Fluence (FLC) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 results were below initial expectations due to Ivory Coast project delays and weak performance in China and Southeast Asia, but the company met revised guidance after a strong Q4 performance with $21.2M revenue and $1.0M EBITDA.

• Leadership changes and restructuring were implemented in underperforming regions, with a strategic shift to high-margin Smart Product Solutions and recurring revenue.

• Over 1,000 global installations and proven MABR technology position the company for growth in high-demand markets.

• The company is positioned for a positive 2025, supported by a strong backlog, operational improvements, and a robust sales pipeline.

Financial highlights

• FY 2024 revenue was $51.5M, down 26.5% YoY; Q4 revenue was $21.2M, more than double any other quarter in 2024.

• FY 2024 EBITDA loss was $4.0M, but Q4 EBITDA was positive at $1.0M.

• Recurring revenue increased by $2.9M (+30.5%) YoY; gross margin improved to 30.1%, up 2.0% from 2023.

• SG&A and R&D costs were reduced by $2.6M (-11.4%) YoY.

• Backlog at year-end was $88.0M, with $58.1M expected to be recognized in FY 2025.

Outlook and guidance

• FY 2025 revenue guidance is $80-95M, with expected EBITDA of $3-5M.

• Nearly $60M of backlog is expected to be recognized as revenue in 2025, supporting 61-73% of revenue guidance.

• Management anticipates a return to profitability and positive cash flow in 2025, driven by backlog and operational improvements.