The following is a summary of the Fluence Energy, Inc. (FLNC) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Fluence reported Q2 revenue of $623 million, improving from the same period last year, along with a gross margin of 10.6%.

• Adjusted EBITDA significantly improved from last year, approximately negative $6 million at the end of this quarter.

• They witnessed an increase in cash at end of the quarter to $541 million, a rise of $65million from the previous year end.

• The company generated a record free cash flow of approximately $88 million in H1 of FY'24.

• The backlog of signed contracts as of Q1'24 was $3.7 billion, with a pipeline rise of $2.9 billion to $16.3 billion.

Business Progress:

• Fluence received more than $700 million in new orders and contracted 2.2 gigawatt-hours for its solution business.

• The company also added 900 megawatt hours to its services business, and its digital business secured 3.1 gigawatts of new orders.

• In line with domestic contract requirements for energy storage, Fluence plans to begin U.S battery module manufacturing later this year.

• Fluence significantly expanded its Gridstack Pro line, diversifying storage solutions and servicing a broader range of project needs.

• First contract signed for a product eligible for 10% investment tax credit under IRA, qualifying it for domestic content.

• Fluence predicts strong growth in fiscal '25, with approximately 35%-40% increase from '24 guidance midpoint.

• Anticipates significant revenue traction, mainly from Q4 of FY'24.

• Aims to maintain gross margins within 10%-12% by FY'24 end.

• Observes an increased interest in long-term storage energy solutions, signaling potential customer pool expansion.

• Plan to accelerate investments in cloud infrastructure and continue operations in Utah facility.

• First domestic content contract signed, providing Fluence a first-mover advantage for potential margin growth.

• Discussed prospects of operational expansion into India amidst increased demand in ERCOT, CAISO and MISO markets.

• Majority of U.S contracts involve power purchase agreements.

More details: Fluence Energy IR

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