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Fluence Energy (FLNC)
NASDAQ:FLNC
US Market
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Fluence Energy (FLNC) AI Stock Analysis

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FLNC

Fluence Energy

(NASDAQ:FLNC)

Rating:59Neutral
Price Target:
$10.00
▲(5.93%Upside)
Fluence Energy's score is primarily influenced by strong revenue growth and a positive technical outlook. However, profitability issues and valuation concerns, along with tariff-related uncertainties affecting guidance, weigh on the overall score. The stock's momentum is strong, but overbought conditions may lead to volatility.
Positive Factors
International Margins
International margins could be better than previously thought due to a greater portion of EPC work.
Tariff Environment
Increasing 2026 EBITDA margins to reflect a potentially more benign tariff environment with China.
Tax Incentives
FLNC believes its domestic produced cells and battery modules can still achieve necessary thresholds under FEOC provisions to claim 45X credits, which helps offset higher cost U.S. ESS.
Negative Factors
Competitive Pressures
Expect FLNC’s margins to remain under pressure given research on competitive dynamics and the troubling downtrend in its Services attachment rate.
Growth Outlook
The uncertainty around tariffs and policies is enough to slow down the market, leading to FLNC revising down its revenue guidance by 20%.
Tariff Uncertainty
U.S. projects are paused as tariffs have significantly increased imported system costs, affecting customer decisions.

Fluence Energy (FLNC) vs. SPDR S&P 500 ETF (SPY)

Fluence Energy Business Overview & Revenue Model

Company DescriptionFluence Energy (FLNC) is a leading global provider of energy storage products and services. The company operates in the renewable energy sector, focusing on the development and deployment of advanced energy storage solutions. Its core products include energy storage systems that help integrate renewable energy into the grid, enhance grid reliability, and provide energy management solutions. Fluence Energy serves utilities, power producers, and large energy consumers, enabling them to optimize energy usage and improve operational efficiency.
How the Company Makes MoneyFluence Energy makes money primarily through the sale of its energy storage systems and related services. The company's revenue model includes the design, engineering, and installation of its energy storage solutions, which are sold to utilities, independent power producers, and commercial and industrial customers. Fluence Energy also generates income through long-term service contracts, providing maintenance, monitoring, and optimization services for its deployed systems. Additionally, the company may engage in strategic partnerships and joint ventures to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Fluence Energy Key Performance Indicators (KPIs)

Any
Any
Annual Recurring Revenue
Annual Recurring Revenue
Shows the predictable revenue generated from ongoing contracts or subscriptions, highlighting the company's stability and potential for sustainable growth.
Chart InsightsFluence Energy's annual recurring revenue has shown strong growth, reaching $110 million by Q1 2025, driven by robust backlog and new contract additions. However, recent tariff hikes on Chinese imports pose risks, leading to a downward revision of fiscal 2025 guidance. Despite these challenges, the company remains optimistic about international market expansion and its innovative Smartstack platform, which supports its long-term growth strategy. Investors should monitor the tariff situation closely, as it could impact U.S. project execution and overall revenue projections.
Data provided by:Main Street Data

Fluence Energy Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q2-2025)
|
% Change Since: 109.31%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter for Fluence Energy, with strong revenue performance and innovation in Smartstack technology overshadowed by significant tariff-related uncertainties. These uncertainties have led to a pause in U.S. project execution and a downward revision of fiscal guidance, creating a cautious outlook despite robust backlog and liquidity.
Q2-2025 Updates
Positive Updates
Strong Revenue Performance
Fluence Energy delivered approximately $432 million in revenue for Q2, exceeding expectations due to early project milestone achievements.
Robust Backlog and Pipeline
The company ended the quarter with approximately $4.9 billion in backlog and a pipeline exceeding $22 billion, indicating strong future potential.
Positive Adjusted Gross Profit Margin
Fluence Energy achieved a double-digit adjusted gross profit margin of 10.4%, marking the seventh consecutive quarter of such performance.
Innovative Smartstack Technology
The launch of the Smartstack platform has been positively received, with its first contract already signed. It provides cost-effective solutions and facilitates a domestic content strategy.
Strong Liquidity Position
The company maintains over $1 billion in liquidity, with $610 million in total cash, supporting long-term strategic initiatives.
Negative Updates
Impact of Tariff Uncertainty
New tariffs on Chinese imports, rising from 10% to 155%, have led to economic uncertainty, pausing some U.S. contracts and affecting revenue projections.
Revised Fiscal 2025 Guidance
Due to tariff-related headwinds, revenue guidance has been lowered by $700 million, and adjusted EBITDA guidance reduced by $75 million from previous expectations.
Operating Expenses Increase
Operating expenses increased by $10 million year-over-year due to higher R&D and sales and marketing costs, impacting EBITDA.
Delayed U.S. Project Execution
Some U.S. projects have been paused due to tariff uncertainty, resulting in a deferral of $700 million in expected revenue.
Company Guidance
During Fluence Energy's second quarter 2025 earnings conference call, key financial metrics were discussed, highlighting the company's performance and future expectations. The company reported approximately $432 million in revenue for Q2, with a double-digit adjusted gross profit margin and an annual recurring revenue that increased to $110 million. The backlog stood robust at approximately $4.9 billion, including $200 million in new contracts added during the quarter. Fluence also ended the quarter with over $1 billion in liquidity, comprising $610 million in total cash. However, due to recent significant tariff increases, particularly affecting imports from China, the company revised its fiscal 2025 outlook. Despite these challenges, Fluence anticipates a strong ramp-up in order volume, especially in international markets like Australia, and remains optimistic about its long-term growth prospects due to its innovative Smartstack platform and U.S. supply chain strategy.

