Key Highlights

  • Shares are trading at $7.09 in pre-market activity, down 21.66% from Wednesday's close of $9.05, after closing down 2.69% in Wednesday's regular session.
  • Fluence slashed its fiscal 2026 Revenue guidance to approximately $2.4 billion from a prior midpoint of approximately $3.0 billion.
  • The company also widened its projected adjusted EBITDA loss to approximately $200.0 million from a prior midpoint loss of approximately $10.0 million.
  • Management attributed the shortfall to continued delays ramping up its Houston contract Manufacturing facility.
  • Alongside the guidance cut, Fluence announced Bernerd Da Santos, a former AES executive, as its new Executive Vice President and Chief Operating Officer to oversee Supply chain and manufacturing.

Guidance Slashed on Continued Manufacturing Delays

Fluence Energy (NASDAQ:FLNC) shares plunged in pre-market trading Thursday after the company issued sharply revised fiscal 2026 guidance due largely to continuing supply chain issues affecting its U.S. production. Fluence is a global Market Leader delivering intelligent energy storage, operational services, and asset optimization software, headquartered in Arlington, Virginia and founded in 2018 as a joint venture between Siemens and AES.

The company revised its fiscal year 2026 revenue guidance to approximately $2.4 billion, down from a prior midpoint of approximately $3.0 billion, while widening its projected adjusted EBITDA loss to approximately $200.0 million from a prior midpoint loss of approximately $10.0 million. President and CEO Julian Nebreda said Demand for the company's products has remained strong both domestically and internationally, and that its international supply chain has continued to work well, but that delays in ramping up its contract manufacturing Facility in Houston are the primary reason for the lowered guidance.

New COO Brought In to Address the Supply Chain Issues

Alongside the guidance cut, Fluence announced that Bernerd Da Santos has joined the company as Executive Vice President and Chief Operating Officer, overseeing customer success, product, supply chain, manufacturing, and enterprise operations. Da Santos most recently served as Senior Strategic Advisor to the President of AES, having previously held COO roles there, where CEO Nebreda said he demonstrated an ability to improve operations across the business, including a transformation of its supply chain organization.

Management said it is restructuring its operational organization and streamlining planning across supply chain, manufacturing, and delivery functions, adding that its contract manufacturer has already implemented corrective actions yielding higher daily production levels.

Backlog Conversion Becomes the Central Focus for Fiscal 2027

CFO Ahmed Pasha said the company's key priority is converting its Backlog into revenue and cash while optimizing working capital, targeting neutral to positive Operating Cash Flow without external capital. Fluence plans to provide a detailed fiscal 2027 Business plan when it reports fiscal year 2026 results.

Volatile Year Follows an Earlier AI-Driven Rally

The revision follows a volatile year in which shares have fallen roughly 54% year-to-date despite an earlier rally of more than 500% tied to a June Partnership announcement with Nvidia and Siemens around AI data centers, and comes after recent downgrades from Barclays and Mizuho on similar concerns. The decline also comes against broader utility-sector pressure from rising Treasury yields following the Fed's rate hike to 3.75%-4%.

Execution on the Houston Ramp Will Be the Key Signal

Fluence shares are falling sharply as investors reassess the company's near-term execution risk following the steep guidance cut, even as management points to strong underlying demand and a functioning international supply chain. Whether the new COO's operational changes and the contract manufacturer's corrective actions translate into a faster Houston ramp will likely be the key Factor determining whether the stock can stabilize from here.