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Fluence Energy Reports Q1 FY 2025 Revenue Drop Amid Market Shifts

Fluence Energy, a leading utility-scale energy storage firm, reported $186.8 million in revenue for Q1 FY 2025, marking a 49% year-over-year (YoY) decline and falling well short of analysts’ expectations of $362 million. The company attributed the shortfall to the timing of revenue recognition, with a significant portion of FY 2025 revenue expected later in the year.

Key Financial Highlights

• Earnings Per Share (EPS): Loss of $0.32 per share, missing estimates of $0.19 per share.
• Adjusted EBITDA: Reported a negative $49.7 million, compared to negative $18.3 million in Q1 FY 2024.
• Net Loss: Increased 123% YoY to $57 million from $25.6 million.
• Gross Profit Margin: Improved to 12.5%, indicating operational efficiency gains.

Despite the financial dip, Fluence secured $778 million in new bookings, expanding its backlog to a record $5.1 billion. The company deployed 5.8 GW/14.8 GWh of energy storage during the quarter, with a contracted backlog of 7.8 GW and a total project pipeline of 30.3 GW/94.2 GWh.

Market and Competitive Landscape

Fluence continues to expand globally, with the U.S. as its primary market. Other key regions include Germany, Australia, Canada, and Chile. However, it faces growing competition from Chinese firms, which are aggressively entering international markets.

• U.S. Power Demand Growth: Expected to exceed 5,000 TWh by 2030, fueled by data center expansion, manufacturing growth, and electrification.
• Energy Storage Growth: Installations in the Americas surged 83% YoY, reaching 45 GWh in 2024.
• Tariffs on Chinese Imports: A new 10% tariff on Chinese products is expected to reduce Fluence’s FY 2025 gross profit by $10 million, but potential higher tariffs on Chinese battery storage systems could benefit Fluence in the U.S. market.

Revised Outlook for FY 2025

Fluence has lowered its revenue and earnings guidance for FY 2025, citing contract timing delays in Australia:

• Revenue Guidance: Revised to $3.1 billion - $3.7 billion (midpoint $3.4 billion), down from the previous range of $3.6 billion - $4.4 billion.
• Adjusted EBITDA Guidance: Lowered to $70 million - $100 million (midpoint $85 million), down from $160 million - $200 million.
• Annual Recurring Revenue (ARR) Guidance: Reaffirmed at $145 million.

The company remains optimistic about U.S. tax incentives, including the Section 48 Investment Tax Credit and Section 45X manufacturing tax credits, while advocating for cybersecurity measures to protect energy storage infrastructure.