Energy storage technology and solutions provider Fluence Energy recorded a revenue of $364 million in the first quarter (Q1) of the fiscal year (FY) 2023-24, registering a 17% year-over-year (YoY) increase. This was attributed to the company’s contracted backlog and project pipeline.

The recent quarter made it the ninth consecutive quarter where the volume of order intakes outpaced revenue due to the growth in utility-scale energy storage.

The company reported a record intake of new orders amounting to $1.1 billion this quarter, with its solution business contracting 2.7 GWh, service business adding 2.3 GWh, and digital business adding another 400 MW of new contracts.

The company’s net loss narrowed to $25.6 million, compared to the $37.2 million in the corresponding quarter of 2023, driven by the increased sales.

The adjusted Earnings Before Interest, Tax, depreciation, and Amortization (EBITDA) stood at a loss of $18.3 million for Q1 FY24, improving from a loss of $26 million in the same quarter last year. This was due to flattened operating costs this quarter.

The contracted backlog for this quarter touched a record $3.7 billion, which was driven by an 80% decrease in lithium carbonate prices, which in turn lowered the battery prices and allowed for more projects to be included.

“We have locked in battery supply at fixed prices for all our projects in our backlog,” said Julian Nebreda, the CEO of Fluence, at the earnings call.

The pipeline increased to $13.4 billion, representing the company’s uncontracted potential revenue from products and solutions that will be executed in the next two years.

The company’s battery module production at its Utah manufacturing facility will begin production in the summer of 2024, enabling Fluence Energy to provide a product that meets the U.S. domestic contact requirements for battery and energy storage.

Fluence currently utilizes five battery suppliers located in China, South Korea, Sweden, and the United States. This is to ensure multiple geographies support its growth to mitigate disruptions.

The battery manufacturing module will enable the company to provide a product that aligns with the U.S. domestic contact requirements for battery and energy storage, he adds. Fleunce’s diversity of suppliers is reflected in its ability to take advantage of favorable terms and battery prices.

“In order to capitalize on the growing demand, the company aims to secure a multiyear guarantee battery capacity from these suppliers. We will be manufacturing our own battery models in the U.S., which represents two-thirds of our global business. It also enables us to introduce our proprietary battery management system,” states Nebreda.

The company also achieved profitability for the first time when its net income surged to $4.82 million in Q4 FY23, a YoY increase of 91.4%.

In an exclusive interview with Mercom last February, Julian Nebreda mentioned the company’s plans to step up manufacturing in India in an attempt to add value to the ambitions of transition economies like India, which are committed to clean energy.