By Adriano Marchese

FuelCell Energy reported a sequential jump in its sales pipeline despite posting a wider loss in the second quarter due to project impairments.

The fuel-cell power systems company said its sales pipeline totaled 4 gigawatts, up by quadruple from the previous quarter, driven by surging demand from growing energy demands of artificial intelligence-driven compute environments.

In response to the growing demand, FuelCell said it has begun expanding its Torrington, Conn., plant to boost capacity to 500 megawatts from 350 megawatts. The expansion is expected to cost between $200 million and $275 million.

Shares were about 1.2% higher in premarket trading at $17.54.

The growing sales pipeline helped offset a wider loss in the latest quarter, which was affected by project impairment charges and lower revenues.

For the three months ended April 30, FuelCell on Monday reported total revenues that fell 5% to $35.6 million, missing forecasts of a rise to $40.5 million. FuelCell cited a decline in service revenue due to the lack of modules exchanges in the quarter and lower generation revenue from reduced operating output.

Net loss came to $77.6 million, compared with a loss of $37.7 million, in the same quarter a year ago. On a per-share basis, loss narrowed to $1.45 a share compared with a loss of $1.79 a share a year ago.

According to FactSet, analysts were expecting a loss of 52 cents a share.

FuelCell said that the widened loss was mainly due to a write-down tied to repairs at the company's Groton project, where the company decided to replace older equipment with three of its newer 2.5-megawatt fuel-cell units.

The company's backlog fell about 9.9% to $1.14 billion at the end of the quarter.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

June 08, 2026 08:42 ET (12:42 GMT)

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