Energy Storage Assets and Operations - Fluence Energy has 5.0 GW of energy storage assets deployed and 7.5 GW of contracted backlog as of September 30, 2024[17] - The company's global operational and maintenance services team manages 4.3 GW of energy storage assets with an additional 4.1 GW in contracted backlog[17] - Fluence deployed energy storage products in 33 markets across 25 countries as of September 30, 2024[35] - Fluence had a gross global pipeline of 115.9 GWs, including 51.4 GWs for energy storage solutions and services as of September 30, 2024[35] - United States customers composed the largest portion of the energy storage pipeline at 14.5 GWs (28%) as of September 30, 2024[35] - Fluence had $4.5 billion of remaining performance obligations (backlog) as of September 30, 2024, with 16% related to AES[35] - Fluence offers five energy storage solutions: Gridstack Pro, Gridstack, Sunstack, Edgestack, and Ultrastack, each optimized for specific customer use cases[28] - The company's proprietary energy management system, Fluence OS, enables critical grid services such as frequency regulation, peak shaving, and solar energy time-shifting[28] - Fluence provides comprehensive engineering and delivery services, including project design and full-wrap turnkey installation[29] - Fluence-designed Battery Packs initiated domestic production in Utah in September 2024, incorporating battery cells manufactured in Tennessee[30] - The company initiated production of Fluence-made battery modules in September 2024, featuring a new technology-agnostic battery management system[124] Digital Offerings and Technology - Fluence's digital offerings are used by 18.3 GW of renewable energy assets, with 10.6 GW of contracted backlog related to these offerings[17] - Fluence's digital applications include Fluence Mosaic and Fluence Nispera, leveraging AI and data science technologies[33] - The company's energy storage solutions sales and installation cycle is lengthy, often requiring significant upfront education for prospective customers[124] - The company faces risks of defects, errors, and vulnerabilities in its energy storage solutions and digital application offerings, which could lead to reputational damage and legal claims[124][125][127] - The company's warranty reserves are based on estimates and could be materially impacted by future product performance and failure rates[133] Market and Regulatory Environment - BloombergNEF estimates the global utility-scale market, excluding China, will add approximately 2,529 GWh of energy storage between 2024 and 2035[19] - U.S. IRA introduces a 30% ITC for standalone energy storage projects meeting wage and apprenticeship requirements[60] - U.S. IRA includes a 10% bonus credit for projects in energy communities and 10-20% for low-income community projects[60] - U.S. tariff on lithium-ion non-EV batteries from China to increase from 7.5% to 25% effective January 1, 2026[62] - EU Battery Regulation entered into force in August 2023, targeting low carbon footprint and high recycling efficiency for batteries sold in the EU[63] - European Electricity Market Design reform effective July 2024, introducing flexibility assessments and national storage objectives starting 2026[63] - Germany introduced an energy storage strategy in December 2023, with a capacity mechanism expected to launch in 2028[67] - U.S. FERC Order 2023 issued in July 2023 to speed up grid interconnection for over 10,000 energy projects[68] - U.S. FERC Order 1920 issued in May 2024, requiring 20-year transmission planning to integrate renewable energy and storage[68] - Greece conducted a 2.6 GWh energy storage tender, Hungary a 440 MW tender, and Bulgaria a 3 GWh RESTORE tender[67] - Spain's PERTE regime targets over 2 GWh of storage assets through tenders[67] - U.S. states and regional TSOs have policies supporting clean energy and battery storage, including tax credits and grants[64] - Federal, state, and local regulations in the U.S. influence electricity pricing, net metering, and interconnection for energy storage[66] - Energy storage projects require interconnection agreements, typically pre-approved by local regulatory bodies[68] - FERC's PURPA 2020 reforms reduce capacity threshold from 20 MW to 5 MW, potentially reducing opportunities for PURPA-eligible battery energy storage products[180] - Supreme Court overturns Chevron deference, potentially altering methodology for determining qualifying facility eligibility under PURPA[180] - FERC's Order No. 2023 aims to reform interconnection procedures for new generating facilities, impacting energy storage industry[180] - Section 301 tariff rate on lithium-ion non-EV batteries imported from China to increase from 7.5% to 25% effective January 1, 2026[183] - IRA introduces ITC for standalone energy storage technology with a minimum capacity of 5 kWh, with bonus rate of 30% if prevailing wage and apprenticeship requirements are met[182] - Uncertainty in IRA guidance may cause customers to delay