Fluence Energy (FLNC) AI Stock Analysis

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Fluence Energy

(NASDAQ:FLNC)

Select Model

Neutral 55 (OpenAI - 4o)

Rating:55Neutral

Price Target:

$7.50

▼(-37.03% Downside)

Fluence Energy's overall stock score reflects a mix of positive strategic positioning and ongoing operational challenges. The strong backlog and legislative support are significant positives, but profitability issues and technical indicators suggest caution. The valuation metrics further highlight the need for improved financial performance to enhance attractiveness.

Positive Factors

Strong Backlog

A strong backlog indicates robust demand and provides revenue visibility, supporting long-term growth and stability in the renewable energy market.

Supportive Legislation

Supportive legislation enhances market opportunities and competitiveness, aiding Fluence's strategic positioning in the U.S. energy storage sector.

Advanced Product Launch

The launch of Smartstack demonstrates Fluence's commitment to innovation, potentially increasing market share and enhancing competitive advantage.

Negative Factors

Profitability Challenges

Persistent profitability issues can strain financial resources, limiting the company's ability to invest in growth and maintain competitive positioning.

Revenue Shortfall

Revenue shortfalls from manufacturing delays can impact financial performance and investor confidence, affecting long-term growth prospects.

High Tariff Impacts

Tariff impacts on profitability can increase costs and reduce margins, challenging Fluence's ability to maintain competitive pricing and profitability.

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

Market Cap

$2.17B

Dividend YieldN/A

Average Volume (3M)5.68M

Price to Earnings (P/E)236.4

Beta (1Y)1.79

Revenue Growth14.26%

EPS Growth20.99%

CountryUS

Employees1,595

SectorUtilities

Sector Strength65

IndustryRenewable Utilities

Share Statistics

EPS (TTM)0.01

Shares Outstanding131,006,990

10 Day Avg. Volume8,508,828

30 Day Avg. Volume5,679,036

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.60

Enterprise Value/Revenue0.53

Enterprise Value/Gross Profit4.17

Enterprise Value/Ebitda-4.47K

Forecast

1Y Price Target

$7.94

Price Target Upside-33.33% Downside

Rating ConsensusHold

Number of Analyst Covering17

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

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:Aug 11, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Dec 02, 2025

Earnings Call Sentiment Neutral

Fluence Energy's Q3 earnings call reflected strong strategic positioning with robust backlog growth and positive legislative support, although it faced challenges with revenue shortfalls and tariff impacts. The overall sentiment is balanced with significant achievements and ongoing challenges.

Q3-2025 Updates

Positive Updates

Record Backlog and New Contracts

Fluence Energy ended Q3 with a $4.9 billion backlog and added $1.1 billion in new contracts, including significant deals in Australia.

Strong Gross Profit Margin

Despite revenue shortfalls, the company achieved a 15.4% adjusted gross profit margin, surpassing their target for the quarter.

Increased Liquidity

Fluence Energy closed the quarter with over $900 million in liquidity and secured a new $150 million unsecured supply chain facility.

Supportive Legislation

The One Big Beautiful Bill Act (OB3) supports Fluence's U.S. strategy by extending investment tax credits for stand-alone storage and imposing restrictions on Chinese equipment.

Positive Market Trends

Battery storage is increasingly competitive against gas turbines, with significant growth in demand from data centers, driven by AI and machine learning workloads.

Growing Pipeline

The company's pipeline has grown to $23.5 billion from $22 billion last quarter, indicating strong global demand.

Negative Updates

Revenue Shortfall

Q3 revenue was approximately $100 million below expectations due to delays in ramping up U.S. manufacturing facilities.

Tariff Impacts

High tariffs on Chinese components affected profitability, with a significant $30 million impact on the quarter.

Manufacturing Ramp-up Challenges

The company faced typical production ramp-up issues at its new U.S. facilities, delaying some revenue into fiscal 2026.

Company Guidance

During the Fluence Energy Q3 2025 earnings call, the company provided several key metrics and guidance details. The company reported a backlog of approximately $4.9 billion as of June 30, with an additional $1.1 billion in contracts signed since then. Q3 revenue was recorded at approximately $603 million, which was below expectations due to delays in ramping up U.S. manufacturing facilities. However, the adjusted gross profit margin was 15.4%, exceeding the target, and the annual recurring revenue increased to $124 million. Liquidity at the end of the quarter was over $900 million, including $460 million in total cash. For fiscal 2025, Fluence expects revenue at the low end of the previously guided $2.6 billion, with an adjusted gross margin between 10% and 12%. The company also reaffirmed the adjusted EBITDA guidance range of $0 to $20 million. In terms of future outlook, Fluence highlighted the positive impact of the One Big Beautiful Bill Act (OB3) on its U.S. strategy, noting several legislative provisions supporting domestic energy storage systems. The company expressed confidence in meeting the OB3 compliance deadlines and emphasized the growing competitiveness and market demand for battery energy storage solutions.

