Loading...
•
Jan 31, 2023
FuelCell Energy Q1 2023 Earnings Report
FuelCell Energy's first quarter 2023 results were released, showing revenue growth and improved gross profit.
Key Takeaways
FuelCell Energy reported a 17% increase in revenue compared to the prior year quarter, driven by higher service and generation revenue. The company achieved a positive gross margin and ended the quarter with over $400 million in cash and short-term investments.
Revenues increased by 17% year-over-year, reaching $37.1 million.
Gross profit was $5.2 million, a significant improvement from the gross loss of ($2.9) million in the prior year.
The company's cash and short-term investment position remained strong, exceeding $400 million.
Loss from operations improved by 50% to $(22.5) million compared to $(44.8) million.
FuelCell Energy
FuelCell Energy
Forward Guidance
FuelCell Energy expects the U.S. Inflation Reduction Act to drive growth in renewable technologies, and sees broad support for the energy transition through legislation and economic incentives globally, aiming to capitalize on future demand for their technologies and achieve long-term profitable growth.
Positive Outlook
- The U.S. Inflation Reduction Act is expected to be a key driver of growth in renewable technologies.
- There is broad support for the energy transition through legislation and economic incentives globally.
- The European Union recently proposed a program that would offer tax breaks for businesses investing in net-zero technology.
- The Korean Hydrogen Economy Roadmap aims to produce 6.2 million fuel cell electric vehicles and deploy at least 1,200 hydrogen refueling stations by 2040.
- The company is executing on its strategy to Grow, Scale and Innovate, and looks forward to an exciting inflection point in the future as it focuses on commercialization activities.
Challenges Ahead
- The Toyota project's commercial operations date is July 8, 2023, and Toyota has the right to terminate its hydrogen power purchase agreement if commercial operations are not achieved by then.
- The Derby, CT project is dependent on the utility customer's interconnection process, which will drive the continued development of the site.
- The Company incurred $7.1 million of non-recoverable costs related to construction of the Toyota project.
- Backlog decreased by approximately 19% to $1.06 billion as of January 31, 2023, compared to $1.30 billion as of January 31, 2022, primarily as a result of a reduction in generation backlog due to the decision to not move forward with certain generation projects during the fourth quarter of fiscal 2022.
- The COVID-19 pandemic and resulting supply chain disruptions, shifts in clean energy demand, impacts to our customers’ capital budgets and investment plans, impacts to our project schedules, impacts to our ability to service existing projects, and impacts on the demand for our products.