Fusion Fuel's Q2 2025 Earnings Call: Contradictions Emerge on U.S. Expansion, Turnaround Strategy, M&A, Balance Sheet, and Project Timelines

The above is the analysis of the conflicting points in this earnings call

Date of Call: September 17, 2025

Financials Results

• Revenue: €6.9M for H1 2025; 55% recurring fuel distribution and 45% engineering/maintenance

Guidance:

• 2025 revenue expected ~€17.4M (~+70% vs adjusted 2024 €10M).
• Operating expenses to decline further; path to breakeven near term; balance sheet to be substantially improved by year-end.
• BrightHy to reach breakeven within 12–15 months; targeting up to €5M revenue by 2026; €30M investment vehicle to launch next year.
• Al Shola Gas has ~18‑month backlog; add 2 bobtail trucks in 3–4 months (each ~$100–130k monthly revenue).
• South African biomass JV to deliver ~$700k annual returns starting 2026.
• Aim to exceed $75M revenue and achieve double‑digit profitability in 2026 with acquisitions; progressing U.K. fuel distributor acquisition via non‑dilutive debt.

Business Commentary:

* Revenue and Cost Turnaround: - Fusion Fuel reported a 70% increase in revenue and a 54% reduction in operating costs for 2025 H1 compared to 2024. - The turnaround was driven by stabilizing the company through restructuring, raising capital, and focusing on operational execution.

• Al Shola Gas Performance:
• Al Shola Gas secured approximately $6.7 million in new engineering and installation contracts and $1.7 million in recurring annual fuel sales in 2025 H1.

• Growth was attributed to strong demand in Dubai's fast-growing economy and infrastructure development, enabling the company to exceed its year-over-year growth average of 30%.

• BrightHy Solutions and Strategic Partnerships:

• BrightHy Solutions won various tenders for hydrogen projects and secured agent agreements with leading hydrogen equipment providers, contributing to its first-year revenues.

• Success in securing strategic partnerships and winning tenders was due to BrightHy's deep hydrogen expertise and established relationships in the industry.

• M&A Growth Strategy:

• Fusion Fuel is pursuing strategic acquisitions to enhance its energy platform, including negotiations with a UK fuel distribution company and a South African joint venture in the biomass sector.
• These acquisitions aim to complement existing operations, increase scale, and expand the company's customer base and revenue diversification.

Sentiment Analysis:

• Revenue is up 70% and costs are down 54%. We expect to deliver substantial revenue growth in 2025, up 70% from adjusted 2024. Operating costs were a decrease of around 60% YOY. The path towards breakeven is now clear. We fully expect to show a substantially improved balance sheet by year-end. Aim to drive revenue well beyond $75M in 2026 with double-digit profitability.