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Quarterly Results: Fuelcell Energy Revenues Halved in Q1 24 - Loss Increases - CEO Few Sees Bottom Reached

Danbury, USA - Fuel cell manufacturer Fuelcell Energy has presented its figures for the first quarter of 2024 (01.11.23-31.01.2024).

Overall, the US company's sales in Q1 24 fell significantly by 55 percent to 16.7 million US dollars (USD) compared to the same quarter of the previous year (Q1 23: USD 37.1 million). This means that Fuelcell Energy also fell well short of analysts' expectations, who on average had expected sales of USD 26 million in Q1 24.

After reporting a gross profit in the same quarter of the previous year, the company has now posted a gross loss of USD 11.7 million (Q1 23: USD 5.2 million). On balance, the net result of USD -44.4 million is significantly weaker than in the same quarter of the previous year (Q1 23: USD -21.1 million). This results in a loss per diluted share of USD -0.05 million in Q1 24, as in the same quarter of the previous year.

"In the first quarter of fiscal year 2024, we reported lower revenues compared to the comparable prior-year quarter, although results were in line with our expectations," said Fuelcell President and CEO Jason Few. It is important to note that Fuelcell recognized a one-time revenue benefit in the prior year quarter related to an extended warranty obligation and higher service revenue from required module replacements, Few added.

The CEO also emphasized that the company expects the first quarter results to represent the bottom of the financial year, as the number of generation plants in operation increased in Q1 24 and product sales are expected for the rest of the financial year. For example, the two projects in Derby, Connecticut, were commissioned at the end of the first quarter of the 2024 financial year, increasing the generation portfolio from 43.7 MW at the end of the 2023 financial year to a total of 62.8 MW, the CEO added.

The Fuelcell share is trading lower this afternoon, continuing the previous trend. Since the turn of the year, the share price has fallen by around 26 percent.

Source: IWR Online, 07 Mar 2024