New York, June 26, 2026, 15:01 (EDT)
- FuelCell Energy, Inc. NASDAQ:FCEL was up 18.3% at $23.24 as of 2:59 p.m. EDT. Shares moved between $18.40 and $25.50 during the day.
- At 3:02 p.m. EDT, the Nasdaq Composite had slipped 0.28%. FCEL stayed well out front of the rest of the tape.
- Fit Energy’s deal begins with 30 MW, while the other 350 MW is still subject to future elections and deposits, according to FuelCell’s SEC filing.
FuelCell Energy, Inc. NASDAQ:FCEL surged 18.3% to $23.24 at 2:59 p.m. EDT Friday, beating the Nasdaq Composite, which was down 0.28% at 3:02 p.m. The question for investors is how much of Fit Energy’s data-center order will become actual funded plant load.
FuelCell has agreed to sell 2.5-MW carbonate fuel-cell blocks to Fit for as much as 380 MW in four phases, according to a June 22 SEC filing. The deal starts with 30 MW, which became effective at signing. Fit can choose to add another 100 MW, then two more 125 MW tranches, with deposits and milestone payments due if it picks those options. Long-term service deals are set for 15 to 20 years.
The change splits the headline into 12 initial blocks and 140 optional ones. If all 152 blocks come through, that’s about 76% of FuelCell’s planned 500-MW yearly rate for the Torrington expansion. The first phase only makes up 6% of that goal.
The split is key for shareholders. The 380-MW number suggests this is a factory-load deal, but the filing puts most of the volume under future Fit notices and deposits.
The warrant package adds more restrictions. FuelCell issued Fit three tranches for as many as 12 million shares, with each at 4 million shares and a $26.44 strike price. Warrants only vest when non-refundable deposits come in for future phases, and any unvested warrants expire after 24 months.
FuelCell’s warrants are still out of the money at Friday’s $23.24 close. If holders exercise all 12 million, the company stands to get roughly $317.3 million in cash. That would mean new shares equal to about 17.7% of the 67.61 million shares Google Finance reports as outstanding. The filing blocks going over a 19.99% beneficial ownership cap.
FuelCell can only force holders to exercise if the VWAP stays above 150% of the $26.44 strike for 30 sessions. That bar is set at $39.66, or 71% more than the 2:59 p.m. price. The warrants aren’t bringing in cash or boosting shares so far.
FuelCell Chief Executive Jason Few said the deal backs up the move to “scale our operations to 500 MW.” Fit Energy CEO Joel Leonoff pointed to “behind-the-meter power solutions to data centers at gigawatt scale.”
FuelCell’s latest quarter shows the rally is facing a balance-sheet hurdle. For its fiscal second quarter, the company posted a backlog of $1.14 billion, off 9.9%. Revenue came in at $35.6 million, down 5%. Operating loss widened to $77.9 million. Sales pipeline reached 4 GW, but FuelCell said these were talks, not firm deals.
Cash and stock are still at the heart of the deal. FuelCell had $440.9 million in total cash, cash equivalents and restricted cash as of April 30, with $373.2 million of it unrestricted. The company sold 10.9 million shares during the quarter at an average price of $9.45, and another 4.1 million shares after quarter-end at $13.31. Both sales priced below Friday’s close.
Analyst views stayed mixed. Google Finance listed seven Hold calls. Jefferies’ Julien Dumoulin Smith upgraded to Buy, setting a $24 target on Friday. UBS’ Manav Gupta kept Hold at $22. Canaccord’s George Gianarikas had Buy with $30; Wells Fargo’s Praneeth Satish was still at Sell, $8.
Fit is heading into its next test: the phase-one election, which includes a 16% non-refundable deposit for the 100-MW phase and deciding if the first 4 million-share warrant tranche vests.
