Baird cuts Fluence Energy stock rating on production delays

Baird downgraded Fluence Energy's stock rating to "Underperform" from "Neutral" and reduced its price target to $3.00, down from $10.00. The company's shares are currently trading at $9.05, down 54% year-to-date and 45% over the past six months. Fluence Energy announced a 20% cut to its fiscal year 2026 guidance, implying a nearly 50% reduction for the fourth quarter.

The company is experiencing delays in ramping up U.S. production, which is resulting in an adjusted EBITDA loss of approximately $200 million, up from the previous midpoint of about $10 million. Two thirds of the additional loss is due to missed project milestones. Gross profit margins stand at just 9.36%, highlighting ongoing operational challenges.

Analysts do not expect the company to be profitable this year, with 3 analysts revising their earnings downwards for the upcoming period. Fluence Energy has temporarily halted its U.S. business activities. This development, coupled with the guidance cut, is considered a significant negative by Baird.