Fluence Energy Inc Reports Q3 2025 Earnings, Exceeds Gross Margin Target Amidst Production Delays

Fluence Energy Inc reported Q3 2025 revenue of $603 million, below expectations due to delays in US manufacturing ramp-up. The company's backlog is approximately $4.9 billion, with an additional $1.1 billion in contracts added since June 30. Adjusted gross margin exceeded the target at 15.4%. Liquidity stands at over $900 million, including $460 million in cash. Adjusted EBITDA was around $27 million for Q3. Fiscal 2025 revenue guidance is expected at the low end of prior guidance at approximately $2.6 billion.

Fluence Energy Inc. reported its third-quarter 2025 financial results, revealing a revenue of $602.5 million, which was below expectations due to delays in ramping up its US manufacturing facilities. The company's backlog stands at approximately $4.9 billion, with an additional $1.1 billion in contracts added since June 30. Despite the revenue shortfall, adjusted gross margin exceeded the target at 15.4%. Liquidity remains strong at over $900 million, including $459.9 million in cash. Adjusted EBITDA for Q3 was around $27.4 million. For the fiscal year 2025, the company expects revenue to be at the lower end of its prior guidance of $2.6 billion to $2.8 billion [1].

Fluence's CEO, Julian Nebreda, explained that the company had to halt the execution of a few contracts last quarter due to policy uncertainty, but these contracts are now moving forward. The company's domestic manufacturing strategy, which includes facilities in Utah, Texas, and Arizona, is expected to provide a strategic advantage in the long term. Nebreda noted that the US market accounts for around half of Fluence's business and that the company is positioning itself to meet domestic content requirements introduced by the Inflation Reduction Act (IRA) [2].

The company's overall performance in Q3 2025 was mixed, with better-than-expected EPS but falling short on revenue. Fluence Energy maintains a strong liquidity position with $900 million, including a cash position of $416 million, and anticipates converting $2.5 billion of its backlog to revenue in fiscal 2026. Despite the revenue miss, Fluence Energy continues to expand its product offerings and manufacturing capabilities, particularly in the U.S. [3].

The global energy storage market remains robust, with increased demand from AI and data center sectors, positioning Fluence Energy well for future growth. However, the company faces challenges such as supply chain disruptions, market saturation, macroeconomic pressures, regulatory changes, and intense competition from other energy storage providers [1].

References:
[1] https://www.energy-storage.news/fluence-lower-end-of-2025-guidance-typical-ramping-delays-at-us-factories/
[2] https://www.ainvest.com/news/fluence-energy-reports-q3-2025-revenue-602-5m-reaffirms-fy2025-guidance-manufacturing-delays-2508/
[3] https://ir.fluenceenergy.com/news-releases/news-release-details/fluence-energy-inc-reports-third-quarter-2025-results-reaffirms