Fluence Energy Financial Statement Overview

Summary

Fluence Energy shows revenue growth but struggles with profitability and cash flow. The gross profit margin has improved, yet net profit margins remain negative, highlighting operational challenges. The balance sheet indicates increased leverage, though the equity base is stable.

Income Statement

Neutral

Fluence Energy shows a positive revenue growth trend, with a 5.12% increase in TTM. However, profitability remains a concern as indicated by negative net profit and EBIT margins. The gross profit margin has improved to 12.67% in TTM, reflecting better cost management, but the net profit margin is still negative at -0.75%, indicating ongoing challenges in achieving profitability.

Balance Sheet

Neutral

The company's debt-to-equity ratio has increased to 0.96 in TTM, suggesting higher leverage, but remains manageable. The return on equity is negative, indicating challenges in generating returns for shareholders. However, the equity ratio is stable, showing a solid equity base relative to total assets.

Cash Flow

Neutral

Fluence Energy's cash flow situation is challenging, with negative operating and free cash flows in TTM. Despite a significant improvement in free cash flow growth, the operating cash flow to net income ratio is negative, indicating difficulties in converting income into cash. The free cash flow to net income ratio is slightly positive, suggesting some efficiency in managing cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.45B	2.70B	2.22B	1.20B	680.77M	561.32M
Gross Profit	310.35M	341.08M	140.96M	-62.35M	-69.14M	7.92M
EBITDA	-290.00K	41.10M	-101.94M	-278.69M	-153.63M	-37.27M
Net Income	-18.42M	22.72M	-69.62M	-289.18M	-162.00M	-46.71M
Balance Sheet
Total Assets	2.08B	1.90B	1.35B	1.75B	717.67M	364.02M
Cash, Cash Equivalents and Short-Term Investments	459.89M	448.69M	345.90M	467.65M	36.83M	93.81M
Total Debt	409.52M	30.36M	50.56M	2.74M	100.00M	0.00
Total Liabilities	1.55B	1.30B	795.82M	1.12B	773.87M	381.25M
Stockholders Equity	407.38M	472.10M	402.35M	435.83M	-279.59M	-117.10M
Cash Flow
Free Cash Flow	-420.03M	60.71M	-124.15M	-290.32M	-269.56M	-15.80M
Operating Cash Flow	-400.75M	71.23M	-111.93M	-282.38M	-265.27M	-14.02M
Investing Cash Flow	-25.58M	-18.98M	94.44M	-148.42M	-22.29M	18.22M
Financing Cash Flow	355.74M	-8.68M	52.59M	817.05M	231.13M	2.50M

Fluence Energy Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.91

Price Trends

50DMA

8.29

Positive

100DMA

7.10

Positive

200DMA

8.22

Positive

Market Momentum

MACD

0.97

Negative

RSI

77.03

Negative

STOCH

90.12

Negative

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 11.91 is above the 20-day moving average (MA) of 8.27, above the 50-day MA of 8.29, and above the 200-day MA of 8.22, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 77.03 is Negative, neither overbought nor oversold. The STOCH value of 90.12 is Negative, 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 (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNW	67 Neutral	$2.79B	25.58	3.39%	―	33.19%	486.74%
FLNC	55 Neutral	$2.17B	236.42	-4.45%	―	14.26%	20.99%
NRGV	54 Neutral	$490.42M	-3.15	-160.01%	―	-82.87%	-59.38%
WAVE	50 Neutral	$47.43M	-15.72	-24.56%	―	-46.17%	-54.38%
NXXT	44 Neutral	$222.26M	-0.41	-751.03%	―	92.43%	31.00%
SMR	42 Neutral	$10.83B	-31.91	―	―	305.08%	-17.22%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

* Utilities Sector Average

Performance Comparison

FLNC

Fluence Energy

11.91

-10.80

-47.56%

SMR

NuScale Power

38.00

26.42

228.15%

RNW

ReNew Energy Global

7.70

1.41

22.42%

NRGV

Energy Vault Holdings

3.03

2.07

215.63%

WAVE

Eco Wave Power Global

8.12

2.20

37.16%

NXXT

NextNRG

1.77

-1.24

-41.20%

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: Sep 16, 2025