projects, negatively affecting company's results of operations[182] - Potential decline in sales in Americas region if company cannot meet U.S. domestic content requirements for energy storage solutions[182] - Increased tariffs and trade restrictions, particularly between U.S. and China, may adversely impact company's supply chain and results of operations[183] - OECD's global minimum corporate tax rate of 15% under Pillar Two to be implemented in EU, with potential impact on company's tax obligations[185] - Changes in tax laws or regulations, including IRA-related tax incentives, may materially and adversely impact company's business, financial condition, and results of operations[187] - Company may incur substantial costs due to compliance with environmental, health, and safety laws, including potential liabilities related to lithium-ion batteries and hazardous materials[188] - Adoption of more stringent environmental regulations could require significant expenditures and impact business operations[188] - Company faces risks from evolving data privacy and security laws, including the California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA)[190] - Compliance with GDPR in Europe and UK GDPR may lead to additional costs, operational changes, and potential fines[190] - Increasing enforcement of privacy laws on cookies and tracking technologies could limit marketing effectiveness and increase compliance costs[190] - Integration of AI and machine learning technologies poses risks due to evolving privacy regulations like GDPR's 'privacy by design' principle[190] - Company is subject to ongoing SEC investigations and other legal proceedings that could impact financial condition and operations[191] - Regulatory processes in nascent energy storage markets may require amendments to existing laws, potentially leading to litigation[193] Financial Performance and Risks - Company achieved approximately $30.3 million of net income in fiscal year 2024[83] - Company expects aggregate costs to increase substantially in the foreseeable future due to investments in customer base expansion and public company operations[83] - Company experienced variability in order intake, with higher volumes in the second half of fiscal year 2024[85] - Projects typically have a lead time of 12 to 18 months from contract execution to substantial completion[85] - Company relies on a limited number of third-party contract manufacturers for battery energy storage systems[90] - Company is in the process of qualifying new manufacturers in APAC and Americas regions[92] - Manufacturing delays or disruptions could impact the ability to meet customer deadlines and affect brand reputation[90] - Supply chain disruptions may cause delays in shipping, delivery, and project completion[88] - Company faces risks related to scaling up manufacturing to larger commercial volumes[89] - Potential delays in qualifying new manufacturers could lead to increased reliance on existing manufacturers[92] - Company faces risks due to dependence on certain battery and inverter suppliers, impacting working capital and supply chain stability[93] - Global demand for lithium-ion battery cells may cause supplier delays, shortages, and price volatility, affecting sales and operations[94] - Reliance on a single U.S. battery cell supplier for domestic content offerings poses supply risks[97] - Two largest customers accounted for approximately 50% of annual revenue in fiscal year 2024, with AES and affiliates contributing 41%[107] - Lithium-ion battery pack prices increased in fiscal year 2022 but declined in fiscal years 2023 and 2024, with uncertainty over future cost trends[105] - International supply chain risks, including trade disruptions and tariffs, could impact material availability and costs[101][102] - Compliance with forced labor regulations like UFLPA may increase supply chain costs and disrupt operations[103][105] - Company is subject to commodity price fluctuations for raw materials such as lithium, cobalt, and nickel, affecting product costs[105] - Potential loss of significant customers or reduction in order volume could materially harm revenue and financial condition[107] - Increasing competition in energy storage solutions and services may impact customer retention and revenue growth[108] - The company faces increasing competition in the energy storage industry due to rising demand and regulatory changes, both domestically and internationally[109] - A significant portion of the company's annual sales in fiscal years 2022, 2023, and 2024 were direct sales to AES and its affiliates[110] - The company's growth strategy heavily relies on attracting new customers and retaining existing ones, with failure to do so potentially harming business operations[110] - Marketing initiatives in the energy storage and SaaS markets are becoming more difficult and expensive, with potential risks to revenue and operational results[113] - The company's ability to manage rapid growth and expansion is critical, with