Investors are bailing on Fluence Energy Inc (NASDAQ: FLNC) today after it reported disappointing earnings for Q1.
Shares of the energy storage solutions firm are down an alarming 40% in premarket also because its management lowered guidance for both revenue and adjusted EBITDA on Tuesday.
FLNC attributed its disheartening outlook partly to delays in signing contracts in Australia.
Fluence Energy stock may look attractive at writing, given that it’s been cut in half since the start of 2025.
Still, analysts at BMO Capital caution against using the sell-off to load up on FLNC.
Fluence Energy stock may not recover anytime soon
BMO downgraded Fluence Energy stock today to “market perform” and lowered the price target on it by more than 50%.
Its analysts no longer see the Nasdaq-listed firm as competitively positioned within the energy storage systems market.
In a research note this morning, they questioned the company’s ability to unlock further upside in revenue.
Additionally, BMO is not entirely convinced that FLNC will be able to enjoy premium pricing moving forward – and it’s not like the company’s stock pays a dividend to look any more appealing at writing either.
Fluence Energy now sees its revenue to be capped at $3.7 billion in its fiscal 2025. Analysts, in comparison, were at a much higher $3.94 billion instead.
FLNC is losing its share in energy storage systems
Fluence’s Q1 earnings suggest it’s losing share to rivals and depends more heavily on international markets than previously thought, according to BMO analysts.
While the Virginia-based company lowered its full-year guidance last night, the investment firm is concerned that it still has only a limited margin for error through the remainder of 2025.
BMO turned bearish on FLNC shares today even though the company ended its Q1 with a record $5.1 billion backlog that signals solid demand for its products.
Note that Fluence Energy stock is now going for a fraction of its IPO price in late 2021.
Fluence’s Q1 earnings highlights
On Tuesday, Fluence Energy reported $187 million in revenue and 32 cents a share of loss for its first quarter.
The company’s numbers missed Street estimates of $386 million and 19 cents a share by a wide margin. Still, Julian Nebreda, the chief executive of FLNC said in the earnings release:
We’re executing plans to maintain our leadership position, differentiate our product, and optimise our cost structure, which we expect will drive improved financial performance in fiscal 2026.
Investors should also know that Fluence Energy stock has seen 6 negative EPS revisions and “zero” positive ones over the past three months.
Following the steep decline in FLNC today, it’s trading sharply below its 50-day, 100-day, and 200-day MA as well.
The post Fluence Energy stock: don’t hold your breath for a swift recovery appeared first on Invezz
