Fluence Energy(FLNC) - 2025 Q3 - Quarterly Results

Financial and Operational Highlights 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] - 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] 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 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][7] - 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] - 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] Financial Statements 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 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 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 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 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 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 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]