Fluence Energy's (NASDAQ: FLNC ) 61% fall over the last 1-year reflects a U.S. clean energy market beset by several factors that have aggregated together for sustained capital destruction. Tariffs, an elevated Fed funds rate, and material changes to the priorThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth ...

Fluence's diversified supply chain and U.S.-based production continues to provide customers with reliable storage systems that help reduce exposure to changing trade dynamics. The Houston facility plays a crucial role in the company's strategy to onshore production of every major product and component of a grid-scale battery energy storage system to the United States. "There's broad recognition of the enormous value batteries bring to the electricity grid—to address increased power demand, maintain reliabil ...

Core Insights - Fluence Energy, Inc. has opened a new automated production facility in Bac Giang Province, Vietnam, aimed at manufacturing advanced energy storage solutions [1][2] - The facility is projected to have an annual manufacturing capacity of 35 GWh, enhancing productivity and safety in energy storage production [2] - The partnership with ACE Engineering is emphasized as a strategic move to improve manufacturing excellence and meet customer demands effectively [3] Company Overview - Fluence Energy is a leader in intelligent energy storage and optimization software, contributing to a more resilient grid and maximizing renewable energy potential [4] - The company operates in nearly 50 markets, with numerous projects contracted and managed, showcasing its significant role in the energy sector [4] Strategic Importance - The new facility represents a crucial milestone in addressing the growing global demand for high-performance energy storage solutions [2] - The collaboration with ACE Engineering aims to provide flexible manufacturing solutions, shorter lead times, and high-quality standards for customers [3]

Financial Data and Key Metrics Changes - The company ended Q3 with approximately $4.9 billion in backlog, having added about $1.1 billion in contracts since June 30, including two significant contracts in Australia worth approximately $700 million [9][24]. - Revenue for Q3 was approximately $603 million, which was about $100 million or 15% below expectations due to delays in ramping up production at the U.S. manufacturing facility [10][26]. - The adjusted gross profit margin for Q3 was 15.4%, exceeding the target for the quarter, and annual recurring revenue increased to $124 million [10][28]. - The company closed the quarter with over $900 million in liquidity, including approximately $460 million in cash, providing financial strength and flexibility [10][30]. Business Line Data and Key Metrics Changes - The company signed two contracts in Australia, marking the largest contract in its history, contributing significantly to the backlog [7]. - The U.S. manufacturing facility faced ramp-up issues, impacting revenue generation, but recovery milestones have been met, and production rates are expected to improve by the end of the fiscal year [26][27]. Market Data and Key Metrics Changes - The U.S. market is showing signs of recovery as tariff-related uncertainties ease, with all previously halted contracts now reactivated [16][24]. - The energy storage market is becoming increasingly competitive, with battery storage now recognized as a superior solution for meeting capacity needs compared to gas turbines [19][20]. Company Strategy and Development Direction - The company is focusing on domestically produced energy storage systems, supported by recent legislation that enhances its competitive position [11][13]. - The company is actively engaging with suppliers to ensure compliance with new regulations and is exploring multiple options to meet domestic content requirements without significant capital raises [15][49]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of energy storage, particularly in light of supportive federal legislation and easing tariff uncertainties [34][35]. - The company anticipates that the demand for battery storage solutions will grow significantly, especially driven by the needs of AI and data centers [21][22]. Other Important Information - The company expects to recover revenue lost due to production delays in fiscal 2026 as manufacturing rates improve [10][32]. - The company has reaffirmed its annual recurring revenue target of $145 million and adjusted EBITDA guidance of $0 to $20 million for fiscal 2025 [32]. Q&A Session Summary Question: Guidance for Q4 and margin outlook - Management indicated that Q4 margins are expected to be affected by U.S. revenue and tariff impacts, with efforts to mitigate these costs ongoing [39][40]. Question: Impact of recent policy actions on business - Management reassured that the U.S. battery storage market is expected to remain a domestic content market, and they are working on compliance with new regulations [43][46]. Question: U.S. demand trends post-legislation - Management noted that demand is picking up, with previously halted contracts now moving forward, and they are seeing more opportunities arise [65][66]. Question: Ramp-up issues at the Arizona facility - Typical ramp-up issues have been encountered, but management believes they are under control and expects to meet production targets by year-end [67][68]. Question: Pricing dynamics and ASPs - Management acknowledged that while there may be some pricing pressure due to tariffs, new contracts will reflect the updated cost structure, and margins are expected to return to normal levels [85][87].

