Fluence Energy, Inc. (NASDAQ:FLNC), a leading energy storage solutions provider, saw its stock price plummet by 5.64% in intraday trading on Wednesday, February 12, 2025. The sharp decline came after the company reported disappointing first-quarter 2025 results and lowered its full-year revenue guidance, citing project delays and heightened competition from Chinese rivals.

In its Q1 2025 earnings call, Fluence Energy disclosed a 49% year-over-year drop in revenue to $187 million, missing analysts' estimates. The company also reported a wider net loss of $41.5 million, or $0.32 per share, compared to a loss of $0.14 per share in the same period last year.

The primary factor behind the reduced guidance was the delay in signing three contracts for projects in Australia, initially expected to contribute to fiscal 2025 revenue. These delays were attributed to minor issues such as permitting, offtake agreements, and site preparation. While Fluence Energy remains confident in securing these contracts later in the year, the revenue recognition has been pushed to fiscal 2026.

Additionally, the company acknowledged intensifying competitive pressures from Chinese players in international markets, leading to significant pricing pressure and margin compression. As a result, Fluence Energy narrowed its gross margin expectations for fiscal 2025 to 10% to 12%, down from the previous range of 10% to 15%.

In response to these challenges, Fluence Energy announced the launch of a new product platform aimed at regaining competitive advantage through industry-leading density, lower total cost of ownership, and enhanced performance. However, the impact of this innovation is expected to be realized starting in fiscal 2026.