Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe. The company has released its quarterly 4C cash-flow statement and a Q1FY25 financial and operating update (December year-end). The Q1 result showed a continuation of momentum from Q4FY24 and sets the company up for the remainder of the year. FY25 guidance was maintained at revenue of $80-95m and EDITDA (adj.) of $3-5m. Q1 revenue grew 64.5% over the pcp, assisted by the commencement of the IVC addendum project which contributed $5.7m. Smart Product Solutions (SPS) revenue grew 13.4%, or 31.2% ex SEA and China. Improved revenue was complemented by a cost base reduction of $0.8m, resulting in a marginally positive EBITDA result. It’s worth noting that all divisions delivered EBITDA breakeven or better, validation for the work of the new management team over the past 18 months. The company believes an operating cash outflow of $0.2m will reverse and strengthen in H2 FY25. In the quarter, new orders grew 21.8% over the pcp to $12.1m, resulting in an order backlog of $83.5m, of which $49.4m is expected to be recognised in the balance of FY25. When combined with Q1 revenue, this represents 75% of forecast revenue at the guidance mid-point. This provides a level of comfort given Q1 is historically light, as supported by the company statement of that “Q2-Q4 is expected to show growth relative to Q1 2025”. Our FY25 forecasts remain unchanged, in line with the mid-point of the guidance range with revenue at US$87.4m and EBITDA at US$4.1m. We retain our DCF valuation of A$0.18 per share, representing potential upside of 339% from the current share price.