Financial Performance & Guidance - Q3 2025 revenue reached $603 million[12], while adjusted EBITDA was $27 million[12] - The company reaffirmed its FY25 adjusted EBITDA guidance of $0-$20 million[12] - The company expects to be at the bottom end of the revenue guidance range of $2.6 billion[12] primarily due to slower US production ramp - The company delivered a 15.4% adjusted gross profit margin in Q3 2025[35] - The company has approximately $460 million in total cash as of June 30, 2025[12] Backlog & Pipeline - The company has approximately $4.9 billion in backlog as of June 30, 2025[12] - The company's pipeline is approximately $23.5 billion as of June 30, 2025[12] - $2.5 billion of FY'26 revenue is now secured in backlog[12] OBBBA & Tariffs - The Inflation Reduction Act (IRA) extends Section 48E ITC for storage through 2034, providing long-term security[16] - The IRA incentivizes an additional 10% ITC if minimum domestic content thresholds are met[16] - The company is working with domestic suppliers to ensure compliance with the OBBBA by the end of the year[19] - The total tariff on Chinese batteries in calendar year 2025 is projected to be 40.9%, and 58.4% in 2026[21] Market & Strategy - Two Australia contracts totaling approximately $700 million were added to the backlog[11] - Battery storage is now more cost-effective than gas, driving increased data center opportunities[44]

U.S. stock futures were slightly lower this morning, with the Dow futures falling around 0.1% on Tuesday. Shares of Celanese Corporation CE fell sharply in pre-market trading after the company reported second- quarter financial results and issued third-quarter adjusted EPS guidance below estimates. Celanese said it sees third-quarter adjusted earnings of $1.10 to $1.40 per share, versus market estimates of $1.73 per share. Celanese shares dipped 15.5% to $40.00 in the pre-market trading session. Here are so ...

Over the last four quarters, the company has surpassed consensus EPS estimates two times. Fluence Energy, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $566.93 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 19.88%. This compares to year-ago revenues of $328.09 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently- ...

[Part I - Financial Information](index=5&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Unaudited statements show increased assets and liabilities, with a nine-month net loss of $92.1 million on $1.22 billion in revenue [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,849,696 | $1,680,443 | | **Total Assets** | **$2,075,150** | **$1,902,188** | | **Total Current Liabilities** | $1,124,834 | $1,258,835 | | Convertible senior notes, net | $390,356 | $— | | **Total Liabilities** | **$1,554,306** | **$1,295,049** | | **Total Stockholders' Equity** | **$520,844** | **$607,139** | - Key changes from September 30, 2024, include a significant increase in inventory (from **$182.6M to $654.3M**) and the addition of **$390.4M in convertible senior notes**, which were not present previously[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (Unaudited) | (In thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$602,533** | **$483,317** | **$1,220,939** | **$1,470,414** | | **Gross Profit** | **$89,099** | **$83,045** | **$152,882** | **$183,611** | | Income (loss) before income taxes | $11,471 | $5,304 | $(91,182) | $(36,029) | | **Net Income (Loss)** | **$6,894** | **$1,075** | **$(92,051)** | **$(37,357)** | | Net income (loss) attributable to Fluence Energy, Inc | $6,252 | $785 | $(66,260) | $(25,127) | | **Basic EPS (Class A)** | **$0.05** | **$0.01** | **$(0.51)** | **$(0.20)** | | **Diluted EPS (Class A)** | **$0.01** | **$—** | **$(0.51)** | **$(0.20)** | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Unaudited) | (In thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(411,281) | $69,156 | | Net cash used in investing activities | $(20,047) | $(13,444) | | Net cash provided by (used in) financing activities | $358,645 | $(5,767) | | **Net (decrease) increase in cash, cash equivalents, and restricted cash** | **$(58,818)** | **$50,577** | - The significant cash outflow from operations in the nine months ended June 30, 2025, was primarily driven by a **$469.7 million increase in inventory** and a **$180.8 million decrease in accounts payable**, partially offset by **$400.0 million in proceeds from issuing convertible senior notes**[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates in a single reportable