Fluence Energy Financial Statement Overview

Summary
Fluence Energy shows strong revenue growth but faces profitability challenges with negative margins and consistent net losses. The balance sheet shows manageable leverage but increased liabilities, while cash flow issues highlight inefficiencies and potential cash constraints.
Income Statement
55
Neutral
Fluence Energy shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a negative EBIT and EBITDA margin, reflecting operational losses. However, the company has demonstrated strong revenue growth over the years, increasing from $561.3 million in 2020 to $2.33 billion in the TTM period. The net profit margin remains negative, indicating continued losses at the net income level, which is a concern for profitability.
Balance Sheet
60
Neutral
The balance sheet reflects a moderate financial position. While the debt-to-equity ratio has been relatively low, indicating manageable leverage, the equity ratio has declined due to increasing liabilities. The company has maintained a positive stockholders' equity, which is crucial for future growth. However, the increasing total liabilities are a potential risk that could affect financial stability.
Cash Flow
50
Neutral
Fluence Energy's cash flow statement presents challenges, particularly with negative free cash flow in the TTM period. The operating cash flow to net income ratio indicates inefficiencies in converting profits into cash. Despite significant financing cash flow, the company struggles with free cash flow growth, which could impact its ability to invest in future growth opportunities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.70B2.22B1.20B680.77M561.32M
Gross Profit341.08M140.96M-62.35M-69.14M7.92M
EBITDA41.10M-101.94M-278.69M-153.63M-37.27M
Net Income22.72M-69.62M-289.18M-162.00M-46.71M
Balance Sheet
Total Assets1.90B1.35B1.75B717.67M364.02M
Cash, Cash Equivalents and Short-Term Investments448.69M345.90M467.65M36.83M93.81M
Total Debt30.36M50.56M2.74M100.00M0.00
Total Liabilities1.30B795.82M1.12B773.87M381.25M
Stockholders Equity472.10M402.35M435.83M-279.59M-117.10M
Cash Flow
Free Cash Flow60.71M-124.15M-290.32M-269.56M-15.80M
Operating Cash Flow71.23M-111.93M-282.38M-265.27M-14.02M
Investing Cash Flow-18.98M94.44M-148.42M-22.29M18.22M
Financing Cash Flow-8.68M52.59M817.05M231.13M2.50M

Fluence Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.44
Price Trends
50DMA
6.37
Positive
100DMA
5.52
Positive
200DMA
11.01
Negative
Market Momentum
MACD
0.94
Negative
RSI
66.71
Neutral
STOCH
74.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNC, the sentiment is Positive. The current price of 9.44 is above the 20-day moving average (MA) of 8.23, above the 50-day MA of 6.37, and below the 200-day MA of 11.01, indicating a neutral trend. The MACD of 0.94 indicates Negative momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLNC.

Fluence Energy Risk Analysis

Fluence Energy disclosed 76 risk factors in its most recent earnings report. Fluence Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Fluence Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.92B17.114.47%3.88%4.75%6.28%
65
Neutral
$2.78B51.554.18%-1.77%-41.65%
59
Neutral
$1.72B236.42-5.96%6.08%52.48%
58
Neutral
$185.69M-82.96%-86.10%-49.68%
47
Neutral
$207.58M-9999.00%52.34%10.37%
42
Neutral
$13.61B-32.34%62.41%-85.81%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLNC
Fluence Energy
9.36
-6.24
-40.00%
SMR
NuScale Power
51.03
40.61
389.73%
RNW
ReNew Energy Global
7.57
2.05
37.14%
NRGV
Energy Vault Holdings
1.35
0.20
17.39%
NXXT
NextNRG
1.70
-2.31
-57.61%

Fluence Energy Corporate Events

Executive/Board Changes
Fluence Energy Announces Leadership Change in Product Management
Neutral
Jan 10, 2025

Rebecca Boll, Senior Vice President and Chief Product Officer, will resign from Fluence Energy effective January 31, 2025, to pursue other opportunities. The company has started searching for her replacement, with interim leadership from Mark Berger and Freddy Reyes Falck, ensuring continuity in product management.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025