Q1 2026 Fluence Corporation Ltd Earnings Call Transcript
Key Points
- EBITDA improved significantly to $0.5 million in Q1 2026 from essentially break-even in the prior period, driven by strong execution and increased gross margins.
- Backlog across core business units is almost 20% higher than the same time last year, indicating strong future revenue potential.
- The company has strong visibility on its near-term pipeline, with expectations of $18 million to $20 million in new orders in Q2 2026.
- Gross margins increased by 3% to 29.2% in Q1 2026, reflecting improved project execution and margin performance.
- Management remains confident in achieving double-digit revenue growth for fiscal 2026, driven by momentum in SPS and recurring revenue segments.
- Q1 2026 saw a disappointing $7.5 million in new orders, a reduction of about $4.6 million compared to Q1 2025, due to order delays.
- Cash flow was negatively impacted by timing issues, with an operating cash burn of $8.2 million in Q1 2026.
- The conflict in the Middle East has led to some project delays and supply disruptions, creating uncertainty among customers.
- Total backlog declined to $64.4 million due to the continued execution of the Ivory Coast Addendum project.
- The company was unable to secure commercial bank financing to refinance its revolving credit facility, impacting its financial strategy.
(audio in progress) And Ozzie Llanes, the Chief Financial Officer.
Ben, over to you.
Thank you, Andrew. Good morning, everyone. My name, as Andrew said, is Ben Fash, CEO and Managing Director of Fluence. And I'd like to welcome everyone to our Q1 2026 Business and Financial Update. As always, thank you for your time today and your interest in Fluence.
With me is our CFO, Ozzie Llanes. By now, you've likely seen our Q1 business update and Appendix 4C that was recently released. I will provide a brief overview of the results and direction of the business, and then turn it over to Ozzie to provide additional commentary on the financial results.
There was a lot to be encouraged about regarding Fluence's Q1 results. In what is traditionally a relatively slow quarter, EBITDA performed quite well, hitting half a million against a prior period EBITDA, which was essentially break even. This was
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