Fluence Energy Reports Increased Losses in Q4, Anticipates Minimal Tariff Exposure in 2025

Fluence Energy

Delayed contracts and tariff-free supply chain impact Fluence's financial outlook.

Fluence Energy, a prominent US energy storage provider, reported a significant increase in losses for the fourth quarter of 2024. The company's losses surged by 119%, amounting to $57 million on $187 million in revenue. This decline was primarily due to delays in contract signings for key projects, which hindered the company's ability to meet its financial targets.

Impact of Delayed Contracts on Revenue Guidance

Fluence Energy faced challenges in securing contracts for three critical energy storage projects in Australia. These delays have led to a $600 million reduction in the company's revenue guidance for fiscal year 2025, which ends on September 30. As a result, Fluence's outlook for the year has been significantly impacted, despite generating 0.5 GWh of energy storage in the quarter.

Fluence's Strategy to Minimize Tariff Exposure

Looking ahead, Fluence expects minimal tariff exposure in 2025 due to its domestic content strategy. The company has strategically positioned its supply chain to avoid reliance on Chinese products, which is especially important given the current geopolitical climate and the imposition of tariffs on Chinese imports. Fluence's battery cells are supplied by AESC and manufactured in Tennessee, while the battery modules are produced and integrated in Utah, ensuring that its operations remain largely insulated from international tariff risks.

Conclusion

While Fluence Energy faces challenges in the short term due to contract delays, its domestic content strategy is positioning it to minimize tariff exposure in 2025. The company remains focused on stabilizing its financial performance and securing key projects, particularly in the US and Australia, to drive growth in the energy storage sector.