Danbury-based FuelCell Energy said it expects to cut operating costs by 15% in 2025, following a recent round of layoffs and reductions in research and development spending.
In the first quarter of fiscal year 2025, FuelCell reported a net loss of $32.4 million, down from a loss of $42.5 million in the year-ago period, according to its quarterly earnings report released Tuesday.
The company said it cut its research and development spending in the first quarter of 2025 to $11.1 million, as it curtails efforts to commercially develop solid oxide power generation and electrolysis platforms.
In November 2024, FuelCell said it cut about 13% of its workforce, or 75 employees, as part of a restructuring of its operations in the U.S., Canada and Germany. The move was meant to reduce operating costs and realign the company’s resources toward its core technologies.
FuelCell plans to further reduce operating costs by 15% this year by cutting spending on product development and overhead, the company said.
“We’ve made measurable strides since our global restructuring was announced early in the first fiscal quarter,” said FuelCell’s President and CEO Jason Few. “Our cost-saving initiatives are already yielding positive outcomes, and our commitment to uncovering and capitalizing on growth opportunities is paying off.”
Few pointed out that revenue grew 14% to about $19 million in the first quarter of 2025, while expenses declined, “narrowing our operating losses and accelerating our journey towards profitability.”
He said he expects revenue to increase for the remainder of 2025.
On Monday, FuelCell announced a partnership with energy companies Diversified Energy Co. and TESIAC, based in Birmingham, Alabama and San Francisco, to create an acquisition development company. The company will create electricity from natural gas and captured coal mine methane to supply up to 360 megawatts of power to three data centers in Virginia, West Virginia and Kentucky.
“We believe this collaborative partnership will meet the urgent need for power demanded by data centers across Virginia, West Virginia and Kentucky,” Few said.
