Latest news with #FLNC
Yahoo
an hour ago
- Business
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FLNC Q2 Deep Dive: Revenue Lags While U.S. Policy Shifts Shape Outlook
Electricity storage and software provider Fluence (NASDAQ:FLNC) missed Wall Street's revenue expectations in Q2 CY2025, but sales rose 24.7% year on year to $602.5 million. The company's full-year revenue guidance of $2.7 billion at the midpoint came in 1.1% below analysts' estimates. Its GAAP profit of $0.03 per share was significantly above analysts' consensus estimates. Is now the time to buy FLNC? Find out in our full research report (it's free). Fluence Energy (FLNC) Q2 CY2025 Highlights: Revenue: $602.5 million vs analyst estimates of $763.4 million (24.7% year-on-year growth, 21.1% miss) EPS (GAAP): $0.03 vs analyst estimates of -$0.02 (significant beat) Adjusted EBITDA: $27.36 million vs analyst estimates of $13.19 million (4.5% margin, significant beat) The company reconfirmed its revenue guidance for the full year of $2.7 billion at the midpoint EBITDA guidance for the full year is $10 million at the midpoint, in line with analyst expectations Operating Margin: 0.7%, in line with the same quarter last year Deployed Megawatts for Digital Contracts: 21,600, up 3,300 year on year Backlog: $4.9 billion at quarter end, up 8.9% year on year Market Capitalization: $1.20 billion StockStory's Take Fluence Energy's second quarter was marked by a negative market reaction as revenue growth did not meet Wall Street expectations, largely due to production delays in its U.S. facilities. Management attributed the underperformance to slower-than-anticipated ramp-up at its Arizona manufacturing plant, which disrupted the timing of customer deliveries. CEO Julian Nebreda noted, 'We recorded approximately $603 million in revenue, which was below our expectations, mostly due to delays in ramping up volume at our U.S. manufacturing facility.' Despite these setbacks, the company pointed to robust international demand and progress in resolving domestic production issues as supporting factors for future quarters. Looking ahead, Fluence Energy's outlook is shaped by recent U.S. legislative changes and evolving tariff policies, which management believes will strengthen its competitive position in domestic battery storage. The passage of the One Big Beautiful Bill Act, which extends tax credits and tightens restrictions on foreign content, is expected to benefit Fluence's U.S.-based supply chain. Nebreda emphasized, 'We believe that these provisions enhance our competitive position as one of the few companies currently capable of delivering domestic content energy storage systems at scale.' However, the company remains cautious about margin pressures from tariffs and the pace of U.S. market recovery. Key Insights from Management's Remarks Management cited delayed U.S. production ramp-up, regulatory shifts, and strong international activity as key factors impacting the quarter's results and future guidance. U.S. production ramp-up delays: Revenue shortfall was primarily due to slower scaling at the Arizona facility, with management expecting to resolve these issues by year-end but unable to recapture all deferred revenue within the current year. Legislative and tariff environment: Recent U.S. legislation, particularly the One Big Beautiful Bill Act, introduced provisions that favor domestically produced battery storage systems and restrict reliance on Chinese components. Management views these developments as supportive of Fluence's U.S. market strategy. International growth momentum: Over half of quarterly revenue came from projects in Europe and Asia, where supply chain execution and customer demand remained strong, contributing to higher-than-expected gross margins. Backlog expansion and diversification: The backlog reached $4.9 billion, with significant new contracts in Australia and ongoing growth in the Asia Pacific and EMEA (Europe, Middle East, Africa) regions, providing visibility into future revenue. Supply chain flexibility and compliance: Fluence is actively working with suppliers to meet new regulatory requirements on domestic content and foreign entity restrictions, aiming to avoid additional capital needs and maintain its compliance leadership in U.S. projects. Drivers of Future Performance Fluence's forward guidance is shaped by domestic policy changes, ongoing supply chain adjustments, and the evolving mix of U.S. and international demand. Policy-driven market dynamics: Management expects U.S. policy changes, including extended tax credits and stricter content requirements, to drive increased domestic demand for compliant energy storage systems, supporting backlog growth but requiring ongoing regulatory adaptation. Margin headwinds from tariffs: Near-term margins are expected to be pressured by tariff-related costs