Is Fluence Energy, Inc. (FLNC) A Good Stock To Buy Now?

Is FLNC a good stock to buy now? We came across a bullish thesis on Fluence Energy, Inc. on Danny’s Substack by Danny Green. In this article, we will summarize the bulls’ thesis on FLNC. Fluence Energy, Inc.'s share was trading at $15.54 as of February . FLNC’s forward P/E was 93.46 according to Yahoo Finance.

Fluence Energy is a leading player in utility-scale energy storage, a rapidly growing and specialized segment critical to the global energy transition. The company offers a combination of hardware, software optimization platforms, and services, which could gradually increase switching costs and differentiation, though its moat is still developing amid competition from vertically integrated players like Tesla Energy and EOSE.

Fluence’s core business of selling and servicing storage systems to utilities and developers is conceptually straightforward, supported by a large backlog exceeding $5.3 billion, but revenue is lumpy and execution timing introduces unpredictability. FY 2024 saw record revenue of ~$2.7 billion and improved gross margins, though FY 2025 revenue declined to ~$2.26 billion due to production delays, tariffs, and timing issues, highlighting volatility in profitability despite sequential quarterly improvements.

The company is reinvesting heavily in U.S. manufacturing, global supply chain expansion, and product innovation, including its Smartstack architecture, aiming to grow recurring digital and software revenues, though capital intensity and convertible debt issuance (~$400 million) introduce risk to margins and investors. Returns on capital are improving but remain below ideal levels for a long-term compounder, with gross margins trending upward and adjusted EBITDA showing mixed results.

Demand for energy storage is durable, supported by secular tailwinds and an order backlog covering ~85% of fiscal 2026 guidance, yet execution delays and competitive pricing pressure temper near-term predictability. Fluence benefits from a global footprint, diversified products, and strategic domestic content, but reliance on large projects and fierce competition pose risks.

Management is growth-oriented and strategically focused on scaling production and differentiation, yet high leverage and guidance cuts require careful execution. Overall, Fluence presents a compelling exposure to energy transition growth, offering strong long-term potential, though near-term volatility and capital intensity highlight execution risk for investors.