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 a record order intake of $1.4 billion in Q4, bringing the backlog to $5.3 billion. Revenue for the full year was approximately $2.3 billion, with an adjusted gross margin of 13.7% and adjusted EBITDA of $19.5 million. The company's annual recurring revenue (ARR) ended at $148 million, slightly above guidance. Earnings per share (EPS) came in at $0.13, in line with estimates. The strong order intake and revenue growth demonstrate the company's momentum in the energy storage market.
Publication Date: Nov -26
For fiscal year 2026, Fluence expects revenue in the range of $3.2 billion to $3.6 billion, representing a growth rate of 23.0% according to analyst estimates, with an adjusted gross margin between 11% and 13%. Adjusted EBITDA is expected to be between $40 million and $60 million, and ARR is expected to reach approximately $180 million by the end of fiscal 2026. The company's guidance suggests continued growth in the energy storage market, driven by demand for data centers and long-duration storage.
Fluence has made progress in strengthening its domestic supply chain, addressing production issues at its Arizona facility, and securing a second domestic battery cell supplier to ensure compliance with PFE regulations. The company's efforts to improve its manufacturing capabilities and supply chain resilience are expected to support its growth plans. As management noted, the new cell supplier will provide enough capacity to serve the company's projected loads for the next couple of years, without any material deposit commitments.
Fluence's valuation metrics indicate a relatively high price-to-book ratio of 4.0 and a negative EV/EBITDA ratio of -76.93, suggesting that the market is pricing in significant growth expectations. The price-to-sales ratio is 0.97, indicating a relatively reasonable valuation compared to revenue. However, the negative ROE and ROIC of -11.02% and -5.04%, respectively, suggest that the company's profitability is still a concern.
The data center market opportunity is significant, with a total addressable market (TAM) likely multiples of the previously stated $8 billion, driven by three key needs: interconnection flexibility, backup power, and power quality. Fluence is well-positioned to serve this market, with a dense product offering and strong cybersecurity. The company expects to benefit from the growing demand for data center projects, with 38 projects over 1 GWh in the pipeline.
Fluence expects margins to improve over time, potentially moving beyond the 11% to 13% range guided for 2026. The company's goal is to continue improving its chart and show a positive trajectory, with a guidance of 10% to 15% growth. The data center segment is expected to have higher margins than the company's core margins, providing a potential tailwind for profitability.
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Nov -26
Fluence Energy Analysts Boost Their Forecasts Following Q4 Earnings
Nov -26
Fluence Energy: Sell On Elevated Valuation And Mediocre Outlook
Nov -26
Fluence Energy, Inc. (FLNC) Q4 2025 Earnings Call Transcript
Nov -25
Compared to Estimates, Fluence Energy (FLNC) Q4 Earnings: A Look at Key Metrics
Nov -25
Fluence Energy, Inc. (FLNC) Matches Q4 Earnings Estimates
Nov -24
Fluence Energy Shares Soar After Q4 Earnings: Here's Why
Nov -24
Fluence Energy, Inc. Reports 2025 Financial Results and Initiates 2026 Guidance
Nov -24
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: 6.6
Growth: 3.7
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