Fluence (FLC) AGM 2025 summary

Opening remarks and agenda

• Meeting opened with confirmation of quorum, introductions of board members, senior executives, company secretary, and auditors.

• Notice of meeting and explanatory statement taken as read, with instructions for shareholder participation and voting provided.

• Annual General Meeting held on May 28, 2025, focused on sustainable water solutions.

Financial performance review

• FY2024 revenue was $51.5 million, down 26.5% from FY2023, mainly due to delays in the Ivory Coast project and market weakness in China.

• Recurring revenue grew by 30.5% in FY2024, with gross margins improving to 30.1%, exceeding 30% for the first time.

• Q4 2024 revenue reached $21.2 million, with positive EBITDA of $1 million, showing profitability at higher revenue levels.

• Fixed costs reduced by 11% from FY2023 and 25% since FY2022; SG&A and R&D savings totaled $2.6 million in FY2024.

• Q1 2025 revenue was $16.6 million, up 64.5% over Q1 2024, with break-even EBITDA and a cash balance of $8.5 million plus $3.7 million in security deposits as of March 31, 2025.

Strategic initiatives and plans

• Divested non-core Arrow Mix business and paid off Upwell loan, reducing interest expenses.

• Strategic focus on expanding in North America, growing recurring revenue, SPS, and higher-margin segments.

• Sales pipeline grew by $283 million (+35%) since Q4 2023, with a backlog of $83.5 million as of March 31, 2025, and $12 million in Q1 bookings.

• Medium-term targets: $120 million+ revenue, 32-35% gross margins, and double-digit EBITDA margins in 2-3 years.

• New manufacturing strategy in North America to address tariff challenges and enhance versatility, including a new membrane facility in the US and global partnerships.