segment, with its Chief Executive Officer identified as the Chief Operating Decision Maker (CODM)[30](index=30&type=chunk) - Revenue is primarily generated from the sale of energy storage products and solutions, recognized over time using the percentage of completion (POC) method based on costs incurred[44](index=44&type=chunk)[45](index=45&type=chunk) - As of June 30, 2025, the company had **$4.9 billion of remaining performance obligations (backlog)**, with approximately **49% expected to be recognized as revenue in the next 12 months**[88](index=88&type=chunk)[89](index=89&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 17% revenue decrease due to project timing, stable gross margins, and liquidity bolstered by a $400 million notes issuance [Key Factors, Trends, and Uncertainties](index=48&type=section&id=Key%20Factors%2C%20Trends%2C%20and%20Uncertainties) - The utility-scale battery storage industry is experiencing unprecedented growth, driven by the global transition to renewable energy, with a projected market addition of **2,660 GWh between 2024 and 2035** (excluding China)[190](index=190&type=chunk) - Government regulations, particularly the U.S. Inflation Reduction Act (IRA) and the One Big Beautiful Bill Act (OBBBA), are key drivers creating both opportunities and compliance risks through new domestic content and FEOC restrictions[196](index=196&type=chunk)[197](index=197&type=chunk) - Significant changes in U.S. tariff policy, including increased Section 301 tariffs and new AD/CV proceedings, have created market uncertainty, leading to paused or delayed customer contracting[200](index=200&type=chunk)[201](index=201&type=chunk) [Key Operating Metrics](index=56&type=section&id=Key%20Operating%20Metrics) Key Operating Metrics Comparison | Metric (Energy Storage Products) | June 30, 2025 | September 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | Deployed (GW) | 6.3 | 5.0 | 26% | | Contracted Backlog (GW) | 8.2 | 7.5 | 9% | | Pipeline (GW) | 35.7 | 25.8 | 38% | | **Services (Assets under Management, GW)** | **5.5** | **4.3** | **28%** | | **Digital (Asset under Management, GW)** | **21.6** | **18.3** | **18%** | - Order intake for Energy Storage Products and Solutions **decreased by 49%** for the nine months ended June 30, 2025, compared to the prior year period, reflecting market uncertainty and timing of contracts[231](index=231&type=chunk) [Results of Operations](index=59&type=section&id=Results%20of%20Operations) Comparison of Operating Results | ($ in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$1,220,939** | **$1,470,414** | **(17)%** | | **Gross Profit** | **$152,882** | **$183,611** | **(17)%** | | Gross Profit Margin % | 12.5% | 12.5% | 0% | | **Net Loss** | **$(92,051)** | **$(37,357)** | **146%** | - The **17% decrease in revenue** for the nine months ended June 30, 2025, was primarily driven by decreased volumes of Gridstack solutions projects fulfilled due to customer schedules and a more backend-loaded revenue expectation for fiscal year 2025[256](index=256&type=chunk) - General and administrative expenses **decreased by 10%** for the nine months ended June 30, 2025, mainly due to a **$15.5 million decrease in personnel-related expenses** from a reduction in headcount[267](index=267&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) - The company's principal sources of liquidity include cash from operations, IPO proceeds, and various debt arrangements, which management believes are sufficient for at least the next 12 months[277](index=277&type=chunk)[278](index=278&type=chunk) - In December 2024, the company issued **$400.0 million in 2.25% convertible senior notes due 2030**, receiving net proceeds of **$389.4 million** and purchasing capped calls for **$29.0 million** to offset potential dilution[280](index=280&type=chunk)[281](index=281&type=chunk) - On August 6, 2024, the company converted its ABL facility into a **$500.0 million senior secured cash flow revolving credit facility**, with **$342.5 million available** as of June 30, 2025[290](index=290&type=chunk)[294](index=294&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposure from its fiscal 2024 Annual Report - There have been no material changes with respect to the company's exposure to market risk as disclosed in its 2024 Annual Report[315](index=315&type=chunk) [Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective at the reasonable assurance level**[317](index=317&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[318](index=318&type=chunk) [Part