potential strain on management, operational, and financial infrastructure[115] - The company depends on third-party general contractors for energy storage installations, with past issues in timeliness and quality of services[117] - Competition for qualified personnel in the energy storage industry is intense, with challenges in hiring and retaining skilled employees[118] - The company's hybrid work policy in the U.S. may impact its ability to attract and retain talent compared to competitors with more flexible arrangements[120] - Risks associated with project delays, including government authorizations, permits, and customer financing, could impact the company's operations[121] - Regulatory changes in electricity pricing, net metering, and incentives could increase costs for customers, making energy storage solutions less appealing[122] - The company's pipeline and contracted backlog may not result in actual revenue or profitability due to market uncertainties and customer financing challenges[137] - Acquisitions are a key strategy for growth, with past acquisitions including Fluence Nispera in 2022 and a software platform in 2020, but integration risks remain significant[139] - Battery prices increased in fiscal year 2022 but decreased in fiscal years 2023 and 2024, impacting the company's contracting strategy and margin preservation[146] - Global energy storage capacity grew 63% annually between 2015 and 2020, with an estimated addition of 2,529 GWh in the utility-scale market (excluding China) from 2024 to 2035[147] - The company faces risks from project delays, liquidated damages, and supply chain disruptions, particularly due to COVID-19 impacts in fiscal years 2021 and 2022[142] - The economic benefit of the company's energy storage solutions depends on local utility electricity rates, which are subject to change and could affect demand[149] - The company relies on U.S. domestic supply chains for growth, and delays or increased costs in these supply chains could harm project timelines and customer relationships[146] - The company may face challenges in obtaining letters of credit, surety bonds, or other financial assurances for projects, which could impact liquidity and indemnification obligations[142] - Renewable energy adoption and demand for the company's offerings are influenced by factors such as cost-effectiveness, government incentives, and energy market fluctuations[145] - The company's market growth assumptions include declining lithium-ion battery costs, increased electricity demand, and grid complexity, which may prove inaccurate[147] - Macroeconomic uncertainty and market conditions may reduce demand for the company's energy storage solutions and services, impacting financial results[150] - Increased interest rates or reduced availability of tax equity and project financing could lower demand for the company's energy storage solutions[151] - A significant percentage of end-users rely on third-party financing for renewable energy storage systems, and higher interest rates could reduce investment attractiveness[152] - Severe weather events and climate change may disrupt the company's operations, supply chain, and project sites, increasing costs and risks[154] - Increasing ESG scrutiny and evolving regulations may lead to higher compliance costs and reputational risks for the company[155] - The 2024 Credit Agreement imposes restrictions on the company's ability to incur debt, make payments, and pursue business opportunities[157] - The company may need to raise additional capital to support operations, R&D, and international expansion, potentially diluting existing stockholders[159] - Failure to secure financing on favorable terms could hinder the company's ability to develop products and execute its business plan[160] Intellectual Property and Cybersecurity - Company holds over 179 granted patents worldwide and has 82 patent applications pending as of September 2024[50] - Company has over 108 registered trademarks with domestic and foreign trademark offices as of September 2024[50] - Company relies on trade secret protection and confidentiality agreements for proprietary know-how and software not covered by patents[50] - The company relies on a combination of patent, trademark, trade-secret, copyright, and other intellectual property protection laws to safeguard its internally developed technology and intellectual property[161] - The company plans to expand its internal intellectual property team and increase filings for trademarks, patents, and other intellectual property protections both in the U.S. and abroad[161] - The company faces risks of intellectual property infringement claims from third parties, including competitors and non-practicing entities, which could result in costly litigation and potential redesign efforts[163] - The company may need to enter into licensing agreements or develop alternative technologies if found to infringe on third-party intellectual property, which could be time-consuming and