Fluence Energy, Inc.

Q3 2026 revenue was $650 million, up 8% year over year, but about $90 million below prior expectations. Management did not state Q3 EPS; it said adjusted gross profit was pressured by lost margin from the revenue shortfall, about $15 million of new product rollout/production delay costs, and a $15 million loss on a planned battery supply agreement. Total liquidity ended the quarter at approximately $863 million, including about $365 million of cash. For fiscal 2026, Fluence now expects revenue of $2.9 billion to $3.1 billion (midpoint $3 billion) and adjusted EBITDA of negative $30 million to positive $10 million (midpoint negative $10 million), versus prior midpoint guidance of $50 million; annual recurring revenue is still expected to be approximately $180 million by the end of fiscal 2026.

Julian Nebreda emphasized that order intake and backlog were both at record levels and said the company is gaining meaningful traction with data center customers, including hyperscalers and developers. He framed the quarter’s problems as execution and ramp issues, not demand issues, and said the company has made organizational changes so supply chain and product leadership now report directly to him. His tone was confident but candid: he repeatedly highlighted the need to improve manufacturing execution while saying Fluence believes it is well positioned for continued growth.

Ahmed Pasha said the quarter’s underperformance was driven mainly by construction and production start-up delays at two new manufacturing facilities and by scaling issues with new products. He quantified the revenue impact as about $90 million below prior expectations and said the full-year revenue midpoint was reduced by about $400 million, with about $44 million of lost margin tied to revenue shifting into 2027 and $15 million tied to the battery supply agreement. He also said Q4 implied gross margin is roughly 11%, total liquidity was about $863 million, and liquidity should return to around $900 million by fiscal year-end; he added the company could need $300 million to $500 million more working capital over the coming year, but would pursue financing only if it supports profitable growth.

Analysts focused on the scope and timing of the manufacturing delays, whether the issues affect hyperscaler MSAs, and how quickly data center bookings will convert into revenue. Management said the delays are tied to legacy contracts and new ramp-ups, not the hyperscaler MSAs, and that the $300 million developer order and the $550 million award were separate data center wins that should convert into backlog in coming months. They also said data center deals are converting faster than the company’s traditional 12- to 18-month cycle, with one developer deal moving from lead to contract in less than 3 months.