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Dec 31, 2024
Fluence Q1 2025 Earnings Report
Fluence Energy, Inc. reported its first fiscal quarter 2025 results, showing a decrease in revenue but an improvement in gross profit margin, alongside a record backlog.
Key Takeaways
Fluence Energy, Inc. announced its first fiscal quarter 2025 results with revenue of $186.8 million, a 49% decrease year-over-year, primarily due to the backend-loaded nature of expected revenue for fiscal year 2025. Despite the revenue decline, GAAP gross profit margin improved to 11.4% from 10.0% in the prior year. The company reported a net loss of $57.0 million and a record backlog of $5.1 billion.
Revenue for Q1 2025 was approximately $186.8 million, a decrease of 49% compared to the same quarter last year, attributed to the backend-loaded revenue recognition for fiscal year 2025.
GAAP gross profit margin improved to 11.4% in Q1 2025, up from 10.0% in the same quarter last year, with Adjusted gross profit margin reaching 12.5%.
The company reported a net loss of approximately $57.0 million, an increase from a net loss of $25.6 million in the prior year's quarter.
Fluence achieved a record backlog of approximately $5.1 billion as of December 31, 2024, driven by quarterly order intake of $778.0 million.
Fluence
Fluence
Forward Guidance
Fluence Energy, Inc. is lowering its fiscal year 2025 total revenue guidance range to $3.1 billion to $3.7 billion (midpoint $3.4 billion) from its prior guidance of $3.6 billion to $4.4 billion (midpoint $4.0 billion). The company is also lowering its fiscal year 2025 Adjusted EBITDA range to $70 million to $100 million (midpoint $85 million) from its prior guidance of $160 million to $200 million (midpoint $180 million). The fiscal year 2025 annual recurring revenue (ARR) guidance of approximately $145 million is reaffirmed.
Positive Outlook
- The company reaffirmed its fiscal year 2025 annual recurring revenue (ARR) guidance of approximately $145 million.
- The $3.4 billion midpoint of the revenue guidance range is approximately 85% covered by the current backlog plus revenue recognized year-to-date, indicating a solid foundation for future revenue.
- The company successfully raised $400 million of 2.25% Convertible Senior Notes due 2030, providing additional liquidity and a stronger financial foundation.
- Fluence continues to see a very robust utility scale battery storage market globally and strong interest in its U.S. domestic content product offering.
- The company is executing plans to maintain its leadership position, differentiate its product, and optimize its cost structure, expecting improved financial performance in fiscal year 2026 and beyond.
Challenges Ahead
- The fiscal year 2025 total revenue guidance range was lowered from $3.6-$4.4 billion to $3.1-$3.7 billion.
- The $600 million reduction in revenue from the previous midpoint is primarily due to the timing of certain contracts in Australia that the Company now expects to sign later this year.
- The fiscal year 2025 Adjusted EBITDA range was lowered from $160-$200 million to $70-$100 million.
- The decrease in Adjusted EBITDA is primarily driven by lower expected revenue and lower expected gross margins on recently signed contracts.
- The company has experienced customer-driven delays in signing certain contracts, coupled with competitive pressures, contributing to the need to lower the fiscal year 2025 outlook.