Fluence Energy faced challenges with revenue due to delays at their Arizona manufacturing plant, resulting in a $300 million shortfall. Despite this, the company achieved record order backlog and adjusted gross margin, positioning them well for fiscal year 2026. With $5.3 billion in backlog, Fluence is optimistic about future growth. The company also signed a landmark 4 gigawatt hour project in Europe and is transitioning to Gridstack Pro to drive revenue. Additionally, Fluence is strengthening their U.S. supply chain by onboarding a second compliant battery cell supplier. Compliance and ownership issues at their Tennessee facility remain unresolved. Fluence reported that revenue was $300 million below expectations due to delays at the Arizona manufacturing facility. Compliance with regulations at the Tennessee facility is still unresolved, with potential financing and operational consequences if not completed. Adjusted EBITDA guidance for 2026 reflects pressure from higher operating costs, with new working capital investments to offset this. Order backlog reached $5.3 billion, with $1.4 billion in new signed orders, and revenue was $2.3 billion. Fiscal 2026 guidance includes $3.2-$3.6 billion in revenue, adjusted gross margin of 11%-13%, and adjusted EBITDA of $40-$60 million.

Fluence announced a record $1.4 billion in new signed orders, with around 50% from Australia. The U.S. market is expected to be the largest contributor of order intake for 2026. Fluence also secured a 4 gigawatt hour project in Europe, its largest battery project in European history. The company is experiencing significant demand from data center customers, with engagements totaling over 30 gigawatt hours. Fluence is focusing on sales and project execution, welcoming a new Chief Growth Officer to expand reach and enhance customer experience.

Fluence’s Smartstack product is receiving market recognition, with its first deployments in Taiwan. The product aims to reduce total cost of ownership for customers, offering industry-leading density and operational metrics, while maintaining fire safety and cybersecurity features. Smartstack is expected to represent the majority of Fluence’s orders for the fiscal year. The company is working on scaling production at U.S. manufacturing sites to fulfill customer commitments. Compliance with regulations at the Arizona facility is being addressed to ensure continued fulfillment. Fluence Corporation faced revenue challenges due to delays at the Arizona manufacturing facility, resulting in $300 million below expectations. Compliance with OBBBA and PFE regulations for the Tennessee facility is still pending. Adjusted EBITDA guidance for 2026 suggests ongoing pressure from higher operating costs. However, the company achieved record revenue, adjusted gross margin, and EBITDA in 2025. For fiscal year 2026, Fluence expects revenue between $3.2 billion and $3.6 billion, with strong backlog coverage. The company plans to invest $200 million in the business, including in the domestic supply chain and working capital. With market and product leadership, Fluence remains well-positioned for growth. The company experienced a revenue shortfall of approximately $300 million due to delays at its Arizona manufacturing facility. Compliance issues remain unresolved for the Tennessee facility, with potential financial consequences. Adjusted EBITDA guidance for fiscal year 2026 shows continued pressure from higher operating costs. Despite challenges, the company reported a record $1.4 billion in new signed orders, with revenue reaching $2.3 billion and adjusted EBITDA of $19.5 million. The company aims to improve margins and grow Annual Recurring Revenue (ARR) to approximately $180 million in fiscal 2026. They also secured a new battery cell supplier and won a major project in Europe. RisksRevenue fell approximately $300 million short due to delays at the Arizona manufacturing facility. Compliance issues still unresolved at Tennessee plant. Adjusted EBITDA guidance for 2026 indicates continued cost pressure. Order backlog at $5.3 billion, with $1.4 billion in new signed orders. Revenue was $2.3 billion, $300 million below initial forecast. Adjusted gross margin set a record at 13.7%. Adjusted EBITDA was $19.5 million, within range despite revenue shortfall. Annual Recurring Revenue reached $148 million. Liquidity at $1.3 billion. Fiscal 2026 Revenue Guidance at $3.2 billion to $3.6 billion. Fiscal 2026 Adjusted Gross Margin Guidance at 11%-13%. Fiscal 2026 Adjusted EBITDA Guidance at $40 million to $60 million. Fiscal 2026 ARR Guidance around $180 million. Smartstack product achieving industry-leading density. Over 30 gigawatt hours in data center pipeline. Domestic battery cell supplier secured. LEAG Project Win for largest battery project in European history. Supply chain improvements in Arizona facility. Conversion time for data center pipeline projects split between 2026 and 2027. Margins on new segment not disclosed, but focus on customer value. Staffing and operational changes in Arizona plant to meet manufacturing goals. Staffed facility expects to produce 1.5 closures per day. RisksRevenue fell $300 million below expectations due to staffing delays at Arizona facility. Compliance with OBBBA and PFE regulations at Tennessee plant remains unresolved. Adjusted EBITDA guidance for fiscal year 2026 suggests continued pressure from operating costs, with $100 million in new working capital investments. Order backlog hit $5.3 billion, with a record $1.4 billion in new signed orders. Revenue reached $2.3 billion, below initial guidance, due to Arizona delays. Adjusted gross margin set a record at 13.7%, above expectations. Adjusted EBITDA at $19.5 million, meeting range despite revenue shortfall. Annual Recurring Revenue hit $148 million, surpassing $145 million target. Liquidity at $1.3 billion, including $700 million cash. Fiscal 2026 revenue guidance set at $3.2 billion to $3.6 billion, with 85% already in backlog. Fiscal 2026 Adjusted Gross Margin Guidance at 11%-13%. Fiscal 2026 Adjusted EBITDA Guidance at $40 million to $60 million. Fiscal 2026 ARR Guidance at approximately $180 million. Key products include Smartstack achieving industry-leading density and Gridstack Pro expected to make up 70% of 2026 revenue. Data center pipeline includes over 30 gigawatt hours of potential engagements. Second domestic battery cell supplier secured with capacity to meet U.S. forecasted load. LEAG Project Win signed for a 4 gigawatt hour project in Europe.