expensive[163] - The company’s trademarks and trade names may be challenged, infringed, or declared generic, potentially harming its ability to build brand recognition[165] - The company may face difficulties enforcing its intellectual property rights in foreign jurisdictions, particularly in developing countries where legal systems may not favor such enforcement[166] - The company could be subject to claims that its employees, consultants, or advisors have wrongfully used or disclosed trade secrets from their current or former employers[166] - The company’s pending patent applications may not be granted, or existing patents may be contested, invalidated, or limited in scope, potentially allowing competitors to exploit similar technologies[167] - Company's issued patents may not provide adequate protection against competitors, potentially leading to invalidation or rejection of patent applications[169] - Company's business highly depends on maintaining effective information and operational technology systems, with potential risks of data loss or corruption[169] - Company must invest in long-term solutions to enhance customer experience and protect against cybersecurity risks, including potential harm from cyber-attacks[169] - Company experienced cybersecurity incidents in the past, with potential future incidents exposing it to claims, litigation, and regulatory investigations[169] - SEC issued final rules in 2023 related to cybersecurity risk management, increasing regulatory burden and compliance costs[169] - Company uses open-source software, which may pose risks to proprietary software and solutions, including potential claims and legal costs[172] - Company licenses intellectual property from third parties, with potential risks of losing license rights if obligations are not met[172] - Company may face challenges in licensing third-party intellectual property on reasonable terms, affecting commercialization of new solutions[175] - Compromises or interruptions in company's systems could lead to delays in business operations and affect results[176] Ownership and Corporate Governance - AES Grid Stability owns approximately 28.5% of the economic interest in Fluence Energy, LLC and 66.6% of the combined voting power of Fluence Energy, Inc.[18] - Siemens entities collectively represent approximately 13.3% of the combined voting power and 28.5% of the economic interest in Fluence Energy, Inc.[18] - QHL owns 3.8% of the combined voting power and 8.1% of the economic interest in Fluence Energy, Inc.[18] - As of September 30, 2024, the company had 129,421,797 shares of Class A common stock outstanding, with 63,254,327 shares freely tradable by public investors[203] - AES Grid Stability owns 51,499,195 LLC Interests, which could be redeemed for an equivalent number of Class A common stock shares[203] - The company has reserved 9,500,000 shares of Class A common stock for issuance under the 2021 Equity Plan, with 5,207,625 shares still available for grant as of September 30, 2024[203] - Continuing Equity Owners control approximately 83.7% of the combined voting power of the company's common stock[206] - The company may issue additional securities for investments, acquisitions, or capital raising, potentially constituting a material portion of outstanding Class A common stock[205] - The SEC is investigating the company's revenue recognition practices, internal controls, and certain service contracts with related parties[205] - The company relies on its Founders' brands and reputation for establishing customer relationships, which could be impacted by changes in Founders' ownership[209] - The company may be required to pay additional taxes due to partnership audit rules under U.S. federal income tax law[211] - Fluence Energy, LLC's future tax savings from redemptions are estimated at $126.4 million[215] - Siemens and AES are entitled to receive $107.4 million under the Tax Receivable Agreement, representing 85% of the tax savings[215] - Fluence Energy, Inc. expects to benefit from 15% of the cash tax benefits realized from tax basis adjustments[215] - The 2024 Credit Agreement limits the company's ability to make certain payments, including dividends and distributions[212] - Fluence Energy, LLC is obligated to make tax distributions to holders of LLC Interests, subject to limitations and restrictions[212] - The Tax Receivable Agreement requires payments equal to 85% of the tax benefits realized by Fluence Energy, Inc.[215] - Siemens Industry, Inc. redeemed 58,586,695 LLC Interests of Fluence Energy, LLC on June 30, 2022[215] - AES Grid Stability redeemed 7,087,500 LLC Interests of Fluence Energy, LLC on December 8, 2023[215] - Fluence Energy, Inc. may use excess cash for obligations under the Tax Receivable Agreement or other purposes[214] - Non

November 26, 2024 4Q FY2024 Earnings Presentation 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. In particular, these forward-looking statements include, without limitation, statements regardin ...

