Water treatment innovator Fluence (ASX:FLC) has delivered a standout performance for the fiscal year ended Dec. 31, 2025, reporting a 52% surge in annual revenue to $78.4 million.
The company met its full-year guidance, swinging from an $8 million EBITDA loss in 2024 to a $4 million EBITDA profit in 2025.
The turnaround was driven by a combination of high-margin product sales and significant progress on the Ivory Coast water treatment project, which contributed $27.5 million in revenue.
The company's strategic shift toward Smart Product Solutions and recurring revenue reached a new milestone in Q4, marking the largest order quarter for these segments in the company's history.
Total new orders for the year rose to $64.2 million, leaving Fluence with a robust backlog of $74.8 million heading into 2026.
Despite global trade volatility and the introduction of "Liberation Day Tariffs" in the US, Fluence managed to maintain steady gross margins of 29.9%.
Management mitigated potential tariff impacts by diversifying its manufacturing and sourcing strategies.
Looking ahead, CEO Tom Pokorsky noted that the company is exiting 2025 with strong momentum in North American municipal and industrial markets.
While the company is not issuing specific 2026 guidance, it expects continued double-digit revenue growth and further margin expansion as it transitions toward a more software- and service-oriented business model.