboration agreement, Siemens will design and supply the electrical systems required for large-scale fuel cell installations, a move expected to help FuelCell Energy advance commercial projects of 100 megawatts or more. The two companies also plan to collaborate in engineering, integration, and delivery, combining fuel cells with battery storage and microgrid controls.
For FuelCell Energy, this deal comes at a critical time. Management previously stated that once annual production reaches or exceeds 100 megawatts, the company's EBITDA, which was negative $17.1 million in the last quarter, would turn positive. Pushing project scale into this range through partnerships not only boosts revenue but also brings the company closer to actual profitability. The collaboration also builds on recent business momentum. A few weeks ago, FuelCell Energy signed an agreement with Fit Energy to supply up to 380 megawatts of clean power to artificial intelligence data centers. The company is also expanding its Torrington facility, aiming to increase annual production capacity to 500 megawatts.
FuelCell Energy is a clean energy company founded in 1969, headquartered in Danbury, Connecticut, and led by President and CEO Jason Few, focused on building and operating fuel cell power generation platforms. Its product portfolio includes fuel cell power systems, hydrogen production, carbon capture technology, and long-duration energy storage.
Year-to-date, FuelCell Energy's stock has risen 128%, outperforming the iShares Global Clean Energy ETF (ICLN), which gained 9% over the same period. After announcing a public offering of 10.7 million shares at a discount, the stock retreated from a high of $36 at the end of June.
From a valuation perspective, the current price-to-sales ratio of 9.83 is about 20% higher than the company's five-year average, down from levels nearly double its historical norm. On the earnings front, earnings per share growth is expected to exceed 50% annually from 2026 to 2028, and the recent partnership with Siemens could accelerate this process. The company's balance sheet shows FuelCell Energy holds $373 million in cash, with debt of only $159 million, resulting in a net cash surplus of $214 million.
In its fiscal second quarter 2026 earnings report, FuelCell Energy posted quarterly revenue of $35.6 million on June 8, down 5% year-over-year and below Wall Street's expectation of $40.5 million. CFO Michael Bishop attributed the quarterly revenue decline to mix and operational issues, with service revenue lower due to the absence of module replacement projects and power generation revenue reduced by repairs at the Groton project. Earnings per share were -$1.45, below analyst estimates of -$0.44. Operating losses totaled $77.9 million, up 117% year-over-year, primarily due to a $42.6 million non-cash impairment charge related to the Groton project. Management did not provide formal revenue or EPS guidance but plans to increase the Torrington facility's annual production capacity from 350 megawatts to 500 megawatts. Bishop reiterated that once the company achieves sustained annualized production of 100 megawatts or more, adjusted EBITDA is expected to turn positive.
On June 29, B. Riley upgraded FCEL stock from "Neutral" to "Buy" and raised its price target from $13 to $32, citing increased confidence in the company's ability to win business from large data center operators following the Fit Energy deal. FuelCell Energy is currently covered by nine Wall Street analysts, with a consensus rating of "Moderate Buy" and an average price target of $25.29, implying a potential upside of 14%. Among them, four analysts give a "Strong Buy" rating, three give a "Hold," and two give a "Strong Sell."
