Core Viewpoint - Fluence Energy, Inc. (NASDAQ:FLNC) experienced a significant decline in share price following the release of mixed Q1 2026 results, highlighting challenges in profitability despite strong revenue growth [1][2]. Financial Performance - The company reported a loss of $0.34 per share, which was $0.13 below expectations, and a net loss of $62.6 million for the quarter, widening by 10% year-over-year [2]. - Revenue for Q1 2026 grew by 154% year-over-year to $475.23 million, exceeding forecasts by nearly $10 million [4]. - Adjusted EBITDA was negative $52.1 million, compared to negative $49.7 million in the previous year [2]. Profitability Metrics - Gross profit margin fell to 4.9% from 11.4% in Q1 2025, while adjusted gross profit margin decreased to 5.6% from 12.5% [3]. - The decline in gross margins was attributed to additional estimated costs on two projects and the distribution of fixed overhead costs [3]. Future Guidance - Fluence reaffirmed its FY 2026 revenue guidance of $3.2 billion to $3.6 billion and maintained its adjusted EBITDA forecast of $40 million to $60 million [4]. - The company reported over $750 million in new orders during the quarter, raising its total backlog to approximately $5.5 billion, a historic high [4]. Analyst Reactions - Following the Q1 report, Mizuho reduced its price target for FLNC from $15 to $13 while maintaining an 'Underperform' rating [5]. - Susquehanna also lowered its price target from $30 to $27 but kept a 'Positive' rating on the shares [5].

Core Insights - The AI infrastructure boom is driving significant demand for data centers, which require substantial power and speed to operate effectively [1][2] Group 1: Fluence Energy - Fluence Energy specializes in industrial-scale battery modules that provide stable energy for AI servers, particularly when paired with renewable energy sources [3][4] - The company was established in 2018 as a joint venture between Siemens and AES, and while revenues have been flat, analysts predict a 57% increase in annual sales over the next two years, driven by data center demand [4][5] - Fluence has 36 GWh of data center projects in development, with a total installed capacity of 46 GWh as of last September, indicating a significant growth opportunity [5][6] Group 2: Credo Technology Group - Credo Technology offers high-speed networking tools that help data center operators reduce power consumption and cooling needs while maintaining performance [7][8] - The company's Active Electrical Cables (AECs) can achieve data flows of up to 0.8 terabits per second, making them competitive with fiber-optic networks but with lower power requirements [8][9] - Credo's revenues are heavily reliant on a few major clients, with one unnamed client accounting for 67% of total revenues in fiscal year 2025, but the company reported a significant revenue increase to approximately $406 million in Q3 2026, tripling from the previous year [12][13]

Core Viewpoint - Fluence Energy, Inc. (NASDAQ: FLNC) specializes in energy storage solutions, crucial for integrating renewable energy into the power grid, with a market capitalization of approximately $2.54 billion [1] Price Targets and Analyst Ratings - Jefferies set a price target of $24 for FLNC, indicating a potential price increase of about 23.71% from its current price of $19.40 [2] - Canaccord Genuity Group raised their price target from $10.00 to $25.00, assigning a "buy" rating, while Barclays increased their price objective from $15 to $20, giving an "equal weight" rating [2][5] Stock Performance and Volatility - FLNC's stock price has shown volatility, opening at $20.40 after a previous close of $18.95, and last traded at $19.21, with a trading volume of nearly 1.93 million shares [3] - The stock fluctuated between a low of $18.29 and a high of $20.72 on a recent trading day, with a yearly high of $33.51 and a low of $3.46, indicating significant volatility [4] - Citigroup adjusted their target price from $7.50 to $20.00, maintaining a "neutral" rating, reflecting a cautious outlook despite recent price target increases by other analysts [4]

Core Viewpoint - Fluence Energy, Inc. is a key player in the energy storage sector, providing innovative solutions that enhance grid reliability and efficiency, crucial for the transition to renewable energy sources [1] Group 1: Stock Performance and Analyst Ratings - On February 9, 2026, Jefferies upgraded Fluence Energy's stock from Hold to Buy, with the stock priced at $19.40 at the time of the upgrade [2] - The stock opened at $20.40, up from a previous close of $18.95, before settling at $19.21, with a trading volume of nearly 1.93 million shares [2] - Recent analyst activity shows a positive shift, with Wall Street Zen upgrading the stock from "sell" to "hold," and Canaccord Genuity Group raising their price target from $10 to $25, assigning a "buy" rating [3] Group 2: Market Activity and Volatility - Fluence Energy's stock experienced a slight decrease of 0.21%, changing by $0.04, with a trading range for the day between $18.29 and $20.72 [4] - Over the past year, the stock has seen a high of $33.51 and a low of $3.46, indicating significant volatility [4] - The company's market capitalization is approximately $2.54 billion, with a trading volume of 7,032,459 shares, suggesting strong investor interest [5]

