Fluence Revenue up 154% but Margin Halves in Last Three Months of 2025

Why It Matters

The stark margin compression highlights the cost challenges of scaling BESS deployments, while the record backlog signals strong demand that could reshape the energy‑storage market if managed profitably.

Key Takeaways

• Revenue jumped 154% YoY to $475.2 million.
• Gross margin fell from 12.5% to 4.9%.
• Net loss widened to $62.6 million.
• Backlog hit record $5.5 billion, $750 million new orders.
• US market and LDES projects drive future growth.

Pulse Analysis

The battery‑energy‑storage‑system (BESS) sector is entering a phase of accelerated deployment as utilities and data‑centre operators seek reliable, grid‑balancing solutions. Fluence’s explosive top‑line growth reflects this macro trend, with its newest Gridstack Pro and Smartstack platforms capturing sizable contracts across North America and Europe. However, the rapid scale‑up has exposed the firm to higher project‑level costs, as evidenced by the $20 million of estimated overruns it expects to recover later in the year.

Margin compression is a common symptom when high‑growth firms invest heavily in engineering, supply‑chain expansion, and domestic manufacturing capabilities. Fluence’s decision to align its product line with the Federal Energy Office’s (FEOC) updated tax‑credit criteria underscores a strategic push to lock in incentive‑driven demand, especially in the United States where the company now expects the bulk of its revenue. The record $5.5 billion backlog, including $750 million of fresh orders, provides a cushion that could smooth earnings once the cost base stabilizes and the $20 million overruns are recouped.

Looking ahead, Fluence’s guidance of $3.2‑$3.6 billion revenue and a modest adjusted EBITDA of $40‑$60 million hinges on the successful rollout of long‑duration energy storage (LDES) projects and the scaling of its Gridstack Pro platform. Competitors are also racing to secure FEOC‑compliant contracts, making operational efficiency a key differentiator. Investors will watch how Fluence balances its aggressive growth agenda with profitability, as the firm’s ability to convert its sizable backlog into cash‑generating assets will determine its standing in the fast‑evolving clean‑energy storage market.

Fluence revenue up 154% but margin halves in last three months of 2025

By Cameron Murray · February 5, 2026

Smartstack (pictured) is the company’s newest BESS solution, although Fluence said it expects around 70 % of its product revenue in 2026 to come from Gridstack Pro, which has been available a little longer. (Image: Fluence)

System integrator Fluence saw revenue of US $475.2 million in the last quarter of 2025, while its net loss grew around 10 % to US $62.6 million.

The battery‑energy‑storage‑system (BESS) technology and services firm released its results yesterday (4 February), covering the three months ending 31 December 2025. That period is Fluence’s Q1 2026 because its financial year runs to 30 September.

• Revenue was up 154.4 % year‑on‑year, though its GAAP‑adjusted gross‑profit margin halved, from 12.5 % in Q1 2025 to 4.9 % in Q1 2026 (5.6 % adjusted gross‑profit margin).

• The company said there were additional estimated costs on two projects, totalling US $20 million, which it mostly expects to recover over the year.

• Net loss grew, up around 10 % to US $62.6 million, while its EBITDA loss increased by around 5 % to US $52.1 million.

The firm’s backlog has reached US $5.5 billion, a record, with US $750 million of orders. It highlighted data‑centre‑related and long‑duration energy storage (LDES) projects as key future revenue drivers, with around 35 GWh of each in the pipeline or as leads.

Fluence is guiding for US $3.2‑3.6 billion in revenues and an adjusted EBITDA of approximately US $40‑60 million.

It recently said that the United States would be its largest source of revenue and expects to be able to offer BESS products that are compliant with new FEOC restrictions on tax credits for clean‑energy projects. Its US domestic manufacturing roadmap was outlined in the earnings‑presentation slide.

Major recent contract wins include project orders in Arizona for BrightNight/Cordelio Power and Greenflash, as well as a huge 1 GW/4 GWh BESS in Germany for LEAG.