Fluence FY26Q1 Earnings Call Summary Company Overview - **Company**: Fluence - **Industry**: Energy Storage Solutions Key Financial Performance - **Q1 FY26 Revenue**: $475 million, a year-over-year increase of 154% [1] - **Adjusted Gross Profit**: $27 million, with a gross margin of 5.6%, down 6.9 percentage points year-over-year [1] - **Adjusted EBITDA**: -$52 million, indicating a significant loss despite revenue growth [1] - **Factors Affecting Gross Margin**: - Additional costs of approximately $20 million from two overseas projects, which are expected to be recoverable [1] - Low revenue scale in FY26Q1 leading to higher pressure from fixed cost allocation [1] FY26 Guidance - **Projected Revenue for FY26**: Expected to be between $3.2 billion and $3.6 billion [2] - **Recurring Revenue**: Anticipated to be $180 million for the fiscal year [2] - **Target Gross Margin**: Expected to be between 11% and 13% [2] - **Adjusted EBITDA Forecast**: Projected to be between $40 million and $60 million [2] - **Order Coverage**: Current backlog covers the revenue guidance for FY26, with future order growth expected to enhance visibility for FY27 [2] Order and Project Insights - **Current Backlog**: $5.5 billion in orders, with a significant portion (72%) coming from the U.S. [2] - **New Orders in FY26Q1**: $757 million, including $550 million from U.S. orders [2] - **Ongoing Projects**: Total project value in progress is $30.1 billion, reflecting a quarter-over-quarter growth of 28.6% [2] Growth Directions - **Data Center Projects**: Potential and ongoing data center project capacity is approximately 36 GWh [2] - **Long-Duration Energy Storage (LDES) Projects**: Potential and ongoing LDES projects are around 34 GWh, with Smartstack's high-density layout providing a competitive advantage in this market segment [2]