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Oct 31, 2022

FuelCell Energy Q4 2022 Earnings Report

FuelCell Energy's Q4 2022 results were marked by a significant increase in revenue, driven by product sales, but also by increased operating expenses and a larger gross loss.

Key Takeaways

FuelCell Energy reported a substantial increase in fourth-quarter revenue, primarily due to product sales to Korea Fuel Cell. However, the company experienced a larger gross loss and increased operating expenses, leading to a higher net loss compared to the previous year. The company is investing in growth initiatives and platform commercialization.

Revenues increased by 181% to $39.2 million, driven by product revenues from module sales to Korea Fuel Cell.

Gross loss increased to $(15.2) million due to higher manufacturing variances and non-capitalizable costs related to the Toyota project.

Operating expenses rose to $27.5 million due to increased administrative, selling, and research and development costs.

Net loss was $(42.0) million, impacted by the increased gross loss and operating expenses.

Total Revenue
$39.2M
Previous year: $13.9M
+181.3%
EPS
-$3.3
Previous year: -$2.1
+57.1%
Gross Profit
-$15.2M
Previous year: -$8.37M
+81.6%
Cash and Equivalents
$458M
Previous year: $432M
+6.0%
Total Assets
$940M
Previous year: $875M
+7.4%

FuelCell Energy

FuelCell Energy

FuelCell Energy Revenue by Segment

Forward Guidance

FuelCell Energy is in a period of transition, investing across its business to support the strong market opportunity. Growth investment was reflected in the fiscal year 2022 results as the company advanced platform commercialization and investment, increased engineering capability, as well as expanded sales and marketing talent and activities. As the company transitions into fiscal year 2023, these investments will grow and accelerate as it deploys capital for plant, equipment and the talent needed to meaningfully increase the total manufacturing capacity across its technology platforms.

Positive Outlook

  • Expansion solid oxide platform manufacturing capabilities in Calgary, Canada.
  • Expansion Connecticut manufacturing activities.
  • Evaluating additional U.S. locations in anticipation of increased production volume.
  • Trinity College in Hartford, CT, placed a firm order for FuelCell Energy’s first 250kW solid oxide platform.
  • Equipment commitments to launch the carbon capture platform manufacturing required for the assembly of the jointly developed technology with ExxonMobil Research and Engineering Company.

Revenue & Expenses

Visualization of income flow from segment revenue to net income