Fluence Energy Inc. (FLNC) stock experienced a massive 45.47% plummet in pre-market trading on Tuesday, following the company's disappointing first-quarter fiscal 2025 results and a significant downward revision to its full-year guidance. The energy storage solutions provider reported a steep decline in revenue and a wider-than-expected net loss for the quarter, missing analysts' estimates.
More concerning for investors, Fluence Energy lowered its fiscal year 2025 revenue guidance range to $3.1 billion to $3.7 billion, down from its previous guidance of $3.6 billion to $4.4 billion. The company cited customer-driven delays in signing certain contracts, primarily in Australia, as the primary reason for the reduced outlook, coupled with competitive pressures. Fluence Energy also slashed its fiscal 2025 Adjusted EBITDA guidance range, citing expected lower revenue and gross margins.
Analysts reacted swiftly to the disappointing news, with BMO Capital downgrading Fluence Energy to Market Perform from Outperform and lowering its price target to $10 from $22. Other analysts, such as Guggenheim, also downgraded the stock and significantly reduced their price targets, reflecting the negative sentiment surrounding the company's prospects.