Fluence Corporation Limited has reported a robust FY 2025 with a 52.3% revenue increase and record new orders, driven by a strategic pivot to higher-margin Smart Product Solutions and recurring revenue streams.
- 52.3% revenue growth to $78.4 million in FY 2025
- EBITDA improved by $8 million over FY 2024 to $4 million
- Record new orders of $64.2 million for FY 2025, up 28.5%
- Strategic focus on Smart Product Solutions and recurring revenue
- Ivory Coast water treatment project progressing with milestone payments and O&M contract negotiations
Strong Financial Performance Amid Strategic Realignment
Fluence Corporation Limited (ASX, FLC) has unveiled a compelling set of results for the fourth quarter and full fiscal year 2025, showcasing a remarkable 52.3% jump in revenue to US$78.4 million. This surge reflects the company’s successful strategic pivot towards higher-margin Smart Product Solutions (SPS) and recurring revenue (RR) streams, which are now driving growth and profitability across its core business units.
EBITDA for FY 2025 reached US$4.0 million, an $8 million improvement over the previous year, signalling enhanced operational efficiency and the benefits of a leaner cost structure. The fourth quarter alone contributed US$2.7 million in EBITDA, underscoring momentum heading into 2026.
Leadership Changes and Market Focus Fuel Expansion
The company completed CEO and CFO succession in Q4 2025, with a renewed leadership team focused on commercial expansion and talent development. This leadership refresh aligns with Fluence’s sharpened focus on large, high-growth markets such as municipal water and wastewater treatment, industrial wastewater, and water reuse sectors.
Notably, Fluence is capitalising on the US Environmental Protection Agency’s forecasted $200 billion investment in municipal water infrastructure upgrades over the next two decades. The company’s energy-efficient Membrane Aerated Biofilm Reactor (MABR) technology and Wastewater-to-Energy solutions position it well to capture demand driven by tightening effluent standards and decarbonisation initiatives.
Record Order Book and Growing Backlog
Fluence reported record new orders of US$64.2 million for FY 2025, a 28.5% increase year-on-year, with the fourth quarter alone delivering US$24.5 million, its largest quarter for SPS and RR orders. This strong order intake has expanded the backlog to US$74.8 million, up 43.8% compared to Q4 2024, reflecting robust demand across North America, Asia, and other key regions.
Key contracts secured recently include a US$12 million ultra-pure water treatment plant for the Qurayyah Power Plant in Saudi Arabia and multiple wastewater treatment projects across Italy, Argentina, Vietnam, Zambia, and China. These wins underscore Fluence’s growing global footprint and diversified customer base.
Ivory Coast Project Progress and Future Prospects
The flagship Ivory Coast water treatment project remains on track, with provisional acceptance of the main works granted in December 2024 and milestone payments totalling €35.4 million received, representing 73% of the project value. Addendum works, including infrastructure upgrades, are progressing with an updated completion schedule set for September 2026.
Importantly, Fluence is in advanced discussions with the Ivory Coast government regarding a potential Operations & Maintenance contract, which could provide a steady recurring revenue stream and deepen the company’s presence in West Africa.
Outlook and Strategic Implications
Fluence’s transition away from lower-margin Custom Engineered Solutions towards scalable, high-margin Smart Product Solutions and recurring revenue models is beginning to bear fruit. The company’s strong cash position, debt repayments, and operational cash flow generation provide a solid foundation for continued growth.
As global water infrastructure demands intensify amid environmental and regulatory pressures, Fluence’s technology leadership and strategic market positioning could unlock significant opportunities. However, execution risks remain, particularly around large project timelines and contract negotiations.
Bottom Line?
Fluence’s strategic shift and strong FY 2025 results set the stage for accelerated growth, but upcoming contract awards and project execution will be critical to watch.
Questions in the middle?
- Will Fluence secure the Operations & Maintenance contract for the Ivory Coast project?
- How will the company manage cash flow given anticipated Q1 2026 outflows related to Ivory Coast payments?
- Can Fluence sustain its momentum in high-growth North American and industrial water markets?