Fluence (FLC) Q3 2025 earnings summary

Executive summary

• Year-to-date Q3 2025 revenue reached $52.4 million, up 72.9% year-over-year, driven by the Ivory Coast Addendum and strong SPS segment growth.

• EBITDA for the first three quarters was $1.2 million, a $6.2 million improvement year-over-year, with all business units except IWR improving EBITDA.

• The company is executing its "one Fluence" strategy, emphasizing cross-unit collaboration and targeting higher-margin sectors, supported by a leadership team with over 100 years of industry experience.

• Over 1,000 global installations and proven, energy-efficient technologies support decarbonization and water reuse trends.

• Notable project wins include a $12.2 million Saudi power plant order and significant MABR technology orders in North America.

Financial highlights

• Revenue for the first three quarters was $52.4 million, up $22.1 million (72.9%) from the prior year, with SPS revenue up 26.6%.

• EBITDA increased by $2.6 million in Q3 and $6.2 million year-to-date compared to 2024.

• Gross margin year-to-date was 28.8%, down 3.0 percentage points due to the lower-margin Ivory Coast project.

• SG&A and R&D costs reduced by $800,000 (5.1%) year-to-date, supporting EBITDA growth.

• Q3 order bookings were $17.2 million, up 9.6% year-over-year, with a backlog of $75.7 million at quarter-end.

Outlook and guidance

• Revenue guidance for fiscal 2025 is maintained at $80–95 million, with EBITDA expected between $3–5 million, likely at the lower end.

• Q4 is forecasted to be the strongest quarter for both revenue and orders.

• Over $50 million of backlog is forecasted to be recognized in 2026 and beyond.

• Operating cash flow is expected to remain positive for the full year, despite a forecasted negative Q4 due to timing of payables.