FuelCell Energy (FCEL) Stock Forecast & Price Target

FuelCell Energy Inc. reported a significant increase in cash and short-term investments, reaching approximately $341.8 million as of the end of F4Q25, which represents a 44.3% growth compared to the previous quarter. Revenue from advanced technology contracts and service agreements also showed positive momentum, with a 5.8% sequential increase in advanced technology contract revenues to about $5.5 million, while service revenue surged by 135.5% sequentially to $7.3 million, indicating robust demand for its offerings. Furthermore, product revenue grew by 15.4% to approximately $30 million, highlighting the company's competitive position and the favorable impact of the Investment Tax Credit (ITC) on capturing projects in cost-sensitive commercial and industrial markets.

FuelCell Energy Inc reported a gross loss of approximately $6.6 million in F4Q25, worsening from a loss of $5.1 million in the previous quarter, indicating declining financial performance despite a year-over-year improvement. Advanced technology contract revenues significantly decreased by approximately 38.4% to about $5.2 million, which raises concerns regarding the company's ability to generate consistent revenue streams from its key contracts. Additionally, the company recorded a slight decline in generation revenue and experienced ongoing EBITDA losses, suggesting that profitability pressures persist amid efforts to implement cost-reduction measures.