Fluence Energy, Inc. (FLNC) saw its stock price plummet 14.41% in after-hours trading on Wednesday, following the release of its Q2 earnings report and revised guidance for fiscal year 2025. Despite reporting Q2 revenue of $431.6 million, which beat the IBES estimate of $329.7 million, and an adjusted EBITDA of -$30.4 million, slightly better than the estimated -$31 million, investors seemed to focus on the company's forward-looking statements.
The energy storage technology company announced a significant revision to its 2025 guidance, citing ongoing economic uncertainty in the U.S. market. Fluence now expects total fiscal year 2025 revenue to be in the range of $2.6 billion to $2.8 billion, down from previous projections. More concerning for investors, the company lowered its fiscal year 2025 adjusted EBITDA guidance to a range of $0 to $20 million, signaling potential profitability challenges ahead.
Adding to the negative sentiment, Fluence reported that order intake for the quarter was below initial expectations. This shortfall in new orders, combined with the company's evolving trade and tariff landscape, appears to have contributed to the pessimistic outlook. Despite these challenges, Fluence reaffirmed its FY2025 Annual Recurring Revenue (ARR) guidance of approximately $145 million, providing a small bright spot in an otherwise disappointing report.
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