Fluence Energy’s Q3 2025 revenues totaled $602.7 million, $100 million below plan due to slower Arizona facility ramp-up
Its liquidity stood at $903 million; profitability improved with adjusted EBITDA rising to $27.4 million from $15.6 million
Management sees Section 45X and OBBBA incentives as supporting strategy, with domestic content rules limiting Chinese competition in the US
Fluence Energy, a Siemens and AES-backed energy storage company, posted Q3 2025 (period ending June 30, 2025) revenues of $602.7 million, about $100 million below expectations due to a slower US facility ramp-up. Despite this, its profitability improved, and liquidity totaled $903 million.
Fluence has 6 production facilities in the US, namely battery cell manufacturing in Tennessee, module manufacturing in Utah, enclosure and DCPM factory in Arizona, Chiller / HVAC manufacturing in Houston, inverter fab in South Carolina, and communication equipment in Georgia. It expects the company’s Utah-produced battery modules to qualify for Section 45X tax credits under the Inflation Reduction Act (IRA) at $10/kWh.
It is specifically experiencing a slower ramp-up at the enclosure fab in Arizona, due to which it has now pushed some of its anticipated revenue for FY 2025 to the next year. It now sees its US factories reach the targeted capacity by the end of the calendar year 2025.
While Fluence has reaffirmed its FY2025 revenue guidance of $2.6 billion to $2.8 billion, it now expects to achieve the guidance at the lower end, compared to the midpoint of $2.7 billion that the management forecast a quarter back. In FY 2024, it reported $2.69 billion in revenues. Adjusted EBITDA for FY2025 is guided within $0 million to $20 million at the midpoint $10 million.
Nevertheless, the energy storage expanded its annual revenues by around 24.7%, with an adjusted EBITDA of approximately $27.4 million that expanded from $15.6 million in Q3 2024. Fluence also expanded its net income during the reporting quarter to close to $6.9 million, vis-à-vis $1.1 million in the same quarter last year.
Fluence signed close to $508.8 million in new orders in Q3 that expanded its backlog as of June 30, 2025, to approximately $4.9 billion. Additionally, in July and August this year, it also signed $1.1 billion worth of contracts, including 2 in Australia. Its utility scale pipeline expanded from $22 billion to $23.5 billion with 47% in the Americas.
“We believe the fundamentals of our business remain incredibly strong, supported by a robust backlog, of which we expect approximately $2.5 billion to convert to revenue in fiscal 2026, including contracts signed in July and August to date,” said Fluence Energy CEO Julian Nebreda.
He also sees the long-term Investment Tax Credit (ITC) security for storage through 2034 under the One Big Beautiful Bill Act (OBBBA) as supporting its strategy. It also creates limited Chinese competition in the US through the Foreign Entity of Concern (FEOC) restrictions for a 30% base ITC, while an extra 10% ITC credit is available for meeting domestic content targets.
At present, the US Department of Commerce (DOC) has issued preliminary 113.4% combined duties on certain China-origin active anode material, which applies to key battery cell components, and not to integrated BESS. This only results into $5/kWh cost increase, which Fluence sees as manageable.
Fluence is now working with its domestic suppliers to ensure they achieve compliance with the OBBBA by the end of 2025. “Rising domestic content thresholds under OBBBA favor Fluence’s established U.S. supply chain,” stated Fluence.