Core Viewpoint - Fluence Energy Inc. (NASDAQ:FLNC) experienced a significant decline in share prices due to increased losses in Q1 FY 2026, despite a substantial rise in revenue [1][2]. Financial Performance - Attributable net loss widened by 8.4% to $45 million from $41.5 million year-on-year, while revenues surged by 154% to $475 million from $187 million [2]. - The company reaffirmed its full fiscal year revenue growth outlook of $3.2 billion to $3.6 billion, with the midpoint of $3.4 billion already covered by orders in backlog [4]. Market Dynamics - The demand for energy storage is being driven by accelerating data center growth, utility demand, and rising industrial loads, with the company's pipeline growing by approximately 30% to $30 billion since September 2025 [3]. - The financial discipline of Fluence is expected to position the company to capture growth in the energy storage market and deliver value to shareholders [5].

Core Insights - Fluence reported a significant increase in its pipeline, growing approximately $7 billion, or 30%, during the quarter, primarily driven by the U.S. market [1] - The company signed over $750 million in new orders globally for the quarter, with more than $500 million coming from the U.S., indicating strong market momentum [2] - Fluence ended the quarter with a record contracted backlog of $5.5 billion, attributed to increased U.S. contracting activity and rising demand forecasts [3] Financial Performance - Fiscal Q1 revenue was $475 million, representing 14% of the full-year guidance, with an adjusted gross margin of 5.6% and adjusted EBITDA of negative $52 million due to discrete project costs and seasonal dynamics [6][10] - Adjusted gross profit for the quarter was $27 million, with management indicating that margin pressures were not systemic or structural, as the rolling 12-month adjusted gross margin was 12.3% [11] - The company reaffirmed its fiscal 2026 guidance, projecting revenue between $3.2 billion and $3.6 billion, with an adjusted EBITDA of $40 million to $60 million [18][19] Liquidity and Supply Chain - Fluence finished the quarter with approximately $1.1 billion in total liquidity, including $477 million in cash and $617 million available through credit facilities, providing flexibility for growth investments [5][13] - The company reported that domestic cell/module production and enclosure manufacturing are on track, securing 100% of its 2026 domestic and international supply needs [5][16] - Fluence is working with AESC to ensure compliance with "prohibited foreign entity" regulations while expanding its domestic supplier base [15] Market Opportunities - Fluence is focusing on new segments such as data centers and long-duration energy storage, with discussions covering 36 GWh of data center projects and 34 GWh of long-duration storage projects [7][8] - The company has not yet converted newer data center opportunities into backlog but expects some conversion in the second half of the calendar year [8] - Approximately 25% of the discussed data center and long-duration figures are currently in the pipeline, with the remainder categorized as leads [9] Legal Matters - Fluence reached a settlement related to the Moss Landing incident for an "immaterial amount" and obtained a court dismissal of a $230 million disgorgement claim from Diablo Canyon [20] Company Overview - Fluence Energy is a leading global provider of energy storage products and services, specializing in advanced battery systems to support grid stability and renewable integration [21] - The company develops and delivers turnkey energy storage solutions designed to optimize the reliability and efficiency of power networks [22]

