FuelCell Stock Surges 35% as Data Center Strategy Ignites Growth

• FuelCell Energy Inc. (NASDAQ: FCEL) shares jumped as much as 35% to an intraday high of $10.90 on Thursday, driven by fourth‑quarter results and the company’s strategic shift toward powering AI data centers with its carbonate fuel cell technology.
• The company reported 4Q/25 revenue of $55 million, a 12% year-over-year increase that exceeded estimates of $47.2 million, with an adjusted loss of 83 cents per share improving significantly from $1.85 a year ago and beating expectations by 21 cents.
• FuelCell highlighted advantages of its fuel cells for data centers, including staged deployment, higher efficiency than engines and turbines, low emissions for easier permitting, 30% U.S. investment tax credits, and production capacity potential up to 350 MW, with 100 MW sufficient for positive EBITDA.

FuelCell Energy Inc. (NASDAQ: FCEL) saw a sharp rally in Thursday’s trading, with shares climbing as much as 35% to an intraday high of $10.90. The surge followed the company’s fourth‑quarter fiscal 2025 results and its strategic focus on supplying power to AI‑driven data centers..

The company reported revenue of $55 million for the quarter, marking a 12% increase year-over-year and exceeding analyst expectations of $47.2 million. Product revenue reached $30 million, entirely attributed to the delivery of 10 fuel cell modules under a contract with Gyeonggi Green Energy for a project in Hwaseong, South Korea. This was supported by $25 million in repeat financing secured on December 1 from the U.S. Export-Import Bank. Service revenue contributed $7.3 million, also tied to the same project.

On the profitability front, FuelCell Energy posted an adjusted loss of 83 cents per share, representing a substantial improvement from a $1.85 loss in the prior-year quarter and outperforming estimates by 21 cents.

FuelCell Energy is positioning its carbonate fuel cell technology as a solution for the escalating electricity needs of data centers, where AI workloads are straining traditional grid infrastructure. Carbonate fuel cells operate at high temperatures, enabling internal reforming of fuels and integration of absorption chilling to manage thermal loads in high-compute environments. The company highlights advantages such as staged deployment to match expanding demand, enhanced efficiency compared to conventional engines and turbines, low emissions that ease permitting in stringent air districts, and eligibility for 30% U.S. investment tax credits.

Production capacity stands at an annualized rate of 41 megawatts as of October 31, with existing facilities capable of supporting 100 megawatts, a level the company states could achieve positive EBITDA. Further expansion potential in its Torrington, Connecticut, site could reach 350 megawatts.

President Jason Few emphasized ongoing discussions with data center operators and finance providers, underscoring the readiness of carbonate fuel cells to deliver reliable, cost-competitive power for energy-intensive applications amid rapid growth in AI-related electricity demand.

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