Fluence Faces Class Action After Cutting Revenue Forecast to $2.4 Billion
Key Facts
Fluence Energy faces a securities class action concerning securities purchased by investors from November 24, 2025, to September 16, 2026, the period specified in the complaint. The complaint was filed on September 28, 2026, before CEO Julian Nebreda left on October 30. The lawsuit comes as the company cut its fiscal 2026 financial outlook on September 16, lowering projected revenue to about $2.4 billion from the midpoint of its previous forecast of about $3.0 billion. Those figures were included in the company’s outlook update, while the allegations in the lawsuit remain claims made by the plaintiffs. In a separate filing, Fluence said Nebreda had left his position effective immediately and that his resignation from the board was not the result of a disagreement with the company over its operations, policies or practices.
The company said the revenue forecast reduction was largely due to ongoing supply-chain issues that affected production in the United States. It said delays in ramping up production at its contract manufacturing facility in Houston were the primary reason for the update. In August, Fluence had cut its fiscal 2026 revenue forecast range to between $2.9 billion and $3.1 billion, with a midpoint of $3.0 billion, from a previous range of between $3.2 billion and $3.6 billion. The September update then lowered the forecast to about $2.4 billion. Nebreda said at the time that demand for the company’s products remained strong domestically and internationally, but pointed to continued delays in ramping up production at the Houston facility.
The financial update also included an expected adjusted loss of about $200 million in earnings before interest, taxes, depreciation and amortization for fiscal 2026, compared with the midpoint of the previous forecast for a loss of about $10 million. The company describes this measure as non-GAAP. Fluence said in August that about $400 million in project deliveries would be delayed to fiscal 2027. It attributed the delays to production issues at a new international contract manufacturing facility, as well as construction delays that affected the completion and commissioning of a new U.S. facility. The company’s stated explanations link operational pressures to the outlook reduction, while the company’s liability for the legal allegations remains subject to judicial review.
In the fiscal third quarter ended June 30, 2026, revenue was about $649.8 million, up from $602.5 million in the same period a year earlier. But the company recorded a net loss of about $44.3 million, after net income of $6.9 million in the comparable quarter. Fluence said its backlog stood at about $6.4 billion on June 30, the highest in the company’s history, according to its results statement. It also reported total liquidity of about $863 million, including about $365 million in cash. The figures show an operating picture combining revenue growth and a large backlog on one hand, with a shift to a quarterly loss and a lower annual outlook on the other.
The company announced executive leadership changes on November 2, while its filing said the departures of Nebreda and CFO Ahmad Pasha took effect on October 30. The board appointed Axel Meier interim CEO and Riccardi Roizen interim CFO, and named Marco Pus vice president and head of customer success. The filing said Roizen was seconded from AES Andes for up to 90 days, or longer by mutual agreement. John Zahoransky, senior vice president and head of customer success, also left on October 30, effective immediately. The company said the board had formed a committee to oversee manufacturing and operations, and that Chief Operating Officer Bernard Da Santos would lead the operational transformation, focusing on execution, supply chain, product development, commercial performance and customer delivery.
Chairman Herman Bulls said the board was “taking decisive steps to strengthen leadership, sharpen accountability and support Fluence’s long-term success.” In premarket trading on November 2, the stock fell 5.9% after the company announced the replacement of its CEO and CFO, according to Investing.com. EL7 data showed the stock closed at $5.4 on November 9, 2026. The lawsuit, filed before the leadership changes were announced, remains separate from the board’s subsequent decisions on management and operations. No ruling on the plaintiffs’ allegations has been issued in the available information.
Fluence scheduled the release of its fiscal 2026 results after the market close on November 23, with an earnings call before the market opens on November 24 at 8:30 a.m. Eastern Time. The company said fiscal 2027 guidance would be provided at a later date. The upcoming results are expected to provide an update on annual performance and the impact of delivery delays and manufacturing issues cited by the company in earlier statements. Those dates also mark the next financial milestone after the executive changes and the announcement of the manufacturing and operations oversight committee. The company has not announced a date for providing fiscal 2027 guidance in the available information.