Shares of Fluence Energy Inc. (FLNC) skyrocketed approximately 34% in U.S. premarket trading on Thursday, following the company's announcement of a record $5.6 billion backlog and new master supply agreements with two leading hyperscalers—major players in the cloud and data-center sectors. The battery-storage company also reaffirmed its fiscal 2026 outlook, shifting investor focus to its burgeoning order book amid surging demand from data centers and ongoing trade uncertainties.
The Arlington, Virginia-based firm reported fiscal second-quarter revenue of $464.9 million, a 7.7% increase year-over-year, though it fell short of consensus estimates. Net loss narrowed to $29.2 million from $41.9 million in the prior-year period, while adjusted EBITDA loss improved to $9.4 million from a loss of $30.4 million a year earlier. The company's total liquidity stood at approximately $900 million as of March 31, with cash and cash equivalents accounting for $412.9 million.
Backlog and Order Intake Highlight Growth Momentum
Fluence's backlog—contract value yet to be recognized as revenue—now covers its fiscal 2026 projections, according to company materials. Order intake for the fiscal year through May 6 reached roughly $2.0 billion, more than double the $1.0 billion recorded during the same period last year. Notably, over $600 million in orders were booked in the current third quarter alone, and approximately half of fiscal 2026 orders came from first-time customers.
CEO Julian Nebreda noted early signs that the company's pipeline expansion is gaining traction. "Our push to broaden our customer base is gaining momentum," he said, highlighting the two new hyperscaler master supply agreements, with the first order expected in the fiscal third quarter. The data-center pipeline surged 30% since the first-quarter earnings update, with Fluence's advanced controls now offering power-quality solutions critical for managing volatile electricity demand.
Outlook and Margin Targets
Fluence reaffirmed its full-year revenue guidance of $3.2 billion to $3.6 billion, targeting a midpoint of $3.4 billion. Adjusted EBITDA is expected to range between $40 million and $60 million. The company also reiterated its target for annual recurring revenue from software and long-term services of approximately $180 million by the close of fiscal 2026. CFO Ahmed Pasha cited "improved adjusted EBITDA" and "strong liquidity" as underpinning the reaffirmed outlook.
Competitive Landscape and Risks
Fluence operates in the highly competitive battery energy storage system (BESS) market, where it is listed alongside Tesla Energy Operations, Sungrow Power Supply, and Wärtsilä on the S&P Global Energy 2025 Tier 1 list. The company faces stiff competition from well-funded rivals and large-scale Chinese players. However, the company cautions that its backlog could face delays, deferrals, or cancellations. Operating cash outflows climbed to $347.9 million in the first half, up from $257.4 million a year ago, driven largely by working-capital swings and inventory purchases.
Tariff Exposure and Uncertainty
Tariff risks remain a wild card. Fluence estimated gross IEEPA tariff refunds at roughly $57 million but warned that the timeline for refunds and the potential for new or ongoing tariffs—as well as retaliatory measures—could impact operations. The company's international exposure to tariffs, shifting commodity costs, and logistics challenges were highlighted in its latest filing.
Investors are now focused on Fluence's ability to convert its record backlog into deliveries, particularly the first hyperscaler order in the third quarter. The company must ship approximately 70% of its annual revenue target in the second half while maintaining margin improvements. The market's attention will remain on execution as Fluence navigates a dynamic landscape of data-center demand and trade headwinds.
