Bloom Energy (NYSE:BE) executives pointed to record 2025 results and a sharply higher backlog as they outlined expectations for accelerated growth in 2026, emphasizing rising demand for on-site power from data centers and commercial and industrial (C&I) customers.
On the company’s fourth-quarter earnings call, Founder, Chairman and CEO K.R. Sridhar said Bloom is “rapidly becoming the standard for on-site power,” citing record revenue, gross margin and operating margin for the year and a product backlog that climbed 140% year-over-year to about $6 billion. Sridhar also highlighted approximately $14 billion of service backlog and noted that the company’s product orders are “100% attached to service,” positioning Bloom for what management described as durable growth in service revenue and profitability.
Demand trends: data centers, AI, and a broader C&I push
AI-related infrastructure was a recurring theme. Sridhar called AI “a huge tailwind” and said the reported backlog includes six hyperscale and neocloud end customers, compared with one a year earlier. He described Bloom’s “master contract structure” as enabling repeat orders, similar to the company’s experience in C&I.
Sridhar said the C&I backlog grew more than 135% year-over-year and spans multiple verticals, including telecom, manufacturing, logistics, retail, healthcare and education. He attributed that growth to “digitization, automation, electrification, and reshoring,” which are increasing customers’ power needs and driving interest in on-site solutions.
Geography shifts beyond traditional high-cost power markets
Sridhar also highlighted a change in where Bloom is seeing demand in the United States. Two years ago, he said more than 80% of the company’s U.S. backlog was tied to California and the Northeast. This year, he said more than 80% of backlog comes from other states with lower power costs.
He attributed the shift to two factors: customers locating facilities where they can secure reliable power quickly, and Bloom’s ability to be cost-competitive even in lower-cost regions—especially in areas with robust natural gas infrastructure and favorable policy frameworks for on-site generation. Sridhar said the company’s value proposition—fast time to power, high reliability and lower emissions—continues to resonate across markets.
Manufacturing capacity: “Bloom will not be the bottleneck”
When asked about future capacity expansions, Sridhar repeatedly characterized scaling as a routine, capital-light decision for the company. He said Bloom’s manufacturing approach and supply chain allow it to ramp without the multi-year delivery backlogs that have affected traditional equipment suppliers, and he reiterated that capacity expansion offers a “few months” return on invested capital.
Sridhar said Bloom maintains standing orders and supplier readiness to ramp as needed, and framed the trigger for expansion as customer opportunities where additional capacity is required to meet time-to-power needs. He added that Bloom can typically deliver power ahead of customers’ greenfield construction timelines. As an example of speed, he said Bloom recently delivered a hyperscale AI factory order in 55 days against a 90-day commitment.
Technology roadmap: 800V DC, load-following, and cooling “apps”
A significant portion of the call centered on Bloom’s move to 800 volts direct current (DC), which Sridhar argued will become a data center standard as AI racks demand substantially higher power density. He said AI racks will be architected to receive 800V DC to reduce copper use and improve efficiency, and that converting high-voltage alternating current (AC) from the grid to 800V DC requires transformers and other equipment that add cost, reduce reliability and increase emissions.
Bloom “natively produces 800 volts DC today,” Sridhar said, and he stated that every Bloom server shipped going forward will be 800V DC-ready, with a removable adapter to support legacy AC environments. He also said previously shipped servers can be converted to 800V DC with “simple modifications,” describing the approach as backward-compatible and “future-proofed.”
Beyond voltage architecture, Sridhar described additional product “apps” under development, including rapid load-following for AI loads without requiring batteries. He said Bloom’s systems can handle load swings and that avoiding batteries can improve safety and reduce maintenance while removing a potential supply-chain constraint as data centers scale.
In response to a question about combined heat and power and cooling, Sridhar said on-site power generation changes the economics of using waste heat for absorption chilling. He said Bloom’s systems provide “high-quality heat” that can be used to drive absorption chillers to provide cooling, and that Bloom believes data center electricity usage could be reduced “by at least 20%.” He added that customers are showing strong interest, citing efficiency and cost benefits, as well as the absence of hydrofluorocarbons in absorption chiller solutions.
Financial results and 2026 guidance
Acting Principal Financial Officer Maciej Krzymuski reviewed results on a non-GAAP basis and said 2025 produced record metrics, including $271.6 million in adjusted EBITDA. He said Bloom was free cash flow positive for the second consecutive year and that the service business reached approximately 20% non-GAAP gross margin for the first time.
- Q4 revenue: $777.7 million, up 35.9% year-over-year.
- Q4 non-GAAP gross margin: 31.9% (down from 39.3% in Q4 2024, which Krzymuski attributed to project mix variability).
- Q4 non-GAAP operating income: $133 million (vs. $133.4 million a year earlier).
- Q4 adjusted EBITDA: $146.1 million (vs. $147.3 million in Q4 2024).
- Q4 non-GAAP EPS: $0.45 (vs. $0.43 a year earlier).
- Product margin: 37%; service margin: approximately 20%.
Krzymuski said the company ended the quarter with $2.5 billion in total cash, reflecting proceeds from convertible bonds. Inventory ended the year at $643 million, which he said was slightly higher than expected as Bloom prepares for a stronger 2026. Cash flow from operating activities was an inflow of $113.9 million in the quarter, and CapEx was $57 million.
For the full year, Krzymuski reported record revenue of $2.0 billion, up 37.3% from 2024, with non-GAAP gross margin of 30.3% (up from 28.7%). Non-GAAP operating profit was $221 million, and the service business generated $29.7 million in non-GAAP gross profit, with service profitable on a non-GAAP basis in every quarter of 2025 for the second consecutive year.
Looking to 2026, management guided for revenue of $3.1 billion to $3.3 billion, non-GAAP gross margin of approximately 32%, and non-GAAP operating income of approximately $425 million to $475 million. The company expects capital spending of $150 million to $200 million and cash flow from operations close to $200 million, while continuing to invest in R&D and commercial efforts.
In the Q&A, Sridhar said repeat business remains a major driver, stating that over two-thirds of the C&I business year-over-year comes from repeat customers. He also said Bloom does not provide long-term guidance out to 2030 and emphasized the current pace of change in digital infrastructure demand, characterizing visibility as limited in the current environment.
About Bloom Energy (NYSE:BE)
Bloom Energy is a clean energy technology company that designs, manufactures and deploys solid oxide fuel cell systems for on-site power generation. Its flagship product, the Bloom Energy Server, converts natural gas, biogas or hydrogen into electricity through an electrochemical reaction, offering customers a reliable, low-carbon alternative to grid power. The company also provides a suite of services that includes system installation, remote monitoring and preventative maintenance to ensure long-term performance and uptime.
Founded in 2001 by Dr.
