Fluence Energy (FLNC) cut its fiscal 2026 revenue guidance due to Houston manufacturing delays, with no clear timeline for a correction, RBC Capital Markets said.

The company lowered the outlook to $2.4 billion from the prior guidance range of $2.9 billion to $3.1 billion. Analysts polled by FactSet expect $2.96 billion.

The RBC analysts said in a note Wednesday that the revenue guidance was updated mainly due to three issues, including about $450 million from US supply issues, primarily at the new Houston manufacturing facility, around $65 million in late delivery penalties, and about $85 million from logistical bottlenecks and delays in customer readiness.

At the Houston facility, the main problem is that the automated welding system is not yet operational. The company previously expected this issue to be resolved quickly, but it has not provided a timeline for when it will be fixed, the analysts added.

"We believe this could be a multi-year recovery as Fluence Energy needs to regain trust with its customer base and resolve manufacturing issues," according to the note.

RBC cut its price target on Fluence Energy to $4 from $15, with a sector perform rating.

The company's shares fell past 16% in Thursday trading.

Price: 7.54, Change: -1.51, Percent Change: -16.67