Sep 2, 2026 earnings call — Data center FuelCell Blocks win commercial orders
Total committed and awarded capacity backlog was $3.6 billion, and the company closed a 75-megawatt capacity reservation agreement.
Revenue $0.0B (est $0.0B) · EPS $-0.64 (est $-0.41)
Key quotes
"During the quarter, we signed a capital equipment purchase agreement with Fit Energy to supply power solutions for data center applications."
"Our immediate operational milestone is to increase our annualized production rate at Torrington to its current full capacity of 100 megawatts, with achievement of this milestone expected in October 2026."
"Committed backlog, which represents definitive non-cancellable agreements executed by the company and its customers, was $1.3 billion, up approximately 4.1% year-over-year."
Analyst Q&A 6
75 MW deal timing and production costs
Q (Ivana Ergovic · Jefferies): They asked when the 75-megawatt capacity reservation will be delivered and whether there are expansion opportunities. They also asked how to think about Fit Energy revenue recognition and the higher cost of revenue this quarter and timing for 100 megawatts production.
A: They closed a 75-megawatt capacity reservation after the quarter but have not disclosed delivery timing; they expect follow-on opportunities with the same customer and will align timeline when the definitive agreement is done. For Fit Energy Phase 0, revenue recognition is expected to begin in the fourth quarter of the fiscal year with the balance in fiscal 2027; current cost pressure reflects legacy cost structure at 37 megawatts and should normalize as production scales to 100 megawatts. Management also said they plan to scale production to 100 megawatts by the end of the fourth quarter of this year and to add manufacturing capacity up to 500 megawatts by June of 2028.
"After the quarter or subsequent to the end of the quarter, we closed the 75-megawatt capacity reservation agreement for a major data center operator." — Jason Few (CEO)
Exxon project: how modules will work
Q (Manav Gupta · UBS): He asked whether the two modules delivered to Exxon will operate differently because they focus on carbon capture, and whether the partnership could expand. He wanted to understand the scope and operation differences.
A: The two modules have been delivered to Exxon Rotterdam and are being installed with a primary focus on capturing carbon directly from the refinery point source. Management said the demo will show 90% plus CO2 capture while simultaneously producing power, thermal energy, and hydrogen, and will also show capture from low CO2 concentration streams, which could open broader industrial opportunities; they noted the product is carbon-capture ready and the Rotterdam focus is carbon capture.
"The primary focus of the application for those 2 modules is capturing carbon directly from the point source of emissions at the Exxon Rotterdam refinery or the Esso refinery, given that's the brand name they still use in Europe." — Jason Few (CEO)
From 100 MW run rate to profitability
Q (Jason Tilchen · Canaccord Genuity): He asked how achieving a 100-megawatt run rate next month bridges to adjusted EBITDA positive in Q4 fiscal 2027 and what key factors will drive that. He also asked about the cost-reduction outlook and what happens if a customer like Fit Energy delays.
A: They are hiring and ramping the supply chain to reach a 100-megawatt annualized run rate in fourth quarter of fiscal '26 and are targeting adjusted EBITDA positive in fourth quarter of fiscal 2027. Key drivers are converting awarded capacity into committed backlog (they are executing on a 30-megawatt committed backlog from Fit Energy Phase 0 and have a new 75-megawatt reservation), lining up customer schedules, and continuing cost reductions so scaling absorbs overhead and yields supply-chain leverage; they said they have a defined cost reduction curve and a 10-gigawatt pipeline so they are not dependent on one or two customers. They also said hiring progress is underway, an additional factory shift has been added, and production rate will increase this quarter.
"Between now and then, the key factors that will drive that is: One, continuing to convert our awarded capacity into committed backlog." — Michael Bishop (CFO)
Volume needed for positive EBITDA; Fit phases timing
Q (Ryan Pfingst · B. Riley): He asked what annualized production volume supports the target of positive EBITDA in fiscal 4Q '27. He also asked whether Fit Energy Phase 1 moves only after Phase 0 is operating or can proceed earlier.
A: They expect at least 100 megawatts of volume to support positive adjusted EBITDA, possibly more, and Torrington can get above 100 megawatts; they are targeting 500 megawatts of capacity by June 2028 and noted tape casting installation next fiscal year as a capacity unlock. On Fit Energy timing, the phases are not required to be sequential; progression is gated by Fit Energy closing agreements with their customers and can happen at any time.
"So we would expect at least 100 megawatts of volume to support that, if not more." — Michael Bishop (CFO)
CapEx timing and managing ramp
Q (Noel Parks · Tuohy Brothers): He asked why fiscal year CapEx guidance was lowered and whether the delayed equipment deliveries are mainly for the Torrington expansion. He also asked how they will manage ramp and align with customer delivery schedules.
A: They lowered fiscal '26 CapEx guidance from $20 million–$30 million to $10 million–$20 million due to timing of equipment deliveries, not execution; they remain on track for 500-megawatt expansion by June 2028 and have committed $200 million to $275 million of capital, with purchase commitments up quarter-over-quarter. For customer alignment, they said production visibility and expansion plans are shared with business development so commitments match delivery schedules; first power can be as small as 20 megawatts and customers add more capacity as they build out, so they align deliveries to customer buildout schedules.
"We are now saying that that's $10 million to $20 million, just given timing, but it is, by no means, a reflection of execution, it is really a timing of receiving certain equipment based on our prior schedules." — Michael Bishop (CFO)
Backlog detail and conversion timelines
Q (Christopher Ellinghaus · Siebert Williams Shank): He asked whether the company will add more granular backlog categories as pipeline converts, and whether there are timelines or waypoints to watch for conversion from pipeline to agreements.
A: They added a new category called Awarded Capacity Backlog which, as of July 31, 2026, contains the three Fit Energy phases that are not currently committed; they expect the 75-megawatt capacity reservation to be included in awarded capacity backlog in future disclosures. Management said awarded capacity agreements reserve manufacturing capacity and include a date certain to reach a definitive agreement, and investors should watch the speed at which awarded capacity converts into committed, definitive backlog.
"We've added an additional category called Awarded Capacity Backlog, and what is in there as of July 31, 2026, the end of last quarter, is really the 3 phases of the Fit Energy contract that aren't currently committed." — Michael Bishop (CFO)