Fluence Energy Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.41%.
Did FLNC Beat Earnings? Q3 2025 Results
Fluence Energy delivered a disappointing fiscal third quarter, missing on both the top and bottom lines as slower-than-expected production ramp-ups at its newly commissioned U.S. manufacturing facilities weighed on results. The energy storage company reported revenue of $602.53 million for the three months ended June 30, 2025, up 24.7% year-over-year but falling 20.77% short of the $760.49 million consensus estimate, while earnings per share of $0.01 missed the $0.01 analyst expectation by 28.57%. Management attributed the shortfall largely to delays in reaching targeted U.S. manufacturing capacity, with the affected revenue now expected to shift into fiscal 2026, where approximately $2.50 billion of backlog is slated to convert. Despite the misses, Adjusted EBITDA climbed to $27.36 million from $15.60 million a year ago, and net income improved to $6.89 million from $1.07 million. Fluence reaffirmed its full-year revenue guidance of $2.60 billion to $2.80 billion, now expected at the lower end, with U.S. facilities projected to hit targeted capacity by calendar year-end.
- Significantly second-half-weighted revenue distribution compared to full year 2024
- Revenue from related parties of $35.6 million in Q3 2025 vs $155.2 million in Q3 2024
- Strong Adjusted EBITDA growth to $27.4 million from $15.6 million year-over-year
- Overhead cost reductions supporting profitability targets despite revenue timing shifts
“We delivered strong margins this quarter, underscoring the strength of our operating model and improved execution. We also began ramping production and delivered our first domestic content products from U.S.-based manufacturing facilities to customer sites. However, delays in scaling our new manufacturing facilities in the U.S. resulted in lower-than-expected revenue for the quarter. We anticipate recovering this revenue in fiscal 2026 as these facilities reach their targeted production levels. We believe the fundamentals of our business remain incredibly strong, supported by a robust backlog, of which we expect approximately $2.5 billion to convert to revenue in fiscal 2026, including contracts signed in July and August to date.”
Fluence Energy CEO, on the earnings call
Forward Guidance & Outlook
Fluence reaffirmed its fiscal year 2025 guidance: revenue of $2.6 billion to $2.8 billion (now expected at the lower end due to slower-than-expected U.S. manufacturing ramp-up, with delayed revenue shifting to fiscal 2026), Adjusted EBITDA of $0 to $20 million (midpoint $10 million, supported by stronger-than-projected Q3 gross margins and overhead cost reductions), and ARR of approximately $145 million. U.S. manufacturing facilities are expected to reach targeted capacity by calendar year-end. Approximately $2.5 billion of backlog is expected to convert to revenue in fiscal 2026. An additional ~$1.1 billion in contracts were signed in July and August to date.
FLNC YoY Financials
Figures from SEC filings and company reports. Not investment advice.