Fluence Accelerates Growth with 65% Revenue Surge and Strategic Shift

Strong Revenue Growth Anchored by Ivory Coast Project

Fluence Corporation Limited has delivered a striking 64.7% increase in revenue for the first half of 2025, reaching $33.1 million, largely propelled by the Ivory Coast Addendum project which contributed $12.7 million. This significant uplift reflects the company’s successful execution of its renewed strategy focusing on high-margin Smart Product Solutions (SPS) and Recurring Revenue (RR) streams.

The Ivory Coast Addendum, which commenced in late 2024, has been a pivotal driver in this growth, with the project advancing on schedule and generating strong revenue and EBITDA contributions. The company’s backlog of $79.5 million provides a solid foundation for continued revenue recognition through the remainder of the fiscal year.

Operational Realignment Yields Cost Savings and Margin Improvements

Fluence’s strategic realignment away from low-margin Custom Engineered Solutions towards SPS and RR is beginning to bear fruit. Fixed costs have been reduced by $1 million, or 10.5%, compared to the same period last year, reflecting improved operational efficiency. EBITDA improved markedly from a loss of $3.6 million in H1 2024 to a positive $0.1 million in H1 2025, underscoring the effectiveness of cost control and revenue growth initiatives.

While gross margins declined by 4.1% overall due to the lower-margin Ivory Coast project, key business units such as Industrial Wastewater & Biogas (IWB) and Industrial Water & Reuse (IWR) posted margin improvements of 5.8% and 3.1% respectively. The Municipal Water and Wastewater (MWW) segment maintained robust margins above 36%, supporting the company’s focus on high-margin product lines.

Order Intake and Backlog Signal Momentum

New orders for H1 2025 totaled $22.6 million, with an additional $10 million secured in July, pushing year-to-date orders beyond $32.5 million. Growth was broad-based across MWW North America, IWR, IWB, and Southeast Asia & China segments, with a combined 21.6% increase in orders. Despite some softness in the China market, the company’s diversified geographic footprint and product portfolio provide resilience.

The backlog of $79.5 million, while slightly down from December 2024 due to project progress, remains strong and aligns closely with the company’s FY2025 revenue guidance of $80-95 million. Fluence anticipates accelerated revenue recognition in the second half of the year as backlog projects ramp up.

Navigating Tariff Challenges and Cash Position

Fluence has proactively addressed the potential impact of increased US tariffs on imports by advancing local manufacturing capabilities, particularly for MABR membranes. This strategic move has largely mitigated margin risks associated with tariff volatility. The company ended the half-year with a healthy cash balance of $12.7 million and generated positive operating cash flow of $4.9 million, positioning it well to fund ongoing operations and capital projects, including US membrane manufacturing expansion.

Leadership Transition and Capital Management

In a significant leadership update, Fluence announced that Chief Financial Officer Benjamin Fash will succeed Thomas Pokorsky as CEO and Managing Director by the end of 2025. This transition marks a new chapter for the company as it continues to execute its growth strategy. Additionally, Fluence plans to convert approximately $1.8 million of accrued interest on its revolving credit facility into equity, subject to shareholder approval, reflecting prudent capital management.