Utility-scale energy storage firm Fluence Energy recorded a revenue of $186.8 million in the first quarter (Q1) of the fiscal year (FY) 2025, a 49% year-over-year (YoY) decrease, well below the analysts’ estimate of $362 million. The company expects significant portion of its revenue for the fiscal year 2025 to be recognized later in the year, leading to a lower-than-expected revenue figure in Q1.

The company’s earnings per share also missed expectations, with a loss of $0.32 per share against per-share loss estimates of $0.19.

Its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at negative $49.7 million, compared to negative $18.3 million for the same quarter last year.

The company’s net loss during the quarter was $57 million, a 123% YoY increase from $25.6 million.

Fluence Energy’s gross profit margin grew to 12.5%, signifying operational improvements. The company also added $778 million in bookings and increased its backlog to a record $5.1 billion.

It deployed 5.8 GW/14.8 GWh of energy storage products during the quarter.

The company has a contracted backlog of 7.8 GW and a 30.3 GW/ 94.2 GWh pipeline. The pipeline increased by $500 million to reach $21.4 billion at the end of the previous quarter. Most of this pipeline is concentrated in the U.S., with Germany, Australia, Canada, and Chile representing the bulk of the international market.

Fluence Energy said it faces increasing competition, particularly from Chinese companies aggressively expanding into international markets. Despite this competition, Fluence Energy’s diversified supply chains and U.S. domestic content strategy helped mitigate geopolitical uncertainties, limiting exposure to less than 15% of its backlog.

The company expects U.S. power demand to grow to over 5,000 TWh by 2030, driven by data center expansion, domestic manufacturing growth, and sector-wide electrification. Battery storage is becoming increasingly mainstream in the Americas, with storage installations rising 83% YoY to more than 45 GWh in 2024.

The recent 10% tariff on Chinese imports into the U.S. is expected to impact Fluence’s FY 2025 gross profit by approximately $10 million. However, potential product-specific tariffs, including those on Chinese battery storage systems, could enhance the company’s competitiveness in the U.S. domestic market.

The company is optimistic about the continuation of the Section 48 investment tax credit for energy storage, and the Section 45X tax credits. It also advocates for cybersecurity measures to prevent foreign control over battery storage systems, emphasizing the importance of secure grid infrastructure.

Outlook

Fluence Energy is lowering its FY 2025 total revenue guidance range to between $3.1 billion and $3.7 billion (midpoint $3.4 billion) from its prior guidance of $3.6 billion to $4.4 billion (midpoint $4.0 billion). The $600 million reduction in revenue from the previous midpoint is primarily due to the timing of certain contracts in Australia that the company expects to sign later this year. The $3.4 billion midpoint of the revenue guidance range is approximately 85% covered by the current backlog plus revenue recognized year-to-date.

The company is also lowering its FY 2025 adjusted EBITDA range to between $70 million and $100 million (midpoint $85 million) from its prior guidance of $160 million to $200 million (midpoint $180 million). The decrease in adjusted EBITDA is primarily driven by lower expected revenue and gross margins on recently signed contracts. Fluence Energy reaffirmed its FY 2025 annual recurring revenue guidance of approximately $145 million.

The company recorded a revenue of $1.2 billion in Q4 FY 2024, up 82% YoY, on the back of an uptick in order intake and expanding market presence.