Utility-scale energy storage firm Fluence Energy recorded a revenue of $431.6 million in the second quarter (Q2) of the fiscal year (FY) 2025, a 31% year-over-year (YoY) decrease. Despite the dip, revenue exceeded analysts’ estimates by $106.3 million. The company expects a significant portion of its revenue for the fiscal year 2025 to be recognized later in the year.

The company saw a loss per share of $0.24, missing estimates by $0.02.

Its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at a loss of $30.4 million, a 400% increase from a loss of $6.1 million for the same quarter last year.

The company’s net loss during the quarter was $41.9 million, an increase of 226% YoY from a net loss of $12.9 million.

Fluence has a quarterly order intake of $200 million, bringing the backlog to around $4.9 billion as of March 31, 2025.

Half-year FY 2025

Fluence recorded a revenue of $618.4 million in the first half of FY 2025, a 37% YoY decrease.

The company saw a loss per share of $0.56, compared to a loss of $0.21 per share.

Its adjusted EBITDA stood at a loss of $80 million, a 229% YoY increase from a loss of $24.3 million.

The company’s net loss during the quarter was $98.9 million, an increase of 157% YoY from a net loss of $38.4 million.

Fiscal Year 2025 Outlook

Fluence has updated its FY2025 guidance, citing economic uncertainty in the U.S. market, stemming from evolving tariff policies which have led to a temporary slowdown in customer contracting activity.

The company now forecasts full-year revenue between $2.6 billion and $2.8 billion, down from its previous range of $3.1 billion to $3.7 billion. This $700 million downward revision is largely due to joint decisions with customers during Q2 to pause ongoing projects and delay new contracts until more tariffs are clarified. Notably, 95% of the updated revenue midpoint is backed by the current backlog and year-to-date revenue.

This shift in the market landscape has been driven by the rapid enactment of significant new tariffs, particularly on imports from China, which have risen from approximately 10% to roughly 155% within a few months. This dramatic increase has prompted Fluence and some U.S. customers to mutually agree to pause certain contract executions and delay new contract signings. The company believes these elevated tariff levels are not sustainable in the long run.

As negotiations evolve, including the potential for a new trade deal with China as indicated by the Trump administration, Fluence expects markets to stabilize and contracting activity to resume.

Despite near-term challenges, Fluence remains confident in the long-term fundamentals of energy storage. Electricity demand is projected to grow 11% in the U.S. through 2030, with energy storage capacity expected to expand from 79 GWh added over the past five years to more than 400 GWh by 2030.

Similar trends are seen internationally. In Australia, storage is projected to grow from 7 GWh in 2024 to 51 GWh by 2030, and in Germany, from 20 GWh to 120 GWh over the same period.

Even with the current tariff regime, Fluence notes that its mix of imported and locally manufactured components can still underprice fully imported battery systems by about 10%—even before considering the additional 10% bonus available through the IRA’s Section 45X manufacturing credit.

The company expects energy storage to remain cost-competitive with traditional power sources, as battery prices have fallen nearly 70% since 2022, while natural gas plant capital costs continue to rise. Currently, energy storage capacity costs about $9 per kW per month—roughly half that of a gas-fired plant—and offers further benefits through energy arbitrage opportunities.

Fluence also highlighted its proactive domestic content strategy. With an operational U.S. cell manufacturing facility, the company can offer a range of domestically produced batteries, modules, enclosures, communication systems, and inverters. These options help customers qualify for the domestic content bonus while mitigating supply chain and tariff risks.

It also reduced its Adjusted EBITDA guidance for FY2025 to a range of $0 to $20 million, down from $70 million to $100 million. The reduction is attributed to the lower revenue outlook and an estimated $20 million hit from recent tariffs, partially offset by $25 million in operational efficiency improvements. However, the company maintains its annual recurring revenue guidance of approximately $145 million.

“The evolving trade and tariff landscape has created significant uncertainty in the U.S. market, which has led us to agree with our customers during the second quarter to pause certain contracts both under execution and those we expected to sign until we have better visibility. As a result, our order intake for the quarter was below initial expectations, reflecting this dynamic. Over time, we expect our domestically sourced solutions to benefit from higher tariff levels,” said Julian Nebreda, Fluence’s Chief Executive Officer.

“We remain confident in the long-term growth trajectory of the energy storage industry and believe that we are well positioned to deliver value to our customers through our rapid innovation strategy, differentiated supply chain, and product development, which are reflected in our market-leading U.S. domestic content offering and our Smartstack product,” added Nebreda.