FuelCell Energy (FCEL) stock fell roughly 19% in after-hours trading on Tuesday after the company announced a $225 million public stock offering priced at $21 per share — a discount to its then-current trading price of $25.96.
The offering was upsized from an initially announced $200 million. The company is selling 10,714,286 new shares, with all proceeds going directly to FuelCell.
Investors reacted sharply due to dilution concerns. When a company sells new stock, it increases the total number of shares outstanding, which reduces each existing shareholder’s ownership percentage.
Citigroup and Barclays are leading the deal as joint book-running managers. Oppenheimer, RBC Capital Markets, and Goldman Sachs are also acting as joint book-running managers.
Underwriters have a 30-day option to buy up to 1,607,143 additional shares at the offering price. That could push total gross proceeds even higher.
The deal is expected to close around July 9, 2026, subject to standard closing conditions.
FuelCell said it will use the net proceeds for capital expenditures tied to manufacturing capacity expansion, working capital, and general corporate purposes.
Despite the after-hours drop, FCEL has had a remarkable stretch. The stock surged more than 67% in the past 30 days and is up 390% over the past year, according to InvestingPro data. It hit a 52-week high of $37.88 recently.
That rally was driven by several catalysts. FuelCell signed a 380-megawatt data center power deal with Fit Energy USA — one of the largest in the company’s history. It also secured a $49 million financing package from the U.S. Export-Import Bank.
Analyst upgrades also helped push the stock higher. B. Riley’s Ryan Pfingst raised his rating to Buy from Hold and lifted his price target to $32 from $13. Jefferies’ Julien Dumoulin-Smith also moved to Buy, setting a $24 target, citing the Fit Energy deal and a valuation discount to peer Bloom Energy.
The fundraise comes at a time of financial pressure. FuelCell reported a quarterly loss of $1.45 per share in Q2. The company holds more cash than debt, but its gross profit margin is negative.
Converting its 4-gigawatt project pipeline into revenue requires heavy capital investment, which is part of why the company is raising now.
Wall Street’s current consensus on FCEL is Moderate Buy, based on three Buy ratings, three Holds, and one Sell over the last three months. The average analyst price target sits at $22.00 per share.
That $22 average target is actually below where the stock was trading before the offering announcement, implying 15% downside from that level.
The shelf registration statement used for the offering was filed with the SEC and became effective on June 8, 2026.
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