Fluence Energy (FLNC) investor relations material

Executive summary

• Achieved record $5.6 billion backlog at Q2 end, with order intake doubling year-over-year to $2 billion, driven by both new and existing customers, especially in the U.S. and data center segments.

• Signed master supply agreements with two major hyperscalers, positioning for significant near-term data center projects and expanding the commercial pipeline by 35% fiscal year-to-date.

• SmartStack product reached commercial operation, with strong backlog, modular architecture, and >98% reliability, supporting both core and new customer needs.

• Net loss narrowed to $29.2 million for the quarter, reflecting improved gross profit and lower expenses.

• Liquidity stood at $900 million at quarter end, including over $412 million in cash, after significant inventory investment.

Financial highlights

• Q2 2026 revenue was $465 million, up 8% year-over-year, with $80 million in revenue delayed to Q3 due to resolved logistics issues.

• Adjusted gross profit margin improved to 11.1% from 10.4% year-over-year.

• Adjusted EBITDA for Q2 was negative $9 million, a $21 million improvement year-over-year.

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

• Net loss per share for the quarter was $(0.16), improved from $(0.24) year-over-year.

Outlook and guidance

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

• Annual recurring revenue expected to reach $180 million by year-end, up from $148 million in 2025.

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

• Adjusted gross margin expected in the 11–13% range, with management targeting 12% for the remainder of the year.

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