Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe. The company released an update on its third quarter (Q3) performance (note December year-end), its quarterly 4C cash-flow statement and progress for September year to date. Q3 was clearly the strongest quarter to date this year with revenue of US$19.3m and EBITDA of US$1.2m. On a year-to-date basis (YTD) the company has grown revenue by 72.9% over the previous corresponding period (pcp) and materially improved EBITDA from a US$5.0m loss to a US$1.2m profit. The successful delivery of the IVC Addendum project was the most material financial driver of the turnaround, complemented by ongoing success in the strategically important and higher-margin SPS revenue segment. This Q3 result has largely derisked FY25 and management has maintained full-year guidance of revenue of US$80-95m and EBITDA of US$3-5m, albeit likely to be delivered at the lower end. Accordingly, we adjust our FY25 forecasts from the mid-point to the lower end of the guidance range. The outlook for FY26 and beyond looks encouraging, with the order backlog exceeding US$50m and a strong sales pipeline of more than US$1b. Recent contract success, such as the US$12m Qurayyah Power Pant in Saudi Arabia, has been delivered under the new “One Fluence” initiative whereby multiple divisions are now working together across various geographies with a focus on delivering high-margin SPS projects. We continue to believe the business is very well positioned to deliver ongoing growth in Europe, South America and the Middle East, and expect increasing traction in the North American market. Our DCF valuation of $0.18/share remains unchanged, representing potential share price upside of 80%.