Financial Data and Key Metrics - The company reported a record revenue of approximately $2.7 billion for fiscal year 2024, with a 12.6% gross margin [12] - Adjusted EBITDA for FY24 was $78 million, which is $140 million higher than FY23 and $18 million better than the midpoint of expectations [12] - Free cash flow for the year was $72 million, compared to negative $115 million in FY23 [14] - Q4 2024 revenue was $1.2 billion, an 82% increase YoY and a 154% improvement from Q3 [31] - Adjusted gross profit for Q4 was $159 million, with a gross profit margin of approximately 13% [31] - Adjusted EBITDA for Q4 was a record $87 million [31] Business Line Data and Key Metrics - The company achieved an 80% increase in annual recurring revenue (ARR) to $100 million, driven by growth in digital and services businesses [13] - The backlog grew by 55% YoY to $4.5 billion, providing strong visibility for future revenue [14] - The pipeline increased by $500 million from the previous quarter to approximately $21 billion, with nearly half in the U.S. market [19][20] Market Data and Key Metrics - Global electricity demand is projected to rise 15% to 20% in the next decade, driven by economic development, data centers, and electrification [15] - Renewables are expected to account for about 50% of global electricity production by 2030 [16] - Lithium carbonate prices declined by almost 50% YoY, reducing the cost of battery storage systems by 40% [17] - The U.S. market represents nearly half of the company's $21 billion pipeline, with the rest in international markets such as Germany, Australia, Canada, and Chile [20][21] Company Strategy and Industry Competition - The company has established a U.S. supply chain, offering 100% non-Chinese products supported by six U.S. production facilities [22][23] - The company began producing U.S.-made battery modules in September 2024, with UL1973 certification for safety and quality [24] - The company upgraded its second battery cell production line to manufacture 530-amp hour cells, doubling U.S. cell manufacturing capacity [26][27] - The company believes higher tariffs on Chinese batteries will benefit U.S.-based storage providers, giving them a competitive edge [28][29] Management Commentary on Operating Environment and Future Outlook - The company expects strong growth in the energy storage market, with a 30%+ annual growth rate for FY26 and beyond [39] - The company initiated FY25 revenue guidance with a midpoint of $4 billion, representing 50% growth from FY24 [36] - Adjusted gross profit margin for FY25 is expected to be between 10% and 15%, with an adjusted EBITDA midpoint of $180 million [37] - The company expects FY25 revenue to be back-end loaded, with 20% in the first half and 80% in the second half [38] Other Important Information - The company ended FY24 with $963 million in total liquidity, including cash and availability in credit facilities [40] - The company anticipates needing approximately $300 million in additional working capital to support future growth in FY25 [41] - The company has no debt and has flexibility in funding options, including future free cash flow and borrowing capacity [42] Q&A Session Summary Question: Backlog and Revenue Guidance for FY25 - The company has two-thirds of its FY25 revenue guidance in backlog, with $1.5 billion in late-stage negotiations, providing confidence in meeting the midpoint [51][52] - The backlog consists of binding deals with real customer commitments, and the company has seen minimal cancellations [52][53] Question: Market Share and Competition - The company maintains its market share, with Tesla and Chinese competitors being key players [56] - Innovation and a resilient supply chain are critical to maintaining a competitive edge [57] Question: Revenue Guidance and Gross Margin - The company expects FY25 revenue to be back-end loaded, with 20% in the first half and 80% in the second half [38] - Gross margin guidance for FY25 is 10% to 15%, with execution and new product launches being key factors [136][137] Question: Tariffs and Risk Management - The company has arrangements to share tariff risks with suppliers and customers, with only 10% of the backlog subject to tariff exposure [103][104] - The company has accelerated the import of foreign cells to mitigate potential tariff impacts [106] Question: Customer Demand and Domestic Content - There is strong demand for domestic content offerings, with no significant changes in customer behavior post-election [93][94] - The company has secured contracts with cell manufacturers to share tariff cost increases, further mitigating risk [28][29] Question: Pricing and Competition - The company competes on total cost of ownership, with Chinese competitors having advantages in CapEx but not in other parts of the value chain [145][146] - The company offers EPC services when needed but does not plan to expand this role significantly [150]

Fluence Energy, Inc. (FLNC) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25.93%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced break-even earnings, delivering a surprise of 100%.Over the last four quarters, the compa ...

