Fluence Energy (FLNC) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 revenue of $2.7 billion, up 22% year-over-year, and first-ever full-year profit with $30.4 million GAAP net income and $78 million adjusted EBITDA.

• Q4 revenue reached $1.2 billion, up 82% year-over-year, with adjusted EBITDA of $87 million and net income of $67.7 million.

• Backlog grew 55% to $4.5 billion, and pipeline increased 60% to $21 billion, providing strong visibility for future growth.

• Significant progress in digital and services businesses, with ARR up 80% to $100 million as of September 30, 2024.

• U.S. supply chain localization and innovation, including domestic content strategy, position the company to benefit from evolving trade and policy environments.

Financial highlights

• FY2024 revenue totaled $2.7 billion, adjusted gross margin was 12.9%, and GAAP gross margin was 12.6%.

• Free cash flow for the year was $72 million, a $187 million improvement from the prior year.

• Ended FY2024 with $963 million in liquidity, including $518 million in cash.

• Net cash from operations was $80 million for the year.

• Adjusted EBITDA margin for FY2024 was 2.9%; Q4 adjusted EBITDA margin was 7.1%.

Outlook and guidance

• FY2025 revenue guidance is $3.6–$4.4 billion, midpoint $4.0 billion, representing ~50% year-over-year growth; 65% already covered by backlog.

• Adjusted EBITDA guidance for FY2025 is $160–$200 million, midpoint $180 million.

• ARR projected to reach $145 million by year-end 2025.

• Fiscal 2025 revenue expected to be back-end loaded, with 80% in the second half and negative adjusted EBITDA in H1.

• Fiscal 2026 growth expected to be 30%+ annually, in line with energy storage market trends.