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BE · Forward model · Service — O&M on the installed fleet · Bull case

What has to happen in Service — O&M on the installed fleet

Model as of

This page changes Service — O&M on the installed fleet inside the complete BE model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

BE forward model
Horizon
Consolidated fair value $179.67 all other verticals held in this portfolio case
Final-quarter revenue $487M 12% of company revenue
Explicit segment contribution $889M EBITDA less segment capex, before corporate items

The option half of the book becomes purchase orders: Oracle's remaining 1.6 GW gets contracted, AEP exercises the rest of its option, and Brookfield's shelf funds the sites that let end users take power without capex. This is the case where the factory, not the order book, becomes the constraint and the incremental-gigawatt programme gets pulled forward. What it does NOT reach is the headline arithmetic — $25B of Brookfield capacity and 25 GW of supply visibility are capital and materials, not orders, and nothing in this model converts them.

Service — O&M on the installed fleet

Basis quarter$69M
Final quarter$487M
Implied CAGR+48%
Final revenue mix12%

Contracted operation and maintenance on every Energy Server deployed, on terms Bloom says run 5 to 20 years with roughly full attach on product. It is the annuity under the hardware and the one line whose margin genuinely turned: gross margin went from -26% in 2023 Q1 to +18.65% in the basis quarter as stack life improved and the fleet aged into cheaper service. It grows with the installed base rather than the quarter's shipments, which is why it compounds slowly while product triples. The fleet is measured in kilowatts and the fee in dollars per kilowatt-month.

Last four quarters
2025 Q3 $59M Reported
2025 Q4 $62M Estimated
2026 Q1 $62M Reported
2026 Q2 $69M Reported
Contracted O&M on the installed Energy Server fleetStack replacement and performance guarantees
Subscribers 1.8M 7.2% of a 25.0M addressable base 1.8 GW of installed fleet, in kW. Bloom does not disclose it; back-solved so the fee lands at a credible O&M rate.
Addressable subscribers 25.0M the S-curve ceiling 25 GW, the supply-chain visibility Bloom cites. The serviced fleet cannot exceed what it ever ships.
Net adds 220K/qtr ramping toward 600K/qtr, throttled as the base approaches the TAM 220 MW a quarter joins the serviced fleet against ~312 MW shipped — commissioning lags acceptance.
Net-add ceiling 600K/qtr what supply can deliver at full rate 600 MW a quarter, roughly the 2 GW annual line running full out and all of it entering service.
ARPU $12.78/mo drifting +0.3% per quarter, floor $10.00 $12.78 per kW-month reproduces Q2'26 service revenue on the assumed fleet; about 5.1% of capital cost a year.
Non-subscriber revenue $0/qtr growing 0.0% per quarter Bloom reports no service revenue outside the contracted O&M book, so there is nothing to carry here.
Service — O&M on the installed fleet

Latest: $487M (2031Q2E)

Period Value
2023Q1 $41M
2023Q2 $42M
2023Q3 $48M
2023Q4 $53M
2024Q1 $56M
2024Q2 $53M
2024Q3 $51M
2024Q4 $54M
2025Q1 $54M
2025Q2 $54M
2025Q3 $59M
2025Q4 $62M
2026Q1 $62M
2026Q2 $69M
2026Q3E $79M
2026Q4E $91M
2027Q1E $104M
2027Q2E $118M
2027Q3E $133M
2027Q4E $149M
2028Q1E $166M
2028Q2E $184M
2028Q3E $203M
2028Q4E $224M
2029Q1E $245M
2029Q2E $268M
2029Q3E $292M
2029Q4E $316M
2030Q1E $342M
2030Q2E $369M
2030Q3E $397M
2030Q4E $426M
2031Q1E $456M
2031Q2E $487M

Assumptions & reasoning

  • This is the line the $14B 'service backlog' points at, and it is also the line that most overstates the backlog: the 10-K says O&M terms are 'subject to termination for convenience on an annual basis', so most of that figure is not an enforceable obligation.
  • Service revenue grew 26.8% year over year in the basis quarter while product grew 215%. Modelling service off the quarter's shipments rather than the cumulative fleet would overstate it by several multiples.
  • The installed-fleet megawatt figure is the weakest number in this brief. It is assumed, and the ARPU it produces ($153k per MW per year, about 5.1% of an assumed $3.0M/MW capital cost) is a cross-check that makes it credible rather than a disclosure.
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