Core Insights - Berman Tabacco is investigating potential securities law violations by Fluence Energy, Inc., a provider of energy storage products and services [1] Investigation Details - On February 22, 2024, Blue Orca Capital issued a report indicating a short position on Fluence, leading to a share price decline of $2.28, or 13% [2] - On February 10, 2025, Bloomberg reported that Fluence's shares plunged 41% in post-market trading after the company cut its total revenue guidance for the year below Wall Street estimates, with total revenues missing analyst expectations and a larger than expected loss reported in the first quarter [2]

Core Viewpoint - Fluence Energy's shares dropped 48.7% following disappointing fiscal Q1 earnings and a reduction in revenue guidance, leading to multiple downgrades from Wall Street analysts [1][2][5]. Financial Performance - In fiscal Q1, Fluence reported revenue of $187 million, missing estimates by $186 million, and a loss per share of ($0.32), which was $0.14 below expectations. This revenue figure represents a 49% decline from the same quarter last year [2]. - The company has revised its full-year 2025 revenue outlook to a range of $3.1 billion to $3.7 billion, down from a previous estimate of $3.6 billion to $4.4 billion. Adjusted EBITDA guidance was also lowered to $70 million to $100 million from $160 million to $200 million [3]. Management Insights - Management attributed the disappointing results to customer delays in contract signings and competitive pressures. However, they highlighted a strong outlook for utility-scale solar battery storage globally and interest in Fluence's U.S. content product, supported by a backlog of $5.1 billion [4]. Analyst Reactions - Following the earnings report, UBS downgraded Fluence from Buy to Neutral, lowering the price target from $28 to $8. Wolfe Research downgraded from Outperform to Peer Perform, citing potential gross margin declines. Roth Capital also cut its rating to Neutral with a price target of $6.50 [5]. Market Position - Fluence's market capitalization has decreased to $1.17 billion, which may appear attractive given the projected revenue of approximately $3.4 billion, even with the revised guidance. However, the company is still experiencing cash burn, suggesting caution for potential investors [6].

Core Insights - Fluence Energy, Inc. has launched Smartstack™, a high-density, AC-based energy storage platform designed for grid-scale applications, with deliveries expected to start in Q4 2025 [1][2] - Smartstack offers approximately 30% higher energy density compared to existing AC-based systems, achieving up to 7.5 MWh energy density with 300 Ah generation batteries [2][5] - The platform's modular design allows for flexible configurations, catering to various market needs with storage durations of 2, 4, 6, and 8 hours available for sale [3][5] Product Features - Smartstack's design splits battery storage systems into easily transportable units, reducing shipping constraints and installation complexity [2][4] - The system includes a Smart Skid base platform that integrates advanced cooling, power control, and monitoring capabilities, while battery pods can be swapped for maintenance or upgrades [4][5] - Smartstack guarantees up to 99% availability through a long-term service agreement, enhancing revenue generation for customers [5][7] Market Positioning - The product addresses critical industry challenges such as supply chain constraints, performance, and land use, making it suitable for previously constrained sites [1][6] - Fluence has a strong track record, having deployed over 37.7 GWh of storage projects globally, including the first grid-connected system [7][9] - The modular design supports a localized supply chain strategy, optimizing availability and cost while enhancing resilience against geopolitical disruptions [6][9] Safety and Compliance - Smartstack incorporates advanced safety features, including multi-layer protection systems and large-scale fire testing certification, ensuring high safety standards [7] - The platform maintains Fluence's commitment to cybersecurity and safety, crucial for operational integrity in energy storage solutions [7]

