Fluence Energy Reports 31% Revenue Decline and Increased Net Loss in Q2 FY 2025

Fluence Energy, Inc. reported a significant decline in financial performance for the second quarter of fiscal year 2025, ending March 31, 2025. The company generated total revenue of $431.6 million, a decrease of 31% compared to $623.1 million in the same period last year. This decline was primarily attributed to reduced revenue from battery-based energy storage products and solutions, driven by lower project fulfillment volumes due to customer scheduling and a pronounced backend revenue distribution for the fiscal year. The net loss for the quarter was $41.9 million, a substantial increase from a loss of $12.9 million in the prior year, reflecting a 226% rise in losses.

In terms of operational metrics, Fluence's deployed energy storage capacity increased to 6.2 GW, up from 5.0 GW a year earlier, representing a 24% growth. The company also reported a contracted backlog of 7.5 GW, unchanged from the previous year, while its pipeline of potential projects grew by 25% to 32.3 GW. However, the company faced challenges with its cost structure, as the cost of goods and services decreased by 30% to $389.0 million, aligning with the drop in revenue. The gross profit margin slightly declined to 9.9% from 10.3% year-over-year.

Strategically, Fluence has been focusing on expanding its manufacturing capabilities in the U.S. and enhancing its product offerings. The company is ramping up domestic production in states like Arizona and Texas, which is expected to support its growth strategy. Additionally, Fluence issued $400 million in 2030 Convertible Senior Notes in December 2024, which bolstered its liquidity position. The company also entered into a new asset-based lending facility, providing up to $500 million in revolving credit, which is expected to support its operational needs.

Despite these strategic developments, Fluence's outlook remains cautious due to external market conditions, including potential impacts from new tariffs on imported components, particularly from China. The company anticipates that these tariffs could reduce gross profit by approximately $20 million in the latter half of the fiscal year. Fluence's management emphasized the importance of adapting to changing market dynamics and regulatory environments to maintain its competitive edge in the rapidly evolving energy storage sector. The company continues to monitor its financial health closely, with a focus on managing costs and optimizing its operational efficiency.