Premium

Fluence raises FY guidance again; ‘our machine is working better’, says CEO

LinkedIn
Twitter
Reddit
Facebook
Email

Global battery storage system integrator Fluence doubled its revenues in the first three months of 2023 and increased its full-year guidance again.

The company saw a 104% year-on-year increase in revenues to US$698 million for three months ending March 31, 2023, and a GAAP gross profit margin of 4.4%, from an equivalent loss the year prior. Its fiscal year runs from 1 October to September 30, making the period its Q2 2023.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Adjusted EBITDA loss was US$24.8 million, around half of the year prior’s and CEO Julian Nebreda said the company expected to be adjusted EBITDA positive in the final quarter of this fiscal year.

That is earlier than previously guided for (2024). Fluence is raising its fiscal guidance for the full-year 2023, from US$1.6-1.8 billion in revenues to US$1.85-2.05 billion, around 13-15%. It similarly raised its guidance from US$1.4-1.7 billion previously in the preceding quarter.

In an earnings call, CEO Julian Nebreda said that the increase in forecast revenues was largely thanks to the “overall machine working better”, including battery production, supply chain, and de-risking its deliveries to customers.

The company’s share price jumped 12% to 22.44 USD as the markets opened today (11 May), the first period of trading after the results which were post-close yesterday. However, the price has since fallen back down to 20.28 USD at the time of writing over the course of today, cancelling out most of that boost.

New CEO Nebreda was brought in to ensure the company’s growth continued in a more profitable manner by focusing on higher-margin projects, according to an analyst interviewed by Energy-Storage.news at the time of Nebreda’s appointment. The company then all-but-confirmed this in its response to this suggestion from James West, analyst at investment banking advisory firm Evercore.

This looks to be the case, with the 78% growth in Q1 and now 104% in Q2 impressive but still much lower than the 250% seen in Q2 2022, and the increasing profitability. Nebreda said a key to this was segmenting its customer base. The fall in lithium carbonate pricing and a more liquid market for batteries has also helped, he said.

He also confirmed that some projects are still being delayed specifically as companies wait for IRS guidance around the 10% domestic content adder to the standalone investment tax credit (ITC), for which IRS guidance is expected during the current quarter.

Fluence has also revealed that it secured another energy-storage-as-transmission project, receiving a binding 200MW award, its third in the segment after ones in Germany and Lithuania, though it didn’t reveal where the third came from.

Fluence also appears to be reducing its exposure to projects it is deploying for or with AES Corporation and Siemens, the firms which founded it and controlling shareholders together. Revenue from ‘related parties’ fell from 72% of revenues in Q1 2022 and Q2 2022 combined, to 39% in Q1 2023 and Q1 2023 combined.

Read Next

May 20, 2025
Fluence has taken a step forward in its strategy to “fully onshore production, as quickly as possible,” opening a new factory in the US.
May 12, 2025
Uncertainty over trade tariffs has caused Fluence to lower its revenue and EBITDA guidance, although CEO Julian Nebreda said the company is “optimistic about the future of energy storage.”
May 9, 2025
Recent product announcements from major BESS suppliers shows a divergence from the 20-foot container as the only viable form factor.
May 1, 2025
System integrator Intilion will provide 81MWh of its BESS technology for a project in North-Rhine Westphalia, Germany.
Sponsored
May 1, 2025
Alper Peker and Dominic Multerer of Camopo explain how flexibility is the key to long-term profitability for hybrid renewables-plus-storage power plants.

Most Popular

Email Newsletter