Core Insights - Fluence Energy, Inc. has launched Smartstack™, a high-density, AC-based energy storage platform designed for grid-scale applications, with customer deliveries expected to start in Q4 2025 [1][2] - Smartstack addresses industry challenges such as performance, transportation logistics, and land use, providing a modular design that enhances scalability and operational efficiency [1][3] Product Features - The Smartstack system features a patent-pending design that splits battery storage into easily transportable units, improving shipping and installation processes [2] - It offers an energy density of up to 7.5 MWh, which is approximately 30% higher than existing AC-based systems, allowing for more energy generation within limited project footprints [2] - The platform supports various storage durations, including 2-hour, 4-hour, 6-hour, and 8-hour options, catering to diverse market needs [3] Operational Efficiency - Smartstack is designed to maximize system availability during peak demand, with a guaranteed availability of up to 99% through a long-term service agreement [3][6] - The modular architecture allows for regional sourcing and manufacturing of components, optimizing costs and enhancing supply chain resilience [5] Safety and Cybersecurity - The platform incorporates advanced safety features, including multi-layer protection systems and large-scale fire testing certification, ensuring high safety standards [6] - Fluence maintains a strong commitment to cybersecurity, integrating robust protection measures within the Smartstack system [6] Company Background - Fluence Energy has deployed over 37.7 GWh of storage projects globally, establishing itself as a leader in intelligent energy storage solutions [6][8] - The company operates in nearly 50 markets, focusing on creating a more resilient grid and maximizing the potential of renewable energy portfolios [8]

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Financial Data and Key Metrics Changes - The company generated $187 million in revenue for Q1 2025, a decrease of 49% compared to the same quarter last year, primarily due to a back-end weighted revenue plan [42][11] - Adjusted gross margins were reported at 12.5%, marking the sixth consecutive quarter of double-digit gross profit margins [42] - Annual recurring revenue (ARR) increased to $106 million, up $6 million from the previous quarter, with a target of $145 million by the end of the fiscal year [13][47] - The company ended the quarter with over $650 million in total cash, positioning it strongly for future investments [13][51] Business Line Data and Key Metrics Changes - The backlog reached a record $5.1 billion, reflecting a year-over-year increase of 38% in value and more than double in terms of volume [26] - The company reported over $770 million in order intake during the quarter, contributing to the backlog growth [12] - The revenue guidance for fiscal year 2025 was revised to between $3.1 billion and $3.7 billion, with a midpoint of $3.4 billion, representing a $600 million reduction from prior guidance [14][45] Market Data and Key Metrics Changes - The U.S. battery storage market continues to show strong demand, with installations increasing by 83% year-over-year to over 45 gigawatt hours in 2024 [31] - The company noted that nearly half of its $21.4 billion pipeline is in the U.S. market, with significant contributions from Germany, Australia, Canada, and Chile [29] Company Strategy and Development Direction - The company is focusing on a U.S. domestic content strategy to mitigate geopolitical risks and enhance competitiveness [10][18] - A new product platform is set to launch, aimed at improving density and reducing costs for customers, expected to benefit the company starting in fiscal 2026 [20][24] - The company is committed to continuous innovation in technology to maintain its competitive edge in the market [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resolution of project delays in Australia, expecting to sign contracts later in the year with revenue recognition in fiscal 2026 [15][82] - The competitive landscape is intensifying, particularly from Chinese players, but the company believes its domestic content strategy will help mitigate these pressures [18][19] - The company anticipates a 30% growth in revenue for fiscal 2026, starting from the revised fiscal 2025 guidance midpoint [46][62] Other Important Information - The company has a strong liquidity position with total liquidity exceeding $1.1 billion, reflecting the issuance of $400 million in convertible notes [52] - The company is actively managing potential tariff impacts, with less than 15% of its backlog exposed to the recently announced tariffs on Chinese imports [34][35] Q&A Session Summary Question: Comments on 2026 revenue guidance despite project delays - Management indicated a conservative view for 2026, with a current backlog of $1.2 billion for that year, and plans to provide more clarity as the year progresses [60][62] Question: Insights on Moss Landing events - Management stated they have no direct information regarding Moss Landing and do not anticipate any liability from the events reported [64][65] Question: Margins on new bookings and Australia projects - Management noted that margins for new bookings are expected to be at the lower end of the 10% to 15% range, with a temporary margin reduction due to project mix changes [68][70] Question: Confidence in Australian contracts being signed - Management expressed confidence that two of the three delayed contracts would be signed soon, with minor issues causing the delays [78][82] Question: Impact of tariffs on margins - Management confirmed that the $10 million impact from tariffs is reflected in the guidance, with competitive pressures primarily affecting international margins [74][76] Question: Deferred revenue and cash flow - Management expects the deferred revenue of over $300 million to reverse within the next quarter [92][94] Question: Measures on graphite supply amid investigations - Management is accelerating graphite imports to prepare for potential duties, emphasizing that any duties would create a level playing field for domestic and imported batteries [96][99] Question: Domestic content demand and pricing - Management confirmed that domestic content margins remain within the 10% to 15% range, with no significant premium pricing observed [106][107] Question: Cost trajectory from the Utah facility - Management expressed satisfaction with the performance of the Utah facility, indicating that it is operating well and competitively [108][111] Question: Impact of government policy and trade on operations - Management reported no significant impact from recent government policy changes, with all permitting freezes reportedly lifted [115] Question: New product launch and competitive positioning - Management believes the new product will be industry-leading, allowing for higher capacity and competitive pricing, while maintaining targeted margins [119][124]

