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Jun 30
Fluence Q3 2025 Earnings Report
Fluence reported its third quarter 2025 results, with revenue increasing by 24.7% year-over-year and net income significantly improving. The company reaffirmed its fiscal year 2025 guidance despite slower-than-expected production ramp-up at its new U.S. manufacturing facilities.
Key Takeaways
Fluence Energy, Inc. delivered strong third-quarter results, with revenue reaching $602.5 million, a 24.7% increase from the prior year, and net income rising to $6.9 million. The company's gross profit margin was 14.8%. Despite a robust backlog of $4.9 billion, the company adjusted its fiscal year 2025 revenue guidance to the lower end of the range due to delays in U.S. manufacturing ramp-up, with anticipated revenue shifting to fiscal year 2026.
Revenue for the third fiscal quarter ended June 30, 2025, was approximately $602.5 million, representing a 24.7% increase from the same quarter last year.
Net income for the quarter was approximately $6.9 million, a significant increase compared to $1.1 million in the same quarter last year.
GAAP gross profit margin was approximately 14.8%, compared to 17.2% for the same quarter last year.
Total backlog as of June 30, 2025, reached approximately $4.9 billion, with an additional $1.1 billion signed in July and August.
Fluence
Fluence
Forward Guidance
Fluence reaffirmed its fiscal year 2025 revenue guidance range of $2.6 billion to $2.8 billion, but now expects to be at the lower end due to slower-than-expected production ramp-up at its new U.S. manufacturing facilities. The company also reaffirmed its fiscal year 2025 Adjusted EBITDA guidance range of $0 to $20 million (midpoint $10 million) and its annual recurring revenue (ARR) guidance of approximately $145 million.
Positive Outlook
- Reaffirmed fiscal year 2025 Adjusted EBITDA guidance range of $0 to $20 million, reflecting stronger gross margins and overhead cost reductions.
- Reaffirmed fiscal year 2025 annual recurring revenue (ARR) guidance of approximately $145 million.
- New U.S. manufacturing facilities are expected to reach targeted capacity by calendar year-end, ensuring on-time customer deliveries.
- The company executed a new supply chain financing facility providing incremental liquidity of $150.0 million, reflecting market confidence.
- Strong backlog of approximately $2.5 billion is expected to convert to revenue in fiscal 2026.
Challenges Ahead
- Fiscal year 2025 revenue guidance now expected to be at the lower end of the $2.6 billion to $2.8 billion range.
- Slower than expected production ramp-up at recently commissioned U.S. manufacturing facilities.
- Delay in scaling new manufacturing facilities in the U.S. resulted in lower-than-expected revenue for the quarter.
- Some anticipated revenue has shifted from fiscal year 2025 to fiscal year 2026 due to production delays.
- The company is not able to provide a quantitative reconciliation of full fiscal year 2025 Adjusted EBITDA to GAAP Net Income (Loss) on a forward-looking basis due to uncertainty around certain items.