Executive Summary
FuelCell Energy reported a challengingQQ3 2024 with a revenue line of $23.7 million, up 5.7% quarter-over-quarter but down 7.1% year-over-year. The company posted a negative gross margin of 26.2% and an operating loss of $33.6 million, contributing to a net loss of $32.7 million for the quarter. EBITDA was deeply negative at $23.3 million, underscoring ongoing fixed-cost absorption and underutilization of capacity in a period of limited top-line growth.
From a liquidity perspective, FuelCell maintains a healthy balance sheet with substantial cash and short-term investments totaling $276.9 million and a net cash position of approximately $34.6 million, supported by a total asset base of $948.9 million and a stockholders’ equity of $735.6 million. Despite the negative earnings trajectory, the company’s liquidity runway and a diversified product portfolio (SureSource platforms, hydrogen production, and carbon capture) provide optionality for future revenue upside if deployment and cost-structure improvements materialize.
Near-term execution remains pivotal: absent explicit quarterly forward guidance in the QQ3 2024 filing, management emphasis appears to be on leveraging service contracts, optimizing operating efficiency, and advancing hydrogen and carbon capture opportunities. Investors should monitor progress toward achieving scale with SureSource platforms, improvements in gross margin, and the ability to convert backlog into higher-margin revenue while preserving liquidity.
Key Performance Indicators
QoQ: -1.62% | YoY:-34.52%
Key Insights
Revenue: $23.697M in Q3 2024; YoY change: -7.11%; QoQ change: +5.69%. Gross Profit: -$6.202M; Gross Margin: -26.17%. EBITDA: -$23.328M; EBITDA Margin: -98.45%. Operating Income: -$33.617M; Operating Margin: -141.87%. Net Income: -$32.66M; Net Margin: -137.83%. EPS: -$0.07; Diluted EPS: -$0.0649.
Cash Flow and Capital Allocation: CFO = -$63.361M; Capex = -$16.971M; Free Cash Flow = -$80.332M. Balance Sheet: Cash and cash equivalents = $169.033M; Cash & ST investments = $276.850M; Total Liab...
Financial Highlights
Revenue: $23.697M in Q3 2024; YoY change: -7.11%; QoQ change: +5.69%. Gross Profit: -$6.202M; Gross Margin: -26.17%. EBITDA: -$23.328M; EBITDA Margin: -98.45%. Operating Income: -$33.617M; Operating Margin: -141.87%. Net Income: -$32.66M; Net Margin: -137.83%. EPS: -$0.07; Diluted EPS: -$0.0649.
Cash Flow and Capital Allocation: CFO = -$63.361M; Capex = -$16.971M; Free Cash Flow = -$80.332M. Balance Sheet: Cash and cash equivalents = $169.033M; Cash & ST investments = $276.850M; Total Liabilities = $203.946M; Total Stockholders’ Equity = $735.619M; Net Debt = -$34.589M (net cash). Liquidity Ratios: Current 6.91x; Quick 4.97x; Cash Ratio 2.54x. Activity Metrics: DSO ~157 days; DIO ~389 days; CCC ~546 days, reflecting significant working capital investment tied to project cycles and service/maintenance activity. Revenue mix suggests continued project and service exposure with heavy R&D and G&A intensity contributing to operating losses.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
23.70M |
-7.11% |
5.69% |
| Gross Profit |
-6.20M |
24.50% |
12.33% |
| Operating Income |
-33.62M |
18.79% |
18.72% |
| Net Income |
-32.66M |
-34.52% |
-1.62% |
| EPS |
-0.07 |
-16.09% |
3.71% |
Key Financial Ratios
operatingProfitMargin
-141.9%
operatingCashFlowPerShare
$-2.72
freeCashFlowPerShare
$-3.44
dividendPayoutRatio
-2.45%
Management Commentary
Earnings call transcript not provided in the data set for QQ3 2024; unable to extract management quotes or verbatim insights on strategy or execution.
Forward Guidance
No explicit forward-looking guidance was disclosed in the QQ3 2024 filing. The company faces a protracted path to profitability given persistent losses and a high cash burn, even as liquidity remains robust. Future performance will hinge on (i) deployment of SureSource platforms at scale, (ii) expansion of hydrogen and carbon capture offerings, (iii) efficiency improvements to reduce billable costs and improve gross margins, and (iv) the ability to monetize services and maintenance to stabilize recurring revenue. Investors should monitor progress on backlog conversion, unit cost reductions, potential capex reductions, and any need for external financing to support ongoing liquidity.