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Highlights

  • Fluence Corporation offers water and wastewater treatment solutions through its pre-engineered, standardized Smart Products Solutions (SPS)
  • In FY23, the company witnessed 40% YoY fall in revenue to USD 70.1 million
  • FLC expects significant improvement in its revenue in FY24 to USD 90-100 million

Fluence Corporation Limited (ASX: FLC) is an ASX-listed capital goods company that offers plug-and-play, cost effective and high-quality water and wastewater treatment solutions that can be installed quickly, maintained easily and operated automatically, so that customer get clean and reliable water. The company provides its services through its pre-engineered, standardized Smart Products Solutions (SPS).

In the financial year 2023 (FY23), the company reported a 40% YoY decline in revenue to USD 70.1 million. Its revenue was impacted by the wind-down of the Ivory Coast Main Works which led to USD 47.3 million decline in revenue.

The period saw growth in revenue across Industrial water & reuse and SEA & China, and lower revenue across Industrial wastewater & Biogas and Municipal water & Wastewater due to delays in order. 

The company ended FY23 with USD 98.9 million in new order booking, reflecting 129% increase over previous year.

Recent business update

Through an ASX update dated 5 February 2024, the company informed about the finalization of sale of the Aeration & mixing assets to Newterra Inc in an all-cash deal. These assets were owned by FLC’s subsidiary firm, Fluence USA (Aeromix Systems). Earlier FLC management had identified Aeration assets as non-core for the business, so this transaction is expected to enhance liquidity and shift the company’s focus towards core Municipal Water and Wastewater operations.

On 12 January 12024, the company notified that 4,000 share options were ceased on 29 November 2023 as they were not exercised before the date of expiry.

Outlook

In FY24, the company expects to see a 29-43% increase in revenue over FY23 to USD 90-100 million. This forecast comprises USD 51 million of backlog expected to be recognised in FY24 and expected order bookings of USD 40-50 million in the first half of FY24.

FLC expects to deliver EBITDA of USD 3.5-4.0 million in FY24.

Share performance of FLC

FLC shares closed 13.79% higher at AUD 0.165 on 9 February 2024. Including today’s gain, FLC’s share price has decreased by 4.04% in the last 12 months and has increased by 75.82% in the last three months.

The 52-week high of FLC is AUD 0.198, recorded on 6 February 2023, and the 52-week low is AUD 0.08, recorded on 5 December 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 February 2024. The reference data in this report has been partly sourced from REFINITIV.