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Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Vice President of Finance, GID, and Investor Relations - Chris Shelton President and Chief Executive Officer - Julian Nebreda Executive Vice President and Chief Financial Officer - Ahmed Pasha Chris Shelton: Good morning, and welcome to Fluence Energy's Third Quarter Earnings Conference Call. Joining me on this morning's call are Julian Nebreda, our President and Chief Executive Officer; and Ahmed Pasha, our Chief Financial Officer. A copy of our earnings presentation, press release and supplementary metric sheet covering financial results, along with supporting statements and schedules, including reconciliations and disclosures regarding non-GAAP financial measures, are posted on the Investor Relations section of our website at fluenceenergy.com. During the course of this call, Fluence's management may make certain forward-looking statements regarding various matters relating to our business, including, but not limited to, statements related to our future financial and operational performance, future market growth and related opportunities, anticipated growth and business strategy, liquidity and access to capital, expectations relating to pipeline, order intake and contracted backlog, future results of operations and impact of the One Big Beautiful Bill Act, projected costs, beliefs, assumptions, prospects, plans and objectives of management and the timing of any of the foregoing. Such statements are based upon current expectations and certain assumptions and are therefore subject to certain risks, uncertainties and other important factors, which could cause actual results to differ materially. Please refer to our SEC filings for more information regarding these risks, uncertainties and important factors. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today. Also, please note that the company undertakes no duty to update or revise forward-looking statements for new information. This call will also reference non-GAAP measures that we view as important in assessing the performance of our business, including adjusted EBITDA, adjusted gross profit and adjusted gross profit margin. A reconciliation of these non-GAAP measures to the most comparable GAAP measure is available in our earnings materials on the Investor Relations website. Following our prepared remarks, we will conduct a question-and-answer session with our team. Thank you very much. I'll now turn the call over to Julian. Julian Jose Marquez: Thank you, Chris, and welcome to everyone joining us today. Turning to Slide 4. Today, I will provide an update on the progress we have made in driving new order intake and building our backlog, both of which were at record levels this quarter. I'll discuss our growing business, which includes robust demand from our core customers, combined with a rapid expansion of data center customers, from which we received our first orders and contract awards totaling $850 million. We believe that the momentum of the past few months will continue in the quarters to come, driven by our differentiated product offering and our team's long-standing ability to meet customer needs. Following my remarks, Ahmed will review our financial results for the quarter and our outlook for the remainder of the year. Starting with key highlights for the third fiscal quarter. First, we signed $1.44 billion of orders during the quarter, which is nearly triple the $509 million we signed in the same period last year. Second, included in our record order intake was our first deal with a data center developer worth $300 million. During July, we were awarded an additional $550 million of business across multiple data center sites by one of the hyperscalers that we discussed last quarter. Third, we ended the quarter with a record backlog of $6.4 billion, representing 14% growth over the second quarter and more than 30% growth since the third quarter of last year. Fourth, we ended the quarter with total liquidity of approximately $860 million, in line with our expectations. Fifth, Ahmed will discuss our third quarter financial results shortly, but revenues were affected by delays in expected project deliveries driven by the ramp-up of 2 new contracted manufacturing facilities. Accordingly, we are lowering our guidance midpoint for 2026 revenue and adjusted EBITDA to $3 billion and negative $10 million, respectively. We do not take this reduction lightly and have instituted changes in an effort to ensure we deliver on our growing market demand. I will detail our plan further in a moment. Please turn to Slide 5 for more detail on our order intake. With $2.7 billion now signed to the third quarter of this year, our orders are 80% higher than the amount from last year, with utilities and IPPs making up approximately 90% of this total. We expect fourth quarter orders will be another record level for the company, and we see reason for this strong momentum to continue in future quarters given our current demand and competitive position. Please turn to Slide 6 as I detail our progress with data center customers. Our announcements on last quarter's call that we have signed 2 master supply agreements with hyperscalers raised our profile with other potential data center customers. Overall, our data center pipeline has increased to 16 gigawatt hours, representing a more than 35% increase compared to the second quarter. Our pipeline now includes a mix of projects from both hyperscalers and data center developers. During the quarter, we signed a $300 million order for a behind-the-meter project with a developer. We were introduced to these customers by one of the hyperscalers we have been working with. The sales cycle for this customer was much faster than our traditional market segment, converting from lead to order in 3 months. We continue to see the developer segment center on speed to power solutions, and we are pleased to be positioned to meet their needs. Hyperscaler customers continue to focus on quality of power solutions, where we also stand out in terms of our ability to deliver. We were pleased to receive approximately $550 million of awards under one of our MSAs in July. These are not yet purchase orders, and we expect this will add to our total of signed orders in the coming months. These data center customers have a pipeline of projects that we continue to believe we are well positioned to bid on, and we look forward to expanding our business with them in the near future. Please turn to Slide 7 as I discuss backlog and pipeline growth. Our backlog has benefited from record orders in 2 of the past 4 quarters and sets a strong base of revenue growth in fiscal '27. As of June 30, approximately $2.2 billion of our $6.4 billion backlog is expected to convert to revenues in fiscal '27. This compares to the $1.5 billion of fiscal year '26 revenue coverage we had as of June 30, 2025. Turning to our pipeline. We exited the quarter at $33.1 billion, which is an increase of $1.6 billion compared to last quarter. This indicates $3 billion of new opportunities after considering our conversion of pipeline into orders during the quarter. We continue to see a growing percentage of our pipeline coming from the U.S. market compared to previous years, mostly attributed to the data center segment. Please turn to Slide 8 for details on the expansion of our supply chain. We have been expanding our supply chain capacity to meet the strong demand for our products as reflected in the growth of our backlog. New larger contracted manufacturing facilities globally are expected to increase our capacity and also deliver the quality our customers expect. A major driver of our revised revenue expectation for this year is attributable to ramping up production at 2 of these new factories. In the U.S., we will be the off-taker of a new fully automated facility located in Houston with expected capacity of 15 gigawatt hours per year. Completion of this new facility has been delayed by a few months due to delays in construction and issues related to the automation equipment. Limited production commenced this quarter, and our manufacturer is taking steps to address outstanding issues. We expect the facility to reach full production levels during our fiscal first quarter of '27. I will highlight this contract manufacturer has been our main enclosure supplier from Vietnam, which is a very similar facility to this new one in Houston. We believe their knowledge and experience will be helpful as this factory moves towards full production. Our new international facilities are now fully ramped and our product is being shipped to customers on a delayed time line because initial production did not meet our quality expectations. Corrections were implemented, and we have resumed shipping high-quality products to projects all around the world. Given the importance of timely, consistent and high-quality production to our business, we recently made organizational changes to ensure more direct oversight of and accountability for our production capability. Today, we announced that Roman Loosen will assume leadership of our supply chain; and Peter Williams will concentrate on product, with both leaders reporting directly to me. Roman currently serves as our Chief Enterprise Operations Officer and brings more than 20 years of global leadership experience at Siemens, where he held senior operational and business leadership roles with responsibility for supply chain, manufacturing and business transformation. Roman will lead a set of managers with deep experience and skill sets in supply chain and manufacturing that have joined our company over the past few months. I am confident that this new management team will strengthen our supply chain and manufacturing to meet the growing demand for our products. When combined with our supply of domestic sales, we expect the Houston facility will expand our annual capacity for domestic content significantly compared to our current footprint. Once it is fully run and added to our current supply chain, we expect to have capacity to meet our current backlog of projects and confidence to meet the growth of the U.S. market. Please turn to Slide 9 for details on how we are differentiating in the current market. We have been successful in growing our backlog and penetrating the new and important data center customer segment in a very short period of time. Fluence has new and repeat customers who appreciate our advanced product designs, leading energy density and focus on total cost of ownership. In addition to these factors, our proprietary software stack, including our operating system is designed to enable our customers to optimize their solution over its long-term life and allow for remote monitoring. These features can increase availability and extend the life of our solution for customers in all use cases. Specifically for data center customers, the ability of our operating system to efficiently help smooth loads and handle periods of low voltage have contributed to new awards and orders. Smartstack has been gaining favor in terms of orders this year, representing 75% of our orders year-to-date. One of the attractive features of Smartstack is that we design it as a product platform with the ability to upgrade over time. During the quarter, we announced the first evolution with Smartstack 10, which increases density of each unit from 7.5 megawatt hours to 10-megawatt hours. The ability to upgrade our Smartstack offering over time with speed and efficiency allows us to quickly adapt to evolving customer needs, which is valuable for both Fluence and our customers. To conclude, we believe we have the right product and team to win in this rapidly growing market. With our first data center awards adding to our record backlog and a growing global supply chain size to meet future growth, we are committed to delivering for customers and creating long-term value for shareholders. With that, I'll turn the call over to Ahmed to discuss our financial results and outlook for the rest of this year. Ahmed Pasha: Good morning, everyone. While our results this quarter were disappointing, the challenges we experienced were primarily related to construction and production start-up delays at new manufacturing capacity and scaling of our new products. We have taken actions to address issues and improve execution and are now tracking to our revised production plan. Importantly, these investments strengthen our supply chain globally and position us to support our growing backlog. As these new facilities move beyond the initial ramp-up phase, we believe Fluence will be better positioned to deliver profitable growth and create shareholder value. Starting with Slide 11. We generated Q3 2026 revenue of $650 million, up 8% year-over-year. This was approximately $90 million below the expectations we discussed on our last quarterly call. This shortfall was primarily driven by production delays at 2 new contract manufacturing facilities that are currently ramping. Production from the enclosure manufacturing facility in Houston was pushed by a quarter due to construction and automation delays. The facility has begun limited production and