Fluence Energy (FLNC) Stock Forecast & Price Target

Fluence Energy Inc has demonstrated strong fundamentals with a significant increase in backlog, rising from $4.9 billion to $5.3 billion, reflecting the company’s robust execution capabilities and proven track record in the energy storage sector. The growth in the global energy storage market is promising, with Bloomberg New Energy Finance forecasting a 23% year-over-year increase in deployments to 92 GW in 2025, further supported by a substantial energy storage pipeline of 122 GWh, suggesting continued demand for Fluence's offerings. Additionally, management noted a remarkable 400% increase in the pipeline and leads from data centers, indicating an expanding market opportunity that enhances the outlook for the company's growth and operational performance.

Fluence Energy Inc. has experienced a notable shift in its sales dynamics, with its average selling prices (ASPs) decreasing by 26% year-over-year, indicating potential pricing pressures within the market despite a 12% increase in the total pipeline value to $23.4 billion. The company's Services attachment rate has shown a significant decline from the mid-90% range to a band of 79% to 83% over the past two years, raising concerns about customer engagement and the sustainability of recurring revenue streams. Furthermore, while anticipated revenue for FY26 falls within a range of $3.2 to $3.6 billion, the adjusted EBITDA guidance of $40 to $60 million is below expectations, compounded by rising operating expenses and continued challenges in maintaining profitability, thereby contributing to a cautious outlook on the stock.