Fluence Energy (FLNC) AI Stock Analysis

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Fluence Energy

(NASDAQ:FLNC)

52Neutral

Fluence Energy is experiencing robust revenue and backlog growth alongside significant financial challenges. Negative profitability and cash flow issues weigh heavily, compounded by technical weakness and a high-risk valuation. While strategic initiatives and a strong cash position offer potential upside, the immediate landscape suggests caution.

Positive Factors

Earnings

Revenue exceeded expectations by approximately 30%.

Market Position

The energy storage market has a long runway for growth, and Fluence is expected to play a leading role in the global build-out.

Strategic Advantage

Fluence management’s pivot to US-made cells is seen as a significant strategic advantage.

Negative Factors

Order Intake

Order intake was significantly low at $200 million, reflecting a 74% decrease quarter-over-quarter.

Revenue Guidance

Revenue guidance for 2025 was reduced by 20% at the midpoint.

Tariff Impact

Fluence is the most disrupted among our coverage by reciprocal tariffs, and the stock was downgraded on lack of confidence in execution.

Fluence Energy (FLNC) vs. S&P 500 (SPY)

Market Cap

$760.69M

Dividend YieldN/A

Average Volume (3M)4.43M

Price to Earnings (P/E)236.4

Beta (1Y)1.64

Revenue Growth11.00%

EPS Growth97.10%

CountryUS

Employees1,595

SectorUtilities

Sector Strength91

IndustryRenewable Utilities

Share Statistics

EPS (TTM)-0.24

Shares Outstanding130,049,960

10 Day Avg. Volume3,773,295

30 Day Avg. Volume4,433,991

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.55

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit5.69

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.39

Price Target Upside41.69% Upside

Rating ConsensusHold

Number of Analyst Covering20

Fluence Energy Business Overview & Revenue Model

Company DescriptionFluence 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. Its energy storage products include Gridstack, a grid-scale industrial strength energy storage product; Sunstack for optimizing solar capture and delivery; and Edgestack, a commercial energy storage product that discharges when needed to flatten a facility's energy load profile. The company serves utilities, developers, and commercial and industrial customers. Fluence Energy, Inc. was founded in 2018 and is headquartered in Arlington, Virginia. Fluence Energy, Inc. is a joint venture of Siemens Aktiengesellschaft and The AES Corporation.

How the Company Makes MoneyFluence Energy makes money through the sale and deployment of its energy storage solutions, which include hardware like battery systems and associated software. The company's revenue model is primarily based on project sales and long-term service agreements, which provide ongoing revenue from maintenance and operational services. Key revenue streams include direct sales to utility companies, commercial enterprises, and renewable energy developers. Additionally, Fluence Energy partners with various stakeholders in the energy sector to develop and implement large-scale energy storage projects, contributing to its earnings. By enhancing grid stability and integrating renewable energy sources, Fluence helps its clients achieve energy efficiency and sustainability goals, which in turn drives demand for its products and services.

Fluence Energy Key Performance Indicators (KPIs)

Any

Annual Recurring Revenue

Annual Recurring Revenue
Measures the predictable revenue from ongoing subscriptions or contracts, showcasing the company's stability and potential for steady cash flow.

Chart InsightsFluence Energy's Annual Recurring Revenue (ARR) has shown robust growth, doubling over 2024 and reaching $106 million by early 2025. Despite project delays in Australia affecting overall revenue guidance, the company remains on track to hit its $145 million ARR target by year-end. This growth in ARR, alongside a strong backlog and pipeline, suggests resilience amidst competitive pressures and strategic adjustments, including a new product platform aimed at enhancing future competitiveness and margins.

Data provided by:

Main Street Data

Fluence Energy Financial Statement Overview

Summary

Fluence Energy shows strong revenue growth and improved margins, but profitability remains elusive. Challenges include negative net profit margin and cash flow, as well as a reliance on liabilities. Improvements are noted, yet financial stability requires attention to profitability and cash flow.

Income Statement

―

Fluence Energy's revenue growth is strong, with a significant increase over recent periods. Gross profit margin has improved, indicating better cost management. However, net profit margin remains negative, showing challenges in achieving profitability. The EBIT and EBITDA margins have improved but are still relatively low, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the equity ratio is low, suggesting a heavy reliance on liabilities. Return on equity is improving but remains negative, highlighting difficulties in generating profit for shareholders.

Cash Flow

―

Operating cash flow remains negative, suggesting cash management issues. Free cash flow is also negative, indicating insufficient cash generation to fund operations and investments. However, there is a notable improvement in cash flow metrics compared to previous periods.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
2.70B	2.22B	1.20B	680.77M	561.32M
	Gross Profit
341.08M	140.96M	-62.35M	-69.14M	7.92M
	EBIT
26.62M	-102.77M	-285.80M	-158.74M	-40.81M
	EBITDA
41.10M	-101.94M	-278.69M	-153.63M	-37.27M
	Net Income Common Stockholders
22.72M	-69.62M	-289.18M	-162.00M	-46.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
448.69M	345.90M	467.65M	36.83M	93.81M
	Total Assets
1.90B	1.35B	1.75B	717.67M	364.02M
	Total Debt
30.36M	50.56M	2.74M	100.00M	0.00
	Net Debt
-418.32M	-295.33M	-354.55M	63.17M	-93.81M
	Total Liabilities
1.30B	795.82M	1.12B	773.87M	381.25M
	Stockholders Equity
472.10M	402.35M	435.83M	-279.59M	-117.10M
Cash Flow		Free Cash Flow
60.71M	-124.15M	-290.32M	-269.56M	-15.80M
	Operating Cash Flow
71.23M	-111.93M	-282.38M	-265.27M	-14.02M
	Investing Cash Flow
-18.98M	94.44M	-148.42M	-22.29M	18.22M
	Financing Cash Flow
-8.68M	52.59M	817.05M	231.13M	2.50M

