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DANBURY, Conn. - FuelCell Energy, Inc. (NASDAQ:FCEL), which has seen impressive revenue growth of 49% over the last twelve months, has signed a seven-year agreement with CGN-Yulchon Generation Co., Ltd. to provide fuel cell modules and maintenance services for a power facility in South Korea, the company announced Wednesday. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 5.62, indicating robust short-term financial health.
Under the agreement, FuelCell Energy will supply eight advanced carbonate fuel cell modules and maintenance services for four fuel cell units at CGN-Yulchon’s Gwangyang facility. Each unit consists of two modules, with the four systems collectively producing 10 megawatts of baseload power alongside the facility’s 1.5GW of conventional gas turbine capacity.
The contract includes comprehensive operations and maintenance services with an option to extend beyond the initial seven-year term. The project aims to enhance performance and extend the operational life of the installed units.
"This agreement reflects our continued momentum in the Korean market and our ability to deliver reliable, high-performance fuel cell solutions that meet the evolving needs of our partners," said Jason Few, President and CEO of FuelCell Energy, in the press release. While the company trades at an attractive Price-to-Book ratio of 0.18, InvestingPro analysis indicates the stock has experienced significant volatility, with over 16 additional key insights available to subscribers.
FuelCell Energy has maintained a service team in South Korea since 2018 and currently supports more than 100 megawatts of installed capacity across the country. The company’s maintenance model includes 24/7 monitoring, on-site technical support, and preventative maintenance.
The agreement aligns with CGN’s decarbonization goals and South Korea’s Hydrogen Economy Roadmap, according to the company statement. Based on InvestingPro’s Fair Value analysis, FuelCell Energy appears undervalued at current levels, though investors should note the company’s rapid cash burn rate when considering their investment decisions.
In other recent news, FuelCell Energy reported its second-quarter 2025 financial results, highlighting a notable increase in revenue despite a net loss of $38.8 million. The company is undergoing restructuring efforts, including a 22% workforce reduction, as it shifts focus towards molten carbonate fuel cell technology. FuelCell Energy has signed a Memorandum of Understanding with Inuverse to potentially deploy up to 100 megawatts of fuel cell-based power systems at the AI Daegu Data Center in South Korea, with phased deployment starting in 2027. This partnership aims to support Korea’s largest data center development. KeyBanc Capital Markets maintained its Sector Weight rating for FuelCell Energy, noting the company’s revenue exceeded expectations while margins fell short. FuelCell Energy’s CEO praised the One Big Beautiful Bill Act for its supportive provisions for the fuel cell industry. The company is also collaborating with DPP and TESIAC to deploy fuel cell solutions for data centers and other large applications. Despite current challenges, FuelCell Energy remains focused on preserving capital and achieving long-term profitability.
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