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Fluence Energy (FLNC)
NASDAQ:FLNC
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Fluence Energy
(NASDAQ:FLNC)
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Rating:55Neutral
Price Target:
$28.00
▲(3.40% Upside)
Fluence Energy's overall stock score is primarily impacted by its financial challenges, including negative profit margins and cash flow issues. Despite these concerns, the stock benefits from strong technical momentum and positive strategic guidance from the earnings call. However, valuation remains a significant drawback due to ongoing losses.
Positive Factors
Large backlog / order intake
A $5.3 billion backlog from record Q4 orders provides multi-quarter revenue visibility and supports procurement and capacity planning. Durable backlog reduces near-term demand risk, helps prioritize production, and underpins longer-term service and software attach opportunities as projects deploy.
Strong liquidity position
Approximately $1.3 billion in liquidity gives Fluence a meaningful runway to fund manufacturing scale-up, working capital needs, and strategic investments. This reduces near-term refinancing pressure, allowing management to address operational issues without immediate capital-market dependency.
Growing recurring revenue and product innovation
Rising ARR and new products (Smartstack/Gridstack Pro) boost higher-margin, recurring revenue potential and customer stickiness. Structural growth in software and lifecycle services supports margin durability and predictable cash flow as installed base and data-center engagements expand.
Negative Factors
Manufacturing and ramp execution risk
Staffing and ramp issues at the Arizona enclosure facility caused a ~ $300M revenue shortfall. Persistent manufacturing bottlenecks can delay backlog conversion, raise per-unit costs, and compress margins, posing a multi-month execution risk to revenue realization and customer timelines.
Weak cash flow generation
Negative operating and free cash flow with a steep FCF decline constrains Fluence's ability to self-fund growth and absorb delays. Continued cash burn increases reliance on liquidity or external financing, heightening execution and investment risk if operational improvements lag.
Supply/compliance dependence on AESC
Dependence on AESC and unresolved OBBA compliance creates structural supply and regulatory risk for critical battery inputs. Supplier constraints or non-compliance could disrupt deliveries, raise costs, and impair the company's ability to meet contractual commitments and convert backlog.
Fluence Energy (FLNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.95B
Dividend YieldN/A
Average Volume (3M)4.42M
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth-16.15%
EPS Growth-324.40%
CountryUS
Employees1,595
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.13
Shares Outstanding131,369,450
10 Day Avg. Volume5,027,217
30 Day Avg. Volume4,423,380
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)2.56
Price to Sales (P/S)0.62
P/FCF Ratio-8.77
Enterprise Value/Market Cap0.23
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit3.77
Enterprise Value/Ebitda-92.24
Forecast
1Y Price Target
$17.03Price Target Upside-37.11% Downside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$3.35B
Fluence Energy Business Overview & Revenue Model
Company DescriptionFluence Energy, Inc. provides energy storage products and services, and artificial intelligence enabled digital applications for renewables and storage applications worldwide. The company sells energy storage products with integrated hardware, software, and digital intelligence, as well as engineering and delivery services to support the deployment of its storage products; operational and maintenance, and energy storage-as-a-service; and digital applications and solutions. Its energy storage products include Gridstack, a grid-scale industrial strength energy storage product; Sunstack for optimizing solar capture and delivery; and Edgestack, a commercial energy storage product that discharges when needed to flatten a facility's energy load profile. The company serves utilities, developers, and commercial and industrial customers. Fluence Energy, Inc. was founded in 2018 and is headquartered in Arlington, Virginia. Fluence Energy, Inc. is a joint venture of Siemens Aktiengesellschaft and The AES Corporation.
How the Company Makes MoneyFluence Energy generates revenue through multiple streams, primarily by selling energy storage systems and associated software solutions to utility companies, commercial customers, and other energy stakeholders. The company also earns money through ongoing service contracts, including maintenance and operational support for its installed systems. Additionally, Fluence benefits from strategic partnerships with key players in the energy sector, which can lead to collaborative projects and joint ventures that provide further revenue opportunities. The demand for energy storage solutions, driven by the growing emphasis on renewable energy sources and grid modernization, plays a significant role in Fluence's revenue growth.
Fluence Energy Key Performance Indicators (KPIs)
Any
Backlog
Represents the value of unfulfilled orders, indicating future revenue visibility and the strength of product demand.
Represents the value of unfulfilled orders, indicating future revenue visibility and the strength of product demand.
Data provided by:
The Fly
The FlyFluence Energy Earnings Call Summary
Earnings Call Date:Nov 24, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of strong strategic positioning and operational challenges. While record order intake and product innovation paint a positive future outlook, the revenue shortfall and manufacturing delays are significant concerns. The company's robust liquidity and strategic growth in new markets like data centers provide optimism, but reliance on resolving supply chain issues remains critical.Q4-2025 Updates
Positive Updates
Record Order Intake
Fluence Energy signed more than $1.4 billion of orders in Q4 2025, bringing the backlog to $5.3 billion, setting up for growth in fiscal 2026 and beyond.
Strong Liquidity Position
The company ended the quarter with approximately $1.3 billion in liquidity, up $300 million compared to the end of fiscal 2024, providing a strong financial position to fund growth.
