  Using two archival XMM-Newton observations, we identify strong X-ray flux
variations in NGC 6946 X-1 indicating it is the most variable ultraluminous
X-ray source (ULX) on mHz time scales known so far. The 1-10 keV lightcurve
exhibits variability with a fractional rms amplitude of 60% integrated in the
frequency range of 1-100 mHz. The power spectral density of the source shows a
flat-topped spectrum that breaks at about 3 mHz with possible quasi-periodic
oscillations (QPOs) near 8.5 mHz. Black hole binaries usually produce strong
fast variability in the hard or intermediate state. The energy spectrum of NGC
6946 X-1 is dominated by two components, a 0.18~keV thermal disk and a power
law with a photon index of ~2.2, which is consistent with the intermediate
state. The characteristic time scales of the X-ray emission suggests that the
ULX may contain a black hole with a mass on the order of 10^3.
