BALLERUP, Denmark, June 25, 2025 (GLOBE NEWSWIRE) -- LiqTech International, Inc. (Nasdaq: LIQT), a leading clean technology company that manufactures and markets highly specialized filtration technologies, today announced it has received an order for the delivery of an advanced membrane-based filtration system to treat oily wastewater from North Star BlueScope Steel, a major U.S.-based steel producer. The system, designed to resolve recurring filtration process upsets caused by high oil content and variabil ...

Revenue and Profit - Revenue for Q1 2025 was $4,617,541, an increase of $382,197 or 9.0% compared to Q1 2024's $4,235,344, driven by liquid filtration systems and plastics sales[76] - Gross profit for Q1 2025 was $125,056, a decrease of $146,046 or 53.9% from $271,102 in Q1 2024, resulting in a gross profit margin of 2.7%[77] - Net loss for Q1 2025 was $2,358,342, a decrease of $29,953 or 1.3% from $2,388,295 in Q1 2024[83] Operating Expenses - Total operating expenses for Q1 2025 were $2,310,385, a slight decrease of $6,737 or 0.3% from $2,317,122 in Q1 2024[78] - Selling expenses increased by $200,437 or 38.7% to $718,016 in Q1 2025, primarily due to costs associated with a new joint venture[79] - General and administrative expenses decreased by $182,485 or 11.8% to $1,362,246 in Q1 2025, attributed to non-recurring costs in the prior period[80] - Research and development expenses decreased by $24,689 or 9.7% to $230,123 in Q1 2025, due to a reduction in R&D personnel[81] Cash Flow and Working Capital - Cash flows used in operating activities for Q1 2025 were $1,297,186, a favorable change of $659,516 compared to $1,956,702 in Q1 2024[89] - Cash flows provided from financing activities were $989,722 in Q1 2025, a favorable change of $1,999,159 compared to cash flows used of $1,009,437 in Q1 2024[91] - As of March 31, 2025, the company had cash of $10,447,432 and net working capital of $15,404,982, a decrease in net working capital of $331,827 from December 31, 2024[85] Revenue and Expense Recognition - Revenue recognition assessment impacts revenue and cost of sales[96] - Allowance for product warranties assessment impacts gross profit[96] - Collectability of accounts receivable assessment impacts operating expenses through bad debt adjustments[96] - Recoverability of long-lived assets assessment impacts gross profit or operating expenses through asset impairments[96] - Current and deferred income taxes recognition impacts provision for taxes[96] - Inventory valuation impacts gross profit[96] - Loss contingencies recognition impacts gross profit or operating expenses through loss contingency adjustments[96]

Company Performance - LiqTech International, Inc. reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.18, representing an earnings surprise of -38.89% [1] - The company posted revenues of $4.62 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.62%, compared to revenues of $4.24 million a year ago [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Movement and Outlook - LiqTech International shares have declined approximately 21.3% since the beginning of the year, while the S&P 500 has gained 0.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.16 on revenues of $4.7 million, and -$0.60 on revenues of $19 million for the current fiscal year [7] Industry Context - The Pollution Control industry, to which LiqTech International belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for LiqTech International is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

