Fluence Corporation Limited

Fluence reported FY2025 revenue of $78.4 million, up $26.9 million or 52% from FY2024, and Q4 revenue of $26.0 million, up 22% year over year. FY2025 EBITDA was $4.0 million versus a loss of $4.0 million in 2024, and gross margin was 29.9%, flat versus FY2024. FY2025 operating cash flow was $10.9 million, with Q4 operating cash flow of $3.8 million; the company ended the year with $16.6 million in cash and $4.1 million in security deposits. New orders were $24.5 million in Q4, up $15 million or almost 158%, and FY2025 new orders were $64.2 million, up $14.2 million or 28.5%. Backlog closed at just under $75 million, with approximately $53 million forecast to be recognized in FY2026. For FY2026, management said it will not provide discrete guidance, but expects double-digit revenue growth, continued gross margin expansion, and stronger EBITDA and EBITDA margins. It also said operating cash flow should be negative in Q1 2026 before returning to positive in Q2 through Q4 2026.

Ben Fash framed FY2025 as evidence that Fluence has turned around, saying the company has moved beyond many of its historical challenges and reached an inflection point. He emphasized the strategic shift toward SPS and recurring revenue, which rose from 38% of revenue in FY2022 to 65% in FY2025, and said gross margins improved from 23.9% in FY2022 to 29.9% this year. His tone was confident and constructive, highlighting record orders, stronger margins, a lower cost base, and a stronger backlog as signs of sustained progress.

Osvaldo Llanes did not give a full detailed financial review, but he outlined his focus on profitable growth, capital allocation, and cash flow discipline. Management said the company ended FY2025 with $16.6 million in cash and $4.1 million in security deposits, generated $10.9 million of operating cash flow for the year, and repaid $2.5 million of debt. He also noted that Q1 2026 operating cash flow is expected to be negative because of Ivory Coast payment timing, with positive cash flow expected again in Q2 through Q4 2026.

Analysts asked whether Fluence is now profitable even without the Ivory Coast project, and management said yes, pointing to FY2025 and Q4 results as evidence that SPS, recurring revenue growth, higher gross margins, and a lower cost base can support profitability without Ivory Coast. Questions also focused on guidance, with management confirming it is not giving specific FY2026 EBITDA margin guidance, though it expects double-digit revenue growth and margin expansion. On legacy issues, management said IWS likely represents the last major legacy write-down, while PDVSA remains unchanged and subject to the existing sanctions/OFAC environment. Management also said there is no revenue yet from interim Ivory Coast maintenance work because no contract is in place, and it is still developing the rental strategy.