We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FLNC Revises FY2026 Outlook on Manufacturing Delays: What's Ahead?
Read MoreHide Full Article
Key Takeaways
Fluence Energy expects fiscal 2026 revenues of about $2.4B and an adjusted EBITDA loss near $200M.
Houston manufacturing delays have limited Fluence Energy's ability to turn strong demand into deliveries.
FLNC is restructuring operations and targets neutral to positive operating cash flow in fiscal 2027.
Fluence Energy (FLNC - Free Report) , a global provider of energy-storage products, operational services and asset-optimization software, has lowered its fiscal 2026 (ending Sept. 30) financial guidance, primarily due to persistent supply-chain challenges affecting U.S. production.
The company now expects fiscal 2026 revenues of approximately $2.4 billion, down from the previous guidance midpoint of about $3 billion. The guidance is also below the Zacks Consensus Estimate of $2.95 billion. Fluence Energy also projects an adjusted EBITDA loss of nearly $200 million, substantially wider than its earlier forecast midpoint of a loss of around $10 million.
Demand for Fluence Energy’s products remains strong in both domestic and international markets, while its international supply chain continues to operate effectively. However, delays in ramping up production at the company’s contract manufacturing facility in Houston have constrained its ability to convert demand into completed deliveries and revenues. These operational setbacks represent the primary reason behind the reduced fiscal 2026 outlook.
Fluence Energy is taking steps to restructure its operational organization and improve coordination across supply-chain planning, manufacturing and product delivery. Its contract manufacturing partner has also implemented corrective measures, which have already contributed to higher daily production levels. These initiatives are intended to strengthen execution and establish a more reliable operating foundation for fiscal 2027.
The company’s immediate priorities include converting its backlog into revenues and cash while improving working-capital efficiency. Fluence Energy aims to achieve neutral to positive operating cash flow in fiscal 2027, allowing it to support backlog execution without relying on external capital. The company is expected to report a detailed fiscal 2027 business plan and updated financial outlook when it releases the fiscal 2026 results later this year.
Following the guidance reduction, Fluence Energy’s near-term performance will largely depend on how quickly production at the Houston facility stabilizes and whether higher daily output translates into timely customer deliveries. Progress in backlog conversion, working-capital management and cash-flow improvement will be important indicators of an operational recovery.
Strong underlying demand provides a favorable foundation, but FLNC must demonstrate consistent manufacturing execution and contain costs to restore investor confidence. Clearer fiscal 2027 targets and evidence of improving production efficiency could help define the company’s path toward better financial performance.
Taking a Look at Other Players Facing Similar Headwinds
Project delivery delays may hurt Stem (STEM - Free Report) , a global leader in clean energy software and services, by postponing hardware sales and the activation of recurring software and services contracts tied to operating assets.
Delays may also raise procurement and installation costs, weaken cash collection and reduce near-term revenue visibility. Stem incurred $1 million of excess supplier costs in 2024 because of production delays, illustrating how execution setbacks can directly pressure profitability. Extended delays could also frustrate customers and weaken Stem’s ability to convert bookings into operating assets and recurring revenues.
Energy Vault Holdings’ (NRGV - Free Report) results are highly sensitive to the timing of equipment deliveries, construction, permitting and grid interconnections because revenues and margins are recognized as project milestones are completed. Delivery delays can shift Energy Vault’s revenues between periods, postpone cash receipts and recurring income from company-owned assets and create construction cost overruns. The delays at Energy Vault are likely to cause quarterly results to fluctuate significantly and delay the conversion of backlog into revenues, making its growth and profitability trajectory less predictable.
FLNC’s Share Price Performance, Valuation and Estimates
Shares of FLNC have declined in double digits (% -wise) over the past six months. Consequently, FLNC’s shares underperformed its industry over the same time frame.
