Fluence Corporation (ASX:FLC) reported strong financial results for the fourth quarter of 2024, with revenue doubling to $21.2 million compared to other quarters in 2024, and an EBITDA of $1 million.
The performance helped the company achieve its revenue target of $51.5 million for the financial year, despite an EBITDA loss of $4 million.
The revenue was impacted by delays in the Ivory Coast Addendum project and market weakness in China, contributing to a 26.5% decrease in total revenue compared to 2023.
However, adjustments excluding these regions showed a revenue increase of 18.8%. Recurring revenue grew by 30.5%, marking a positive outcome for Fluence.
Fluence focused on transitioning to high-margin products, which improved gross margins to 30.1%, up by 2% from 2023.
The company also realized reductions in SG&A and R&D costs by 11.4% compared to 2023.
"We are encouraged by the outlook for 2025 and believe Fluence is positioned for profitable growth," said Thomas Pokorsky, CEO and Managing Director of Fluence.
The backlog for the fourth quarter stands at $88 million, with $58.1 million expected to be converted to revenue in 2025.
Fluence provides decentralised water and wastewater treatment solutions. The company is engaged in wastewater treatment and reuse, high-strength wastewater treatment, wastewater-to-energy, industrial and drinking water markets.
At the time of reporting, Fluence's share price was $0.068.