Fluence Energy Q1 Earnings Call Highlights

Core Insights - Fluence reported a significant increase in its pipeline, growing approximately $7 billion, or 30%, during the quarter, primarily driven by the U.S. market [1] - The company signed over $750 million in new orders globally for the quarter, with more than $500 million coming from the U.S., indicating strong market momentum [2] - Fluence ended the quarter with a record contracted backlog of $5.5 billion, attributed to increased U.S. contracting activity and rising demand forecasts [3] Financial Performance - Fiscal Q1 revenue was $475 million, representing 14% of the full-year guidance, with an adjusted gross margin of 5.6% and adjusted EBITDA of negative $52 million due to discrete project costs and seasonal dynamics [6][10] - Adjusted gross profit for the quarter was $27 million, with management indicating that margin pressures were not systemic or structural, as the rolling 12-month adjusted gross margin was 12.3% [11] - The company reaffirmed its fiscal 2026 guidance, projecting revenue between $3.2 billion and $3.6 billion, with an adjusted EBITDA of $40 million to $60 million [18][19] Liquidity and Supply Chain - Fluence finished the quarter with approximately $1.1 billion in total liquidity, including $477 million in cash and $617 million available through credit facilities, providing flexibility for growth investments [5][13] - The company reported that domestic cell/module production and enclosure manufacturing are on track, securing 100% of its 2026 domestic and international supply needs [5][16] - Fluence is working with AESC to ensure compliance with "prohibited foreign entity" regulations while expanding its domestic supplier base [15] Market Opportunities - Fluence is focusing on new segments such as data centers and long-duration energy storage, with discussions covering 36 GWh of data center projects and 34 GWh of long-duration storage projects [7][8] - The company has not yet converted newer data center opportunities into backlog but expects some conversion in the second half of the calendar year [8] - Approximately 25% of the discussed data center and long-duration figures are currently in the pipeline, with the remainder categorized as leads [9] Legal Matters - Fluence reached a settlement related to the Moss Landing incident for an "immaterial amount" and obtained a court dismissal of a $230 million disgorgement claim from Diablo Canyon [20] Company Overview - Fluence Energy is a leading global provider of energy storage products and services, specializing in advanced battery systems to support grid stability and renewable integration [21] - The company develops and delivers turnkey energy storage solutions designed to optimize the reliability and efficiency of power networks [22]