II - Other Information](index=65&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in an SEC investigation, a class action lawsuit, and derivative actions, none of which are currently expected to be material - The company has been informed that the **SEC is conducting a formal investigation** regarding its financial reporting following a short-seller report published in February 2024 and is fully cooperating[144](index=144&type=chunk) - A consolidated federal securities class action lawsuit has been filed against the company and certain officers, which the company intends to defend vigorously[145](index=145&type=chunk) - Two shareholder derivative complaints have been filed and consolidated, with proceedings currently stayed pending the resolution of the securities class action[146](index=146&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) Material risks include dependency on changing government incentives, global trade tariffs, and new indebtedness from its convertible senior notes [Government Incentives and Regulations Risk](index=71&type=section&id=Government%20Incentives%20and%20Regulations%20Risk) - The business is highly dependent on government incentives, and the **One Big Beautiful Bill Act (OBBBA)** modification to the IRA has created uncertainty with new domestic content and **Foreign Entity of Concern (FEOC) restrictions**[326](index=326&type=chunk)[328](index=328&type=chunk) - There is a risk that the company or its suppliers may be unable to meet the new **FEOC requirements** under the OBBBA, which could jeopardize qualification for key tax credits and impact competitiveness[331](index=331&type=chunk) [Global Trade and Tariffs Risk](index=73&type=section&id=Global%20Trade%20and%20Tariffs%20Risk) - The company faces significant risk from changes in the global trade environment, including new U.S. tariffs on Chinese imports, which are subject to multiple tariff layers including **Section 301 tariffs**[334](index=334&type=chunk)[336](index=336&type=chunk) - An active **anti-dumping/countervailing (AD/CV) duty investigation** on Chinese graphite active anode material (AAM) poses a risk of increased costs and supplier impact[339](index=339&type=chunk) - Tariff-related uncertainty has caused the company to **delay new contracts and pause existing projects** with certain customers, adversely impacting business and results of operations[338](index=338&type=chunk) [Risks Related to 2030 Convertible Senior Notes](index=75&type=section&id=Risks%20Related%20to%202030%20Convertible%20Senior%20Notes) - The company's **$400.0 million of outstanding 2030 Convertible Senior Notes** could limit cash flow for operations, make it difficult to obtain additional financing, and require substantial cash for debt service[342](index=342&type=chunk)[345](index=345&type=chunk) - The conditional conversion feature of the notes, if triggered, could require the company to settle the obligation in cash, which would adversely affect liquidity[348](index=348&type=chunk) - The company is subject to **counterparty risk** with the financial institutions involved in the associated capped call transactions, where a default could lead to more dilution than anticipated[360](index=360&type=chunk)[361](index=361&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were made during the quarter that were not previously reported - There were no unregistered sales of equity securities during the quarter ended June 30, 2025, that were not already disclosed in a Current Report on Form 8-K[363](index=363&type=chunk) [Other Information](index=74&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the quarter - During the three months ended June 30, 2025, no directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements[368](index=368&type=chunk) [Exhibits](index=75&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including required CEO and CFO certifications - The report includes standard exhibits such as the Amended and Restated Certificate of Incorporation, Bylaws, and certifications by the CEO and CFO pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act**[371](index=371&type=chunk)

