Fluence (FLC) H2 2025 earnings summary

Executive summary

• FY2025 saw significant operational progress and a return to profitable growth, driven by a strategic focus on high-margin Smart Product Solutions (SPS) and Recurring Revenue (RR), while reducing reliance on lower-margin Custom Engineered Solutions (CES).

• Revenue grew 52.3% year-over-year to $78.4 million, with the Ivory Coast Addendum project contributing $27.5 million, up $20.4 million from FY2024.

• EBITDA reached $4.0 million, an $8.0 million improvement over FY2024, reflecting margin expansion and cost discipline.

• Operating cash flow was $10.9 million, and cash at year-end was $16.6 million, with $4.1 million in security deposits.

• Leadership transitions included the appointment of a new CEO, CFO, and Chief Growth Officer to support growth and operational discipline.

Financial highlights

• Revenue: $78.4 million (FY2024: $51.5 million), up 52.3% year-over-year.

• Loss after tax: $8.1 million (FY2024: $21.4 million loss).

• Gross margin: 29.9%, stable year-over-year despite lower-margin project mix.

• EBITDA: $4.0 million (FY2024: -$4.0 million), a positive swing of $8.0 million.

• Operating cash flow: $10.9 million (FY2024: -$20.1 million).

• Net liabilities increased to $10.1 million (FY2024: $7.5 million).

Outlook and guidance

• No discrete FY2026 guidance issued, but management expects double-digit revenue growth, gross margin expansion, and strong EBITDA growth, even with reduced Ivory Coast Addendum revenue.

• Focus remains on disciplined execution, margin improvement, and cost control.

• Market demand for decentralized water and wastewater solutions remains robust, especially in regions with water scarcity and regulatory pressures.