Halyk Finance's trading idea: Bloom Energy Corporation

Bloom Energy Corporation is a leading and virtually the only manufacturer of industrial-scale solid oxide fuel cells (SOFC). The Bloom Energy Server platform generates electricity directly at the point of use, using natural gas, biogas, or hydrogen, with higher efficiency than fuel-burning power generation.

Growth drivers:

• Third consecutive beat-and-raise. In 3Q26, revenue grew 138.1% y/y to $1,235.8 million, product revenue by 179.4%, and the full-year outlook was raised to $4.4–4.6 billion, implying 122% growth at the mid-point. Adjusted EPS reached $0.94 vs. a consensus of $0.69, revenue beat expectations of $1.06 billion, and the full-year EPS guidance was lifted to $3.10–3.40 vs. a consensus of $2.71. This is the third upward revision in a year: since February, the revenue mid-point has increased by about 41%. Product gross margin expanded to 38.4%. Management noted that the product backlog is growing faster than revenue. An update on the backlog and 2027 guidance is expected with the 4Q report in February.
• Operating leverage materializing ahead of plan. Quarterly operating income exceeded the full-year result from the previous year. Revenue grew 138%, while operating expenses rose only 26%, reducing their share to about 11.4% of revenue. Adjusted operating margin reached 23.1%, 230 bps above consensus. The operating income outlook was raised to $960–1,030 million, implying a margin of about 22%; the gross margin outlook remains at ~34%. J.P. Morgan forecasts EBITDA margin growth from 23.5% in 2026 to 30.3% in 2028. A weak spot is cash flow: FCF for the quarter was –$181 million, driven by working capital and $154 million in capex for production expansion.
• Diversification of demand beyond AI data centers. AEP announced a ~$4 billion investment in a 702 MW Bloom fuel cell plant in Wyoming for Google, with planned carbon capture. Power supply will go under a 20-year PPA. The U.S. Army conditionally transferred long-term site leases at military bases to Bloom’s partner, Indelible, for Bloom server generation. First deliveries went to Texas, demonstrating competitiveness even in markets with cheap electricity. Ameren’s resource plan includes 500 MW of fuel cells by 2030. This reduces reliance on Oracle and hyperscalers. Compatibility with CCS gives Bloom an advantage over gas turbines.
• Validation by hyperscalers. Bloom’s technology has been approved by all major U.S. hyperscalers and over a dozen other customers, including neoclouds and AI labs. Repeat orders and expansions from Oracle, American Electric Power, Brookfield, and MiTAC serve as indicators of customer satisfaction and product viability. Financial capacity of over $27 billion supports project deployment.