6-Month Price Comparison
Image Source: Zacks Investment Research
From a valuation standpoint, FLNC trades at a 12-month forward price-to-sales of 0.35X, trading at a discount compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for FLNC’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
FLNC’s Zacks Rank
FLNC currently carries a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
FLNC Revises FY2026 Outlook on Manufacturing Delays: What's Ahead?
Key Takeaways
Fluence Energy (FLNC - Free Report) , a global provider of energy-storage products, operational services and asset-optimization software, has lowered its fiscal 2026 (ending Sept. 30) financial guidance, primarily due to persistent supply-chain challenges affecting U.S. production.
The company now expects fiscal 2026 revenues of approximately $2.4 billion, down from the previous guidance midpoint of about $3 billion. The guidance is also below the Zacks Consensus Estimate of $2.95 billion. Fluence Energy also projects an adjusted EBITDA loss of nearly $200 million, substantially wider than its earlier forecast midpoint of a loss of around $10 million.
Demand for Fluence Energy’s products remains strong in both domestic and international markets, while its international supply chain continues to operate effectively. However, delays in ramping up production at the company’s contract manufacturing facility in Houston have constrained its ability to convert demand into completed deliveries and revenues. These operational setbacks represent the primary reason behind the reduced fiscal 2026 outlook.
Fluence Energy is taking steps to restructure its operational organization and improve coordination across supply-chain planning, manufacturing and product delivery. Its contract manufacturing partner has also implemented corrective measures, which have already contributed to higher daily production levels. These initiatives are intended to strengthen execution and establish a more reliable operating foundation for fiscal 2027.
The company’s immediate priorities include converting its backlog into revenues and cash while improving working-capital efficiency. Fluence Energy aims to achieve neutral to positive operating cash flow in fiscal 2027, allowing it to support backlog execution without relying on external capital. The company is expected to report a detailed fiscal 2027 business plan and updated financial outlook when it releases the fiscal 2026 results later this year.
Following the guidance reduction, Fluence Energy’s near-term performance will largely depend on how quickly production at the Houston facility stabilizes and whether higher daily output translates into timely customer deliveries. Progress in backlog conversion, working-capital management and cash-flow improvement will be important indicators of an operational recovery.
Strong underlying demand provides a favorable foundation, but FLNC must demonstrate consistent manufacturing execution and contain costs to restore investor confidence. Clearer fiscal 2027 targets and evidence of improving production efficiency could help define the company’s path toward better financial performance.
Taking a Look at Other Players Facing Similar Headwinds
Project delivery delays may hurt Stem (STEM - Free Report) , a global leader in clean energy software and services, by postponing hardware sales and the activation of recurring software and services contracts tied to operating assets.
Delays may also raise procurement and installation costs, weaken cash collection and reduce near-term revenue visibility. Stem incurred $1 million of excess supplier costs in 2024 because of production delays, illustrating how execution setbacks can directly pressure profitability. Extended delays could also frustrate customers and weaken Stem’s ability to convert bookings into operating assets and recurring revenues.
Energy Vault Holdings’ (NRGV - Free Report) results are highly sensitive to the timing of equipment deliveries, construction, permitting and grid interconnections because revenues and margins are recognized as project milestones are completed. Delivery delays can shift Energy Vault’s revenues between periods, postpone cash receipts and recurring income from company-owned assets and create construction cost overruns. The delays at Energy Vault are likely to cause quarterly results to fluctuate significantly and delay the conversion of backlog into revenues, making its growth and profitability trajectory less predictable.
FLNC’s Share Price Performance, Valuation and Estimates
Shares of FLNC have declined in double digits (% -wise) over the past six months. Consequently, FLNC’s shares underperformed its industry over the same time frame.
6-Month Price Comparison
From a valuation standpoint, FLNC trades at a 12-month forward price-to-sales of 0.35X, trading at a discount compared with its industry.
See how the Zacks Consensus Estimate for FLNC’s earnings has been revised over the past 90 days.
FLNC’s Zacks Rank
FLNC currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.