Fluence Energy 2025 Q4 Earnings Revenue Declines 15.2%, Net Income Drops 64.5%

Fluence Energy reported Q4 2025 earnings with a 15.2% revenue decline to $1.04 billion, missing estimates by $350M. GAAP EPS of $0.13 fell short of expectations by $0.07. The company, however, provided upbeat 2026 guidance, projecting $3.2–$3.6 billion in revenue and $40–$60 million in adjusted EBITDA, exceeding analyst forecasts.

Revenue

Fluence Energy's core business generated $757.68 million in revenue, while revenue from related parties added $284.21 million, totaling $1.04 billion in total revenue for the quarter. This marked a 15.2% year-over-year decline, driven by reduced demand in key markets and production delays.

Earnings/Net Income

The company’s earnings per share (EPS) plummeted 62.2% to $0.14, and net income fell 64.5% to $24.06 million. These declines reflect persistent financial headwinds, including operational inefficiencies and higher costs. The significant drop in profitability underscores the company’s challenges in maintaining growth despite its optimistic 2026 projections.

Post-Earnings Price Action Review

Fluence Energy’s stock exhibited mixed post-earnings performance. Shares surged 12.9% immediately following the earnings report, driven by robust 2026 guidance and a $5.3 billion backlog. However, intraday volatility saw a 1.94% gain during the trading day, followed by an 8.30% weekly decline and a 1.43% monthly drop. After-hours trading revealed a 5.63% rally, reflecting investor optimism about the company’s long-term growth potential despite short-term earnings misses.

CEO Commentary

Julian Nebreda, President and CEO, emphasized record-breaking $1.4 billion in quarterly order intake and a 13.7% adjusted gross profit margin for 2025. He highlighted the U.S. domestic content strategy as a key differentiator in the energy storage market. Despite production delays, Nebreda expressed confidence in leveraging the $5.3 billion backlog and $1.3 billion liquidity to capitalize on demand.

Guidance

Fluence initiated 2026 guidance with revenue projected at $3.2–$3.6 billion (midpoint $3.4 billion), supported by 85% of the midpoint secured in backlog. Adjusted EBITDA is expected to range between $40–$60 million, with ARR targeting $180 million. CFO Ahmed Pasha noted 50% revenue growth expectations, driven by strong backlog and liquidity.

Additional News

Fluence Energy’s shares surged 12.9% post-earnings, fueled by its ambitious 2026 guidance and record $5.3 billion backlog. The company also reported a 5.63% after-hours price gain, signaling investor confidence in its strategic positioning. Zacks Investment Research highlighted the stock’s underperformance compared to the S&P 500, noting a 21.1% monthly decline versus the index’s 1.8% drop. Analysts remain cautious but acknowledge the company’s potential to recover with improved execution.

Conclusion

Fluence Energy’s Q4 2025 results reflect a challenging period marked by revenue and earnings declines. However, the company’s strong 2026 guidance and strategic focus on U.S. energy storage position it for potential growth. Investors will need to monitor execution against these projections and broader market dynamics to assess long-term viability.