Fuel Cell Stocks Slide as High Treasury Yields Pressure Clean Energy Financing: FuelCell Drops 6%, Plug Power Falls 4%, Bloom Energy Sinks 8%

Fuel-cell stocks are under pressure Thursday as a sharp rise in long-term Treasury yields adds another challenge for capital-intensive clean energy projects. FuelCell Energy (NASDAQ:FCEL) stock is down 6% to $16.07, while Plug Power (NASDAQ:PLUG) stock is falling 4% to $1.96, and Bloom Energy (NYSE:BE) stock is down 8% to $254.53.

Notably, the Global X Hydrogen ETF (NASDAQ:HYDR) is down 4% to $42.96. For the broader market context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.51% to $763.90.

The moves come as the 10-year U.S. Treasury yield reaches 5.11%, its highest level since 2007. Higher borrowing costs can make expensive fuel-cell, hydrogen and other clean-energy projects harder to finance, particularly when developers and customers need substantial upfront capital before generating returns.

Treasury Yields Add Pressure

The 10-year Treasury yield matters for FuelCell Energy, Plug Power and Bloom Energy because higher risk-free yields can raise the hurdle rate for private investment in capital-intensive energy infrastructure. When Treasury yields rise sharply, projects involving fuel-cell systems, hydrogen production and related equipment can face more competition for financing from relatively safer fixed-income assets.

FuelCell Energy, Plug Power and Bloom Energy also operate in markets where customers may need to commit substantial amounts of capital before new energy systems begin producing economic benefits. Higher interest rates can therefore influence project timing and financing decisions even when the underlying demand for cleaner and more reliable power remains intact.

The latest Treasury move has been particularly notable because the 10-year yield has climbed above 5% after reaching levels not seen since 2007. For FuelCell Energy, Plug Power and Bloom Energy, that backdrop could make investors more sensitive to cash needs, project economics and the pace at which large commercial opportunities translate into revenue.

FuelCell Energy Faces A Financing Test

FuelCell Energy has continued building its pipeline despite the difficult financing environment. FuelCell Energy reported a $1.3 billion committed backlog at the end of its fiscal third quarter and added $2.4 billion of awarded capacity backlog tied to an agreement involving Fit Energy.

FuelCell Energy also signed its first data-center power agreement, with the planned deployment involving six 12.5-megawatt systems. FuelCell Energy is targeting a 100-megawatt annualized production rate in October and has said achieving positive adjusted EBITDA could come in the fourth quarter of fiscal 2027, subject to project conversions and execution.

At the same time, FuelCell Energy’s fiscal third-quarter revenue fell 29% year over year to $33 million, while FuelCell Energy posted a net loss of $45.3 million. Those figures highlight why higher financing costs could matter for FuelCell Energy even as the company’s awarded and committed backlog provides a potentially important source of future demand.

Plug Power Needs Capital And Growth

Plug Power enters the latest selloff with some evidence of improving operating performance. Plug Power reported second-quarter revenue of $178 million, roughly break-even gross margin and net cash usage of $61 million, while Plug Power raised its full-year 2026 revenue growth guidance to 15% to 16%.

Liquidity remains an important consideration for Plug Power because the company’s hydrogen, electrolyzer and fuel-cell businesses require continued investment. Plug Power reported $162 million of unrestricted cash at the end of the second quarter and said asset monetization transactions were expected to generate $80 million of near-term liquidity.

Higher Treasury yields could make Plug Power’s financing environment more difficult even as Plug Power works toward positive EBITDAS in the fourth quarter. The combination of improving margins, commercial growth and continued capital requirements leaves Plug Power stock particularly sensitive to changes in the market’s appetite for higher-risk clean-energy investments.

Bloom Energy Shows The Other Side

Bloom Energy has a somewhat different setup from FuelCell Energy and Plug Power because Bloom Energy has benefited heavily from demand for onsite power from data centers. Bloom Energy reported second-quarter revenue of $1.065 billion and raised its 2026 revenue guidance to $3.9 billion to $4.2 billion, giving Bloom Energy a stronger recent operating-growth backdrop.

Even so, Bloom Energy stock has already experienced an enormous rally, with Bloom Energy stock still up sharply year to date despite Thursday’s decline. Higher Treasury yields could encourage profit-taking or reduce investors’ willingness to pay elevated valuations for growth-oriented clean-energy stocks, adding another source of volatility for Bloom Energy stock.

The broader takeaway for FuelCell Energy, Plug Power and Bloom Energy is that higher interest rates can pressure both project economics and equity valuations at the same time. Investors can watch for signs that Treasury yields remain elevated, while FuelCell Energy, Plug Power and Bloom Energy could continue to differentiate themselves based on backlog conversion, cash usage, margins and demand for their respective technologies. Traders should consider keeping their position sizes modest given the financing sensitivity and volatility surrounding FuelCell Energy stock, Plug Power stock and Bloom Energy stock.

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