Introduction of Smartstack Product
Fluence announced its new Smartstack product, designed to reduce total cost of ownership and offering battery density of 7.5 megawatt hours per unit. It is pivotal in securing the 4 gigawatt hour LEAG project in Europe.
Positive Financial Metrics
Achieved a record 13.7% adjusted gross margin for the year and approximately $19.5 million of adjusted EBITDA, which was at the top end of guidance.
Data Center Market Expansion
Significant increase in demand from data center customers with discussions representing over 30 gigawatt hours. Most of these engagements originated since the end of the quarter.
Negative Updates
Revenue Shortfall
Full year revenue was approximately $2.3 billion, falling $300 million short of expectations due to delays in ramping up the Arizona enclosure manufacturing facility.
Manufacturing Delays in Arizona
The Arizona facility faced challenges in staffing, leading to slower-than-expected production and impacting revenue recognition.
Dependence on AESC
Ongoing negotiations and challenges related to meeting OBBA compliance with AESC, with potential impacts on future supply if not resolved.
Company Guidance
During the fourth quarter of fiscal year 2025, Fluence Energy reported several strong financial metrics, including a record $1.4 billion in orders, bringing their backlog to $5.3 billion. Despite a revenue shortfall of approximately $300 million, attributed mainly to production delays at their Arizona facility, the company achieved a 13.7% adjusted gross margin for the year and $19.5 million in adjusted EBITDA, meeting the top end of their guidance range. The annual recurring revenue (ARR) reached $148 million, slightly exceeding their original guidance. The liquidity position was robust at approximately $1.3 billion, supporting future growth plans. For fiscal 2026, Fluence provided guidance of $3.2 billion to $3.6 billion in revenue, with an adjusted gross margin range of 11% to 13% and adjusted EBITDA projected between $40 million and $60 million. Additionally, the company's ARR is expected to grow to $180 million, representing a 20% year-over-year increase.Fluence Energy Financial Statement Overview
Summary
Fluence Energy faces financial challenges with negative profit margins and declining revenue growth. Despite a stable asset base and low leverage, the company struggles with profitability and cash flow management, necessitating improvements in operational efficiency.Income Statement
Fluence Energy's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -7.61% in the most recent year. Gross profit margin has improved slightly to 13.07%, but net profit margin remains negative at -2.14%, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position. The debt-to-equity ratio is low, indicating limited leverage, which is a positive aspect. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is not explicitly provided, but the overall asset base appears stable.55
Neutral
Cash Flow
Cash flow analysis reveals significant challenges. The company has a negative operating cash flow and free cash flow, with a substantial decline in free cash flow growth of -61.81%. The free cash flow to net income ratio is positive, indicating some efficiency in converting income to cash, but overall cash flow management remains a concern.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.26B | 2.26B | 2.70B | 2.22B | 1.20B | 680.77M |
| Gross Profit | 295.79M | 295.79M | 341.08M | 140.96M | -62.35M | -69.14M |
| EBITDA | -12.09M | -11.62M | 41.10M | -101.94M | -278.69M | -153.63M |
| Net Income | -48.31M | -48.31M | 22.72M | -69.62M | -289.18M | -162.00M |
Balance Sheet | ||||||
| Total Assets | 2.36B | 2.36B | 1.90B | 1.35B | 1.75B | 717.67M |
| Cash, Cash Equivalents and Short-Term Investments | 690.77M | 690.77M | 448.69M | 345.90M | 467.65M | 36.83M |
| Total Debt | 390.80M | 390.80M | 30.36M | 50.56M | 2.74M | 100.00M |
| Total Liabilities | 1.81B | 1.81B | 1.30B | 795.82M | 1.12B | 773.87M |
| Stockholders Equity | 548.85M | 548.85M | 472.10M | 402.35M | 435.83M | -279.59M |
Cash Flow | ||||||
| Free Cash Flow | -154.12M | -160.42M | 60.71M | -124.15M | -290.32M | -269.56M |
| Operating Cash Flow | -145.54M | -145.54M | 71.23M | -111.93M | -282.38M | -265.27M |
| Investing Cash Flow | -29.80M | -29.80M | -18.98M | 94.44M | -148.42M | -22.29M |
| Financing Cash Flow | 356.88M | 356.88M | -8.68M | 52.59M | 817.05M | 231.13M |
Fluence Energy Technical Analysis
Positive
27.08
Price Trends
20.61
Positive
16.70
Positive
11.43
Positive
Market Momentum
1.25
Negative
67.72
Neutral
76.04
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 27.08 is above the 20-day moving average (MA) of 21.67, above the 50-day MA of 20.61, and above the 200-day MA of 11.43, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 76.04 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $1.96B | 18.82 | 7.64% | ― | 42.09% | 219.69% | |
57 Neutral | $959.76M | ― | -111.44% | ― | -35.99% | -46.51% | |
55 Neutral | $4.95B | -63.27 | -10.72% | ― | -16.15% | -324.40% | |
52 Neutral | $6.11B | -7.06 | -76.85% | ― | 765.67% | -202.81% | |
46 Neutral | $149.19M | -0.45 | ― | ― | 146.01% | 63.18% | |
45 Neutral | $33.59M | -9.83 | -54.43% | ― | -40.99% | -46.52% |
* Utilities Sector Average
FLNC
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87.93%
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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.