Financial Data and Key Metrics Changes - In Q4 2025, the company signed over $1.4 billion in orders, setting a record and bringing the backlog to $5.3 billion, indicating strong growth potential for 2026 and beyond [7] - Full year revenue was approximately $2.3 billion, about $300 million below expectations due to delays in ramping up a manufacturing facility in Arizona [8][20] - The adjusted gross margin for the year was a record 13.7%, with adjusted EBITDA of approximately $19.5 million, at the top end of guidance [8][22] - The company ended the year with approximately $1.3 billion in liquidity, an increase of $300 million compared to the end of fiscal 2024 [9][23] Business Line Data and Key Metrics Changes - The record order intake of $1.4 billion included contributions from all core markets, with approximately half of the projects located in Australia [9] - The company expects the US market to be the largest contributor to order intake for fiscal 2026, reflecting a strong pipeline [9] Market Data and Key Metrics Changes - Demand for energy storage solutions is accelerating globally, driven by declining capital costs and increasing electricity demand from renewables and data centers [9][10] - The company has seen a significant increase in larger deals, with 38 projects of at least 1 gigawatt hour in the pipeline, more than double from last year [10] Company Strategy and Development Direction - The company is focused on leading the energy storage market, with a new product roadmap and a domestic content strategy to enhance competitiveness [7][12] - The introduction of the SmartStack product is expected to drive a majority of future orders due to its competitive total cost of ownership and operational metrics [14][15] - The company is committed to strengthening its domestic supply chain and has contracted with key production facilities in the US [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting delivery commitments and capturing revenue shortfalls in fiscal 2026 due to improved production rates [8][16] - The company anticipates investing about $200 million in fiscal 2026, with a revenue guidance range of $3.2 billion to $3.6 billion [24] - Management highlighted the importance of compliance with new regulations and the progress made towards meeting domestic content requirements [17][18] Other Important Information - The company has secured a second supplier for domestic battery cells, which is compliant with regulations, enhancing its supply chain resilience [17][18] - The company is actively working on compliance with the One Big Beautiful Bill (OBBBA) regulations to ensure eligibility for tax credits [17][18] Q&A Session Summary Question: Changes in the competitive environment - Management noted that while the international market remains competitive, there is a shift in the US towards customers preferring US or non-PFE manufacturers [34] Question: Future gross margin expectations - Management indicated that they aim to improve gross margins beyond the current guidance of 11-13% in the coming years [35][36] Question: Data center market sizing and Fluence's market share - Management acknowledged that the total addressable market (TAM) for data centers is significantly larger than previously estimated, with ongoing discussions to capture a larger share [42][49] Question: Q4 underperformance and manufacturing delays - Management explained that staffing challenges at the Arizona facility led to underperformance, but improvements have been made, and they are confident in meeting future production targets [60][62] Question: Incremental capacity from the new cell supplier - Management confirmed that the new supplier will provide sufficient capacity to meet projected loads for the next couple of years without significant upfront commitments [64] Question: Long-duration storage solutions - Management stated that SmartStack will be the primary solution for long-duration storage, emphasizing its competitive advantages [98]

Financial Data and Key Metrics Changes - The company reported full year revenue of approximately $2.3 billion, which was about $300 million below expectations due to delays in ramping up a new manufacturing facility [8][20] - Adjusted gross margin reached a record of approximately 13.7% for the year, exceeding expectations, while adjusted EBITDA was approximately $19.5 million, at the top end of guidance [8][22] - The company ended the quarter with approximately $1.3 billion in liquidity, an increase of $300 million compared to the end of fiscal 2024 [9][24] Business Line Data and Key Metrics Changes - The company signed more than $1.4 billion in orders during the fourth quarter, bringing the backlog to $5.3 billion, setting the stage for growth in 2026 [7][9] - Annual recurring revenue (ARR) ended at $148 million, slightly above the original guidance of $145 million [8] Market Data and Key Metrics Changes - Approximately half of the record $1.4 billion order intake in Q4 came from projects located in Australia, with expectations for the US market to be the largest contributor in fiscal 2026 [9][10] - The company has seen a significant increase in larger deals, with 38 projects of at least 1 gigawatt hour in the pipeline, more than double from the previous year [10] Company Strategy and Development Direction - The company is focused on capitalizing on the accelerating demand for energy storage solutions, driven by declining capital costs and increasing electricity demand from renewables and data centers [9][10] - The introduction of the SmartStack product is expected to be a key differentiator, with plans for it to represent a majority of orders in the upcoming fiscal year [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting delivery commitments and capturing revenue shortfalls in fiscal 2026, despite challenges faced in the previous year [8][16] - The company anticipates investing about $200 million in fiscal 2026, with a revenue guidance range of $3.2 billion to $3.6 billion, reflecting strong backlog coverage [24] Other Important Information - The company has made significant progress in addressing production issues at its Arizona facility and is on track to meet production targets by the end of the calendar year [16][22] - A second supplier for domestic battery cells has been secured, which is compliant with regulations, further supporting the company's growth strategy [17][18] Q&A Session Summary Question: Changes in the competitive environment - Management noted that while the international market remains competitive, there is a shift in the US towards customers preferring US or non-PFE manufacturers [34] Question: Future gross margin expectations - Management indicated that the goal is to continue improving gross margins beyond the 11-13% range in the coming years [36] Question: Data center market sizing and Fluence's market share - Management acknowledged that the total addressable market (TAM) for data centers is significantly higher than previously estimated, with ongoing discussions about capturing a larger share [42][49] Question: Q4 underperformance and manufacturing delays - Management expressed disappointment over Q4 performance, attributing it to staffing challenges at the enclosure manufacturing facility, which have since been addressed [58][62] Question: Incremental capacity from new cell supplier - Management confirmed that the new supplier will provide sufficient capacity to meet projected loads for the next couple of years without material deposit commitments [64] Question: Long-duration storage solutions - Management stated that SmartStack will be the primary solution for long-duration storage, emphasizing its competitive advantages [98] Question: Breakdown of opportunities for data centers - Management highlighted the ability of their technology to address multiple needs for data centers, including interconnection flexibility, backup power, and power quality [104]

