Fluence Energy (FLNC) Q4 2024 earnings summary

Executive summary

• Achieved first-ever full-year profit in FY2024 with $30.4M GAAP net income, $78M adjusted EBITDA, and positive free cash flow, meeting or exceeding all key guidance.

• Record FY2024 revenue of $2.7B, up 22% year-over-year, with Q4 revenue of $1.2B, up 82% year-over-year.

• Backlog grew 55% to $4.5B, pipeline increased to $21B, and order intake for FY2024 was $5.2B, reflecting robust global demand.

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

• U.S. supply chain and domestic content strategy provide competitive advantage and support rapid innovation.

Financial highlights

• FY2024 adjusted gross profit margin improved to 12.9%, with GAAP gross margin at 12.6%; Q4 adjusted gross margin was 13% and adjusted EBITDA was $87M.

• Free cash flow for FY2024 was $72M, a $187M improvement from prior year; net cash from operations was $80M.

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

• Q4 2024 EPS was $0.37 basic and $0.34 diluted; FY2024 EPS was $0.18 basic and $0.13 diluted.

• Operating expenses excluding stock compensation were 6.9% of revenue in Q4'24.

Outlook and guidance

• FY2025 revenue guidance midpoint is $4.0B (range $3.6B–$4.4B), representing 50% growth; 65% of guidance covered by backlog.

• Adjusted EBITDA guidance for FY2025 is $160M–$200M, midpoint $180M; ARR expected to reach $145M by end of FY2025.

• Adjusted gross margin guidance for 2025 is 10%–15%; anticipate negative adjusted EBITDA in H1 due to back-end loaded revenue (20% H1, 80% H2).

• Fiscal 2026 revenue growth expected at 30%+ annually, in line with market growth.