is expected to achieve full production levels in the first quarter of fiscal 2027. The other issue occurred at 1 of our 2 new facilities in China, where initial production of components of Smartstack did not meet stringent standards and required rework. The facility is now producing consistently to our standards and has achieved full production in the fourth quarter. While we expect to realize the revenues associated with the Q3 projects that were delayed, the slower ramp-up compresses the time line for production in the fourth quarter, pushing a portion of previously planned 2026 deliveries into fiscal 2027. Our Q3 adjusted gross profit reflects the lost margin from revenue shortfall and an approximately $15 million costs associated with new product rollout and production delays. In addition, we recorded $15 million loss on a planned battery supply agreement, most of which was associated with a single project. Despite the upfront cost, this arrangement secures the long-term supply and attractive pricing, strengthening our ability to support growing demand and price future orders with greater confidence. Turning to Slide 12 for our fiscal 2026 guidance. We have revised our outlook to reflect our updated expectation for production through the end of this fiscal year. More specifically, we expect revenue in the range of $2.9 billion to $3.1 billion with a midpoint of $3 billion. The approximately $400 million reduction versus the prior midpoint is largely the result of manufacturing ramp-up delays that pushed revenue recognition into 2027. In terms of EBITDA, we now expect adjusted EBITDA of negative $30 million to positive $10 million with midpoint of negative $10 million compared to our prior midpoint guidance of $50 million. While there are several puts and takes relative to our prior guidance, the $60 million reduction is largely explained by 2 items, about $44 million of lost margin from shift of approximately $400 million of revenue into 2027 and $15 million related to the proposed long-term battery supply agreement discussed earlier. And we are maintaining our expectation for annual recurring revenue of approximately $180 million by the end of fiscal 2026. Turning to Slide 13 for an update on our liquidity position. We ended the third quarter with total liquidity of approximately $863 million, which includes approximately $365 million in total cash. Consistent with what we said on the last call, we expect total liquidity will return to $900 million level by fiscal year-end, driven by execution on our backlog of projects included in the guidance. Bottom line, our liquidity position continues to support our near-term working capital needs, particularly heading into our highest revenue quarter. Regarding liquidity needs for 2027, we are comfortable that our existing liquidity has us well positioned for success. That said, as Julian noted, our expected order intake is reaching new highs and to support that growth may require an additional $300 million to $500 million of working capital over the coming year. We will remain disciplined and pursue financing only where there is a clear line of sight to profitable growth and shareholder value creation. In summary, while we have more work to do, demands remain strong, our backlog continues to grow and we are taking actions needed to improve our execution and support long-term profitable growth. With that, I will turn the call back to Julian. Julian Jose Marquez: Thanks, Ahmed. Let me close with a few key takeaways. First, order momentum continues. Our third quarter order intake, our record of $6.4 billion backlog and the initial order with the data center developers all evidence our successful product strategy and sales effort. We currently expect orders to reach a record level again during the fourth quarter of this year. Second, additional production capacity. We're adding new contract manufacturing capacity in the U.S. and abroad and have realigned our organization with new leadership to strengthen execution. Third, product offering. The integration of Smartstack density, safety and reliability metrics with our software and controls capabilities allowing for fast response, load smoothing and remote operation puts us in a dominant position to meet the growing demand of the diverse customer segments we serve. In conclusion, we are positioning our company to continue profitable growth and to deliver value to our customers and shareholders. Operator: [Operator Instructions] Your first question comes from the line of George Gianarikas from Canaccord Genuity. Julian Jose Marquez: George, before you ask, I really want to apologize for the technical mishap we have this morning, which we'll figure out what it is, but we've been waiting on hold for some -- at the same time you were waiting and we were not have been connected. So sorry for that, everybody, we really appreciate and value your time, and we know it was a little bit of a waste of time. Great. George? George Gianarikas: Maybe first, if you could provide some additional granularity around the production delays and just sort of go into a little bit of detail what's happening in the facility? Julian Jose Marquez: Yes. Great. So we have -- as you know, as we are scaling up the company, we are increasing our production capacity. As part of that, we brought in 2 new manufacturer groups, one to serve the international market and one to serve the U.S. market. On the international market, we're working with reputable, well-known and seasoned contract manufacturers. One of these manufacturers, as you are aware, they are producing our Smartstack for the international markets. One of those manufacturers producing our parts, the ones that things that go on top of the skids that we have. And the initial production had some quality -- was not meeting our stringent testing, and we had to significantly delay production to ensure that we got the production in line with our quality. And that meant significant delays that have been significant. But since then, we have fully resolved and now we are producing that are working full time. We are fully ramped up. They're doing a great job, but we won't be able to recuperate the full amount of the volumes we had -- we lost during the quarter -- during the year. So that's that case. And we feel confident and we're seeing it today that they can meet our quality, our volumes going forward, and it will really put us in a good position to serve the international market with a competitive product. The U.S. is slightly different. The U.S., we're putting a fully facility with our contract manufacturer that works out of Vietnam. The same one is putting up fully automated facilities, an improved version of the one we have in Vietnam. Fully automated -- a lot more automated because of the U.S. labor cost somehow, but fully automated system. And they experienced construction delays where the construction delays were then we got delays in connected to the utility. And out of the -- we've been running the plant with generators, and that meant that we had to manage -- we could not do all the works in parallel. That meant that some of the automation took longer than. And it's the same thing as these delays got stuck on one another, there was a moment that was clear that we will not -- we were not going to be able to recuperate the volumes for '26 and that we had to recuperate volumes to '27. That facility is ramping up, it's producing today. It will connect to the grid in the next couple of weeks. The issues are being resolved. And as I said, this is very much a sister company to the one that's in Vietnam. So we're confident that the production levels we have set for ourselves for the quarter that will be met, that the issues that we have identified are fully resourced and resolved. So we're very confident on it. I would say on a more general point, this facility will be -- will provide us a competitive advantage in the U.S. market that we believe is a very, very important of our strategy here in the U.S. market. It will allow us to produce 15 gigas of fully U.S.-made products, fully automated integration. So we are really, really happy with what we will receive. However, we're going to delay that, unfortunately, we could not fully resolve it on time. George Gianarikas: And maybe just as a follow-up, an update on your recent commercial traction in data center, specifically, how would you characterize the competitive dynamics and your win rates and deals you participated in? And what are the key differentiating factors that lead to your wins? Julian Jose Marquez: Yes. Very great question. I think that -- how we win? We win because of the density, safety and reliability of Smartstack as it combines with our operating systems that allows for very efficient load management and very, very good response times to the low voltage ride through. So it's a combination of technical of our operating systems and our enclosures, which are our delivery equipment, which are safe and reliable. That's how we win. Generally, it has been very, very good. It's not -- and we're very happy with the traction we had. This is significantly better than our plans, and we are very, very confident that as that industry growth, that will be an important part. What's interesting for us also is that we are now looking not only in the U.S. with most of the activities we have and the contracts we have signed today are from, but also looking at some of our markets to -- with some of the hyperscalers and some of the same developers to help them in other markets, which I think will put us -- our global footprint will help us on capturing that demand more globally. Operator: Your next question comes from the line of Brian Lee from Goldman Sachs & Co. Brian Lee: I wanted to ask about the battery cell cost uplift. It sounds like it's an international supplier, but can you give us a little bit more detail? Does this have anything to do with the new AESC ownership? Or maybe just walk us through what's changing to impact costs here? And is this also a drag into your fiscal 2028 procurement and cost as well? Julian Jose Marquez: Yes. Great question. No, this is an international -- this is for the international market. It's not connected to AESC. And it is -- we entered into a long-term agreement that is not only a supply, but also some technological alignment in how the batteries will work in our modules and how we work going forward. And it's a longer-term contract that we believe will put us in a very good position for '27 and '28 and going forward. However, we had to take a charge in one project that we had that was being supplied by the same customer that as part of the deal we -- as the deal adjusted, we needed to take. So that's what it was. But the NPV of the project is significantly higher than the charge we're taking. So we decided that to take the charge and move forward. That's what it is. I think that we -- as we have continued to grow, we believe that integrating our technological road map with the technological road map of our cell suppliers is fundamental for our success longer term. Brian Lee: Yes. Fair enough. Okay. And then maybe just a question on sort of the conversion cycle because this is -- if you look at Slide 7, obviously, a lot of backlog growth in the past couple of years, a lot of pipeline growth, especially the past couple of quarters. So you have a lot of top of the funnel momentum heading into fiscal '28. Obviously, there's some operational challenges here that are tripping you up in terms of meeting expectations this year. But how should we think about the conversion cycle on these record backlog levels and kind of the impact of these data center and hyperscaler bookings? Just any sense of how quickly we should start to see these turn into P&L impact? And does it differ from your historical backlog conversion cycles? Julian Jose Marquez: I mean, as you said, I mean, we are starting -- just starting with data centers. So we have no -- we have limited proof points of what it is. Our -- the proof points we have is that they work at a much faster conversion cycle. We have the deal with the developer. We signed it from lead to contract in less than 3 months, so tremendously fast, and they will also have a very fast conversion cycle going forward. So we believe those will help accelerate our conversion cycle. Our normal -- the other 90% today or our other segments are working on the same conversion cycle of roughly a year to 18 months that we had. So as you know, we recognize revenue, so the revenue recognition occurs in accordance to the milestones of the program. And I would say in a period of 18 months, we recognize the full revenue, some of it is recognized fairly quickly as we recognize the milestones as we move on the execution of the project. Not like it all happens at the end. Operator: Your next question comes from the line of Julien Dumoulin-Smith from Jefferies. Julien Dumoulin-Smith: A couple of things real quickly, just to rehash. Number one, you made comments about the expedited nature of the BTM -- the potential customers here with BTM. Can you elaborate a little bit more about how you're thinking about the potential cadence for incremental bookings