Fluence Energy Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price4.51

Price Trends

50DMA

4.70

Positive

100DMA

8.97

Negative

200DMA

14.21

Negative

Market Momentum

MACD

-0.12

Negative

RSI

58.26

Neutral

STOCH

83.55

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNC, the sentiment is Neutral. The current price of 4.51 is above the 20-day moving average (MA) of 4.04, below the 50-day MA of 4.70, and below the 200-day MA of 14.21, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 83.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLNC.

Fluence Energy Risk Analysis

Fluence Energy disclosed 76 risk factors in its most recent earnings report. Fluence Energy reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Fluence Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPS	73 Outperform	$800.50M	23.35	0.29%	―	26.49%	―
RNW	65 Neutral	$2.30B	91.76	2.00%	―	-1.77%	-41.65%
Sector *	63 Neutral	$8.52B	11.01	5.35%	4.37%	3.39%	-11.87%
FLNC	52 Neutral	$760.69M	236.42	-0.49%	―	11.00%	97.10%
NRGV	45 Neutral	$106.37M	―	-77.55%	―	-86.47%	-33.37%
SMR	42 Neutral	$5.02B	―	-38.37%	―	62.41%	-85.81%
NXXT	38 Underperform	$365.12M	―	-9999.00%	―	19.63%	25.63%

* Utilities Sector Average

Performance Comparison

FLNC

Fluence Energy

4.82

-13.93

-74.29%

SMR

NuScale Power

16.93

11.07

188.91%

AMPS

Altus Power

4.99

0.44

9.67%

RNW

ReNew Energy Global

6.44

0.43

7.15%

NRGV

Energy Vault Holdings

0.79

-0.41

-34.17%

NXXT

NextNRG

3.23

-3.57

-52.50%

Fluence Energy Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q2-2025)

% Change Since: 0.00%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a challenging quarter for Fluence Energy, with strong revenue performance and innovation in Smartstack technology overshadowed by significant tariff-related uncertainties. These uncertainties have led to a pause in U.S. project execution and a downward revision of fiscal guidance, creating a cautious outlook despite robust backlog and liquidity.

Q2-2025 Updates

Positive Updates

Strong Revenue Performance

Fluence Energy delivered approximately $432 million in revenue for Q2, exceeding expectations due to early project milestone achievements.

Robust Backlog and Pipeline

The company ended the quarter with approximately $4.9 billion in backlog and a pipeline exceeding $22 billion, indicating strong future potential.

Positive Adjusted Gross Profit Margin

Fluence Energy achieved a double-digit adjusted gross profit margin of 10.4%, marking the seventh consecutive quarter of such performance.

Innovative Smartstack Technology

The launch of the Smartstack platform has been positively received, with its first contract already signed. It provides cost-effective solutions and facilitates a domestic content strategy.

Strong Liquidity Position

The company maintains over $1 billion in liquidity, with $610 million in total cash, supporting long-term strategic initiatives.

Negative Updates

Impact of Tariff Uncertainty

New tariffs on Chinese imports, rising from 10% to 155%, have led to economic uncertainty, pausing some U.S. contracts and affecting revenue projections.

Revised Fiscal 2025 Guidance

Due to tariff-related headwinds, revenue guidance has been lowered by $700 million, and adjusted EBITDA guidance reduced by $75 million from previous expectations.

Operating Expenses Increase

Operating expenses increased by $10 million year-over-year due to higher R&D and sales and marketing costs, impacting EBITDA.

Delayed U.S. Project Execution

Some U.S. projects have been paused due to tariff uncertainty, resulting in a deferral of $700 million in expected revenue.

Company Guidance

During Fluence Energy's second quarter 2025 earnings conference call, key financial metrics were discussed, highlighting the company's performance and future expectations. The company reported approximately $432 million in revenue for Q2, with a double-digit adjusted gross profit margin and an annual recurring revenue that increased to $110 million. The backlog stood robust at approximately $4.9 billion, including $200 million in new contracts added during the quarter. Fluence also ended the quarter with over $1 billion in liquidity, comprising $610 million in total cash. However, due to recent significant tariff increases, particularly affecting imports from China, the company revised its fiscal 2025 outlook. Despite these challenges, Fluence anticipates a strong ramp-up in order volume, especially in international markets like Australia, and remains optimistic about its long-term growth prospects due to its innovative Smartstack platform and U.S. supply chain strategy.

Fluence Energy Corporate Events

Executive/Board Changes

Fluence Energy Announces Leadership Change in Product Management

Neutral

Jan 10, 2025

Rebecca Boll, Senior Vice President and Chief Product Officer, will resign from Fluence Energy effective January 31, 2025, to pursue other opportunities. The company has started searching for her replacement, with interim leadership from Mark Berger and Freddy Reyes Falck, ensuring continuity in product management.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.