Financial Data and Key Metrics Changes - The company's backlog reached a record of $5.5 billion, reflecting a significant increase in U.S. contracting activity driven by the One Big Beautiful Bill Act and rising demand forecasts [7][8] - Q1 2026 revenue was $475 million, representing 14% of the full-year guidance and nearly double the 18% of full-year 2025 revenue earned during Q1 2025 [16] - Adjusted gross profit for the quarter was $27 million, with an adjusted gross margin of 5.6%, below the full-year expectation of 11%-13% [16][17] - Total liquidity at the end of the quarter was approximately $1.1 billion, including $477 million in cash and $617 million available through credit facilities [19] Business Line Data and Key Metrics Changes - The company signed over $750 million of new orders globally during Q1, with more than $500 million from the U.S., indicating strong growth from prior quarters [8][9] - The pipeline increased by approximately $7 billion, or 30%, with the majority of growth coming from the U.S. market [9][22] - The company is seeing growing demand from new customer segments, particularly data centers, with discussions covering 36 GWh of projects [10][11] Market Data and Key Metrics Changes - The U.S. market is expected to represent about half of the total order growth for the year, consistent with previous patterns [8][9] - The company is experiencing an evolution in how customers use battery storage, with new applications emerging from large energy users such as data centers [11][12] Company Strategy and Development Direction - The company is focused on expanding its domestic content strategy and enhancing its supply chain to support growth [12][14] - The management is optimistic about the future of the battery storage market in the U.S., citing a significant opportunity for growth driven by the conversion of EV battery lines into battery energy storage systems (BESS) [31][71] - The company aims to maintain a competitive edge through disciplined execution and innovation, with a focus on meeting customer needs [22][68] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the fiscal 2026 guidance, supported by greater revenue visibility and confidence in execution [8][20] - The company expects continued margin improvement driven by strong execution, supply chain advantages, and innovation as energy storage demand grows [18][21] - Management expressed confidence in recovering additional costs incurred during the quarter, primarily related to two specific projects outside the U.S. [17][50] Other Important Information - The company successfully resolved two pending legal matters, including a settlement related to the Moss Landing incident and a court dismissal of a $230 million claim related to the Diablo Canyon project [15] - The domestic supply chain is performing well, with cell and module production ahead of schedule and a diversified supplier base enhancing flexibility and cost competitiveness [12][14] Q&A Session Summary Question: Clarification on ASC ownership and resolution - Management emphasized that the main objective with ASC is to ensure access to PFE-compliant cells at competitive terms, and they are confident in ASC's ability to resolve ownership issues without company involvement [28][29] Question: Competitive environment and data center opportunities - Management noted that while competition is present, the landscape has diversified, and they remain optimistic about the U.S. market's growth potential [33][35] Question: Data center pipeline conversion and timing - Management indicated that none of the new data center projects have been converted to backlog yet, but they expect some movement in the second half of the year [42][44] Question: Incremental costs and recovery plans - Management explained that the $20 million in additional costs were due to scope changes in two non-U.S. projects, and they plan to recover these costs through contracts with customers [47][50] Question: Margin pressures and competitive landscape - Management confirmed that they do not foresee major changes in competitiveness or tariffs affecting their outlook for 2026 [55][58] Question: Vertical integration and M&A opportunities - Management stated that they do not see a strong need for vertical integration at this time, as they can work effectively with contracted manufacturers [114]

Financial Data and Key Metrics Changes - The company's backlog reached a record of $5.5 billion, reflecting a significant increase in U.S. contracting activity driven by the One Big Beautiful Bill Act and rising demand forecasts [7] - Q1 2026 revenue was $475 million, representing 14% of the full-year guidance and nearly double the 18% of full-year 2025 revenue earned during Q1 2025 [16] - Adjusted gross profit for the quarter was $27 million, with an adjusted gross margin of 5.6%, below the full-year expectation of 11%-13% [16][17] - Total liquidity at the end of the quarter was approximately $1.1 billion, including $477 million in cash and $617 million available through credit facilities [19] Business Line Data and Key Metrics Changes - The company signed over $750 million in new orders globally during Q1, with more than $500 million from the U.S., indicating strong growth from prior quarters [8] - The pipeline increased by approximately $7 billion, or 30%, with the majority of growth coming from the U.S. market [9][22] - The company is engaged in discussions covering 36 GWh of projects with data centers, which are not yet included in the pipeline, representing a significant upside opportunity [10] Market Data and Key Metrics Changes - The U.S. market is expected to represent about half of the total order growth for the year, consistent with previous patterns [9] - The company is seeing growing demand from developers, independent power producers (IPPs), utilities, and data centers [9] Company Strategy and Development Direction - The company is focused on expanding its domestic content strategy and enhancing its supply chain to support growth [12][14] - The management emphasized the importance of converting the growing pipeline into signed orders and is concentrating efforts on this conversion [9] - The company is optimistic about the future of the battery storage market in the U.S., driven by changing dynamics and increasing demand [31] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the fiscal 2026 guidance, supported by greater revenue visibility and confidence in execution [8] - The company expects continued margin improvement driven by strong execution, supply chain-enabled cost advantages, and innovation as energy storage demand grows [18] - Management expressed confidence in meeting commitments to customers and delivering long-term value for shareholders [22] Other Important Information - The company resolved two pending legal matters, including a settlement related to the Moss Landing incident and a court dismissal of a $230 million claim related to the Diablo Canyon project [15] - The domestic supply chain is performing well, with cell and module production ahead of schedule [12] Q&A Session Summary Question: Clarification on ASC ownership resolution - Management stated that the main objective is to ensure access to PFE-compliant cells at competitive terms and that they expect ASC to resolve ownership issues without company involvement [28] Question: Competitive environment in data centers - Management acknowledged increased competition but emphasized that the competitive landscape has not fundamentally changed, with a diversification of battery cell suppliers [33] Question: Data center pipeline conversion - Management indicated that none of the new data center projects have been converted to backlog yet, but they expect some conversion in the second half of the year [44] Question: Incremental costs related to projects - Management explained that the $20 million impact is due to changes in project scope and schedule, and they plan to recover these costs through contracts with customers [50] Question: Margin pressures and competitive landscape - Management confirmed that they do not foresee major changes in competitiveness or tariffs affecting their outlook [56] Question: Vertical integration and M&A opportunities - Management expressed that they do not see a strong need for vertical integration and are comfortable working with contracted manufacturers [114]