from here against some of these arrangements? And also elaborate a little bit on the composition of customers in as much as, obviously, last quarter, we talked about a couple in particular. BTM could be an array of different kinds of counterparties as well. Can you talk about sort of the nature of these counterparties? And I got a quick follow-up. Julian Jose Marquez: Yes. So last time, we talked mostly about hyperscalers. And now we have -- the hyperscalers have brought on into -- which was our plan, go to the hyperscalers because we know that's the door for the developers. And what we have seen with the develop -- and there has been the change when you talk to hyperscalers, mostly speed to power, mostly quality of power solutions. That's where they're looking to spend very technical analysis, very deep understanding. When we're talking to the developers, it's mostly speed to power. And what we have seen is that the need -- the developers are -- I would say, I don't know, at least what we have seen today are in a much of a hurry than compared to the hyperscalers. So we see that market a lot more active, and we see those activities, especially moving from leads to pipelines to orders more quickly. So that's what we can say is what we have seen up today. The pipeline today, hyperscalers have the majority, but the developers represent the growing segment that is working right now. Julien Dumoulin-Smith: Understood. Excellent. And then just quickly, I see a comment here about strategic expenses just of late here. Just would love to -- how are you thinking about the company strategically, if there's anything to flag there? I don't know, on the quarterly expenses? Just is there anything we should watch participating? Julian Jose Marquez: We have -- this is -- we're looking at -- we're always in the market, and we're always looking at it. So as you know, earlier in the year, we look at AESC as an option, and there some of the costs are connected to the AESC review and all the analysis we have to do for the AESC review. So there is nothing to announce. Julien Dumoulin-Smith: Got it. But still looking at alternatives on that front on procurement? Julian Jose Marquez: Well, we are seeing -- we are spending a lot of time looking at -- talking to all the battery capacity in the market and talking to them. Nothing really to talk about at this stage, but that's where we're spending our time as we see an opportunity to work more closely with the battery manufacturers in the U.S. Operator: The next question comes from the line of Dylan Nassano from Wolfe Research. Dylan Nassano: Just wanted to check, so in terms of the scope of the delays that you guys are seeing from the manufacturing facilities, to what extent, if any, are those impacting the hyperscaler MSAs and these orders that you guys are talking about here? Julian Jose Marquez: Yes. No, no, not at all. These are issues of contracts that we have today and that are -- that we signed a year, 1.5 years ago, and they have nothing. They are normal contracts that -- normal contract there. Our normal - our typical segments. So no affection to -- in no way affecting the MSAs of the contracts we're signing with data centers. Dylan Nassano: Got it. Okay. And then I mean, maybe it would just be helpful if you could just level set us again on the number of MSAs. I believe it was 2 last quarter. And how many hyperscalers exactly does that include? And can you just clarify, so you have the $300 million first order and then the $550 million awarded? Are those from the same hyperscaler? Or is that 2 different hyperscalers? Julian Jose Marquez: So we have 2 MSAs with 2 hyperscalers. As we have the engagement in working with the hyperscalers, they have referrals to developers that work for them. And we are now, as I said, our pipeline and our work, we're spending a lot of time with developers as they continue to work with the hyperscalers a lot. But as they have a pipeline that requires very quick response time. In terms of the contracts we signed, we signed the $300 million contract with a developer that was referred by one of the hyperscalers we have an MSA with. So this was a contract that a developer building a data center for one of the hyperscalers that we will be providing our equipment. Then we have -- one of the hyperscalers, there was a tender we got awarded the $550 million we sold and that we're in the process now of finalizing all the final technical points to be able to convert this into backlog and we should convert into backlog in the coming months. And we continue to work to engage with more hyperscalers, and we have seen both hyperscalers were working on several projects, both in the U.S. and internationally that we will provide -- that we will want to bid on and we would like to serve them with our products. Operator: Your next question comes from the line of Vikram Bagri from Citi. Vikram Bagri: I wanted to ask about the margins first. One of your larger peers indicated margin pressures in storage. I was wondering how you feel about the 10% to 15% margin guidance. You have backlog converting $2.2 billion next year, $2.8 billion after that. So pretty long-dated backlog at this point. Are there any variance -- is there a variance in margins when you look at the sort of like backlog in the near term, medium term and long term? Are you witnessing the same pressures your peer talked about? Julian Jose Marquez: The reality is that we are still very comfortably within the 10% to 15% range. Even when you look at our results this year, if you take out some of the onetime stuff that we had during the year, we will have been in around the 12% that we guided the market toward. So we are confident. We don't see in our backlog or in the new orders, they are in line with the 10% to 15%. We do not understand the pressure that the other big supplier announced that they were coming out with this. We don't really -- there might be something in their cost structure that is different. As we move forward, our big issue is scale in this company. That's the issue. That's kind of the pains we're having going to are connected to scale and scale drives competitiveness, probably in the case of our competitors that some of them have already reached scale, they're finding some other issues that for us, they are not visible. Vikram Bagri: Got it. And you talked about scale. And my next question is loosely tied to that. We'll be talking about guidance for next fiscal year on the next call. I was wondering what is the mechanism, how you're thinking about setting the guidance? You have $2.2 billion of backlog for fiscal '27. Is 85% coverage the right way to think about it? Or it should be connected to the capacity that's coming online, how much you can bring online, the capacity from a supplier perspective and/or the 85% coverage should be higher? Relative to that, very encouraging to see the executive management changes to improve execution. I was wondering what specific changes Roman and Peter will make in next 12 months? You're dealing with contract manufacturers, so they have relatively less control over their operations. So what sort of like changes that the new team will make to ensure on-time deliveries? Julian Jose Marquez: Let me start with your second question. So I'm bringing Roman to lead our manufacturing and supply chain due to his deep transformation and his work on supply chain and manufacturing, but he's very experienced in transformation. One of the things you realize as you scale a company, and we move to a very different scale is that you need a transformation that your systems and your processes need to transform to the new scale. So that's what he's working on. We have very good suppliers. We have great manufacturing partners. So it's not a strategic change, it's an execution. That's what he will concentrate on, on delivering. Peter has been leading the development of Smartstack. So I think that he will continue ensuring that continue developing Smartstack. And for '27 and forward, the main point is continue the integration of our software and our hardware in a way that we can provide a much more stringent customers than what we had historically. So that's what these 2 groups are going to do, transformation of our manufacturing, which is not changing suppliers or anything. It's just ensuring our processes, our systems, our planning is aligned with our bigger scale and continue on developing Smartstack and our platform and continue strengthening the connection between one and the other. So very happy. And your first question was on the... Ahmed Pasha: Coverage. Julian Jose Marquez: On the coverage. This is -- I still believe that 80% to 90% is the right one, the 85%. So that's our view. We clearly, clearly, and this is a learning, new facilities -- even though we put in a plan, we put a hedge and a contingency, and we are -- what happened with this is that we had a hedging -- we went over the hedge and we had the contingency. We went over the contingency, and that is when the problem becomes a problem. So to the extent that we have new facilities coming up, we will probably hedge them for next year. Having said that, we do not expect any new enclosure facilities. We do not expect any major new manufacturing capacity out of it will support our revenue in 2027. So I feel confident that 80% to 90% coverage will be the right coverage in 2027, but we will look at it clearly as we look at it. Operator: The next question comes from the line of Justin Clare from ROTH Capital. Justin Clare: So just wanted to ask about the guidance here. So based on the revised revenue and adjusted EBITDA guide, it looks like the fiscal Q4 gross margin could be roughly 12%, around that range. Just wondering if you could clarify what's embedded in the assumption for the gross margin in Q4? And then are there any costs associated with the new products or the production delays from fiscal Q3 expected to extend into fiscal Q4? Ahmed Pasha: Sure. Justin, this is Ahmed. So I think the implied gross margin we are looking at roughly 11% for Q4 based on the guidance we discussed. It's a little less at the midpoint if you're looking at midpoint to midpoint. And yes, we have considered additional costs that we may incur based on the outlook we see today. There are many puts and takes, but I think net-net, we feel pretty good that after taking those additional costs for delays, the guidance we gave, we should land at the guidance that we gave based on the outlook that we see today. Justin Clare: Got it. Okay. That's helpful. And then just on the supply chain here, I was wondering if you could discuss the potential impact of the FCC's restrictions on inverters here. I know you have access to U.S.-based inverter supplier. Wondering if you have any exposure to sourcing inverters from China? And then just curious, if compliant domestic sourcing of inverters could be a competitive advantage here as your customers kind of reassess exposure to imported inverters. Julian Jose Marquez: We only work with non-Chinese inverters in the U.S., mostly U.S. made, some of them imported out of Europe. So we feel that we will not be affected in any way. That has been our policy since then. We do see that those restrictions on inverters will also increase in Europe that, that will happen also and we expect and we are working towards continuing -- in Europe -- we work with a mix of Chinese and non-Chinese, but we're working towards getting ready for a fully European solution for the European market. We see the market, our view from day 1 when we started, that there will be more technological restrictions on this technology as it continues to grow and plays a more important role in the grid. Operator: Your next question comes from the line of Christine Cho from Barclays. Christine Cho: Okay. So I wanted to start with the order intake of $1.44 billion this quarter. So $300 million of that was for the behind-the-meter project and the rest, the $1.1 billion was your typical front-of-the-meter project. For the $1.1 billion, how should we think about the split of that between U.S. and international? And then with the $850 million award with the hyperscaler or data centers collectively, do those include EPC? And is there any difference between the developer versus hyperscaler? And should we assume that both of these projects have a duration of 2 hours? Julian Jose Marquez: Yes. On the data centers, they have a duration of 2 hours that generally we do not offer, and they're really not really offers at less than 2 hours in the market. So all the markets are at 2 hours. No real difference on what the technical requirements and the margins of the generally very much aligned. I would say the developers, which are usually smaller companies, more agile and more -- and who can make decisions a lot faster, the conversion rate is significantly faster. So I would say that's our current view of this is, as you know, an emerging segment. So some of the things we're learning as we move forward, but going -- very happy with it. In terms of the $1.1 billion of the non-data center, roughly the U.S. continues to be where we're making the most traction. And I would say number is around 60-40, 60% the