Core Viewpoint - Fluence Energy reported a larger-than-expected loss in the fourth quarter and has lowered its revenue outlook for 2025, leading to a significant drop in its stock price by over 40% [1][3][4] Company Performance - Fluence experienced a loss of $0.32 per share on sales of $186.8 million, which was below Wall Street's expectations of a $0.22 loss on sales of $373 million [3] - Revenue declined by 49% year-over-year, attributed to delays in starting new projects [3][4] Outlook and Market Conditions - The company has revised its 2025 revenue outlook to a range of $3.1 billion to $3.7 billion, down from the previous estimate of $3.6 billion to $4.4 billion, while Wall Street had anticipated $3.9 billion in sales for the year [4] - CEO Julian Nebreda noted customer-driven delays in contract signings and competitive pressures as factors influencing the outlook [4] Market Demand and Investor Sentiment - Despite the current challenges, there remains a robust global market for utility-scale battery storage, with strong interest in Fluence's U.S. domestic content product [4] - The recent stock price decline may present a buying opportunity, but concerns about the company's execution and credibility in the financial community persist [5] Long-term Considerations - Questions regarding long-term pricing power for battery storage solutions may arise, especially if these solutions become commoditized as capacity expands [6] - A cautious approach is recommended for potential investors as the company works to regain credibility [6]

Financial Performance & Guidance - Q1 2025 revenue was $187 million, a 49% decrease compared to Q1 2024 due to the back-end loaded nature of expected revenue for FY2025[35, 36] - Adjusted EBITDA for Q1 2025 was -$50 million[10, 35] - The company lowered FY 2025 revenue guidance by $600 million to a range of $3.1 billion to $3.7 billion[12] - Approximately 85% of the revised FY 2025 revenue guidance midpoint is covered by the current backlog plus revenue already recognized[12, 39] - The company anticipates FY 2025 revenue split of 15% in the first half and 85% in the second half, expecting negative Adjusted EBITDA in H1[39] Backlog & Pipeline - Backlog as of December 31, 2024, reached $5.1 billion, a 38% year-over-year growth[10, 18, 19] - The company's pipeline increased to approximately $21.4 billion[10, 22, 23] Market & Strategy - The company sees minimal tariff exposure in 2025, with a potential impact of approximately $10 million to gross margin[29] - Americas BESS installations grew from 24 GWh in 2023 to almost 45 GWh in 2024, representing an 83% increase[27] - The company's domestic content strategy is expected to benefit from the Inflation Reduction Act (IRA) and updated BESS Safe Harbor Table[11, 28, 59]

Fluence Energy, Inc. (FLNC) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.17. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -88.24%. A quarter ago, it was expected that this company would post earnings of $0.27 per share when it actually produced earnings of $0.34, delivering a surprise of 25.93%.Over the last four quarters, the company ha ...

Fluence Energy struggled with revenue shortfall and increased losses in Q1, but it maintained a high order backlog and financial flexibility.Intelligent energy storage solutions specialist Fluence Energy (FLNC 4.31%) reported fiscal year 2025 first-quarter results on Monday, Feb. 10, that fell well short of analysts' consensus estimates. Revenue in Q1 fell 49% year over year to $186.8 million, far below the analyst estimate of $362 million. Earnings per share also missed expectations, with a loss of $0.32 p ...