Exhibit 99.1 1 Fluence Energy, Inc. Reports Record Performance in 2024 and Initiates 2025 Guidance ARLINGTON, Va., November 25, 2024 (GLOBE NEWSWIRE) – Fluence Energy, Inc. (Nasdaq: FLNC) ("Fluence" or the "Company"), a global market leader delivering intelligent energy storage, operational services, and asset optimization software, today announced its results for the three months and full fiscal year ended September 30, 2024. Fiscal Year 2024 Financial Highlights • Record revenue for fiscal year 2024 of ap ...

ARLINGTON, Va., Nov. 25, 2024 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), a global market leader delivering intelligent energy storage, operational services, and asset optimization software, today announced its results for the three months and full fiscal year ended September 30, 2024. Fiscal Year 2024 Financial Highlights Record revenue for fiscal year 2024 of approximately $2.7 billion and revenue for the fourth quarter of approximately $1.2 billion, representing ...

ARLINGTON, Va., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), announced today that it will report earnings for the fourth quarter and fiscal year ended September 30, 2024 on Monday, November 25th, 2024, after market close. The Company will conduct a teleconference starting at 8:30 a.m. EST on Tuesday, November 26th, 2024, to discuss the results. To participate, analysts are required to register by clicking Fluence Energy Q4 Earnings Call Registration Lin ...

Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Fluence Energy, Inc. (FLNC) and GE Vernova (GEV) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates ...

The 58 MWh battery-based energy storage system will store energy from the solar park when power demand is low and supply energy to the grid when demand is high This enables a better integration of renewable energy in the power system It will be the sixth Statkraft project in Europe where Fluence has contributed the battery energy storage system ERLANGEN, Germany, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Fluence Energy GmbH, a subsidiary of Fluence Energy, Inc. (NASDAQ: FLNC) ("Fluence"), a global market leader del ...

Stocks in the Alternative Energy - Other Sector - Investors may consider PNM Resources (TXNM) or Fluence Energy, Inc (FLNC) as potential stocks in the Alternative Energy - Other sector [1] - The Zacks Rank and Value category of the Style Scores system are used to identify value stocks, with the Zacks Rank focusing on earnings estimates and revisions, and the Style Scores identifying stocks with specific traits [2] Zacks Rank Comparison - PNM Resources has a Zacks Rank of 2 (Buy), indicating a stronger improvement in its earnings outlook compared to Fluence Energy, Inc, which has a Zacks Rank of 3 (Hold) [3] - Value investors analyze traditional figures and metrics to determine if a company is undervalued at its current share price levels [3] Valuation Metrics - The Value category highlights undervalued companies using key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - PNM Resources has a forward P/E ratio of 15.84 and a PEG ratio of 6.24, while Fluence Energy, Inc has a forward P/E of 471.21 and a PEG ratio of 8.38 [5] - PNM Resources has a P/B ratio of 1.58, compared to Fluence Energy, Inc's P/B ratio of 7.37 [6] Value Grade Comparison - PNM Resources earns a Value grade of A, while Fluence Energy, Inc has a Value grade of C [6] - PNM Resources stands out in both the Zacks Rank and Style Scores models, making it a better option for value investors currently [6]