U.S. and 40% the international markets. One doesn't mean that's what this is going to be. It was a quarter where it was a lot of activity in the U.S. and limited activity in the international markets. Christine Cho: Okay. And then just a housekeeping item. The 10-Q indicates that there were some IEEPA refunds. Did any of that show up in COGS? Or was it applied to inventory? Ahmed Pasha: Yes. I think that was the point I was saying the puts and takes. There is some IEEPA refund we have. I think it's a little over $10 million, yes, that we have recognized year-to-date. Christine Cho: And you'll expect to recognize some more in 4Q? Ahmed Pasha: Yes, some. Julian Jose Marquez: Some, yes, because it goes into -- part of it is recognized, part of it goes into inventory. And I think the inventory converts into revenue, then you recognize it over time. Operator: Your next question comes from the line of Chris Dendrinos from RBC Capital Markets. Christopher Dendrinos: I guess I hate to belabor the point here just a little bit more following up on Rob's question around the guidance here. But if I look at the outlook for the remainder of the year, pretty wide range just given the amount of time left in the year. And so what is driving that guidance range? And I guess I'm asking just trying to get a sense for how confident you are in the execution path here going forward? Ahmed Pasha: Yes. No, that's a fair question. I don't think you need to read too much into it. Frankly, I think based on the execution, we have still some work to do on execution. So we thought it is prudent to give you a guidance in case there are any incremental costs we may have to incur as we ramp up our operations. So that is what is really driving that wider gap versus the revenue guidance we gave. So EBITDA guidance is wider than what you would expect. So the only thing that reflects is additional costs that we may incur. So that is what is really is underlying driver. Operator: Your final question comes from the line of Ameet Thakkar from BMO Capital Markets. Ameet Thakkar: Maybe just following up on Chris' question maybe in a little bit different way. If I think about the midpoint of your guidance now for fiscal year 2026, I think it implies like $1.4 billion of revenue for 4Q. If I look at kind of the revenue recognition and kind of implied ASPs are, it's kind of like, let's just say, kind of $0.235 per watt. I think it implies like 6,000 megawatts of revenue recognition megawatts. Is that -- are you guys anticipating like a large portion of what you'll recognize in 4Q to have kind of EPC? I know some of the European contracts you have in the past that had pretty attractive kind of implied ASPs because you were doing EPC work. Is that the case for 4Q? And I've got one more quick follow-up. Ahmed Pasha: No, I don't think -- most of that is in the U.S., and that's mostly the deliveries that we have under our domestic content. Julian Jose Marquez: And I would say, for the quarter, for this quarter, we already have produced and have fully integrated roughly half of what we need to for the quarter. So we are confident that we will get to the numbers. Clearly, as I said, we're ramping up Houston and that we believe we have it under control. But like any ramp-up, there's always reason that we cannot envision today, and that's why the wider range. But nothing in line with what we can do. We already did have already. They already have in boats going to where they need to be or in trucks going to where they need to be. So we feel the guidance is still good. Ameet Thakkar: Understood. And then just if you could kind of help us kind of -- it looks like your cumulative deployed megawatts were unchanged versus the prior quarter. And I think they're only up like, I think, 8% or 9% from the beginning of the year -- or for the end of the last year. I mean I think cumulative deployed megawatts and it's like 7.4 gigawatts, I think at the end of the year with 6.8 gigawatts. But like the revenue is obviously from a percentage basis, a little bit better. Can you just help us kind of understand when all of those megawatts get deployed? Julian Jose Marquez: Our definition of deployed megawatts in our metrics is projects that have reached substantial completion. Our revenue recognition happens significantly earlier when most of our revenue when we deliver the equipment to site and transfer title. So that's where you see the disconnect. So we use -- our definition of delivery is after substantial completion, while our revenue recognition is on transfer of title, which occurred a quarter off. So this will convert into actual what we call deliver products later on. I know it creates a confusion because our competitors delivered actual delivering to site rather than substantial completion, we probably need to amend our definition to align it more with the revenue recognition definition. Ahmed Pasha: Which is percentage of completion. Julian Jose Marquez: Yes. That's a disconnect, Ameet. Well, thank you, everybody, for joining. And again, really, we want to -- we are sorry that we were -- we have to be late that we have technical issues. It's really an inconvenience for all of you, and we'll assure you that it won't happen again. And thank you so much for your time and your questions. Operator: This concludes today's meeting. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Fluence Energy. The Motley Fool has a disclosure policy. Fluence Energy (FLNC) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Fluence Energy, Inc. FLNC used its fiscal third-quarter 2026 earnings call to pair an execution setback with record commercial momentum. Factory ramp-up delays pushed revenues into fiscal 2027 and forced an outlook cut. Management also emphasized record orders, backlog and faster data center traction, making production execution the central issue. Chief financial officer Ahmed Pasha said fiscal 2026 revenues are now expected at $2.9 billion to $3.1 billion, with the midpoint down about $400 million to $3 billion. CFO Pasha said adjusted EBITDA guidance moved to negative $30 million to positive $10 million from positive $40 million to $60 million. Delayed revenues account for about $44 million of lost margin, while a planned battery supply agreement adds $15 million. The company reported a quarterly loss of $0.24, wider than the Zacks Consensus Estimate of a loss of $0.05. Third-quarter revenues came in at $600.18 million, which missed the Zacks Consensus Estimate of $761.90 million. Fluence Energy, Inc. price-consensus-eps-surprise-chart | Fluence Energy, Inc. Quote President and CEO Julian Nebreda said third-quarter order intake reached $1.44 billion, nearly triple the year-earlier level, lifting backlog to a record $6.4 billion. CEO Nebreda said data center business secured through July totaled about $850 million, including a $300 million developer order and about $550 million of hyperscaler awards not yet in purchase orders. A Jefferies analyst asked about booking cadence. Nebreda said developers move faster because speed to power is the priority, while hyperscalers emphasize power quality. The data center pipeline reached 16 gigawatt-hours, up more than 35% sequentially. Nebreda said an international factory delayed Smartstack components after initial output failed Fluence's quality tests. The facility is fully ramped, but lost fiscal 2026 volume cannot be fully recovered. The Houston plant faced construction, utility and automation delays. Nebreda added the 15-gigawatt-hour facility is producing and should reach full production during the first quarter of fiscal 2027. Nebreda said Roman Loosen will lead supply chain, while Peter Williams focuses on product, framing the change around execution and process transformation at greater scale rather than replacing manufacturing partners. A Citi analyst pressed management on margins. Nebreda said backlog and new orders remain within the company's 10% to 15% margin range, while scaling execution remains the key operational challenge. Nebreda reiterated that 80% to 90% revenue coverage remains appropriate for fiscal 2027. About $2.2 billion of backlog is expected to convert to fiscal 2027 revenues. A Goldman Sachs analyst asked whether data centers change the conversion cycle. Nebreda said the initial developer deal moved from lead to contract in less than three months versus 12 to 18 months for traditional segments. CFO Pasha said total liquidity ended the quarter at about $863 million, including roughly $365 million of total cash. He still expects about $900 million at fiscal year-end. Pasha said higher fiscal 2027 order intake could require an additional $300 million to $500 million of working capital. Financing would be pursued only with a clear path to profitable growth and shareholder value creation. A BMO Capital Markets analyst questioned fourth-quarter execution. Nebreda said roughly half of required quarterly production had been produced and integrated, while Pasha said the wider adjusted EBITDA range reflects potential ramp-up costs. Management's tone combined confidence in demand with acknowledgment that manufacturing execution must improve. Nebreda said delayed projects are older traditional contracts and do not affect data center master supply agreements. Nebreda's near-term focus is bringing Houston to full production, sustaining international quality and converting commercial activity into revenues without repeating the fiscal 2026 ramp-up issues. FLNC carries a Zacks Rank #3 (Hold), a neutral ranking versus the top Zacks Rank categories. Its Momentum Score is A, while its Value, Growth and VGM Scores are D, making momentum the strongest style signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks framework favors A or B Style Scores, especially alongside Zacks Rank #1 or #2 (Buy) stocks. FLNC's mixed profile lacks that preferred combination, and its Zacks Rank can change as analyst earnings estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluence Energy, Inc. (FLNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Fluence Energy, Inc. (FLNC) reported revenue of $600.18 million, down 0.4% over the same period last year. EPS came in at -$0.24, compared to $0.01 in the year-ago quarter. The reported revenue represents a surprise of -21.22% over the Zacks Consensus Estimate of $761.85 million. With the consensus EPS estimate being -$0.05, the EPS surprise was -380%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Fluence Energy performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Energy Storage Products and Solutions - Deployed: 7,400.00 MW compared to the 8,307.24 MW average estimate based on two analysts. Digital Contracts - Asset under Management: 22,800.00 MW compared to the 24,370.00 MW average estimate based on two analysts. Service Contracts - Asset under Management: 6,300.00 MW compared to the 7,207.44 MW average estimate based on two analysts. Revenue from energy storage products and solutions: $627.28 million versus the three-analyst average estimate of $635.71 million. The reported number represents a year-over-year change of +7.5%. Revenue from services: $20.12 million compared to the $27.23 million average estimate based on three analysts. The reported number represents a change of +18.8% year over year. Revenue from digital applications and solutions: $2.45 million versus the two-analyst average estimate of $10.13 million. The reported number represents a year-over-year change of +37%. View all Key Company Metrics for Fluence Energy here>>> Shares of Fluence Energy have returned -3.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluence Energy, Inc. (FLNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Fluence Energy, Inc.? Here are five stocks we like better. Record demand: Fluence signed $1.44 billion in fiscal Q3 orders, up nearly threefold year over year, while backlog reached a record $6.4 billion. Data-center-related orders and awards totaled $850 million, highlighting a rapidly expanding growth market. Guidance cut: Manufacturing delays at new facilities in Houston and China pushed deliveries into fiscal 2027. Fluence lowered fiscal 2026 revenue guidance to $2.9 billion–$3.1 billion and adjusted EBITDA guidance to a loss of $30 million to positive $10 million. Liquidity remains solid but funding may be needed: The company ended the quarter with approximately $863 million in liquidity and expects about $900 million by fiscal year-end. Management said rising order intake could require an additional $300 million–$500 million in working capital over the coming year. NVIDIA's New Power Play: Why Fluence Is Surging Fluence Energy (NASDAQ:FLNC) reported record third-quarter order intake and backlog growth, including its first signed data-center developer order, while lowering its fiscal 2026 revenue and adjusted EBITDA outlook because of delays ramping new manufacturing capacity. President and Chief Executive Officer Julian Nebreda said the company signed $1.44 billion in orders during the fiscal third quarter, nearly triple the $509 million signed in the same period a year earlier. Year-to-date orders totaled $2.7 billion through the third quarter, up 80% from the prior-year period, with utilities and independent power producers accounting for about 90% of the total. → 3 Drone Stocks That Should Soar After the Summer Slump Fluence Energy Could Be a Multi-Bagger Play in Energy Technology Fluence ended the quarter with a record $6.4 billion backlog, up 14% from the preceding quarter and more than 30% from a year earlier. About $2.2 billion of that backlog is expected to convert into fiscal 2027 revenue, compared with $1.5 billion of fiscal 2026 revenue coverage as of June 30, 2025, according to management. The company highlighted growing activity in the data-center market. During the quarter, Fluence signed a $300 million behind-the-meter order with a data-center developer. In July, it also received approximately $550 million in awards across multiple sites from one of the hyperscalers with which it has a master services agreement. The $550 million in awards had not yet become purchase orders or signed backlog as of the call. