Story
Fluence Energy Shares Plunge 22% After Slashing 2026 Financial Guidance
Summary
The energy storage company significantly lowered its fiscal 2026 revenue and earnings outlook, citing major production delays at a U.S. contract manufacturing facility.
Shares of Fluence Energy Inc. (NASDAQ:FLNC) plummeted 22% in after-hours trading Wednesday after the company announced a significant reduction in its financial guidance for fiscal year 2026, attributing the revision to persistent supply chain challenges.
Guidance Slashed on Production Woes
Fluence dramatically cut its fiscal 2026 outlook, providing new figures that fell far short of previous estimates. The company now anticipates:
- Revenue of approximately $2.4 billion, down from a prior midpoint of $3.0 billion.
- An adjusted EBITDA loss of approximately $200.0 million, a stark contrast to the previously guided midpoint loss of $10.0 million.
According to CEO Julian Nebreda, the primary cause for the downward revision is delays in ramping up production at its contract manufacturing facility in Houston. Nebreda noted that demand for Fluence's energy storage products remains strong both domestically and internationally, and the international supply chain continues to perform well.
Operational Overhaul and New Leadership
AdIn response to the production bottleneck, Fluence announced it is restructuring its operational organization to better streamline planning across its supply chain, manufacturing, and delivery functions. The company stated its contract manufacturer has implemented corrective actions that have already begun to increase daily production levels.
Separately, Fluence appointed Bernerd Da Santos as its new Executive Vice President and Chief Operating Officer. Da Santos joins from The AES Corporation, where he served in several operational leadership roles, including as COO, bringing significant industry experience to address the company's current challenges.
Market Impact and Financial Strategy
The severe guidance cut rattled investors, sending the stock sharply lower in post-market activity. The company's management is now focused on shoring up its financial position and operational execution.
CFO Ahmed Pasha said Fluence's key priority is converting its existing backlog into revenue and cash while optimizing working capital. Looking ahead to fiscal 2027, Pasha stated the company's objective is to generate neutral to positive operating cash flow to support its backlog without needing to raise external capital. Fluence plans to provide a more detailed business plan and financial update for fiscal 2027 when it reports its full fiscal 2026 results.
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