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Fluence reported Q3 2025 revenue of **$602.5 million** (+24.7% YoY) and **$6.9 million** net income, reaffirming FY2025 guidance, with strong **$508.8 million** order intake Financial Performance Overview | Financial Metric | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $602.5M | $483.3M | +24.7% | | **GAAP Gross Profit Margin** | 14.8% | 17.2% | -2.4 p.p. | | **Adjusted Gross Profit Margin** | 15.4% | 17.5% | -2.1 p.p. | | **Net Income** | $6.9M | $1.1M | +527% | | **Adjusted EBITDA** | $27.4M | $15.6M | +75.6% | - Order intake for Q3 was approximately **$508.8 million**, increasing the total backlog to **$4.9 billion** as of June 30, 2025. An additional **$1.1 billion** in contracts were signed in July and August[6](index=6&type=chunk) - Total liquidity was approximately **$903 million** as of June 30, 2025. The company also secured a new **$150.0 million** supply chain financing facility in August to provide incremental liquidity[6](index=6&type=chunk) Fiscal Year 2025 Guidance | Fiscal Year 2025 Guidance | Value | Note | | :--- | :--- | :--- | | **Revenue** | $2.6B - $2.8B | Expected to be at the lower end of the range | | **Adjusted EBITDA** | $0 - $20M | Reaffirmed | | **Annual Recurring Revenue (ARR)** | $145M | Reaffirmed | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted strong margins and execution, with U.S. manufacturing delays shifting Q3 revenue to FY2026, while reaffirming 2025 gross margin and Adjusted EBITDA targets - The CEO stated that while strong margins underscore the strength of the operating model, delays in scaling new U.S. manufacturing facilities caused a revenue shortfall for the quarter[5](index=5&type=chunk)[7](index=7&type=chunk) - Revenue impacted by production delays is expected to be recovered in fiscal 2026 as the new facilities reach targeted capacity. The company projects approximately **$2.5 billion** of its current backlog will convert to revenue in fiscal 2026[7](index=7&type=chunk) - The CFO emphasized that the company is on track to meet its fiscal 2025 gross margin and Adjusted EBITDA targets despite the revenue shift. A new **$150 million** unsecured supply chain financing facility was secured, enhancing financial flexibility[7](index=7&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) Financial statements show total assets at **$2.08 billion** due to inventory, with a nine-month net loss of **$92.1 million** and **$411.3 million** net cash outflow from operations [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.08 billion** as of June 30, 2025, driven by a **$654.3 million** rise in inventory, with liabilities growing to **$1.55 billion** and equity decreasing Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $436,322 | $448,685 | | **Inventory, net** | $654,301 | $182,601 | | **Total current assets** | $1,849,696 | $1,680,443 | | **Total assets** | $2,075,150 | $1,902,188 | | **Total current liabilities** | $1,124,834 | $1,258,835 | | **Total liabilities** | $1,554,306 | $1,295,049 | | **Total stockholders' equity** | $520,844 | $607,139 | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2025 total revenue grew 24.7% YoY to **$602.5 million**, yielding **$6.9 million** net income, while the nine-month period recorded a **$92.1 million** net loss Condensed Consolidated Statements of Operations (in thousands) | Statement of Operations | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenue** | $602,533 | $483,317 | | **Gross profit** | $89,099 | $83,045 | | **Income (loss) before income taxes** | $11,471 | $5,304 | | **Net income (loss)** | $6,894 | $1,075 | | **Basic EPS (Class A)** | $0.05 | $0.01 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month net cash used in operating activities was **$411.3 million**, primarily due to inventory, offset by **$358.6 million** from financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(411,281) | $69,156 | | **Net cash used in investing activities** | $(20,047) | $(13,444) | | **Net cash provided by (used in) financing activities** | $358,645 | $(5,767) | | **Net (decrease) increase in cash** | $(58,818) | $50,577 | [Key Operating Metrics](index=15&type=section&id=Key%20Operating%20Metrics) As of June 30, 2025, deployed energy storage grew 26% to **6.3 GW**, contracted backlog increased 9% to **8.2 GW**, and the pipeline expanded 38% to **35.7 GW** Energy Storage Products Metrics (GW) | Metric (Energy Storage Products) | June 30, 2025 | Sept 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | **Deployed** | 6.3 | 5.0 | +26% | | **Contracted Backlog** | 8.2 | 7.5 | +9% | | **Pipeline** | 35.7 | 25.8 | +38% | Services Metrics (GW) | Metric (Services) | June 30, 2025 | Sept 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | **Assets under Management** | 5.5 | 4.3 | +28% | | **Contracted Backlog** | 4.9 | 4.1 | +20% | Q3 2025 Order Intake (Contracted