Fluence Corporation Limited reported a strong 52.3% revenue increase to $78.4 million in FY2025, driven by growth in Smart Product Solutions and Recurring Revenue, alongside significant contributions from the Ivory Coast Addendum project. Despite this, the company recorded a net loss after tax of $9.3 million, reflecting ongoing challenges.
- 52.3% revenue growth to $78.4 million
- EBITDA turnaround to $4.0 million from prior loss
- Net loss after tax narrows to $9.3 million
- Strong backlog growth of 43.8% to $74.8 million
- No dividends declared; borrowings at $18 million
Robust Revenue Growth Amid Strategic Execution
Fluence Corporation Limited has delivered a notable 52.3% increase in revenue for the year ended 31 December 2025, reaching $78.4 million. This growth was primarily driven by the company’s strategic focus on expanding its high-margin Smart Product Solutions (SPS) and Recurring Revenue (RR) streams, which grew by 15.2% year-on-year. A significant boost also came from the Ivory Coast Addendum project, which contributed an additional $20.4 million in revenue compared to the previous year.
The company’s diversified portfolio across municipal water and wastewater, industrial wastewater and biogas, and industrial water reuse markets has helped underpin this growth. Notably, the North American markets for Municipal Water and Wastewater (MWW) and Industrial Wastewater & Biogas (IWB) segments saw strong order increases of 97.5% and 75.8%, respectively.
Margin Stability and Cost Discipline Drive EBITDA Improvement
Despite the influx of lower-margin revenue from the Ivory Coast project, Fluence managed to maintain gross margins at 29.5%, essentially flat year-over-year. This was achieved through strong execution and improved bid margins on SPS revenue across most business units, excluding Southeast Asia and China. Operating expenses, including sales, general and administrative (SG&A) and research and development (R&D) costs, remained flat, reflecting disciplined cost management.
These factors combined to deliver a positive EBITDA of $4.0 million in FY2025, a significant turnaround from the prior year’s loss. The company’s focus on high-margin products and recurring revenue streams appears to be gaining traction, supporting a more sustainable earnings profile moving forward.
Net Loss Narrows but Challenges Persist
Despite the EBITDA improvement, Fluence reported a consolidated net loss after tax of $9.3 million, narrowing from a $21.7 million loss in FY2024. The loss reflects ongoing finance costs, other non-recurring expenses, and the impact of discontinued operations, including the divestment of the Aeromix business and the classification of operations in Mexico and Colombia as discontinued.
The company ended the year with cash and cash equivalents of $16.6 million and borrowings of $18.0 million, including a revolving credit facility expanded to $20 million in late 2024. This facility, provided by board members and long-term supporters, underpins Fluence’s working capital and project financing needs.
Order Book Strength and Backlog Growth Signal Future Potential
New orders in FY2025 rose 28.5% to $64.2 million, while backlog increased 43.8% to $74.8 million, indicating strong demand visibility. The core business units, MWW, IWR, IWB, and SEA & China, contributed to this backlog growth, suggesting a healthy pipeline for future revenue conversion.
However, the company has yet to declare dividends, reflecting a cautious approach to capital allocation amid ongoing losses and investment in growth initiatives.
Governance and Outlook
Leadership changes occurred late in the year, with Benjamin Fash appointed CEO and Managing Director in December 2025, succeeding Thomas Pokorsky. The company’s financial report remains preliminary and subject to audit, with the full audited statements expected by 31 March 2026.
Fluence’s strategic emphasis on high-margin product solutions and recurring revenue, combined with strong order momentum and backlog growth, positions it well for potential profitability improvements. Yet, the net loss and debt levels underscore the challenges ahead in achieving sustained financial health.
Bottom Line?
Fluence’s FY2025 results highlight promising revenue and EBITDA growth but underline the need for continued focus on profitability and debt management.
Questions in the middle?
- How will Fluence convert its growing backlog into sustained profitability?
- What impact will the new CEO have on strategic execution and cost control?
- How will the company manage its debt maturity and refinancing risks amid ongoing losses?