Management acknowledged revenue shortfall but emphasized corrective actions taken. Staffing delays have been resolved at Arizona plant. ASPs down around 10%, but gross margin in line with expectations. EBITDA margin down due to lower volume compared to last year. Working capital needs projected to be around $100 million as revenue grows from $2.3 billion to $3.4 billion. Next year’s goal is to be free cash flow positive as revenue and EBITDA grow. Liquidity to remain strong despite working capital use. Margins will benefit from any future deal with AESC. AESC relationship evolving positively, with any deal expected to be accretive to margins. The company’s revenue was $300 million below expectations due to delays at their Arizona facility. Compliance issues with OBBBA and PFE regulations in Tennessee remain unresolved. Adjusted EBITDA guidance for 2026 suggests ongoing pressure from higher operating costs. Key points include a record order backlog of $5.3 billion, revenue of $2.3 billion, adjusted gross margin of 13.7%, and adjusted EBITDA of $19.5 million. The company expects fiscal 2026 revenue of $3.2 billion to $3.6 billion, with 85% already in backlog. They also secured a second domestic battery cell supplier, with capacity available in 10-11 months. The company faced a revenue shortfall of approximately $300 million due to delays at the Arizona manufacturing facility. Compliance with regulations for the Tennessee facility remains unresolved, with potential operational consequences. Adjusted EBITDA guidance for 2026 indicates continued pressure from higher operating costs.

Despite revenue challenges, the company achieved a record order backlog of $5.3 billion, with $1.4 billion in new signed orders. Adjusted gross margin reached 13.7%, exceeding expectations. Fiscal 2026 revenue guidance is set at $3.2 billion to $3.6 billion, with a focus on the Gridstack Pro product rollout.

The company plans significant investments in Smartstack technology and long-duration storage solutions. A second domestic battery cell supplier has been secured to meet U.S. load forecasts. Resolving regulatory challenges and securing additional capacity are critical for future success. Revenue for the company was $300 million below expectations due to delays at the Arizona manufacturing facility. Compliance issues with OBBBA and PFE regulations in Tennessee are still unresolved. Adjusted EBITDA guidance for fiscal year 2026 indicates continued pressure from operating costs. The company reported a record $5.3 billion in order backlog, with $1.4 billion in new signed orders. Fiscal 2026 revenue guidance is $3.2 billion to $3.6 billion, with an adjusted EBITDA guidance of $40 million to $60 million. The company secured a domestic battery cell supplier and a 4 gigawatt hour project win in Europe.

Read more at Nasdaq: Fluence (FLNC) Q4 2025 Earnings Call Transcript