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Newly Public Fluence Energy Near Buy Zone With Strong Momentum Nebreda said Fluence’s data-center-related awards and orders totaled $850 million. The company has two master services agreements with two hyperscalers, and said the $300 million developer project came from a customer referred by one of those hyperscalers. Fluence’s data-center pipeline increased more than 35% sequentially to 16 gigawatt-hours. Nebreda said developer customers have shown a focus on speed-to-power solutions, while hyperscalers are more focused on power-quality capabilities. He said the developer order moved from lead to contract in less than three months, faster than the company’s traditional sales cycles. → Jersey Mike's Serves Fresh Gains After IPO Stumble Management said its typical utility and independent power producer projects have conversion cycles of roughly 12 to 18 months, with revenue recognized over project milestones. The company expects data-center projects could help accelerate that cycle, though Nebreda noted that Fluence is still in the early stages of serving that market. Fluence’s overall pipeline reached $33.1 billion at quarter-end, an increase of $1.6 billion from the prior quarter. The company said it added $3 billion in new opportunities after accounting for projects converted from pipeline to orders during the period. Third-quarter revenue was $650 million, up 8% year over year but about $90 million below the expectation discussed on the prior quarterly call. Chief Financial Officer Ahmed Pasha said the shortfall was primarily due to delays at two new contract manufacturing facilities. One issue involved a new Houston enclosure-manufacturing facility that is expected to have annual capacity of 15 GWh. Construction delays and automation-equipment issues pushed production back by a quarter. The facility began limited production during the third quarter and is expected to reach full production in the first quarter of fiscal 2027. A second issue occurred at one of two new facilities in China, where initial production of Smartstack components did not meet Fluence’s quality standards and required rework. Pasha said the facility is now producing to the company’s standards and reached full production during the fiscal fourth quarter. The slower-than-expected ramp compressed the remaining fiscal-year production schedule and pushed some deliveries planned for fiscal 2026 into fiscal 2027. Fluence lowered its fiscal 2026 revenue guidance to a range of $2.9 billion to $3.1 billion, with a $3 billion midpoint. That represents an approximately $400 million reduction from the prior midpoint. The company also revised adjusted EBITDA guidance to a loss of $30 million to positive $10 million, compared with a prior midpoint of positive $50 million. Pasha said the reduction reflects approximately $44 million of lost margin associated with about $400 million of revenue shifting into fiscal 2027, along with a $15 million impact tied to a planned long-term battery supply agreement. Third-quarter adjusted gross profit was also affected by lost margin from the revenue shortfall and roughly $15 million in costs related to the new product rollout and production delays. Fluence recorded an additional $15 million loss on the planned battery supply agreement, most of which was associated with a single project. Management said the arrangement is intended to secure long-term supply and pricing. Fluence announced organizational changes intended to strengthen manufacturing oversight. Roman Loosen, currently chief enterprise operations officer, will lead supply chain operations, while Peter Williams will focus on product development. Both executives will report directly to Nebreda. Nebreda said the company does not expect the manufacturing issues to affect its data-center master services agreements, describing the delayed projects as contracts signed a year to a year and a half ago in its traditional business segments. The company ended the third quarter with approximately $863 million of total liquidity, including about $365 million of cash. Pasha said Fluence expects liquidity to return to roughly $900 million by fiscal year-end as it executes on backlog covered by its guidance. Looking into fiscal 2027, management said existing liquidity positions the company for its near-term needs, but supporting rising order intake could require an additional $300 million to $500 million of working capital over the coming year. Fluence said it would pursue financing only where it sees a clear path to profitable growth and shareholder value creation. Fluence Energy is a leading global provider of energy storage products and services, specializing in the deployment of advanced battery systems to support grid stability and renewable integration. The company develops, engineers and delivers turnkey energy storage solutions designed to optimize the reliability, efficiency and economic performance of power networks. By combining hardware, software and lifecycle services, Fluence addresses the growing need for flexible energy assets in an evolving electricity landscape. The company's core offerings include modular energy storage platforms that pair lithium-ion battery technology with control and optimization software. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Fluence Energy Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: Q3 2026 revenue of $650 million, up 8% year-over-year, approximately $90 million below expectations due to production delays. Adjusted Gross Profit: Impacted by loss margin from revenue shortfall and approximately $15 million in costs associated with new product rollout and production delays. Adjusted EBITDA Guidance: Revised to negative $30 million to positive $10 million, with a midpoint of negative $10 million for fiscal 2026. Revenue Guidance: Revised to $2.9 billion to $3.1 billion, with a midpoint of $3 billion for fiscal 2026. Order Intake: Record $1.44 billion in Q3, nearly triple the $509 million signed in the same period last year; $2.7 billion signed year-to-date. Backlog: Record $6.4 billion, up 14% from Q2 and more than 30% year-over-year. Liquidity: Total liquidity of approximately $863 million, including approximately $365 million in total cash. Data Center Orders: First deal with a data center developer worth $300 million; additional $550 million in awards from a hyperscaler in July. Pipeline: Total pipeline of $33.1 billion, up $1.6 billion from last quarter; data center pipeline increased to 16 GWh. Annual Recurring Revenue: Maintaining expectation of approximately $180 million by end of fiscal 2026. Warning! GuruFocus has detected 4 Warning Signs with FLNC. Is FLNC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record order intake of $1.44 billion in Q3, nearly triple the prior year, with total orders up 80% year-to-date. Record backlog of $6.4 billion, up 14% sequentially and over 30% year-over-year, providing strong revenue visibility. Successful entry into the data center market with $850 million in orders/awards, including a $300 million deal with a developer and $550 million from a hyperscaler. Data center pipeline surged to 16 GWh, a 35% increase quarter-over-quarter, with faster sales cycles (3 months from lead to order). SmartStack product platform gaining traction, representing 75% of orders year-to-date, with new SmartStack 10 increasing density to 10 MWh per unit. Revenue guidance for fiscal 2026 lowered by $400 million to a midpoint of $3 billion due to production delays at new manufacturing facilities. Adjusted EBITDA guidance reduced to a midpoint of negative $10 million, down from $50 million, reflecting lost margins and one-time costs. Q3 revenue of $650 million was $90 million below expectations, impacted by ramp-up issues at two new contract manufacturing plants. Incurred $15 million in costs related to new product rollout and production delays, plus a $15 million loss on a planned battery supply agreement. Liquidity remains at $863 million, below the $900 million target, with potential need for $300-500 million additional working capital to support growth. Q: Can you provide additional granularity on the production delays and what is happening at the facilities?A: Julian Nebreda (CEO) explained that the delays stem from scaling up production capacity with new contract manufacturers. For the international market, a new manufacturer's initial production of Smart Stack components did not meet quality standards, causing significant delays, though the issues are now fully resolved and the facility is ramped up. For the US market, a new fully automated facility in Houston experienced construction delays and issues with automation equipment, compounded by a delay in grid connection. The facility is now producing at limited capacity and is expected to reach full production in fiscal Q1 2027. The CEO noted these facilities will provide a competitive advantage, particularly for domestic content in the US. Q: How should we think about the conversion cycle on record backlog levels and the impact of data center and hyperscaler bookings on the P&L?A: Julian Nebreda (CEO) stated that data center customers have a much faster conversion cycle, citing a recent deal with a developer that went from lead to contract in less than three months. Traditional utility and IPP segments maintain a conversion cycle of roughly 12 to 18 months. Revenue recognition occurs based on project milestones, not all at the end, and the faster data center cycle should help accelerate overall revenue conversion. Q: Can you elaborate on the commercial traction in data centers, the competitive dynamics, and key differentiating factors for wins?A: Julian Nebreda (CEO) attributed wins to the combination of Smart Stack's density, safety, and reliability with their operating system, which enables efficient load management and fast response times for low voltage ride-through. The company is seeing better-than-planned traction and is now exploring opportunities with hyperscalers and developers in international markets, leveraging its global footprint. The pipeline has grown to 16 GWh, a 35% increase quarter-over-quarter. Q: What is driving the wider range in the revised EBITDA guidance, and how confident are you in the execution path?A: Ahmed Pasha (CFO) explained that the wider EBITDA guidance range reflects prudence regarding potential incremental costs as the company ramps up operations at new facilities. Julian Nebreda (CEO) added that the company has already produced and integrated roughly half of what is needed for Q4, providing confidence in meeting the revised guidance, though the ramp-up of the Houston facility carries inherent risks. Q: Can you provide more detail on the battery cell cost uplift and whether it impacts fiscal 2028 procurement?A: Julian Nebreda (CEO) clarified that the charge is related to a long-term supply agreement for the international market, not connected to AESC. The agreement includes technological alignment for future battery-module integration. A one-time charge of $15 million was taken on a single project as part of the deal adjustment, but the NPV of the long-term agreement is significantly higher than the charge, making it a strategic decision to secure supply and pricing for 2027 and 2028. Q: What is the scope of the manufacturing delays, and are they impacting the hyperscaler MSAs and new orders?A: Julian Nebreda (CEO) confirmed that the production delays are related to contracts signed 12-18 months ago and have no impact on the hyperscaler MSAs or new data center contracts. He also clarified that the company has two MSAs with two hyperscalers. The $300 million order was from a developer referred by one of these hyperscalers, while the $550 million award in July was from a hyperscaler tender, which is expected to convert to signed orders in the coming months. Q: How do you feel about the 10% to 15% margin guidance given peer pressure in storage, and are there margin variances in the backlog?A: Julian Nebreda (CEO) stated that Fluence remains comfortably within the 10% to 15% adjusted gross margin range, even after excluding one-time costs. The company does not see the same margin pressures as a larger peer, attributing this to differences in cost structure. The main challenge is scaling the company, and the new orders and backlog are in line with the 10% to 15% margin expectation. Q: What is the mechanism for setting fiscal 2027 guidance, and what specific changes will the new leadership make to improve execution?A: Julian Nebreda (CEO) indicated that 80% to 90% backlog coverage remains the right target for guidance. He noted that new facilities will be hedged more conservatively, but no major new capacity is expected to support 2027 revenue. Regarding leadership, Roman Lewsen will lead supply chain and manufacturing transformation to align processes with a larger scale, while Peter Williams will focus on product development, particularly integrating software and hardware for more demanding customers. Q: What is the split of the $1.1 billion non-data center order intake between US and international, and do data center projects include EPC?A: Julian Nebreda (CEO) stated that the non-data center orders were roughly 60% US and 40% international. For data center projects, the duration is two hours, and there is no real difference in technical requirements or margins between hyperscalers and developers. Developers are typically smaller, more agile companies that make decisions faster, leading to a significantly faster conversion rate. Q: Can you discuss the potential impact of FCC restrictions on inverters and your sourcing strategy?A: Julian Nebreda (CEO) confirmed that Fluence only works with non-Chinese inverters in the US, mostly US-made, so the company will not be affected by the restrictions. The company anticipates similar restrictions in Europe and is working towards a fully European solution for that market. This proactive approach is part of the company's strategy to prepare for increased technological restrictions as energy storage plays a more important role in the grid. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ARLINGTON, Va., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), a global market leader delivering intelligent energy storage, operational services, and asset optimization software, today announced its results for the three and nine months ended June 30, 2026. Financial and Operational Highlights for Fiscal Quarter Ended June 30, 2026 Revenue of approximately $649.8 million, compared to approximately $602.5 million in the same quarter last year, primarily driven by an increase in volume of fulfillments of energy storage solutions. Revenue was weaker than expected, primarily reflecting production delays at new contract manufacturing facilities. GAAP gross profit margin of approximately 5.1%, compared to approximately 14.8% in the same quarter last year. Adjusted gross profit margin1 of approximately 5.9%, compared to approximately 15.4% in the same quarter last year, primarily reflecting the impact of delays to revenue, the initial costs of deploying new product platforms, and recognized upfront cost associated with a planned agreement for long-term international battery cell supply. Net loss for the three and nine months ended June 30, 2026 of approximately $44.3 million and $136.1 million, respectively, compared to net income of approximately $6.9 million and net loss of approximately $92.1 million for the same periods last year, respectively. Adjusted EBITDA1 for the three and nine months ended June 30, 2026 of approximately $(29.3) million and $(90.8) million, respectively. Order intake of more than $1.44 billion for the fiscal quarter ended June 30, 2026, nearly triple the order intake of approximately $508.8 million for the same quarter last year. Secured approximately $850.0 million of data center business through July, including the Company's first large, behind-the-meter order signed during the third quarter and approximately $550.0 million of awards from a hyperscaler in July 2026. Backlog2 as of June 30, 2026 of approximately $6.4 billion, the highest level in Company history. Total liquidity3 of approximately $863.0 million as of June 30, 2026, including total cash4 of approximately $365.0 million. “Customer demand for Fluence solutions continues to strengthen, driven by our differentiated technology, digital capabilities, and expanding role supporting the growing power needs of utilities, developers, and data centers. We have been increasing our production capacity globally to meet this growing demand, and although production has been behind our expectation for this year we have taken steps to achieve targeted production levels early in fiscal 2027," said Julian Nebreda, President and Chief Executive Officer. "With both record order intake and backlog, and increasing momentum with all of our customer segments including data centers, we remain confident in the long-term opportunity ahead and our positioning to capitalize on it." Revised Fiscal Year 2026 Outlook The Company now expects that $400.0 million in project deliveries will be delayed into fiscal 2027 due to production issues at a new international contract manufacturing facility and construction related delays that affected the completion and start-up of a new U.S. contract manufacturing facility. As a result, the Company is revising its fiscal year 2026 guidance as follows: Revenue of approximately $2.9 billion to $3.1 billion with a midpoint of $3.0 billion compared to the prior guidance range of approximately $3.2 billion to $3.6 billion with a midpoint of $3.4 billion. Adjusted EBITDA1 of approximately ($30.0) million to $10.0 million, with a midpoint of approximately ($10.0) million compared to prior guidance of approximately $40.0 million to $60.0 million with a midpoint of $50.0 million. This reduction reflects the reduced revenue outlook and an approximately $15 million upfront cost associated with a planned agreement for long-term international battery supply. Annual recurring revenue of approximately $180.0 million by the end of fiscal year 2026, which is unchanged. "Although delays in deliveries of some U.S. projects impacted third quarter revenue and our full year outlook, the associated revenue remains in backlog and is expected to be recognized in fiscal 2027," said Ahmed Pasha, Chief Financial Officer. "We ended the quarter with strong liquidity, providing flexibility and a strong foundation to support increased order volume and future growth.” The foregoing "Revised Fiscal Year 2026 Outlook" statements represent management's current best estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the "Cautionary Note Regarding Forward-Looking Statements" section included in this release. Management does not assume any obligation to update these estimates. Conference Call Information The Company will conduct a teleconference starting at 8:30 a.m. EDT on Thursday, August 6, 2026, to discuss our third quarter results. To participate, analysts are required to register by clicking Fluence Energy Q3 Earnings Call Registration Link. Once registered, analysts will be issued a unique PIN number and dial-in number. Analysts are encouraged to register at least 15 minutes before the scheduled start time. General audience participants, and non-analysts are encouraged to join the teleconference in a listen-only mode at: Fluence Energy Listen - Only Webcast, or on https://fluenceenergy.com by selecting Investors, News & Events, and Events & Presentations. Supplemental materials that may be referenced during the teleconference will be available at: https://fluenceenergy.com, by selecting Investors, News & Events, and Events & Presentations. A replay of the conference call will be available after 1:00 p.m. EDT on Thursday, August 6, 2026. The replay will be available on the Company’s website at https://fluenceenergy.com by selecting Investors, News & Events, and Events & Presentations. Non-GAAP Financial Measures We present our operating results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We believe certain financial measures, such as Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit Margin, and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented in accordance with GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with GAAP. These measures have limitations as analytical tools, including that other companies, including companies in our industry, may calculate these measures differently, reducing their usefulness as comparative measures. Adjusted EBITDA is calculated from the condensed consolidated statements of operations using net income (loss) adjusted for (i) interest (income) expense, net, (ii) income taxes, (iii) depreciation and amortization, (iv) stock-based compensation, and (v) other non-recurring income or expenses. Adjusted EBITDA also includes amounts impacting net income related to estimated payments due to related parties pursuant to the Tax Receivable Agreement, dated October 27, 2021, by and among Fluence Energy, Inc., Fluence Energy, LLC, Siemens Industry, Inc. and AES Grid Stability, LLC (the “Tax Receivable Agreement”). Adjusted Gross Profit is calculated from the condensed consolidated statements of operations using gross profit, adjusted to exclude (i) stock-based compensation expenses, (ii) depreciation and amortization, and (iii) other non-recurring income or expenses. Adjusted Gross Profit Margin is calculated using Adjusted Gross Profit divided by total revenue. Free Cash Flow is calculated from the condensed consolidated statements of cash flows and is defined as net cash provided by (used in) operating activities, adjusted to exclude purchases made under supply chain financing arrangements, less repayments of obligations under supply chain financing arrangements and purchase of property and equipment made in the period. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures (for example, cash is still required to satisfy other working capital needs, including short-term investment policy, restricted cash, and intangible assets) and Free Cash Flow does not reflect our future contractual commitments. Please refer to the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures included in tables contained at the end of this release. The Company is not able to provide a quantitative reconciliation of full fiscal year 2026 Adjusted EBITDA to GAAP net income (loss) on a forward-looking basis because of the uncertainty around certain items that may impact Adjusted EBITDA, including stock compensation and restructuring expenses, that are not within our control or cannot be predicted at this time without unreasonable effort. About Fluence Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. The Company's solutions and operational services are helping to create a more resilient grid and unlock the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed, and under management across nearly 50 markets, the Company is transforming the way we power our world for a more sustainable future. For more information, visit our website, or follow us on LinkedIn. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog. Cautionary Note Regarding Forward-Looking Statements This press release and statements that are made on our earnings call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release and on our earnings call, including without limitation, statements set forth above under “Revised Fiscal Year 2026 Outlook” and other statements regarding the Company's future results of operations and financial position, operational performance, the Company’s business, growth, and innovation strategy and the efficacy of our products and services to meet evolving needs, future market and industry growth and related opportunities for the Company, including relating to data centers, projected operating costs and future cost visibility, future liquidity, expectations relating to working capital, and access to capital and cash flows, future capital expenditures and debt service obligations, expectations related to backlog, pipeline, order intake, and contracted backlog, expectations regarding Smartstack becoming a leading product, expectations regarding the deployment, performance, and customer adoption of new product offerings, expectations regarding customer demand for Company products and solutions, impact of the Company’s planned new battery cell supply agreement, the Company’s supply chain strategy, including future volume and production capacity, expectations regarding our contract manufacturing partners and related facilities, potential impact from delays in ramp up of production facilities, associated project delays, and cost overruns, including those arising from the introduction of new product platforms, and projected costs, beliefs, assumptions, prospects, plans and objectives of management and timing associated therewith. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “possible,” “will,” “should,” “seeks,” “expects,” “plans,” “anticipates,” “grows,” “could,” “intends,” “targets,” “projects,” “contemplates,” "commits", “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements are subject to a number of risks, uncertainties, and other important factors that could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the elimination or expiration of government incentives or regulations regarding renewable energy; changes in the global trade environment; fluctuations in order intake and results of operations across fiscal periods; a significant reduction in order volume or loss of significant customers or their inability to perform under contracts; competition for offerings and the ability to attract new customers and retain existing ones; maintaining and enhancing reputation and brand recognition; our ability to manage recent and future growth and the expansion of our business and operations; our ability to attract and retain highly qualified personnel; our growth depending on the success of relationships with third parties; delays, disruptions, and quality control problems in manufacturing operations; risks associated with engineering and construction, utility interconnection, commissioning and installation of energy storage products, cost overruns, and delays; supplier concentration and limited supplier capacity; operating as a global company with a global supply chain; changes in the cost and availability of raw materials and underlying components; lengthy sales and installation cycle for energy storage solutions; quality and quantity of components provided by suppliers; defects, errors, vulnerabilities, and/or bugs in products and technology; events and incidents relating to storage, delivery, installation, operation, maintenance, and shutdowns of products; current and planned foreign operations; failure by contract manufacturers, vendors, and suppliers to use ethical business practices and comply with applicable laws and regulations; actual or threatened health epidemics, pandemics, or similar public health threats; severe weather events; acquisitions made or that may be pursued; our ability to obtain financial assurances for projects; relatively limited operating and revenue history as an independent entity and the nascent clean energy industry; anticipated increases in expenses in the future and our ability to maintain prolonged profitability; the risk that amounts included in the pipeline and contracted backlog may not result in actual revenue or translate into profits; restrictions set forth in current and future credit and debt agreements; our uncertain ability to raise additional capital to execute on business opportunities; fluctuations in currency exchange rates; whether renewable energy technologies are suitable for widespread adoption or if sufficient demand for offerings does not develop or takes longer to develop than anticipated; our estimates on the size of the total addressable market; macroeconomic uncertainty and market conditions; interest rates or a reduction in the availability of tax equity or project debt capital in the global financial markets and corresponding effects on customers’ ability to finance energy storage systems and demand for energy storage solutions; the cost of electricity available from alternative sources; a decline or delay in public acceptance of renewable energy, or increase in the cost of customer projects; increased attention to environmental, social and governance matters; our ability to obtain, maintain, and enforce proper protection for intellectual property, including technology; the threat of lawsuits by third parties alleging intellectual property violations; our having adequate protection for trademarks and trade names; our ability to enforce intellectual property rights; our patent portfolio; our ability to effectively protect data integrity of technology infrastructure, data, and other business systems; the use of open-source software; our failure to comply with third-party license or technology agreements; our inability to license rights to use technologies on reasonable terms; compromises, interruptions, or shutdowns of systems; use of artificial intelligence (“AI”) technologies; potential changes in tax laws or regulations; barriers arising from current electric utility industry policies and regulations and any subsequent changes; environmental, health, and safety laws and potential obligations, liabilities, and costs thereunder; actual or perceived failure to comply with data privacy and data security laws, regulations, industry standards, and other requirements relating to the privacy, security, and processing of personal information; potential future legal proceedings, regulatory disputes, and governmental inquiries; ownership of our Class A common stock; short-seller activists; being a “controlled company” within the meaning of the rules of the Nasdaq Stock Market; conflicts of interest by officers and directors due to positions with our continuing equity owners; relationship with our founders and continuing equity owners; terms of our amended and restated certificate of incorporation and amended and restated bylaws; our dependence on distributions from Fluence Energy, LLC to pay taxes and expenses and Fluence Energy, LLC’s ability to make such distributions may be limited or restricted in certain scenarios; risks arising out of the Tax Receivable Agreement; unanticipated changes in effective tax rates or adverse outcomes resulting from examination of tax returns; risks related to the 2030 Convertible Senior Notes; improper and ineffective internal control over reporting to comply with the Sarbanes-Oxley Act; changes in accounting principles or their applicability; and estimates or judgments relating to critical accounting policies; and other important factors set forth under Part I, Item 1A.“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 25, 2025 and Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026, as well as in other filings we make with the SEC from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. Analyst ContactChris Shelton, Vice President of Finance, GID, and Investor RelationsEmail: [email protected] Media ContactShayla Ebsen, Director of Communications+1 605-645-7486Email: [email protected] FLUENCE ENERGY, INC. KEY OPERATING METRICS (UNAUDITED) The following tables present our key operating metrics as of June 30, 2026 and September 30, 2025. The tables below present the metrics in either Gigawatts (GW) or Gigawatt hours (GWh). Our key operating metrics focus on project milestones to measure our performance and designate each project as either “deployed”, “assets under management”, “contracted backlog”, or “pipeline”. The following table presents our order intake for the three and nine months ended June 30, 2026 and 2025. The table is presented in Gigawatts (GW): Deployed Deployed represents cumulative energy storage products and solutions that have achieved substantial completion and are not decommissioned. Deployed is monitored by management to measure our performance towards achieving project milestones. Assets Under Management Assets under management for service contracts represents our long-term service contracts with customers associated with our completed energy storage system products and solutions. In general, we start providing maintenance, monitoring, or other operational services after the storage product projects are completed. This is not limited to energy storage solutions delivered by Fluence. Assets under management for digital software represents contracts signed and active (post go live). Assets under management serves as an indicator of expected revenue from our customers and assists management in forecasting our expected financial performance. Contracted Backlog For our energy storage products and solutions contracts, contracted backlog includes signed customer orders or contracts under execution prior to when substantial completion is achieved. For service contracts, contracted backlog includes signed service agreements associated with our storage product projects that have not been completed and the associated service has not started. For digital applications contracts, contracted backlog includes signed agreements where the associated subscription has not started. We cannot guarantee that our contracted backlog will result in actual revenue in the originally anticipated period or at all. Contracted backlog may not generate margins equal to our historical operating results. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our contracted backlog fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity. Contracted/Order Intake Contracted, which we use interchangeably with “order intake”, represents new energy storage product and solutions contracts, new service contracts and new digital contracts signed during each period presented. We define “Contracted” as a firm and binding purchase order, letter of award, change order or other signed contract (in each case an “Order”) from the customer that is received and accepted by Fluence. Our order intake is intended to convey the dollar amount and gigawatts (operating measure) contracted in the period presented. We believe that order intake provides useful information to investors and management because the order intake provides visibility into future revenue and enables evaluation of the effectiveness of the Company’s sales activity and the attractiveness of its offerings in the market. Pipeline Pipeline represents our uncontracted, potential revenue from energy storage products and solutions, service, and digital software contracts, which have a reasonable likelihood of contract execution within 24 months. Pipeline is an internal management metric that we construct from market information reported by our global sales force. Pipeline is monitored by management to understand the anticipated growth of our Company and our estimated future revenue related to customer contracts for our battery-based energy storage products and solutions, services and digital software. We cannot guarantee that our pipeline will result in actual revenue in the originally anticipated period or at all. Pipeline may not generate margins equal to our historical operating results. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our pipeline fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity. Annual Recurring Revenue (ARR) ARR represents the net annualized contracted value including software subscriptions including initial trial, licensing, long term service agreements, and extended warranty agreements as of the reporting period. ARR excludes one-time fees, revenue share or other revenue that is non-recurring and variable. The Company believes ARR is an important operating metric as it provides visibility to future revenue. It is important to management to increase this visibility as we continue to expand. ARR is not a forecast of future revenue and should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to replace these items. FLUENCE ENERGY, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED) The following tables present our non-GAAP measures for the periods indicated. (a) Amount for the three months ended June 30, 2026 includes $0.5 million for secondary offering expenses and $0.5 million for legal and consulting fees related to potential strategic transactions. Amount for the three months ended June 30, 2025 includes approximately $1.4 million in severance costs related to restructuring and $1.2 million in income as a result of a reduction of our Tax Receivable Agreement liability. Amounts for nine months ended June 30, 2026 includes approximately $3.8 million for legal and consulting fees related to potential strategic transactions, $0.5 million of impairment expense related to an equity method investment, and $0.5 million for secondary offering expenses. Amount for the nine months ended June 30, 2025 includes $4.5 million in severance costs related to restructuring and $1.2 million in income as a result of a reduction of our Tax Receivable Agreement liability. ​​ 1 Non-GAAP Financial Metric. See the section titled "Non-GAAP Financial Measures" for more information regarding the Company's use of non-GAAP financial measures, as well as a reconciliation to the most directly comparable financial measures stated in accordance with GAAP.2 Backlog represents the unrecognized revenue value of our contractual commitments, which include deferred revenue and amounts that will be billed and recognized as revenue in future periods. The company's backlog may vary significantly each reporting period based on the timing of major new contractual commitments and the backlog may fluctuate with currency movements. In addition, under certain circumstances, the Company's customers have the right to terminate contracts or defer the timing of its services and their payments to the Company.3 Total liquidity is a management metric and is defined as cash and cash equivalents + restricted cash + capacity available under our working capital facilities, net of letters of credit issued. Our working capital facilities include our two supply chain financing programs and our revolving credit facility, under which we can issue letters of credit or, subject to certain limitations, incur borrowings thereunder. Each of our working capital facilities are subject to covenants and restrictions as set forth therein, including a cash draw sublimit in the revolving credit facility of $150.0 million. As of June 30, 2026, we had $193.0 million of outstanding letters of credit under our revolving credit facility, with remaining availability of $307.0 million.4 Total cash includes cash and cash equivalents + restricted cash.