LiqTech International (LIQT) Q1 2025 Earnings Call May 14, 2025 09:00 AM ET Company Participants Robert Blum - Managing PartnerFei Chen - CEO, President & DirectorDavid Kowalczyk - CFO & COO Conference Call Participants None - Analyst Operator Good day, and welcome to the Lichtank International Reports First Quarter twenty twenty five Financial Results Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Robert Blum wit ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4,600,000, a 36% sequential increase from $3,400,000 in Q4 2024 and up from $4,200,000 in Q1 2024 [5][22] - Gross margin for Q1 2025 was 2.7%, down from 6.4% in the same period last year, but improved from negative margins in Q4 2024 [24][28] - Net loss for the quarter was $2,400,000, consistent with the loss in Q1 2024 [28] Business Line Data and Key Metrics Changes - Water Systems sales were $2,700,000, up from $1,500,000 in Q1 2024 and $1,400,000 in Q4 2024, driven by a record commercial oil and gas order [22][23] - DPF and ceramic membrane sales were $1,000,000, down from $1,800,000 in Q1 2024 and slightly down from $1,100,000 in Q4 2024 [23] - Plastics revenue was $1,000,000, up from $900,000 in both Q1 2024 and Q4 2024 [23] Market Data and Key Metrics Changes - The company is seeing growth in various markets, including swimming pools, DPFs, and plastics, with expectations for continued revenue growth in Q2 2025 [7][20] - The joint venture in China has gained traction with new orders and a framework agreement for after-sales support, indicating a positive outlook for the marine water treatment market [15][16] Company Strategy and Development Direction - The company aims to improve bottom-line profitability through better manufacturing utilization and cost-saving initiatives, targeting a revenue breakeven of $5,500,000 to $6,000,000 [28][30] - The focus remains on expanding in key markets such as oil and gas, swimming pools, and plastics, with a diversified revenue stream expected in Q2 2025 [20][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the order pipeline, indicating continuous improvement across various segments [36] - The company is committed to sustainable cash flow generation and long-term value creation, with expectations for further growth in Q2 2025 [33][34] Other Important Information - The company has implemented a comprehensive cost reduction strategy aimed at lowering the breakeven target, which is a significant improvement from previous targets [28] - The joint venture partner contributed $1,200,000 in cash, which is recognized on the consolidated balance sheet [28] Q&A Session Summary Question: Can you talk about your order pipeline? - Management indicated that the order pipeline is continuously improving, with broad-based growth across marine, pool, and water energy segments [36] Question: How do you see sales trending sequentially in Q3 and Q4? - Management expects growth across all segments, with one or two large projects also anticipated [37] Question: Is there competition in silicon carbide technology? - Management acknowledged competition from various regions, including France, Germany, and China, but emphasized the superior performance of their products [40][42] Question: Will all cost savings initiatives be in full effect in Q2? - Management confirmed that cost savings initiatives will be fully implemented, with operating expenses expected to be slightly lower than Q1 [44] Question: How much more performance data is needed for the lithium brine pilot? - Management stated that the pilot is gathering data for the next phase of the commercial project, with positive expectations for both lithium brine and oil and gas pilots [46][47] Question: Is the aftermarket agreement in China servicing only your systems? - Management clarified that the focus is on servicing their own systems, with potential for future expansion to competitor systems [49]

Group 1 - LiqTech International, Inc. will report its first quarter 2025 financial results on May 14, 2025, before the market opens [1] - A conference call to review the results is scheduled for the same day at 9:00 a.m. Eastern time [1][2] - The conference call can be accessed via phone or a live webcast on the company's website [2] Group 2 - LiqTech International, Inc. specializes in high-tech filtration products and systems, particularly ceramic silicon carbide filtration technologies for gas and liquid purification [4] - The company's silicon carbide membranes are designed for challenging purification applications, including controlling diesel exhaust soot emissions [4] - LiqTech utilizes nanotechnology to develop a range of filtration products, offering unique turnkey solutions for water purification [4]

