Fluence Corporation Limited

Fluence reported FY 2025 revenue of $78.4 million, up $26.9 million or 52% versus FY 2024, with FY 2025 EBITDA of $4.0 million compared with a loss of $4.0 million in 2024. Q4 revenue was $26.0 million, up 22% year over year, and Q4 new orders were $24.5 million, up $15.0 million or almost 158% versus Q4 last year. Gross margin was 29.9% for FY 2025, flat year over year. Operating cash flow was $3.8 million in Q4 and $10.9 million for FY 2025, and year-end cash was $16.6 million plus $4.1 million in security deposits. Management said it repaid $2.5 million of debt in FY 2025. For FY 2026, the company said it expects double-digit revenue growth even with a significant reduction in Ivory Coast Addendum revenue, continued gross margin expansion, and stronger EBITDA and EBITDA margins, but it did not provide discrete guidance.

Ben Fash framed the quarter as evidence that Fluence has turned around after years of restructuring, saying the company has shifted toward SPS and Recurring Revenue and improved its business mix, margins and cost base. He highlighted a “One Fluence” operating model, record orders, stronger execution across regions, and said Q4 and FY 2025 represented an inflection point. His tone was confident and upbeat, though he noted the job is not finished and emphasized continued focus on profitability, cash flow and execution.

Osvaldo Llanes introduced himself by emphasizing profitable growth, capital allocation and cash flow discipline, and tied his background in water and project businesses to Fluence’s needs. On the financials, management highlighted $16.6 million of cash, $4.1 million of security deposits, operating cash flow of $10.9 million for FY 2025, and repayment of $2.5 million of debt. The company also said it expects negative operating cash flow in Q1 2026 because of timing on Ivory Coast payables, then positive cash flow again from Q2 through Q4 of 2026. Management pointed to gross margin expansion from core business execution and said it is not providing specific EBITDA margin guidance for 2026.

Analysts asked whether the Applegreen win had broader significance, and management said it was simply another example of progress in Municipal USA rather than a special one-off. On profitability, management said the business was EBITDA-positive even without Ivory Coast contribution, and that core SPS and Recurring Revenue growth plus a lower cost base drove the improvement. Questions also focused on further write-down risk, where management said IWS likely represents the last major legacy write-down, and on PDVSA, where Fluence said sanctions and OFAC conditions had not changed. Management also said there is no interim revenue recognized for Ivory Coast maintenance work yet, no specific EBITDA margin guidance for 2026, and only limited near-term updates on rentals and data centers, though it sees early opportunity in power generation tied to AI build-out.