Fluence Energy 2025 Q4 Earnings Sharp Net Income Drop of 64.5%

Fluence Energy (FLNC) reported fiscal 2025 Q4 results on Nov. 24, 2025, with revenue and earnings falling below expectations. The company issued optimistic 2026 guidance despite missing key metrics, including a 15.2% revenue decline and a 62.2% EPS drop.

Revenue

Fluence Energy’s total revenue for Q4 2025 was $1.04 billion, driven by $757.68 million in core revenue and $284.21 million from related-party transactions. This marks a 15.2% year-over-year decline from $1.23 billion in 2024 Q4.

Earnings/Net Income

The company’s net income plummeted to $24.06 million in 2025 Q4, a 64.5% decrease from $67.72 million in 2024 Q4. Earnings per share (EPS) fell 62.2% to $0.14, reflecting sustained financial pressures. The significant declines in EPS and net income underscore ongoing financial challenges despite record order intake.

Post-Earnings Price Action Review

The strategy of buying Fluence Energy shares after a revenue increase quarter-over-quarter on the report date and holding for 30 days delivered a -35.90% return over three years, vastly underperforming the benchmark’s 69.21%. With a CAGR of -13.88%, maximum drawdown of 0.00%, and a Sharpe ratio of -0.15, the strategy highlighted poor risk-adjusted returns and high volatility.

CEO Commentary

Julian Nebreda, President and CEO, highlighted record quarterly order intake of $1.4 billion and a 13.7% adjusted gross profit margin. He emphasized the company’s U.S. domestic content strategy and confidence in leveraging a $5.3 billion backlog and $1.3 billion liquidity.

Guidance

Fluence Energy provided fiscal 2026 guidance: revenue of $3.2–$3.6 billion (midpoint $3.4 billion), adjusted EBITDA of $40–$60 million (midpoint $50 million), and annual recurring revenue (ARR) of $180 million. CFO Ahmed Pasha noted 85% of the revenue forecast is secured in backlog.

Additional News

Fluence Energy’s shares surged 10.7% pre-market after forecasting 50% revenue growth for FY 2026, driven by an 85% backlog coverage and $1.3 billion liquidity. CEO Julian Nebreda cited “accelerating demand for energy storage” as a key catalyst. The company also reported a record $5.3 billion backlog as of Sept. 30, 2025, up from $4.5 billion a year earlier.

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Fluence Energy’s 2026 outlook, despite Q4 earnings and revenue misses, reflects confidence in its market position and growth potential. Investors remain focused on the company’s ability to execute its backlog and capitalize on energy storage demand.