Fluence Surges with Record Orders and Leadership Shakeup in FY 2025

Strong Financial Momentum

Fluence Corporation Limited (ASX, FLC) closed out 2025 with a compelling set of financial results, showcasing significant growth across revenue, earnings, and order intake. The company reported FY 2025 revenue of $78.4 million, a 52.3% increase over the prior year, with the fourth quarter alone delivering $26.0 million, up 22.7% year-on-year. This surge was largely fuelled by the Ivory Coast Addendum project, which contributed an additional $20.4 million in revenue compared to FY 2024.

EBITDA also saw a marked improvement, rising by $8.0 million to $4.0 million for the full year. Despite the increased revenue share from the lower-margin Ivory Coast Addendum, gross margins remained steady at 29.9%, reflecting strong execution and margin discipline across Fluence’s core business units. Notably, the Municipal Water and Wastewater (MWW), Industrial Wastewater & Biogas (IWB), and Industrial Water & Reuse (IWR) segments all exceeded their previous year’s gross margins by 5-8%.

Record Orders and Backlog Growth

Fluence’s commercial momentum was underscored by record new orders in Q4 2025, reaching $24.5 million; a 157.8% increase over the same quarter in 2024 and the company’s largest quarter ever for Smart Product Solutions (SPS) and Recurring Revenue (RR). For the full year, new orders totalled $64.2 million, up 28.5%. The backlog grew by 43.8% to $74.8 million, with strong contributions from the core business units across North America and Asia.

Leadership Changes to Accelerate Growth

In a strategic move to sharpen execution and commercial growth, Fluence completed key leadership transitions during Q4 2025. Ben Fash took over as CEO and Managing Director, succeeding Tom Pokorsky, while Osvaldo Llanes was appointed CFO. Rick Cisterna assumed the newly refined role of Chief Growth Officer, tasked with driving global revenue expansion and market penetration, including oversight of the Ivory Coast project and the development of Fluence’s Global Water Services business unit.

Additionally, Spencer Smith expanded his responsibilities as Chief Talent and Legal Officer, integrating global talent management with legal and compliance functions. The company also strengthened its Southeast Asia and China operations by appointing Anda Cao as Vice President and General Manager, bringing extensive regional experience and a track record of growth.

Operational Challenges and Strategic Review

Despite the positive financial trajectory, Fluence disclosed challenges in its Egyptian joint venture, International Company for Water Services & Infrastructure S.A.E. (IWS). The JV has struggled to collect $4.5 million in outstanding receivables, particularly from the New Mansoura water treatment plant. Fluence has taken a reserve against these amounts and is actively reviewing strategic options for the JV, weighing market attractiveness and partner dynamics.

Looking Ahead

Fluence is optimistic about sustaining double-digit revenue growth in FY 2026, driven by continued strength in SPS and RR segments, even as revenue from the Ivory Coast Addendum is expected to decline. The company anticipates further margin expansion and EBITDA growth, supported by disciplined cost management and ongoing project execution. Fluence is also closely monitoring global trade policies, particularly US tariffs, which have so far had a negligible impact due to proactive mitigation strategies.

Progress on the Ivory Coast infrastructure remains on track, with key milestones achieved and the commissioning phase advancing. Fluence is positioning itself to secure a long-term operations and maintenance contract for the project, which would provide a stable recurring revenue stream.