Core Points - Fluence Energy, Inc is under investigation for potential securities fraud and unlawful business practices [1] - For Q1 FY 2025, Fluence reported a net loss of $57 million, a significant increase from a loss of $25.6 million in the same period last year, with revenues down 49% year-over-year to $186.8 million [2] - The company has revised its revenue guidance for FY 2025 to a range of $3.1 billion to $3.7 billion, down from a previous estimate of $3.6 billion to $4.4 billion, due to delays in contract signings in Australia and expectations of lower revenue and gross margins on new contracts [2] - Following the announcement of these results, Fluence's stock price dropped by $6.07, or 46.44%, closing at $7.00 per share on February 11, 2025 [3]

Core Points - Cordelio Power and Fluence Energy have announced a partnership to supply 1 GWh of battery storage systems across three projects starting in 2026, utilizing domestically manufactured components [1][2] - The collaboration aims to enhance U.S. energy security and support local economies by creating jobs and reducing electricity costs [1][2] - Fluence is focused on building a resilient supply chain to meet the rising demand for large-scale battery storage systems, with an emphasis on domestic production [3] Company Overview - Fluence Energy, Inc. is a global leader in intelligent energy storage and optimization software, with projects contracted and managed across nearly 50 markets [4] - Cordelio Power is an independent renewable power producer managing over 1,400 MW of operating assets and a growth pipeline of over 22,000 MW in wind, energy storage, and solar projects [6]

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]

Energy storage company Fluence Energy (FLNC -47.97%) lost more than expected in the quarter and lowered its outlook for 2025. Investors are stampeding for the exits, sending Fluence shares down more than 40% as of 9:45 Eastern.Customer-driven delaysFluence specializes in utility-scale energy storage projects. The company builds out massive arrays of batteries designed to store energy for future use. The projects are large and expensive to build but should create the foundation needed for renewables like sol ...

1Q FY2025 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 regarding the Company's fu ...