FuelCell Energy Inc. ( FCEL ) posted a sharp revenue jump in its fiscal third quarter, nearly doubling year over year, as stronger product and service sales offset weakness in other divisions and lifted investor sentiment despite ongoing losses and cash burn.

JPMorgan analyst Mark Strouse reiterated an Underweight rating on FuelCell Energy ( FCEL ), which reported fiscal third-quarter results that largely matched Wall Street expectations.

Strouse said product revenue of $26 million slightly beat forecasts, boosted by eight module shipments to GGE, while weaker contributions from Generation and Advanced Technologies were offset by stronger service revenue.

Also Read: Insights into FuelCell Energy’s Upcoming Earnings

On the commercial front, FuelCell signed a non-binding MOU with Inuverse to explore up to 100 MW of capacity beginning in 2027, along with a 10 MW repowering agreement with CGN covering eight modules and a seven-year service contract. Strouse called these deals signs of early traction but said stronger order momentum is needed before a path to profitability is clear.

JPMorgan left near-term forecasts steady while introducing fiscal 2027 projections, cautioning that meaningful EBITDA may not emerge until after that horizon. Strouse argued that FuelCell looks richly valued compared to its clean energy peers and is likely to lag in the next 6-12 months, though the upside could come from major contract wins or faster commercialization of new technologies.

FuelCell’s third-quarter revenue climbed 97% year over year to $46.7 million, just under the $48.3 million consensus. Product sales surged to $26 million on GGE shipments, service revenue rose, while Generation and Advanced Technologies declined. Backlog rose to $1.24 billion, aided by new long-term agreements.

The company reported an adjusted net loss of 95 cents per share, narrower than the $1.44 loss expected. GAAP net loss widened to $3.78 per share, with total net loss of $92.5 million. Gross loss improved to $5.1 million, and adjusted EBITDA loss narrowed to $16.4 million.

Cash and investments fell to $236.9 million, partly offset by $51.1 million in stock sales. Shares reversed initial weakness and climbed more than 12% as investors focused on revenue growth and cost controls.

Price Action: FCEL shares are trading higher by 14.86% to $5.950 at last check Wednesday.

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