in legacy U.S. contracts, with management indicating these effects should diminish as new contracts reflect updated pricing and cost structures. International projects are expected to maintain higher margin profiles. Data center and grid demand expansion: The emergence of AI and data center energy needs is creating new opportunities for battery storage solutions. Fluence is developing offerings tailored to rapid, variable power demand, which management believes will open up additional addressable markets over the next several years. Catalysts in Upcoming Quarters In the coming quarters, our analysts will monitor (1) the resolution of U.S. production ramp-up issues and their impact on revenue timing, (2) the pace of new contract awards in the U.S. as regulatory clarity and customer confidence return, and (3) the company's progress in expanding direct engagement with data center operators. Continued backlog growth and successful adaptation to evolving domestic content requirements will also be key markers of execution. Fluence Energy currently trades at $7.20, down from $9.25 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). High Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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Yahoo
3 days ago
- Business
- Yahoo
Fluence Energy (FLNC) Q2 Earnings Report Preview: What To Look For
Electricity storage and software provider Fluence (NASDAQ:FLNC) will be reporting results this Monday after market hours. Here's what investors should know. Fluence Energy beat analysts' revenue expectations by 29.8% last quarter, reporting revenues of $431.6 million, down 30.7% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations significantly and full-year EBITDA guidance missing analysts' expectations significantly. It reported 19,900 deployed megawatts for digital contracts, up 15.7% year on year. Is Fluence Energy a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Fluence Energy's revenue to grow 57.9% year on year to $763.4 million, a reversal from the 9.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share. Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 15 analysts). Fluence Energy has missed Wall Street's revenue estimates four times over the last two years. Looking at Fluence Energy's peers in the renewable energy segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Generac delivered year-on-year revenue growth of 6.3%, beating analysts' expectations by 3.4%, and Sunrun reported revenues up 8.7%, topping estimates by 4%. Generac traded up 28.9% following the results while Sunrun was also up 16.5%. Read our full analysis of Generac's results here and Sunrun's results here. Investors in the renewable energy segment have had steady hands going into earnings, with share prices flat over the last month. Fluence Energy is up 1.4% during the same time and is heading into earnings with an average analyst price target of $8.74 (compared to the current share price of $8.29). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Fluence Energy (FLNC) Q2 Earnings Report Preview: What To Look For
Electricity storage and software provider Fluence (NASDAQ:FLNC) will be reporting results this Monday after market hours. Here's what investors should know. Fluence Energy beat analysts' revenue expectations by 29.8% last quarter, reporting revenues of $431.6 million, down 30.7% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations significantly and full-year EBITDA guidance missing analysts' expectations significantly. It reported 19,900 deployed megawatts for digital contracts, up 15.7% year on year. Is Fluence Energy a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Fluence Energy's revenue to grow 57.9% year on year to $763.4 million, a reversal from the 9.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share. Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 15 analysts). Fluence Energy has missed Wall Street's revenue estimates four times over the last two years. Looking at Fluence Energy's peers in the renewable energy segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Generac delivered year-on-year revenue growth of 6.3%, beating analysts' expectations by 3.4%, and Sunrun reported revenues up 8.7%, topping estimates by 4%. Generac traded up 28.9% following the results while Sunrun was also up 16.5%. Read our full analysis of Generac's results here and Sunrun's results here. Investors in the renewable energy segment have had steady hands going into earnings, with share prices flat over the last month. Fluence Energy is up 1.4% during the same time and is heading into earnings with an average analyst price target of $8.74 (compared to the current share price of $8.29). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
05-07-2025
- Business
- Yahoo
Fluence Energy (FLNC) Continued to Soar This Week. Here is Why.
