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Fluence Energy Inc Class A (FLNC)
:FLNC
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Fluence Energy
(NASDAQ:FLNC)
54Neutral
Positive Factors
EBITDA and Financial Performance
Increasing the 2026 EBITDA estimate to $19 million, up from a previous estimate of -$92 million.
EBITDA Margins
Increasing 2026 EBITDA margins to reflect a potentially more benign tariff environment with China.
Negative Factors
Industry Outlook
The stock is downgraded to 'Underperform' due to a valuation disconnect and wider slowing of industry outlook.
Revenue Guidance
Lowering 2025 revenue estimates due to management's guidance reduction and uncertainty around bookings activity, particularly in the U.S.
Tariffs and Policy Uncertainty
The uncertainty around tariffs and policies is enough to slow down the market, leading to FLNC revising down its revenue guidance by 20%.
Fluence Energy (FLNC) vs. S&P 500 (SPY)
Market Cap
$960.29M
Dividend YieldN/A
Average Volume (3M)5.69M
Price to Earnings (P/E)236.4
Beta (1Y)1.78
Revenue Growth6.08%
EPS Growth52.48%
CountryUS
Employees1,595
SectorUtilities
Sector Strength83
IndustryRenewable Utilities
Share Statistics
EPS (TTM)-0.24
Shares Outstanding130,718,870
10 Day Avg. Volume7,817,777
30 Day Avg. Volume5,692,715
Financial Highlights & Ratios
PEG Ratio2.68
Price to Book (P/B)1.45
Price to Sales (P/S)0.00
P/FCF Ratio-3.42
Enterprise Value/Market Cap0.39
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit1.16
Enterprise Value/Ebitda-14.22
Forecast
1Y Price Target
$5.32Price Target Upside-1.48% Downside
Rating ConsensusHold
Number of Analyst Covering17
Fluence Energy Business Overview & Revenue Model
Company DescriptionFluence Energy (FLNC) is a global leader in energy storage technology and services, serving the renewable energy sector. The company provides comprehensive energy storage solutions and services, including advanced batteries and software platforms, that enhance the efficiency and reliability of electric grids. Fluence Energy operates in sectors such as utilities, commercial and industrial, and renewable energy project developers, helping them transition to cleaner energy systems.
How the Company Makes MoneyFluence Energy makes money through the sale and deployment of its energy storage solutions, which include hardware like battery systems and associated software. The company's revenue model is primarily based on project sales and long-term service agreements, which provide ongoing revenue from maintenance and operational services. Key revenue streams include direct sales to utility companies, commercial enterprises, and renewable energy developers. Additionally, Fluence Energy partners with various stakeholders in the energy sector to develop and implement large-scale energy storage projects, contributing to its earnings. By enhancing grid stability and integrating renewable energy sources, Fluence helps its clients achieve energy efficiency and sustainability goals, which in turn drives demand for its products and services.
Fluence Energy Key Performance Indicators (KPIs)
Any
Annual Recurring Revenue
Measures the predictable revenue from ongoing subscriptions or contracts, showcasing the company's stability and potential for steady cash flow.
Measures the predictable revenue from ongoing subscriptions or contracts, showcasing the company's stability and potential for steady cash flow.
Data provided by:
Main Street Data
Main Street DataFluence Energy Financial Statement Overview
Summary
Fluence Energy shows strong revenue growth and improvement in cost management. However, profitability remains a challenge with negative net profit and operating cash flows. The balance sheet indicates manageable leverage but heavy reliance on liabilities.Income Statement
Fluence Energy's revenue growth is strong, with a significant increase over recent periods. Gross profit margin has improved, indicating better cost management. However, net profit margin remains negative, showing challenges in achieving profitability. The EBIT and EBITDA margins have improved but are still relatively low, reflecting ongoing operational challenges.72
Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the equity ratio is low, suggesting a heavy reliance on liabilities. Return on equity is improving but remains negative, highlighting difficulties in generating profit for shareholders.65
Positive
Cash Flow
Operating cash flow remains negative, suggesting cash management issues. Free cash flow is also negative, indicating insufficient cash generation to fund operations and investments. However, there is a notable improvement in cash flow metrics compared to previous periods.60
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.52B | 2.70B | 2.22B | 1.20B | 680.77M | 561.32M | Gross Profit |
| 325.89M | 341.08M | 140.96M | -62.35M | -69.14M | 7.92M | EBIT |
| 11.82M | 26.62M | -102.77M | -285.80M | -158.74M | -40.81M | EBITDA |
| 18.36M | 41.10M | -101.94M | -278.69M | -153.63M | -37.27M | Net Income Common Stockholders |
| -2.01M | 22.72M | -69.62M | -289.18M | -162.00M | -46.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 518.40M | 448.69M | 345.90M | 467.65M | 36.83M | 93.81M | Total Assets |
| 1.53B | 1.90B | 1.35B | 1.75B | 717.67M | 364.02M | Total Debt |
| 57.96M | 30.36M | 50.56M | 2.74M | 100.00M | 0.00 | Net Debt |
| -460.44M | -418.32M | -295.33M | -354.55M | 63.17M | -93.81M | Total Liabilities |
| 998.11M | 1.30B | 795.82M | 1.12B | 773.87M | 381.25M | Stockholders Equity |
| 413.07M | 472.10M | 402.35M | 435.83M | -279.59M | -117.10M |
| Cash Flow | Free Cash Flow | ||||
| -174.40M | 60.71M | -124.15M | -290.32M | -269.56M | -15.80M | Operating Cash Flow |
| -155.91M | 71.23M | -111.93M | -282.38M | -265.27M | -14.02M | Investing Cash Flow |
| -21.57M | -18.98M | 94.44M | -148.42M | -22.29M | 18.22M | Financing Cash Flow |
| 362.81M | -8.68M | 52.59M | 817.05M | 231.13M | 2.50M |
Fluence Energy Technical Analysis
Neutral
5.40
Price Trends
4.68
Positive
8.20
Negative
13.84
Negative
Market Momentum
0.23
Negative
58.26
Neutral
54.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNC, the sentiment is Neutral. The current price of 5.4 is above the 20-day moving average (MA) of 4.59, above the 50-day MA of 4.68, and below the 200-day MA of 13.84, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 54.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.47B | 98.41 | 2.00% | ― | -1.77% | -41.65% | |
63 Neutral | $8.57B | 10.13 | 4.66% | 4.38% | 3.79% | -12.91% | |
54 Neutral | $960.29M | 236.42 | -5.96% | ― | 6.08% | 52.48% | |
52 Neutral | $138.66M | ― | -82.96% | ― | -86.10% | -49.68% | |
42 Neutral | $6.87B | ― | -32.34% | ― | 62.41% | -85.81% | |
35 Underperform | $347.20M | ― | -9999.00% | ― | 19.63% | 25.63% |
* Utilities Sector Average
Performance Comparison
FLNC
Fluence Energy
5.27
-12.88
-70.96%
SMR
NuScale Power
24.52
17.27
238.21%
RNW
ReNew Energy Global
6.81
0.92
15.62%
NRGV
Energy Vault Holdings
0.88
-0.29
-24.79%
NXXT
NextNRG
3.09
-3.16
-50.56%
Fluence Energy Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q2-2025)
| % Change Since: 19.73%|
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 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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.