3 Hydrogen Stocks With Revenue Growth Up To 41%

Higher oil and diesel prices are back in focus as the White House weighs a possible export ban to contain fuel costs. That spotlight on energy security gives low carbon power sources fresh attention, including hydrogen fuel cell technology that can help reduce reliance on conventional fuels. This article breaks down three hydrogen fuel cell stocks from our screener that could offer targeted exposure to this long term shift.

The three hydrogen fuel cell companies highlighted next are only a sample, and the full screen surfaced six more businesses with equally developed narratives that are not covered in this article.

If you want to identify your own highest conviction ideas across fuel cell developers, suppliers and system manufacturers, head straight into the Hydrogen Fuel Cell Technology screener to analyze the full list on your own terms.

Cummins (CMI)

Cummins is a long established power solutions manufacturer that now includes hydrogen fuel cells and electric drivetrains in its Accelera and Power Systems lines, although most of its US$35.7b revenue still comes from traditional engines, components, distribution and power systems. The business has a market value of about US$71.3b.

Cummins’ hydrogen work matters for this screen because it links heavy-duty trucks, buses and backup power directly to fuel cell modules and integrated systems, giving investors exposure to cleaner power without relying on a pure play story.

"Cummins is investing $200 million in its manufacturing sites in the U.S., England, and India to increase power generation capacity, which is expected to drive strong revenue growth, particularly in the data center market."

What happens to Cummins’ margins if that fast growing corner of the power market demands more low carbon solutions than its current mix assumes?

If that margin mix matters to your thesis, the full narrative for Cummins unpacks how Cummins’ hydrogen bets, capex plans and legacy engine cash flows could be decoupling faster than headline numbers suggest.

FuelCell Energy (FCEL)

FuelCell Energy is a pure play on hydrogen fuel cell technology, supplying carbonate fuel cell power plants, Tri Gen hydrogen systems and turnkey project services to utilities, industry and data centers, with US$154 million in fuel cell power plant production and research revenue and a market value near US$1.3b.

For hydrogen focused investors, FuelCell Energy sits squarely in the path of on site and grid support power demand. Yet the real tension is how quickly those ambitions convert into contracted projects and stable economics.

"While the Dedicated Power Partners (DPP) initiative and new long-term service agreements hint at increased bookings and backlog, actual progress toward ramping Torrington facility utilization from the current 31 megawatts to the target of 100 megawatts is entirely dependent on order flow, and long-standing execution issues raise doubts about whether the company can translate tailwinds into sustained recurring revenues or positive adjusted EBITDA in the forecasted timeframe."

What happens to FuelCell Energy’s story if a single pressure point in that growing project backlog quietly shifts the balance between growth hopes and delivery?

If that balance between ambition and delivery is what you care about, the full narrative for FuelCell Energy shows how execution risks, potential acceleration and contract quality align.

PG&E (PCG)

PG&E runs a large regulated utility in northern and central California, earning US$25.8b from electricity and gas delivery while also hosting fuel cell and hydrogen ready projects that link directly to this hydrogen fuel cell theme. The stock is valued around US$26.3b.

PG&E gives you exposure to real world hydrogen fuel cell pilots inside a large regulated utility. Grid resilience projects, microgrids and backup power trials sit alongside its core electric and gas delivery earnings.

"Expanding opportunities for capital investment in grid modernization, wildfire mitigation, and resilience, fueled by both regulatory mandates and the need to serve new electrification and decarbonization requirements, position PG&E to grow its rate base and regulated earnings steadily over the next decade."

The key uncertainty is how one unresolved policy and funding pressure ultimately affects what PG&E can earn on those projects.

That policy and funding overhang is exactly what the full narrative for PG&E tackles, separating stalled risks from accelerating opportunities PG&E investors might be overlooking.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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