GW) | Q3 2025 Order Intake | Q3 2025 | Q3 2024 | Change % | | :--- | :--- | :--- | :--- | | **Energy Storage Products** | 0.7 | 1.6 | (56)% | | **Services** | 1.4 | 0.4 | +250% | | **Digital** | 0.9 | 0.6 | +50% | [Reconciliation of GAAP to Non-GAAP Measures](index=17&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Q3 2025 Adjusted EBITDA significantly increased to **$27.4 million** from **$15.6 million** YoY, with Adjusted Gross Profit at **$92.8 million** and a 15.4% margin Reconciliation to Adjusted EBITDA (in thousands) | Reconciliation to Adjusted EBITDA | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net income (loss)** | $6,894 | $1,075 | | Interest expense (income), net | $1,083 | $(1,300) | | Income tax expense | $4,577 | $4,229 | | Depreciation and amortization | $8,255 | $4,423 | | Stock-based compensation | $6,400 | $6,140 | | Other non-recurring expenses | $146 | $1,033 | | **Adjusted EBITDA** | **$27,355** | **$15,600** | Reconciliation to Adjusted Gross Profit (in thousands) | Reconciliation to Adjusted Gross Profit | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Gross profit** | $89,099 | $83,045 | | Stock-based compensation | $636 | $824 | | Depreciation and amortization | $2,734 | $770 | | Other non-recurring expenses | $307 | — | | **Adjusted Gross Profit** | **$92,776** | **$84,639** | | **Adjusted Gross Profit Margin %** | **15.4%** | **17.5%** | [Share Information and Corporate Details](index=3&type=section&id=Share%20Information%20and%20Corporate%20Details) As of June 30, 2025, Fluence had **182,359,413** total Class A and B-1 common shares outstanding, with a Q3 earnings call scheduled for August 12, 2025 Common Stock Outstanding (as of June 30, 2025) | Common Stock Class | Shares Outstanding | | :--- | :--- | | Class B-1 (AES Grid Stability, LLC) | 51,499,195 | | Class A (Siemens AG) | 39,738,064 | | Class A (SPT Invest Management, Sarl) | 11,761,131 | | Class A (Qatar Holding LLC) | 14,668,275 | | Class A (Public) | 64,692,748 | | **Total Class A and B-1 Outstanding** | **182,359,413** | - The company will hold a conference call on Tuesday, August 12, 2025, at 8:30 a.m. EDT to discuss the Q3 fiscal results[9](index=9&type=chunk)

Core Insights - Fluence Energy, Inc. reported strong revenue growth of approximately 24.7% year-over-year, reaching approximately $602.5 million for the fiscal quarter ended June 30, 2025, driven by a significantly weighted second half compared to the revenue distribution seen in full year 2024 [5] - The company anticipates recovering lower-than-expected revenue due to delays in scaling new manufacturing facilities in the U.S., with a robust backlog of approximately $4.9 billion expected to convert to revenue in fiscal 2026 [4][5] - Fluence reaffirmed its fiscal year 2025 revenue guidance range of $2.6 billion to $2.8 billion, now expecting to be at the lower end of the range due to production ramp-up delays [5] Financial Highlights - Revenue for the quarter was approximately $602.5 million, a 24.7% increase from the same quarter last year [5] - GAAP gross profit margin was approximately 14.8%, down from 17.2% year-over-year, while adjusted gross profit margin was approximately 15.4%, down from 17.5% [5] - Net income for the quarter was approximately $6.9 million, compared to $1.1 million for the same quarter last year [5] - Adjusted EBITDA was approximately $27.4 million, up from $15.6 million year-over-year [5] Operational Metrics - The company signed approximately $508.8 million in order intake during the third fiscal quarter, bringing the backlog to approximately $4.9 billion as of June 30, 2025 [5] - In July and August, Fluence signed approximately $1.1 billion in contracts, including two contracts in Australia [5] - Total cash as of June 30, 2025, was approximately $459.9 million, with total liquidity of approximately $903 million [5] Manufacturing and Production - Fluence began ramping production and delivered its first domestic content products from U.S.-based manufacturing facilities [4] - The company expects its new manufacturing facilities to reach targeted production levels by the end of the calendar year, which will strengthen its domestic content position [5] Market Position and Strategy - Fluence's operating model and execution have shown strength, as reflected in the strong margins delivered this quarter [4] - The company secured its first unsecured, low-cost supply chain financing facility of $150 million, indicating market confidence in its energy storage business [4]