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Apr 30, 2022
FuelCell Energy Q2 2022 Earnings Report
FuelCell Energy's revenue increased driven by higher Service and Generation revenues, but gross loss increased due to higher manufacturing variances and Toyota project costs.
Key Takeaways
FuelCell Energy reported a 17% increase in revenue for the second quarter of fiscal year 2022, driven by higher Service and Generation revenues. However, the company experienced a higher gross loss due to manufacturing variances and costs associated with the Toyota project. The company continues to invest in research and development, particularly in its solid oxide platform.
Revenues increased 17% to $16.4 million compared to $14.0 million year over year.
Gross loss increased to $(7.3) million compared to $(4.8) million year over year.
Operating loss increased to $(28.2) million compared to $(17.4) million year over year.
Backlog increased slightly to $1.33 billion compared to $1.32 billion year over year.
FuelCell Energy
FuelCell Energy
FuelCell Energy Revenue by Segment
Revenue by Segment
Generation Revenue
CapyFin.comAdvanced Tech Revenue
CapyFin.com Forward Guidance
FuelCell Energy is focused on commercializing technologies and expanding manufacturing capacity, targeting over $300 million revenue by fiscal year 2025 and over $1 billion by fiscal year 2030.
Positive Outlook
- Expected placement of 7.4 MW Groton Sub Base project in service this summer, bolstering generation portfolio revenue.
- Extension of Joint Development Agreement with ExxonMobil, advancing carbon capture technology.
- Continued investment in internal research and development activities, focused on commercialization of advanced technologies.
- Targeting delivery of all 20 modules to Korea Fuel Cell by the end of fiscal year 2022.
- Advancing solid oxide platform research, including delivery of a high-efficiency electrolysis platform to Idaho National Laboratories.
Challenges Ahead
- Commercial operations of the Toyota -- Port of Long Beach project anticipated to be delayed beyond June 30, 2022.
- Extension to Hydrogen Power Purchase Agreement will be required from Toyota who may or may not grant such extension in its sole discretion.
- Second platform requires additional component work, and once complete, we will resume the final stages of commissioning.
- Higher manufacturing variances, $4.8 million of non-recoverable costs related to construction of the Toyota project, and lower Advanced Technologies margin.
- Anticipate that commercial operations will be delayed beyond June 30, 2022, and an extension to our Hydrogen Power Purchase Agreement will be required from Toyota who may or may not grant such extension in its sole discretion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income