Fluence Energy 2025 Q2 Earnings Misses Targets as Net Income Worsens 225.7%

Fluence Energy (FLNC) reported its fiscal 2025 Q2 earnings on May 7th, 2025. The company missed market expectations, with a significant drop in revenue and an increased net loss compared to the previous year. The lowered full-year guidance further underlined the challenging market conditions, primarily due to uncertainties surrounding trade and tariffs. The adjusted EBITDA guidance was also revised downwards, reflecting these operational headwinds. Fluence Energy remains focused on long-term growth despite the current hurdles.

Revenue

The total revenue of Fluence Energy decreased by 30.7% to $431.62 million in 2025 Q2, down from $623.14 million in 2024 Q2.

Earnings/Net Income

Fluence Energy's losses deepened to $0.24 per share in 2025 Q2 from a loss of $0.07 per share in 2024 Q2 (242.9% wider loss). Meanwhile, the company's net loss widened to $-41.93 million in 2025 Q2, representing a 225.7% increase from the $-12.88 million loss recorded in 2024 Q2. This EPS performance indicates a negative earnings trend.

Price Action

The stock price of Fluence Energy has climbed 5.13% during the latest trading day, has jumped 10.27% during the most recent full trading week, and has climbed 4.64% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Fluence Energy (FLNC) shares following a revenue increase and holding them for 30 days has underperformed over the past five years. This approach yielded a return of -4.39%, significantly lagging behind the benchmark return of 17.49%. The strategy's excess return was -21.89%, with a compounded annual growth rate (CAGR) of -1.27%, indicating a decline in value over time. Additionally, it experienced a high maximum drawdown of -20.54% and a negative Sharpe ratio of -0.10, highlighting the associated risks and negative returns. This suggests that the stock's post-earnings performance has not aligned with broader market trends, emphasizing the importance of reassessing investment strategies.

CEO Commentary

"The evolving trade and tariff landscape has created significant uncertainty in the U.S. market, which has led us to agree with our customers during the second quarter to pause certain contracts both under execution and those we expected to sign until we have better visibility," said Julian Nebreda, Chief Executive Officer of Fluence Energy. He noted that the order intake for the quarter was below initial expectations due to this dynamic. Despite these challenges, he expressed confidence in the long-term growth trajectory of the energy storage industry, highlighting the company's rapid innovation strategy, differentiated supply chain, and market-leading U.S. domestic content offering.

Guidance

The Company is revising its fiscal year 2025 guidance, now expecting total revenue in the range of $2.6 billion to $2.8 billion, down from the previous range of $3.1 billion to $3.7 billion. Adjusted EBITDA guidance is also lowered to a range of $0 to $20 million, from a prior range of $70 million to $100 million. The updated revenue midpoint is approximately 95% covered by the current backlog and fiscal year-to-date revenue. Fluence is reaffirming its fiscal year 2025 annual recurring revenue guidance of approximately $145 million.

Additional News

In recent developments, Fluence Energy has secured a significant energy storage deal in Finland. The agreement involves providing NTR with a 55 MW/110 MWh battery system, which is expected to enhance grid stability and boost energy shifting capabilities. This move underscores Fluence's commitment to expanding its footprint in Europe and aligns with global renewable energy aspirations. Additionally, the company has faced legal challenges with a securities lawsuit alleging misleading financial statements, adding a layer of complexity to its current market position. Investors are advised to monitor these developments as they may impact Fluence's strategic direction and market performance.