GICS Sector : Utilities
Fluence Energy, Inc.provides energy storage products and services, and artificial intelligence enabled digital applications for renewables and storage applications worldwide.The company sells energy storage products with integrated hardware, software, and digital intelligence, as well as engineering and delivery services to support the deployment of its storage products; operational and maintenance, and energy storage-as-a-service; and digital applications and solutions.
Fluence Energy reported revenue of $475 million in Q1 2026, representing 14% of its full-year guidance, and nearly double the 18% of full-year 2025 revenue earned during Q1 2025. The company's adjusted gross margin was 5.6%, below expectations due to discrete project-specific costs and typical first-quarter margin dynamics. The actual EPS came out at '-0.34' relative to estimates at '-0.18'. The company's strong order intake resulted in a record backlog of $5.5 billion, driven by the One Big Beautiful Bill Act and rising demand forecast.
Publication Date: Feb -15
The company secured over $750 million of new orders globally, with more than $500 million coming from the U.S. The pipeline grew by approximately $7 billion or 30%, led by U.S. demand, with additional upside from data centers and long-duration energy storage projects. Fluence is seeing expanding applications for storage, particularly from data centers and large commercial and industrial customers, where its solutions are uniquely positioned to serve emerging customer needs.
Fluence reaffirmed its fiscal 2026 guidance, with revenue expected to be in the range of $3.2 to $3.6 billion, and adjusted EBITDA in the range of $40 million to $60 million. The company is optimistic about the US market for battery storage, citing changing dynamics and growth opportunities. Analysts estimate next year's revenue growth at 20.6%, indicating a positive outlook for the company's future performance.
Fluence's current valuation metrics indicate a mixed picture, with a P/S Ratio of 0.95 and an EV/EBITDA of -107.76. The company's ROE is -12.87%, and ROIC is -4.45%. The Net Debt / EBITDA ratio is 2.81, indicating a manageable debt burden. These metrics suggest that the market is pricing in significant growth expectations, but also reflects the challenges the company faces in terms of profitability.
The company is making progress in resolving the prohibited foreign entity status of its Tennessee facility and is growing its domestic manufacturing of components for its products. Fluence ended the quarter with approximately $1.1 billion in total liquidity, positioning it well to support its growth. The company is adapting to data center needs, particularly in terms of response time and power quality, and is excited about growth opportunities.
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Fluence Energy's 13.77% growth in Energy Storage Products is driven by increasing adoption of renewable energy sources, declining battery costs, and rising demand for grid resilience and backup power solutions. Additionally, government incentives and policies supporting energy storage deployment, as well as the company's strategic partnerships and expanding product offerings, contribute to its growth momentum.
Fluence Energy's 22.7% growth is driven by increasing adoption of energy storage solutions, rising demand for renewable energy integration, and growing need for grid resiliency. Additionally, the company's strategic partnerships, expanding product offerings, and geographic diversification contribute to its rapid growth.
Fluence Energy's Digital Applications and Solutions segment growth of 23.43% is driven by increasing adoption of energy storage systems, rising demand for grid modernization, and growing need for renewable energy integration. Additionally, the company's AI-powered optimization software and digital platforms are enhancing customer experience, leading to increased sales and revenue growth.
Fluence Energy's grid-scale energy storage systems are designed to provide reliable and efficient energy storage solutions for utilities, renewable energy developers, and commercial and industrial customers.
Fluence Energy's commercial and industrial energy storage systems help businesses reduce energy costs, improve power quality, and increase resilience.
Fluence Energy's microgrids and islanding systems provide reliable and resilient power for remote communities, military bases, and critical infrastructure.
Fluence Energy's energy storage software and controls optimize energy storage system performance, monitoring, and control.
Fluence Energy's energy storage system integration services provide customized solutions for energy storage system design, installation, and commissioning.
The threat of substitutes for Fluence Energy, Inc. is medium due to the availability of alternative energy sources.
The bargaining power of customers for Fluence Energy, Inc. is low due to the lack of negotiating power of individual customers.
The bargaining power of suppliers for Fluence Energy, Inc. is high due to the limited number of suppliers and high switching costs.
The threat of new entrants for Fluence Energy, Inc. is medium due to the moderate barriers to entry and the availability of resources.
The intensity of rivalry for Fluence Energy, Inc. is high due to the high level of competition in the energy industry.
| Value | |
|---|---|
| Debt Weight | 11.16% |
| Debt Cost | 3.95% |
| Equity Weight | 88.84% |
| Equity Cost | 16.36% |
| WACC | 14.97% |
| Leverage | 12.57% |
Value: 6.0
Growth: 5.4
Quality: 4.3
Yield: 9.0
Momentum: 8.5
Volatility: 7.7
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