Impressive Pipeline Growth with Focus Shifting to Backlog Conversion

Research evidence excerpt

Impressive Pipeline Growth with Focus Shifting to Backlog Conversion

Sustainability

FuelCell Energy

TD SECURITIES (USA) LLC EARNINGS UPDATE

June 8, 2026

Price: $15.50 (06/8/2026) Impressive Pipeline Growth with Focus

Price Target: $16.00 (Prior $9.00) Shifting to Backlog Conversion

HOLD (2)

ESG SCORE: 66/100

Jeff Osborne THE TD COWEN INSIGHT

646 562 1391

A 4 GW pipeline, up 267% QoQ, signals that hyperscalers increasingly view fuel cells as a

jeff.osborne@tdsecurities.com

near-term answer to grid constraints, with management raising the planned Torrington

Jeffrey Rossetti capacity expansion to 500 MW. The open question is converting submitted proposals into

646 562 1335 signed backlog before the fiscal year-end. Raising price target to $16 based on ~2.5x FY27 EV/

jeffrey.rossetti@tdsecurities.com

revenue.

John-Anthony Di Tullio

646 562 1432 Positives: 1) Pipeline reached 4 GW, up 267% QoQ, with data centers at roughly 89% and

ja.ditullio@tdsecurities.com average proposal size doubling to 130 MW. 2) 100 MW profitability gate held despite the higher

Key Data 500 MW ceiling. 3) Roughly $441mn in total cash with no near-term debt maturities. 4) First

Symbol NASDAQ: FCEL two ExxonMobil Rotterdam carbon capture modules shipped, the program's first physical

Beta: 2.42 deployment proof point. 5) Standardized 12.5 MW block reduces repeat engineering and

52-Week Range: $26.38-$3.92 permitting friction for multi-megawatt data center deployments.

Market Cap: $821.2MM Negatives: 1) No pipeline converted to contracted backlog; total backlog fell 9.9% YoY to

Net Debt (MM): $(178.4) $1.14bn. 2) The $200mn to $275mn Torrington commitment is being made ahead of any

Cash/Share: $(2.61) signed data center contract. 3) $42.6mn Groton impairment took the only operating Navy

Dil.