NEW YORK — Fluence Energy Inc. shares climbed more than 7% in morning trading Friday, reaching $14.56 as investors bet on the battery storage company’s strong positioning in the surging U.S. energy storage market fueled by artificial intelligence data centers, grid modernization and supportive domestic manufacturing policies.

The Arlington, Virginia-based firm, listed on Nasdaq as FLNC, added 99 cents, or 7.34%, by 11:18 a.m. EDT. The move came amid broader enthusiasm for clean energy infrastructure plays and followed Fluence’s recent reaffirmation of its U.S.-manufactured products’ eligibility for domestic content tax credits, a key advantage under evolving federal incentives.

Fluence, a joint venture between Siemens and AES Corp., delivers intelligent energy storage systems, operational services and asset optimization software. Its Gridstack platform and digital offerings help utilities, independent power producers and large energy consumers store renewable power and balance grids amid rising demand from electrification and hyperscale computing.

The latest surge builds on positive sentiment around Fluence’s record backlog and pipeline growth. In its fiscal first-quarter 2026 results released Feb. 4, the company reported revenue of approximately $475.2 million, a 154.4% jump from the year-ago period. While the quarter showed a net loss of about $62.6 million and negative adjusted EBITDA of $52.1 million — partly due to project costs and seasonal weighting — management reaffirmed full-year fiscal 2026 guidance of $3.2 billion to $3.6 billion in revenue, with a midpoint of $3.4 billion now fully covered by backlog.

Order intake exceeded $750 million in the quarter, pushing contracted backlog to a record $5.5 billion as of Dec. 31, 2025. The pipeline expanded significantly to 41.8 GW and 150.5 GWh, up about 17% and 23% respectively from the prior quarter, driven by accelerating U.S. demand. CEO Julian Nebreda highlighted “accelerating data center growth, utility demand and rising industrial loads” as key drivers.

Fluence has emphasized its U.S. manufacturing strategy. On April 6, the company reaffirmed the continued availability of domestically produced products qualifying for domestic content tax credits under the One Big Beautiful Bill Act. This positions Fluence to capture incentives that enhance project economics and competitiveness, particularly as customers seek compliant, reliable storage solutions amid policy shifts.

The company has partnered with domestic suppliers for battery cells and modules, supporting projects like the 1 GWh deployment with Cordelio Power across three U.S. sites starting in 2026. Such deals underscore Fluence’s push for supply chain localization, creating jobs while mitigating foreign entity of concern compliance risks.

Analysts have taken note of the momentum. Consensus price targets hover around $16 to $18, with some higher forecasts reaching $28 to $32, suggesting potential upside. Ratings remain mixed — largely Hold with a handful of Buy and Sell — reflecting execution risks in a competitive sector but optimism around long-term tailwinds. Recent adjustments include Susquehanna trimming its target while maintaining a Positive stance, amid broader coverage of the stock’s valuation relative to growth prospects.

Fluence’s deployed capacity stands at about 18.9 GWh globally, with strong presence in the U.S., where it ranks among top integrators. The company expects the U.S. to account for a substantial portion of 2026 activity, benefiting from policy support, grid reliability needs and explosive power demand from AI facilities. Data centers alone have emerged as a major growth vector, as hyperscalers seek firm, dispatchable capacity to complement intermittent renewables.

Beyond hardware, Fluence’s services and digital platforms contribute growing recurring revenue. Annual recurring revenue is projected to reach approximately $180 million by fiscal year-end, supported by long-term operations and maintenance contracts plus AI-driven optimization software that maximizes asset performance.

The energy storage market is expanding rapidly. Industry forecasts point to significant deployment growth, with battery systems playing a pivotal role in integrating renewables, providing peaking capacity and enhancing grid resilience. Fluence has been recognized as a leading global provider, ranking in the top three for installed and contracted capacity in independent reports and earning System Integrator of the Year honors multiple times.

Challenges persist. Gross margins in the first quarter remained pressured at around 5.6% on an adjusted basis, reflecting project-specific costs and the front-loaded nature of revenue recognition in large deployments. The company has worked through execution issues on select projects, with expectations that most additional costs will be recovered. Operating leverage should improve as scale increases and higher-margin services grow.

Fluence amended its syndicated credit facility in early April, tightening certain terms while extending covenant relief and securing liquidity through 2026. The move provides financial flexibility amid heavy investment in growth. In March, stockholders approved an expansion of the equity incentive plan, adding shares to support talent retention in a competitive tech and energy talent market.

The stock has shown volatility typical of high-growth cleantech names. It has rebounded from earlier 2026 levels but trades well below peaks seen during previous enthusiasm waves for energy storage. Friday’s volume appeared elevated as shares tested recent resistance, with technical observers noting potential for continued momentum if positive news on orders or policy continues.

Founded as a Siemens-AES venture and spun out publicly in 2021, Fluence has scaled rapidly by focusing on utility-scale and commercial & industrial applications. Its vertically integrated approach — combining hardware, software and services — differentiates it from pure-play competitors. Recent board and governance updates, including director elections and auditor ratification at the March annual meeting, reflect ongoing maturation.

Broader industry tailwinds include rising electricity demand from AI, electric vehicles and manufacturing reshoring. Utilities face pressure to add flexible resources as coal and gas retirements accelerate and renewable penetration grows. Battery storage addresses these needs by shifting energy from sunny or windy periods to peak times, while providing ancillary services like frequency regulation.

International expansion continues, with projects in Southeast Asia, Australia, India and Europe. However, the U.S. remains the primary growth engine, supported by tax credits, state-level mandates and corporate procurement from tech giants.

Looking ahead, investors await the fiscal second-quarter results, expected in coming months, for updates on margin trends, order intake and progress toward profitability. Management has stressed disciplined execution, cost control and leveraging its backlog to deliver on guidance.

While near-term profitability swings and project risks remain, Fluence’s record backlog, domestic content advantages and exposure to secular megatrends in power infrastructure position it as a compelling player in the energy transition. As data centers and grids demand more storage, the company’s integrated solutions could capture significant value.

Friday’s trading reflected renewed confidence in Fluence’s ability to navigate a dynamic market. With global deployments accelerating and U.S. policy supporting local manufacturing, the company appears well-placed to benefit from the next wave of battery storage growth.