Fluence Corp Ltd (OTCPK:EMFGF)

Q2 2026 Fluence Corporation Ltd Earnings Call Transcript

Jul 30, 2026 / 11:30 PM GMT

Release Date Price: $0.062 (+12.73%)

Transcript

Key Points

Positve

Fluence Corp Ltd (EMFGF) reported its best first-half EBITDA in more than five years, with first-half EBITDA of $3.4 million, up over $3 million year-over-year.
Revenue quality is improving significantly, with Smart Product Solutions (SPS) plus recurring revenue growing nearly 35% in the first half of 2026, now making up 53% and 21% of total revenue, respectively.
Gross margins expanded to 35.5%, nearly nine points higher than the first half of 2025, driven by the shift toward higher-margin product solutions and services.
The company secured strategic wins, including its first industrial water reuse order in the US and a large order in Southeast Asia, demonstrating geographic and end-market diversification.
Management is investing in operational scale with the appointment of a new COO, Jeremy Damon, who has a strong track record of growing mid-market water companies and driving top-tier EBITDA margins.
The company has a leaner cost base, with SG&A and R&D costs reduced by 25% since fiscal 2022, providing significant operating leverage for future revenue growth.

Negative

The Ivory Coast O&M contract negotiations are moving slower than expected due to bureaucratic processes with a government committee of up to 15 people, potentially delaying the signing beyond Q3 2026.
Q3 operating cash flow is expected to be negative due to the timing of receipts and vendor payments related to the Ivory Coast addendum project, though it is expected to reverse in Q4.
The company decided to suspend operations and liquidate its IWS business in Egypt, which will be reported as a discontinued operation, incurring approximately $300,000 in cash costs to close.
First-half order bookings were only up 5% year-over-year, reflecting a softer Q1, despite a strong Q2 rebound of 54%.
The company has not provided specific EBITDA guidance for fiscal 2026, relying on broker estimates, which may create uncertainty for investors.
The $3.5 million in Ivory Coast O&M fees for services provided in 2025 have been recognized in revenue but have not yet been received in cash, with payment forecast for Q3.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FLC.AX - Fluence Corporation Ltd
Q2 2026 Fluence Corporation Ltd Earnings Call
Jul 30, 2026 / 11:30PM GMT

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Presentation
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Fluence Q2 2026 conference call.

Thank you all for attending and your continued interest in Fluence.

You'll notice today a slightly different structure to the quarterly presentation this time around. This was based on feedback that we've received after prior quarterly presentations and the fact that we've been having a number of conversations with folks that are relatively new to the Fluence story. So we wanted our quarterly materials to provide a little more context and completeness for those that are still getting up to speed on the business.

We also have included an appendix that has some additional details on the company, but we won't cover that today.

Before we walk through the Q2

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