Utility-scale energy storage firm Fluence Energy recorded a revenue of $1.2 billion in the fourth quarter (Q4) of fiscal year (FY) 2024, up 82% year-over-year (YoY), on the back of an uptick in order intake and expanding market presence.

A strong order intake added approximately $1.2 billion during the quarter, increasing the company’s total backlog to $4.5 billion—a 55% YoY increase. Demand for energy storage solutions resulted in Fluence’s order intake doubling from 6.3 GWh in 2023 to 14.6 GWh in 2024.

The company also benefited from an expanding market presence, with its project pipeline reaching $21 billion, a 60% YoY growth signaling robust future potential.

Fluence Energy reported a net income of $67.7 million in Q4 FY 2024, a 1,310% YoY increase from $4.8 million.

Adjusted EBITDA for the fourth quarter surged to $86.9 million, a 339% YoY increase from $19.8 million in the same period last year.

The gross profit margin for the quarter rose to 12.8% YoY, compared to 11.3% in the fourth quarter of fiscal year 2023.

Higher gross profit margins underpinned profitability improvements, marking the fifth consecutive quarter of double-digit performance, with Q4 2024 GAAP gross profit margin at 12.8%.

Operating expenses as a percentage of revenue fell from 8.8% in the previous year’s Q4 to 6.9% in Q4 2024. Better project execution further enhanced profitability, with several projects delivered under budget.

Additionally, economies of scale, driven by an 82%YoY increase in Q4 revenue, allowed for better cost management and margin expansion. The company’s focus on higher-margin offerings, such as services and digital applications, also boosted overall profitability.

Full Year 2024

The company reported record-breaking revenue of approximately $2.7 billion for fiscal year 2024, marking a 22% YoY increase from the previous year. The company’s gross profit margin improved significantly to 12.6%, up from 6.4% in fiscal year 2023.

In a turnaround, Fluence achieved a net income of $30.4 million, reversing a net loss of $104.8 million from the previous year.

Adjusted EBITDA also reflected this positive shift, climbing to $78.1 million compared to a negative $61.4 million in fiscal year 2023.

Fluence deployed 5 GW (12.8 GWh) of energy storage products in FY 2024, a 66.7% growth compared to 3 GW (7.2 GWh) in FY 2023. The contracted backlog (including signed customer orders and contracts under execution) surged to 7.5 GW, a 63% increase from 4.6 GW in FY 2023. The pipeline more than doubled to 25.8 GW (80.5 GWh) from 12.2 GW (34.2 GWh) in the previous year.

As of September 30, 2024, the company’s backlog grew to approximately $4.5 billion, up from $2.9 billion a year earlier.

The company reported total cash reserves of $518.7 million, marking a $56 million increase from the prior year.

Net cash generated from operating activities reached $79.7 million, a shift from the negative $111.9 million recorded in fiscal year 2023.

Free cash flow improved substantially to $71.6 million, compared to a negative $114.9 million in the previous year.

Julian Nebreda, President and Chief Executive Officer, said, “As we look forward, we see unprecedented demand for battery energy storage solutions across the world, driven principally by the U.S. market. We believe we are well positioned to continue capturing this market with our best-in-class domestic content offering, which utilizes U.S. manufactured battery cells.”

Outlook

Looking ahead, Fluence has outlined its guidance for fiscal year 2025, forecasting revenue from $3.6 billion to $4.4 billion. The company expects adjusted EBITDA to fall between $160 million and $200 million, reflecting strong operational performance. Additionally, annual recurring revenue is projected to reach approximately $145 million by the close of the fiscal year.

Fluence plans to scale its U.S. supply chain to ensure 100% of U.S. demand qualifies for domestic content, including upgrading AESC Line 2 to 530 Ah cell.

The company reported a revenue of $483.31 million in the third quarter, a 10% YoY decrease from $536.35 million primarily due to the timing of product deliveries.

Fluence Energy reported a 66% narrower net loss of $12.9 million in the second quarter from $37.4 million last year as it reigned in operating expenses.