FuelCell Energy Inc ( FCEL ) shares are trading lower after the company reported its fourth quarter 2024 results.

The company’s total revenues grew 120% year-over-year to $49.326 million, beating the consensus of $39.716 million.

Product revenues rose to $25.4 million for the three months ending October 31, 2024, from $10.5 million a year earlier. The increase was driven by $18.0 million from the GGE Agreement for fuel cell module replacements in Korea and $7.7 million from a sales contract with Ameresco for a 2.8 MW platform for the Sacramento Sewer District.

Service agreements revenue rose to $5.6 million from $(0.8) million, driven by two module exchanges during the quarter. Generation revenue increased 40.3% to $12.0 million due to the Toyota and Derby projects.

Advanced Technologies revenue grew to $6.4 million, supported by ExxonMobil‘s Rotterdam project and government contracts, offset by $0.8 million lower revenue from the EMTEC Joint Development Agreement.

The company reported a loss per share of $2.21, missing the consensus loss of $1.75. The company reported a gross loss of $10.9 million, down from the previous year’s $1.5 million loss.

Operating expenses for the quarter decreased to $30.1 million from $34.9 million the previous year. Adjusted EBITDA loss improved to $25.3 million in the quarter from the $30.8 million loss a year ago.

In November, FCEL announced a global restructuring in the U.S., Canada, and Germany to reduce operating costs by 15% in fiscal 2025, including a 13% workforce reduction. Delays in solid oxide and carbon capture product timelines mean it will not meet revenue targets provided in fiscal 2022.

However, FuelCell expects a material revenue improvement in fiscal 2025, driven by contracted deliveries, including replacement modules for GGE.

As of October 31, 2024, FuelCell had $318.0 million in cash, restricted cash, and short-term investments, down from $403.3 million in 2023. This included $148.1 million in unrestricted cash, $109.1 million in investments, and $60.8 million in restricted cash.

During the quarter, the company sold 1.9 million shares under its Amended Open Market Sale Agreement at $11.23 per share, generating $21.5 million in gross proceeds and $20.8 million net after $0.6 million in fees.

As of October 31, 2024, FCEL’s backlog rose 13.1% to $1.16 billion year-over-year, driven by the GGE Agreement. The backlog includes product, service, and generation agreements, with a weighted average term of 16 years.

Price Action: FCEL shares are trading lower by 3.05% at $9.52 at the last check Thursday.