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Fluence Energy (FLNC)
NASDAQ:FLNC
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Fluence Energy Inc Class A
(NASDAQ:FLNC)
Rating:54Neutral
Price Target:
$7.50
▼(-0.79% Downside)
Positive Factors
Demand and Bookings
Early signs of demand recovering with strong bookings in July and August.
Financial Performance
FLNC achieved a 15.4% adjusted gross margin in the period, driven by cost controls and product mix.
Regulatory Environment
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 Positioning
Recent results seem to demonstrate FLNC is not benefiting from positive trends in the sector, creating uncertainty around the company's ability to execute as the market becomes more competitive.
Management Guidance
Lowering 2025 revenue estimates due to management's guidance reduction and uncertainty around bookings activity, particularly in the U.S.
Revenue Expectations
Revenue is now expected to be at the lower end of the guidance range due to the production delays.
Fluence Energy Inc Class A (FLNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.34B
Dividend YieldN/A
Average Volume (3M)4.59M
Price to Earnings (P/E)236.4
Beta (1Y)1.96
Revenue Growth14.26%
EPS Growth20.99%
CountryUS
Employees1,595
SectorUtilities
Sector Strength87
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.01
Shares Outstanding131,006,990
10 Day Avg. Volume3,854,349
30 Day Avg. Volume4,585,420
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 Cap0.96
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit4.17
Enterprise Value/Ebitda-4.47K
Forecast
1Y Price Target
$8.12Price Target Upside7.41% Upside
Rating ConsensusHold
Number of Analyst Covering14
Fluence Energy Inc Class A 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 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 Inc Class A Key Performance Indicators (KPIs)
Any
Annual Recurring Revenue
Shows the predictable revenue generated from ongoing contracts or subscriptions, highlighting the company's stability and potential for sustainable growth.
Shows the predictable revenue generated from ongoing contracts or subscriptions, highlighting the company's stability and potential for sustainable growth.
Data provided by:
Main Street Data
Main Street DataFluence Energy Inc Class A Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: -17.29%|
Next Earnings Date:Dec 02, 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 Inc Class A Financial Statement Overview
Summary
Fluence Energy is experiencing revenue growth, but profitability and cash flow remain concerns. The company has improved its gross profit margin, but negative net profit margins and cash flows highlight ongoing operational challenges. The balance sheet shows increased leverage, but the equity base remains stable.Income Statement
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.55
Neutral
Balance Sheet
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.60
Neutral
Cash Flow
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.50
Neutral
| 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 Inc Class A Technical Analysis
Negative
7.56
Price Trends
7.38
Positive
5.98
Positive
10.06
Negative
Market Momentum
0.08
Positive
43.67
Neutral
16.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNC, the sentiment is Negative. The current price of 7.56 is below the 20-day moving average (MA) of 8.68, above the 50-day MA of 7.38, and below the 200-day MA of 10.06, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 16.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLNC.
Fluence Energy Inc Class A Risk Analysis
Fluence Energy Inc Class A disclosed 76 risk factors in its most recent earnings report. Fluence Energy Inc Class A 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 Inc Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $800.50M | 23.35 | 0.29% | ― | 26.49% | ― | |
67 Neutral | $2.73B | 51.41 | 8.27% | ― | 33.19% | 486.74% | |
61 Neutral | £7.19B | 5.43 | 11.07% | 5.28% | 4.13% | -72.10% | |
54 Neutral | $1.34B | 236.42 | -4.45% | ― | 14.26% | 20.99% | |
54 Neutral | $254.11M | ― | -101.08% | ― | -82.87% | -59.38% | |
42 Neutral | $10.87B | ― | -29.93% | ― | 305.08% | -17.22% | |
40 Underperform | $158.73M | ― | -9999.00% | ― | 52.34% | 10.37% |
* Utilities Sector Average
Performance Comparison
FLNC
Fluence Energy Inc Class A
7.56
-9.88
-56.65%
SMR
NuScale Power
35.93
26.55
283.05%
AMPS
Altus Power
4.99
2.01
67.45%
RNW
ReNew Energy Global
7.70
1.78
30.07%
NRGV
Energy Vault Holdings
1.57
0.60
61.86%
NXXT
NextNRG
1.33
-1.49
-52.84%
Fluence Energy Inc Class A 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.