Core Viewpoint - LiqTech International, Inc. (LIQT) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Correlation - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, influencing their buying and selling decisions, which in turn affects stock prices [4]. Recent Performance and Future Expectations - For the fiscal year ending December 2025, LiqTech International is expected to earn -$0.60 per share, reflecting a 63.4% change from the previous year's reported number [8]. - Over the past three months, the Zacks Consensus Estimate for LiqTech International has increased by 40%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, suggesting superior earnings estimate revisions [9][10]. - The upgrade of LiqTech International to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $3.4 million, a 37% sequential increase from Q3 2024, but down from $3.9 million in Q4 2023 [9][42] - The net loss for Q4 was $3.0 million, compared to $3.2 million for the same period in 2023 [47] - Cash at the end of the quarter was $10.9 million, with underlying cash decreasing by approximately $2.4 million compared to the end of Q3 2024 [48] Business Line Data and Key Metrics Changes - Water treatment systems revenue was up nearly $750,000 or 108% sequentially, totaling $1.4 million in Q4 2024 [10][42] - Ceramic membrane sales were $1.1 million, flat compared to Q3 2024 and down from $1.4 million in Q4 2023 [42] - Simplastics revenue was $0.9 million, up 13% year-over-year and up 34% sequentially [33][42] Market Data and Key Metrics Changes - The company has ongoing pilot programs in various markets, including lithium brine production and microplastics removal, which are critical for long-term adoption [10][20] - The Middle East market has been slow in adoption, with a shift in focus towards the US market [22][24] Company Strategy and Development Direction - The company aims to lower its breakeven target to approximately $5.5 million to $6.0 million per quarter through cost reduction strategies [12][47] - A distribution agreement was established with Razorback Direct to commercialize water treatment solutions in the oil and gas sector [16] - The company is focusing on expanding its presence in the marine market through a joint venture in China [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, particularly in the oil and gas industry, citing a record commercial order as a validation of their systems [12][19] - The CEO highlighted the importance of pilot programs as a pathway to larger commercial orders [51] - Management is aware of the need to preserve cash and drive the business towards achieving positive cash flows [52] Other Important Information - The company appointed David Kowalczuk as the new Chief Financial and Operating Officer, effective March 1, 2025 [34] - The company has implemented a comprehensive cost reduction strategy, including a 10% reduction in headcount and salaries for senior management [47] Q&A Session Summary Question: Q4 revenues were towards the lower end of expectations. Was there a deterioration since the last call? - Management clarified that timing differences on key projects affected the revenue, but they remained within guidance [56] Question: How will the large order in Q1 affect subsequent quarters? - Management expects contributions from other market segments in Q2, aiming for continued growth each quarter [58] Question: What is needed for a real take-off in revenues? - Management emphasized the importance of building a strong sales pipeline through distribution agreements and ongoing pilot programs [60] Question: Why would customers choose the company's oil and gas treatment technology over competitors? - The company offers stable treatment and high-quality water reinjection and reuse, which competitors cannot provide [67] Question: What is the status of pool sales and the marine market? - Management acknowledged disappointing pool sales due to a weak pipeline in 2023 but is optimistic about future growth [78] - The company is conducting pilot testing in China, with expectations for commercial sales by the end of Q2 [82]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $3.4 million, a 37% sequential increase from Q3 2024, but down from $3.9 million in Q4 2023 [9][42] - The net loss for Q4 2024 was $3.0 million, compared to $3.2 million for the same period in 2023 [47] - Cash at the end of Q4 2024 was $10.9 million, with underlying cash decreasing by approximately $2.4 million compared to the end of Q3 2024 [48] Business Line Data and Key Metrics Changes - Water treatment systems revenue was up nearly $750,000 or 108% sequentially, totaling $1.4 million in Q4 2024 [10][42] - Ceramic membrane sales were $1.1 million, flat compared to Q3 2024 and down from $1.4 million in Q4 2023 [42] - Simplastics revenue was $0.9 million, up 13% year-over-year and up 34% sequentially [33][42] Market Data and Key Metrics Changes - The company has ongoing pilot programs in various markets, including lithium brine production and petrochemical microplastics removal, which are critical for future growth [10][20] - The Middle East market has been slow in adoption, while the focus is increasingly directed towards the US market [22][23] Company Strategy and Development Direction - The company aims to lower its breakeven target to approximately $5.5 million to $6.0 million per quarter through cost reduction strategies [12][47] - A significant commercial order from Razorback Direct for PureFlow mobile units is expected to drive revenue growth in Q1 2025 [11][50] - The establishment of a joint venture in China aims to expand the company's focus within the marine market [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, particularly in the oil and gas industry, citing the successful execution of pilot programs leading to commercial orders [19][50] - The company is focused on building a strong sales pipeline in swimming pool systems and marine systems to drive revenue growth [60][61] Other Important Information - The company has implemented a cost reduction strategy, including a 10% reduction in headcount and senior management salaries [12][47] - The appointment of David Kowalczuk as the new Chief Financial and Operating Officer is expected to enhance the company's growth and profitability [34][36] Q&A Session Summary Question: Q4 revenues were towards the lower end of expectations. Was there a deterioration since the last call? - Management clarified that timing differences on key projects led to being on the lower end of guidance, but they remained within the expected range [56] Question: How will the new oil and gas PureFlow systems affect subsequent quarters? - Management indicated that while Q1 will see significant revenue from the PureFlow system, they expect contributions from other market segments in Q2 [58] Question: What is needed for a real take-off in revenues for LiqTech? - Management emphasized the importance of building a strong sales pipeline through distribution agreements and pilot programs [60] Question: Why would a customer choose LiqTech's oil and gas treatment technology over competitors? - Management highlighted that LiqTech's technology offers stable treatment and the ability for water reinjection and reuse, which competitors cannot provide [66][67] Question: What is the opportunity in the marine market following the supply approval from WinGD? - Management stated that pilot testing is underway, and they expect to recognize revenue from commercial sales by the end of Q2 [82][84]

Company Performance - LiqTech International, Inc. reported a quarterly loss of $0.39 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.37, but an improvement from a loss of $0.56 per share a year ago [1] - The company posted revenues of $3.41 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 10.37% and down from $3.93 million in the same quarter last year [2] - Over the last four quarters, the company has consistently failed to surpass consensus EPS and revenue estimates [2] Stock Performance - LiqTech International shares have declined approximately 17.1% since the beginning of the year, compared to a decline of 3.2% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.30 on revenues of $4.5 million, and for the current fiscal year, it is -$1 on revenues of $19.1 million [7] Industry Outlook - The Pollution Control industry, to which LiqTech International belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating a challenging environment [8] - The performance of LiqTech International's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]