Manufacturing delays have led Fluence to adjust its fiscal year 2026 guidance, even as the company has logged record quarterly orders and a US$6.4 billion backlog.
Yesterday, the US-headquartered energy storage technology, software and services provider reported its quarterly and nine-month results for the period ending 30 June 2026, the third quarter of Fluence’s fiscal year 2026 (FY2026).
Fluence reported US$649.8 million revenue for Q3 2026, nearly 40% up quarter-on-quarter from US$464.9 million in Q2 2026, and up 7.8% year-on-year from US$602.5 million reported in Q3 2025.
Despite the increase, Fluence said the quarter’s revenue was about US$90 million lower than expected due to production delays at two new contract manufacturing facilities.
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There was a three-month delay in the construction of its battery energy storage system (BESS) enclosure factory in Houston, Texas, which is now in the initial production phase. The company also experienced initial quality issues at an overseas factory, with affected products reshipped after corrective work was completed.
Whereas Fluence had gone into EBITDA profitability in the same period of last year, with US$27 million for Q3 2025, in Q3 2026, adjusted EBITDA was US$-29.3 million, while for the nine months ending 30 June, it was US$-90.8 million.
It reported a net loss of US$44.3 million for the quarter and US$136.1 million over the nine months. Again, in Q3 2025, Fluence was income positive by US$7 million.
Adjusted gross profit for the quarter was US$39 million with an adjusted gross profit margin of 5.9%, down from a 15.4% gross margin in Q3 2025, when adjusted gross profit was US$93 million.
Fluence said gross profit was affected by margins eroded by the lower-than-expected revenue, by around a US$15 million impact attributable to the rollout of new products and production delays, and a further US$15 million in upfront costs related to a planned long-term international battery cell supply agreement.
However, the company also secured an order intake of just over US$1.44 billion during the quarter and grew its backlog by 14% quarter-on-quarter to US$6.4 billion. This included the first data centre deals—an emerging market segment that Fluence has been among the many energy storage companies talking up the potential of—including a deal worth more than half a billion dollars with a hyperscaler and a large behind-the-meter (BTM) order. Fluence said it booked US$850 million of data centre deals during the quarter.
CEO ‘confident of long-term opportunity ahead’
Fluence’s share price had rallied in May after its Q2 2026 results announcement, in which the company had reaffirmed guidance and said its first big data centre deals were imminent, breaking the US$20 mark for the first time since January.
At the close of markets yesterday, shares were trading at US$14.23, well above their lowest to date of under US$4 in April 2025, but a far cry from the near-US$40 high they hit shortly after the company listed in late 2021.
Fluence adjusted previously issued FY 2026 guidance, which had been for US$3.2 billion to US$3.6 billion revenue with a US$3.4 billion midpoint, adjusted EBITDA of US$40 million to US$60 million with a US$50 million midpoint and annual recurring revenue of approximately US$180 million by the end of this financial year.
The new guidance was as follows:
- Revenue: US$2.9 billion to US$3.1 billion with US$3 billion midpoint.
- Adjusted EBITDA: US$-30 million to US$10 million with US$-10 million midpoint.
- Annual recurring revenue guidance remains unchanged.
Fluence ended the quarter with US$863 million total liquidity, which the company said would support its growth plans. The company reaffirmed previous liquidity guidance for the year-end of ~US$900 million.
The company also believes its emphasis on domestic manufacturing and supply chains in the US will pay off as post-OBBBA rules around tax credit eligibility reduce the competitiveness of its Chinese rivals. Fluence said rules around prohibited foreign entity (PFE) restrictions are “complex but workable.”
CEO and president Julian Nebreda said that Fluence has been increasing its production capacity globally to meet rising customer demand and “although production has been behind our expectation for this year, we have taken steps to achieve targeted production levels early in fiscal 2027.”
“With both record order intake and backlog, and increasing momentum with all of our customer segments including data centres, we remain confident in the long-term opportunity ahead and our positioning to capitalise on it,” Nebreda said.
Fluence is scheduled to hold an earnings call to discuss results this morning at 8:30am EST and is yet to post its quarterly 10-Q with the US SEC. Energy-Storage.news may update this story or publish a follow-up based on those.
