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.
Data-Center Awards Add to Order Momentum
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.
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.
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.
Manufacturing Delays Prompt Outlook Cut
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.
Supply-Chain Changes and Liquidity
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.
About Fluence Energy (NASDAQ:FLNC)
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.
