Fluence pauses projects amid tariff uncertainty, revenue decline

Bellwether battery energy storage company Fluence Energy lowered its fiscal year 2025 revenue forecast to between $2.6 billion and $2.8 billion, down from a previous estimate of $3.1 billion to $3.7 billion. Adjustments to EBITDA guidance have also changed, with projections now of $0 to $20 million, significantly down from earlier projections of $70 million to $100 million.

The company reported a 31% decline in revenue for the quarter ending March 2025 compared with 2024, receiving approximately $431.6 million, down from $623.1 million.

Fluence reported a net loss of approximately $41.9 million, a significant increase compared to its $12.9 million loss in the same period last year.

Julian Nebreda, Fluence’s Chief Executive Officer (CEO), attributed the downturn in part to lingering trade tariffs introduced during the Trump administration, which continue to create uncertainty.

“The evolving trade and tariff landscape has created significant uncertainty in the U.S. market, which has led us to agree with our customers during the second quarter to pause certain contracts both under execution and those we expected to sign until we have better visibility,” Nebreda said.

Those tariffs on Chinese materials and key supply chain components were drastically reduced for 90 days following a joint announcement by the U.S. and China earlier this week. Nebreda expects that a longer-term easing of trade barriers could shift momentum.

“We expect the contracting pause we’re currently experiencing to be temporary and reaffirm our approach to a diversified supply chain,” he added.

Bright future

Despite these short-term setbacks, Nebreda remains confident in the broader trajectory of the energy storage industry.

“We remain confident in the long-term growth trajectory of the energy storage industry, and believe that we are well positioned to deliver value to our customers through our rapid innovation strategy, differentiated supply chain, and product development, which are reflected in our market-leading U.S. domestic content offering and our Smartstack product,” Nebreda said.

In the previous quarter, Fluence flagged delays in some Australian projects. However, Nebreda struck a more positive tone in the latest earnings call. Fluence “currently anticipates a strong ramp-up in order volume in Australia as we enter the second half of our fiscal year,” he said.

He also noted improving competitiveness in energy storage pricing.

“Energy storage capacity prices are currently approximately $9 per kilowatt a month, which is about half the price of a gas fired plant,” Nebreda said.

Still, the company has revised its earnings guidance downward for two consecutive quarters in fiscal year 2025.