Fluence Energy Surpasses Expectations with Record-Breaking Quarter
In a recent conference call, Fluence Energy's management team highlighted the company's impressive performance in Q4 2024, exceeding expectations and marking significant milestones in the energy storage industry. The company reported a profit for fiscal year '24, its first-ever on a full-year basis, and generated free cash flow, demonstrating strong profitable growth at scale.
Fluence Energy delivered a record-breaking $2.7 billion in revenue, with a 12.6% gross margin, and earned $78 million of adjusted EBITDA, nearly $140 million higher than fiscal year '23. The company's adjusted EBITDA also surpassed the midpoint of its expectations by $18 million.
The energy storage industry continues to experience remarkable growth, driven by rapid economic development and the increasing deployment of data centers and electrification of sectors such as transportation, commercial building, and industrial processes. Global electricity demand is projected to rise 15% to 20% in the next decade, with similar trends observed in other countries.
Fluence Energy's progress in operating value services and digital businesses has been notable, with an 80% increase in annual recurring revenue to $100 million. The company's digital software has gained market recognition, with Fluence being named the top integrator on the Guidehouse Inside leaderboard for energy storage software earlier this month.
Fluence Energy continues to build momentum by adding to its backlog with another strong quarter of over $1 billion in order intake. The company's backlogs have grown 55% to $4.5 billion, providing robust visibility into future revenue and growth prospects.
Additionally, Fluence Energy's proactive approach to margin expansion and working capital management has yielded encouraging results, generating $72 million of free cash flow for the year and ending the quarter with $518 million in cash reserves.
The company's management team expressed confidence in the continued growth of the energy storage market, citing the attractive levelized cost of renewable energy and faster deployment times compared to gas and nuclear. With its strong financial performance, expanding backlog, and growing industry demand, Fluence Energy is well-positioned for future success.