FY2025 Earnings Presentation November 25, 2025 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 t ...

Core Viewpoint - The new energy storage market is experiencing strong demand, with over 230 GWh of storage orders disclosed by companies in November alone, driving rapid capacity expansion both domestically and internationally [1]. Domestic Market Developments - Domestic new energy storage companies are focusing on expanding production capacity for storage cells and PCS, as well as scaling up advanced storage technologies like sodium-ion batteries [2]. - The production capacity of storage PCS is expected to see a price increase of 10%-20% by the end of 2025, with delivery times extending to 2026 due to demand outpacing supply [5]. Company-Specific Updates - **Sungrow Power Supply Co., Ltd.**: Announced a fundraising plan to issue up to 107,866,570 A-shares, raising approximately 1.65 billion yuan, primarily for the production of 25 GW string inverters and 15 GW storage inverters [3][4]. - **Qingna Technology**: Signed a contract for a 20 GWh sodium-ion battery production project in Suining, with a total investment of 6 billion yuan, aiming to produce batteries for various applications [6][7]. - **Fluence Energy**: Plans to establish a battery storage system manufacturing base in India, aiming to produce key storage system components for both the Indian and broader Asia-Pacific markets [8][9]. - **NeoVolta**: Collaborated with Infinite Grid Capital to secure $13 million in private financing for a 2 GWh battery storage system manufacturing project in Georgia, expected to commence production in 2026 [10][11].

Core Viewpoint - Fluence has officially launched an automated battery storage manufacturing plant in Vietnam's Bắc Ninh Province, with an annual production capacity of 35 GWh, aimed at meeting the growing global demand for battery storage solutions [2][4]. Group 1: Manufacturing and Production Capacity - The new plant's annual capacity can meet the deployment needs of approximately 8.75 GW/4-hour storage systems [3]. - Fluence's Gridstack Pro and Smartstack series products will be produced at this facility, which are the company's latest generation of large-scale storage solutions [4]. - The Gridstack Pro system is designed for utility companies and independent power producers, featuring enhanced safety certifications and optimized design for deployment in capacity-constrained areas [4]. - The Smartstack system is more compact and integrates energy management functions, with a capacity of 7.5 MWh using 314 Ah cells [4]. Group 2: Financial Performance - In the third quarter of FY2025, Fluence reported revenues of $602.5 million, a year-on-year increase of 24.7% [5]. - The company reaffirmed its annual revenue target of $2.6 billion to $2.8 billion but indicated that due to slower-than-expected expansion at its new U.S. plant, revenues are likely to be at the lower end of this range [5]. - Despite delays in expansion affecting some expected revenues, Fluence anticipates that these facilities will reach target capacity by the end of the year, ensuring timely delivery to customers [6]. - As of June 30, 2025, Fluence has deployed 6.3 GW/16.7 GWh of storage systems, with signed pending orders totaling 8.2 GW and a total reserve of planned and under-construction projects amounting to 35.7 GW/114.3 GWh [6]. Group 3: Industry Trends and Expansion - Southeast Asia is increasingly interested in energy storage technology, prompting Fluence to establish a manufacturing facility in Thailand to tap into this emerging market [7]. - Several Chinese energy storage companies are also expanding their manufacturing capacities in Southeast Asia, with notable investments such as CATL's $6 billion integrated battery project in Indonesia [7]. - Other companies like EVE Energy and Guoxuan High-Tech are also making significant strides in establishing production bases in the region, indicating a growing trend of global energy storage manufacturing centers [8][9].