Fluence stock plummets almost 50% on slashed guidance

U.S.-based battery energy storage integrator and energy services provider Fluence slashed its fiscal year 2025 total revenue guidance, which sent its stock into free fall on Monday.

The company has lowered its 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), a 15% decrease. Its stock plummeted by around 47% on Monday, opening the day at $13.07 and trading as low as $6.56 in the evening hours to close at $7.

“We have experienced customer-driven delays in signing certain contracts that, coupled with competitive pressures, result in the need to lower our fiscal year 2025 outlook,” Julian Nebreda, Fluence’s Chief Executive Officer said, describing the delays as “disapointing”.

Fluence has also reported its fiscal 2025 first quarter results with revenue of $186.8 million, representing a 49% decrease year-over-year. It improved its GAAP gross profit margin to 11.4% from 10.0% in the same quarter last year. Net loss increased to $57.0 million from $25.6 million year-over-year.

The company has also lowered 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 decrease is primarily driven by lower expected revenue and lower expected gross margins on recently signed contracts, Fluence explained. Finally, it reaffirmed its fiscal year 2025 annual recurring revenue guidance of approximately $145 million.

Fluence has also reported a quarterly order intake of $778 million, up 37.8% year on year, bringing backlog to approximately $5.1 billion as of December 31, 2024.

“We continue to see a very robust utility scale battery storage market globally and strong interest in our U.S. domestic content product offering in particular, as evidenced by our record $5.1 billion backlog. Importantly, we are executing plans to maintain our leadership position, differentiate our product, and optimize our cost structure, which we expect will drive improved financial performance in fiscal year 2026 and beyond,” Nebrada said.