Financial Data and Key Metrics Changes - The company reported Q1 2026 revenue of $475 million, which is 14% of the full-year guidance and nearly double the 18% of full-year 2025 revenue earned during Q1 2025 [15] - Adjusted gross profit for the quarter was $27 million, representing an adjusted gross margin of 5.6%, below the full-year expectation of 11%-13% [15][16] - The company ended the quarter with total liquidity of approximately $1.1 billion, including $477 million in cash and $617 million available through credit facilities [18] Business Line Data and Key Metrics Changes - The backlog reached a record of $5.5 billion, driven by increased U.S. contracting activity and demand forecasts [5] - During Q1, the company signed over $750 million of new orders globally, with more than $500 million from the U.S., reflecting strong growth from prior quarters [6][20] - The pipeline grew by approximately $7 billion, or 30%, with the majority of growth coming from the U.S. market [8][20] Market Data and Key Metrics Changes - The U.S. market is expected to represent about half of the total order growth for the year, consistent with previous years [6] - The company is seeing growing demand from developers, independent power producers (IPPs), utilities, and data centers [7] Company Strategy and Development Direction - The company is focusing on expanding its sales efforts and diversifying its supplier base to enhance flexibility and cost competitiveness [12] - The domestic content supply chain is performing at levels necessary to meet delivery schedules, with production running ahead of plan [11] - The company is optimistic about the future of the battery storage market in the U.S., driven by the conversion of EV battery lines into battery energy storage systems (BESS) [29][30] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed fiscal 2026 guidance, supported by greater revenue visibility and confidence in execution [6][19] - The company expects continued margin improvement driven by strong execution, supply chain-enabled cost advantages, and innovation as energy storage demand grows [17] - Management expressed confidence in meeting commitments to customers and delivering long-term value for shareholders [22] Other Important Information - The company resolved two pending legal matters, including a settlement related to the Moss Landing incident and a court dismissal of a $230 million claim related to the Diablo Canyon project [13] Q&A Session Summary Question: Clarification on ASC ownership resolution - The company aims to ensure access to PFE-compliant cells at competitive terms and is confident that ASC will resolve ownership issues without the company's involvement [26][28] Question: Competitive environment in data centers - The competitive landscape has diversified, but the company does not see significant changes in competition affecting its position [31][34] Question: Data center pipeline conversion - The company has not yet converted any of the new data center projects into backlog, but expects some conversion in the second half of the year [41][43] Question: Incremental costs related to projects - The $20 million in additional costs is associated with two non-U.S. projects, and the company plans to recover these costs through contracts with customers [46][49] Question: Margin pressures and competitive landscape - The company does not anticipate major changes in competitiveness or tariffs affecting its outlook for 2026 [55][57] Question: Domestic supply chain mix - The mix of U.S.-made versus imported cells is roughly half and half, with 100% of supply secured for the year [90] Question: Volume and capital constraints - The company has a long-term plan for volume and believes it has the supply chain flexibility to meet growth targets [97] Question: Vertical integration and M&A opportunities - The company does not see a strong need for vertical integration and prefers to work with contracted manufacturers for agility [110]

Q1 FY2026 Earnings Presentation February 5, 2026 © Fluence Energy Inc. All rights reserved. | Disclaimer Forward - Looking Statements The statements herein and referenced on the Company's earnings call that are not historical facts are forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward - looking statements include, with ...