Fluence Energy (FLNC) Q2 2026 earnings summary

Executive summary

• Order intake doubled year-to-date to $2 billion, with a record $5.6 billion backlog at quarter-end, driven by strong demand from both new and existing customers and supported by new master supply agreements with two major hyperscalers.

• Revenue for Q2 2026 reached $464.9 million, up 7.7% year-over-year, with net loss narrowing to $29.2 million and adjusted EBITDA improving to $(9.4) million.

• Liquidity stood at $900 million, including $412.9 million in cash, after significant inventory investment to support second-half deliveries.

• Product innovation highlighted by SmartStack, with the first unit now in commercial operation, and expanded U.S. domestic supply chain ensuring FEOC compliance and tax credit eligibility.

• 50% of orders year-to-date from new customers, reflecting successful commercial expansion and a growing data center pipeline.

Financial highlights

• Q2 2026 revenue was $464.9 million, up 8% year-over-year, with adjusted gross profit margin at 11.1% and net loss narrowing to $29.2 million.

• Adjusted EBITDA for Q2 was $(9.4) million, a $21 million improvement year-over-year.

• Free cash flow for the six months ended March 31, 2026, was $(285.4) million, reflecting inventory and working capital investments.

• Total liquidity as of March 31, 2026, was $900 million, supported by a $500 million revolving credit facility.

• Adjusted gross margin for the rolling 12 months at 12.4%, marking two years of consistent double-digit returns.

Outlook and guidance

• Fiscal 2026 revenue guidance reaffirmed at $3.2–$3.6 billion, with 70% expected in the second half and midpoint at $3.4 billion.

• Adjusted EBITDA guidance maintained at $40–$60 million for the full year.

• Annual recurring revenue projected to reach $180 million by year-end, up from $148 million in FY25.

• Liquidity expected to return to $900 million by year-end, supported by backlog execution and new orders.

• Management expects 50–55% of the $5.6 billion backlog to be recognized as revenue in the next 12 months.