FuelCell Energy (FCEL) surges 26.86% on Q3 earnings boost, $1.24B South Korea project expansion

FuelCell Energy (FCEL) shares surged 0.36% in trading on September 19, 2025, marking their fourth consecutive day of gains and a 26.86% rise over the past four days. The stock reached its highest level since September 2025, with an intraday increase of 3.48%, reflecting renewed investor confidence amid strategic and financial developments.

The rally followed the company’s Q3 2025 earnings report, which revealed a 97% year-over-year revenue jump to $46.7 million, driven by strong demand for carbonate fuel cell technology. Despite a widened net loss of $92.5 million, adjusted metrics showed progress, including a narrowed adjusted EBITDA loss of $16.4 million. The results highlighted growing traction in data centers and AI-driven power markets, where FCEL’s modular, reliable baseload solutions align with rising energy needs.

Strategic expansion in South Korea further bolstered optimism, with a $1.24 billion international project backlog including 58 MW for Gyeonggi Green Energy and potential 100 MW through a partnership with Inuverse. The company also secured $39 million in equity financing, strengthening liquidity to $236.9 million as it scales production at its Connecticut factory. Analysts, including UBS, raised FCEL’s price target to $7.25, citing its positioning in high-growth sectors and government incentives like the extended ITC.

However, challenges remain. A 30% reduction in operating expenses and a focus on cost discipline are critical to narrowing losses and achieving profitability. While the stock’s recent gains signal cautious optimism, sustained momentum will depend on FCEL’s ability to execute its strategic priorities, including large-scale project deliveries and cost efficiency improvements in a competitive energy transition landscape.