The share price of Fluence Energy, Inc. (NASDAQ:FLNC) surged by 33.49% between June 26 and July 3, 2025, putting it among the Energy Stocks that Gained the Most This Week. An illustration of digital intelligence and energy storage for a modern industrial facility with servers and storage racks in the background. Fluence Energy, Inc. (NASDAQ:FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. Fluence Energy, Inc. (NASDAQ:FLNC) continued to soar this week after it was revealed that the final version of President Trump's tax and spending bill would preserve tax credits for the battery storage industry. While the legislation includes a sooner-than-expected phaseout for the wind and solar industries, energy storage is exempt from the phase-down, meaning that full credits would remain in place as written in current law for battery systems put in service before 2036. Despite the recent rally, Fluence Energy, Inc. (NASDAQ:FLNC) has declined by over 50% since the beginning of 2025. While we acknowledge the potential of FLNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None. Inicia sesión para acceder a tu cartera de valores
Yahoo
11-06-2025
- Business
- Yahoo
FLNC Q1 Earnings Call: Tariffs Drive Guidance Cut as Supply Chain Strategy Tested
Electricity storage and software provider Fluence (NASDAQ:FLNC) announced better-than-expected revenue in Q1 CY2025, but sales fell by 30.7% year on year to $431.6 million. On the other hand, the company's full-year revenue guidance of $2.7 billion at the midpoint came in 15.3% below analysts' estimates. Its non-GAAP loss of $0.19 per share was 12% above analysts' consensus estimates. Is now the time to buy FLNC? Find out in our full research report (it's free). Revenue: $431.6 million vs analyst estimates of $343.5 million (30.7% year-on-year decline, 25.7% beat) Adjusted EBITDA: -$30.41 million vs analyst estimates of -$31.55 million (-7% margin, 3.6% beat) The company dropped its revenue guidance for the full year to $2.7 billion at the midpoint from $3.4 billion, a 20.6% decrease EBITDA guidance for the full year is $10 million at the midpoint, below analyst estimates of $49.82 million Operating Margin: -10.4%, down from -2.5% in the same quarter last year Market Capitalization: $649.7 million Fluence Energy's first quarter results were shaped by rapid changes in the U.S. policy landscape and ongoing supply chain adjustments. CEO Julian Nebreda pointed to earlier-than-anticipated project milestone completions, especially in the Americas and Asia-Pacific, as contributors to revenue for the period. Management emphasized that efficiencies gained from the company's supply chain initiatives allowed it to deliver on key contracts despite a challenging market. Additionally, recurring digital and services revenue continued to show momentum, with annual recurring revenue reaching $110 million. Nebreda was clear that the company's backlog remains robust, ending the quarter at $4.9 billion, and attributed the current margin profile to increased R&D and go-to-market investments, primarily supporting the rollout of its new Smartstack platform. Looking forward, Fluence Energy's full-year guidance reflects significant caution due to new U.S. tariffs on Chinese battery imports and resulting uncertainty for domestic projects. Nebreda explained, 'The change in tariff and trade policy has led to considerable economic uncertainty in global markets,' leading to a mutual pause in U.S. contract execution between Fluence and some customers. Management expects the current contracting slowdown to be temporary, but acknowledged that visibility into the timing of a market rebound is limited. CFO Ahmed Pasha highlighted that the company's revised outlook incorporates both the paused contracts and anticipated tariff-related headwinds, while reaffirming strategic priorities like scaling domestic production and expanding internationally. Nebreda concluded that the company's flexible supply chain and product innovation should position it to recover as the policy environment stabilizes. Management attributed the quarter's financial performance to early project execution, ongoing supply chain initiatives, and the rapid policy shifts impacting the U.S. energy storage market. Product innovation and a diversified backlog were also central themes. Early project milestone delivery: Fluence completed key contract milestones ahead of schedule in the Americas and Asia-Pacific, benefiting from operational efficiencies and helping offset some volume softness in the U.S. Tariff-driven contract pauses: New U.S. tariffs on Chinese batteries (rising from roughly 10% to 155%) introduced substantial uncertainty, prompting Fluence and its customers to pause both signed and pending domestic contracts until the policy environment becomes clearer. Smartstack product rollout: The company's newly launched Smartstack platform received its first customer contract and positive feedback, with management highlighting its modular design, safety features, and lower cost structure compared to previous offerings. International diversification: While U.S. order intake slowed, Fluence's pipeline exceeded $22 billion with about half from international markets, providing some resilience as domestic contracting pauses. Domestic content strategy progress: All six U.S. supply chain partner facilities are now operational or ramping up, allowing Fluence to offer up to 100% non-Chinese products and helping customers qualify for domestic content incentives under the Inflation Reduction Act (IRA). Fluence's guidance is shaped by the impact of tariffs, cautious U.S. market conditions, and a strategic emphasis on international and domestic supply chain flexibility. Tariff and policy uncertainty: Management sees recently enacted tariffs as the primary reason for paused U.S. projects and reduced guidance, with the timeline for resolution dependent on ongoing trade negotiations and customer willingness to commit under current cost structures. Domestic supply chain ramp-up: The success of Fluence's domestic content strategy, including scaling battery module production and blending domestic and imported components, will determine its ability to capture U.S. demand and manage costs if tariffs persist. International growth opportunities: With a growing backlog and pipeline in markets such as Australia and Germany, international project execution and Smartstack adoption are expected to be key drivers as the company seeks to offset U.S. headwinds. In the coming quarters, the StockStory team will watch (1) the resolution of U.S. tariff policy and its impact on paused contracts, (2) the pace of Smartstack adoption and customer feedback in both U.S. and international markets, and (3) the operational ramp-up of domestic cell manufacturing and supply chain partners. Progress in international markets and ongoing cost management will also be critical signposts. Fluence Energy currently trades at a forward P/E ratio of 12.2×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