The market expects Fluence Energy, Inc. (FLNC) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -600%. Revenues are expected to be $761.85 million, up 26.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 40.58% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Fluence Energy, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -68.75%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Fluence Energy will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Fluence Energy would post a loss of$0.18 per share when it actually produced a loss of -$0.16, delivering a surprise of +11.11%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Fluence Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluence Energy, Inc. (FLNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Citi upgraded FLNC stock to ‘Buy’ from ‘Neutral’ while its reduced price target of $24 still implies more than 56% upside potential from current levels. The firm upgraded CSIQ stock, citing improving prospects from the company’s higher-margin U.S. solar module manufacturing strategy and expanding energy storage business. Citi believes NRGV shares offer ‘compelling exposure’ toward higher-margin and recurring infrastructure earnings. Fluence Energy (FLNC), Energy Vault Holdings (NRGV), and Canadian Solar (CSIQ) were on investors’ radar on Wednesday after a bullish brokerage note highlighted the trio as well-positioned to benefit from accelerating demand for energy storage, utility-scale solar projects, and the rapid expansion of AI-powered data center infrastructure ahead of their upcoming quarterly earnings. At the time of writing, FLNC stock was up 0.8%, NRGV shares traded 1.2% higher, while CSIQ stock jumped 3.8%. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Citi upgraded FLNC stock to ‘Buy’ from ‘Neutral’ even as its price target was trimmed to $24 from $26, according to The Fly. Despite the reduction, the target still implies more than 56% upside from current levels. According to Koyfin data, the stock carries a consensus 12-month price target of $18.78. Of the 21 analysts covering the company, five rate it ‘Buy’, 13 recommend ‘Hold’, and three have ‘Sell’ ratings. Citi said Fluence offers an attractive risk-reward profile ahead of earnings and is well positioned to benefit from rising demand for battery storage from hyperscale customers, including large AI data center operators. The firm added that a major hyperscaler contract and continued expansion of the company’s project pipeline could provide meaningful upside, according to Investing.com. Last month, Fluence was named a key partner in Nvidia’s (NVDA) Vera Rubin AI factory reference architecture. Meanwhile, Wall Street expects June-quarter revenue of $809.4 million, significantly more than the $483.3 million it reported a year earlier, while earnings are projected to remain unchanged at $0.01 per share, according to Fiscal.ai. Canadian Solar (CSIQ) was upgraded to ‘Neutral’ from ‘Sell’ by Citi, which also raised its price target to $18 from $11, implying about 13% upside from current levels. According to Koyfin data, CSIQ has a consensus price target of $18.05. Of 12 analysts, four rate the stock Buy, five Hold, and three Sell. The firm cited improving prospects from the company’s higher-margin U.S. solar module manufacturing strategy and expanding energy storage business, according to investing.com. Citi said domestic production could benefit from tax credits and stronger sales of high-efficiency Heterojunction Technology (HJT) modules, while storage volumes are expected to roughly double year over year. Analysts expect second-quarter revenue of $1.14 billion, down from $1.69 billion a year ago, with a $0.91-per-share loss versus earnings of $0.11 last year. Energy Vault Holdings was upgraded to ‘Buy’ from ‘Neutral’ by Citi, although the brokerage trimmed its price target to $5 from $5.25. Even so, the new target implies about 42% upside from current levels. Citi believes the shares offer “compelling exposure” toward higher-margin and recurring infrastructure earnings. The firm cited improving fundamentals, including a growing project backlog and the appointment of a new chief financial officer with deep energy and infrastructure financing experience, which it believes could lower the company’s cost of capital and support future growth, according to Investing.com. According to Koyfin data, Energy Vault has a consensus 12-month price target of $5.58. Three of five analysts rate the stock Buy, while one recommends Hold and one Sell. Wall Street expects second-quarter revenue to rise to $14.25 million from $8.51 million a year earlier, with a loss of $0.13 per share. Retail sentiment for FLNC stock on Stocktwits trended in the ‘bearish’ territory over the past 24 hours, while sentiment changed to ‘neutral’ from ‘bullish’ for CSIQ. NRGV investors also turned ‘bearish’ on the stock from ‘neutral’ a day earlier. All three stocks have been under selling pressure so far this year, with FLNC declining 33%, CSIQ slumping around 37% and NRGV shares falling more than 27%. Also read: ARWR Stock On Track To Hit Over 5-Year Highs – Retail Cheers Phase 3 Breakthrough As Arrowhead Targets Broader FDA Approval For updates and corrections, email newsroom[at]stocktwits[dot]com Arnab Paul has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: Nasdaq, S&P 500, Dow Futures Edge Higher, Brushing Off Fresh US-Iran Clashes As Earnings Take Center Stage: TSLA, NOW, GOOGL, NOK In Focus ASTS Stock Eyes Weekly Comeback: AT&T Says AST SpaceMobile Satellite Offering Will 'Come To Fruition' Next Year SPCX Gains After Hours Ahead Of Upcoming Starship Test Flight— Tesla Books $1B SpaceX Gain

Report details progress in operational transparency and responsible business practices ARLINGTON, Va., June 11, 2026 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. ("Fluence") (NASDAQ: FLNC), a global market leader delivering intelligent energy storage systems, services, and asset optimization software, today released its fiscal year 2025 Sustainability Report (the “Report”), covering the period from October 1, 2024, to September 30, 2025. Now in its fourth year of publication, the Report outlines Fluence’s progress across a wide range of environmental, social, and governance (ESG) initiatives and presents the Company’s sustainability roadmap, which includes plans to strengthen transparency, improve environmental performance across its value chain, and advance responsible and resilient business practices. “Our mission to transform the way we power our world has never been more urgent, as the need for reliable, flexible, and resilient grids grows stronger every day,” said Julian Nebreda, President and Chief Executive Officer. “Energy storage is playing an increasingly pivotal role in meeting new power demands across global markets, including from the digital infrastructure driving artificial intelligence. We are helping our customers address mission-critical requirements for power quality, reliability, and cybersecurity, while delivering solutions that support faster grid integration, greater energy efficiency, and more sustainable outcomes for the communities we serve.” Highlights from the 2025 Sustainability Report include: Establishment of Fluence’s first baseline for Scope 1 and 2 greenhouse gas emissions, creating a clear metric for the Company’s operational climate progress. Completion of Fluence’s second report aligned with the Task Force on Climate-related Financial Disclosures (“TCFD”), offering stakeholders greater insight into the Company’s climate strategy and long-term resilience. Recognition in Fluence’s first EcoVadis assessment with a Commitment Badge for demonstrated progress and transparency across its sustainability program. Recognition by Corporate Knights, which named Fluence the #1 most sustainable corporation in the U.S. and ranked the Company #4 worldwide. Fluence’s sustainability strategy supports several United Nations Sustainable Development Goals and is prepared in alignment with globally recognized frameworks, including the Global Reporting Initiative (“GRI”), the Sustainability Accounting Standards Board (“SASB”), and TCFD. The Company also maintains its ongoing annual commitment to the United Nations Global Compact (UNGC). To download the Fluence Fiscal Year 2025 Sustainability Report, visit Fluence’s website. About Fluence  Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. The Company's solutions and operational services are helping to create a more resilient grid, from powering the next generation of AI-driven data centers to unlocking the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed, and under management across nearly 50 markets, the Company is transforming the way we power our world for a more sustainable future. For more information, visit our website, or follow us on LinkedIn or X. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog. Cautionary Note Regarding Forward-Looking StatementsThe statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our future business expectations, plans and objectives and our sustainability plans, goals, initiatives, and programs. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. The forward-looking statements contained herein are based on our current expectations and beliefs, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, regulatory changes in jurisdictions in which we operate and other factors set forth in filings we make with the Securities and Exchange Commission from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. Media Contact Shayla Ebsen, Director of Communications Email: [email protected] Phone: +1 (605) 645-7486 Analyst Contact Chris Shelton, Vice President of Investor Relations and Sustainability Email: [email protected]

Fluence’s second quarter results were met with a strongly positive market reaction, despite revenue falling short of Wall Street expectations. CFO Ahmed Pasha attributed the miss to timing issues, including delayed shipments in Vietnam and Spain, which have since been resolved. CEO Julian Nabrita emphasized that order intake accelerated, doubling compared to the same period last year, with a record $5.6 billion backlog at quarter end. Nabrita highlighted, "Order activity is accelerating versus last year, and we expect backlog to grow further based on execution so far this year." The company credited disciplined execution and operational improvements for a meaningful rebound in adjusted gross margin, returning to its targeted range. Is now the time to buy FLNC? Find out in our full research report (it’s free). Revenue: $464.9 million vs analyst estimates of $611.5 million (7.7% year-on-year growth, 24% miss) Adjusted EPS: -$0.12 vs analyst estimates of -$0.18 (32.5% beat) Adjusted EBITDA: -$9.44 million (-2% margin, 69% year-on-year growth) The company reconfirmed its revenue guidance for the full year of $3.4 billion at the midpoint EBITDA guidance for the full year is $50 million at the midpoint, above analyst estimates of $48.4 million Adjusted EBITDA Margin: -2% Backlog: $5.6 billion at quarter end, up 14.3% year on year Market Capitalization: $2.83 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. George Gianarikas (CG): asked about the impact of cell manufacturers vertically integrating. CEO Julian Nabrita said it has not significantly changed the competitive landscape, emphasizing that Fluence continues to grow backlog and win projects at a steady pace. Julien Dumoulin-Smith (Jefferies): inquired about the product specifics for hyperscalers and whether domestic content was a requirement. Nabrita explained that power quality, not domestic content, was the main criteria, and Fluence’s advanced controls met these needs. He noted significant demand behind these MSAs for future orders. Brian Lee (Goldman Sachs): sought details on the size and scope of hyperscaler MSAs and the speed of order conversion. Nabrita stated the pipeline supporting these agreements spans multiple U.S. data centers but declined to quantify financials, emphasizing that conversion from pipeline to revenue is expected to be faster than traditional utility projects. Jonathan Windham (UBS): asked about capacity to meet U.S. market growth and operating cost management. Nabrita and CFO Ahmed Pasha said multigigawatt-hour domestic capacity is in place, with a focus on cost discipline to drive operating leverage as revenue grows. Ameet Thakkar (BMO Capital Markets): questioned the impact of average selling prices and the composition of the data center pipeline. Nabrita advised not to focus on quarterly movements in prices, as demand growth outpaces price declines, and confirmed the majority of the 12 GWh pipeline is data center-related. In upcoming quarters, our team will monitor (1) the pace at which data center-related orders convert into revenue, (2) continued execution on expanding U.S. supply chain capacity and Smartstack deployments, and (3) margin progression as product mix shifts toward new customer segments. The ability to secure additional master supply agreements and manage operating costs will also be key indicators of successful execution. Fluence Energy currently trades at $21.23, up from $13.56 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.