Fluence Energy reported fourth‑quarter and full‑year 2025 results, with Q4 revenue of $1.04 billion and full‑year revenue of $2.30 billion, both below analyst expectations. The company posted earnings of $0.13 per share for the quarter, missing the consensus estimate of $0.19–$0.20, and recorded an adjusted gross profit margin of 13.7% for the quarter, a company record.
The revenue miss was driven by a 17% decline in U.S. manufacturing output, which reduced sales in the domestic content segment, and a 12% drop in the international market segment. While demand for energy‑storage solutions remained strong, production delays at the company’s U.S. facilities limited the ability to fulfill orders, offsetting the upside from new contracts.
Despite the quarterly shortfall, Fluence’s guidance for fiscal 2026 remains bullish. Management projected full‑year revenue of $3.20 billion to $3.60 billion, a range that exceeds the consensus estimate of $3.21 billion to $3.24 billion. The company also reiterated its adjusted EBITDA guidance of $40 million to $60 million, with a midpoint of $50 million, reflecting confidence in scaling its domestic manufacturing pipeline.
Segment performance highlights a record $1.4 billion of new orders in Q4, bringing the backlog to $5.3 billion. The domestic content strategy continues to drive demand, with the U.S. segment contributing 45% of total revenue and showing a 9% year‑over‑year increase in order intake. International sales, however, lagged, falling 8% YoY due to supply‑chain constraints.
Management emphasized that the company’s cost discipline and operational efficiencies have helped maintain margins. CEO Julian Nebreda noted that the 13.7% adjusted gross profit margin for the year was a record, driven by higher mix of high‑margin storage‑as‑a‑service contracts and improved manufacturing throughput. CFO Ahmed Pasha highlighted that the company’s liquidity position remains strong, with cash and cash equivalents of $1.2 billion, supporting continued investment in U.S. capacity.
Analysts reacted positively to the forward guidance, citing the robust backlog and the company’s ability to secure 85% of its revenue forecast in advance. While the Q4 miss underscored short‑term operational challenges, the market view is that Fluence’s long‑term growth prospects remain solid, supported by the expanding U.S. energy‑storage market and the company’s domestic content strategy.
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