Arq Reports Fourth Quarter and Full Year 2024 Results

Core Insights - The company achieved a 10% year-over-year revenue growth in FY 2024, reaching $109.0 million, primarily driven by a turnaround in the PAC business and a 14$30 million asset-backed lending facility, enhancing financial flexibility and reducing financing costs [1][5][24] Financial Highlights - Revenue for FY 2024 was $109.0 million, up from$99.2 million in the previous year, driven by higher ASP and product diversification [5][7] - Gross margin for FY 2024 was 36.2%, compared to 32.1% in FY 2023, attributed to increased revenue and cost reductions [9] - The net loss for FY 2024 was $5.1 million, significantly improved from a net loss of$12.2 million in the prior year [12] Operational Highlights - The company reported an Adjusted EBITDA of $7.7 million for FY 2024, a turnaround from an Adjusted EBITDA loss of$2.6 million in the previous year [13] - Capital expenditures for FY 2024 totaled $85.2 million, primarily for the development of the Red River facility [22] - The first production of granular activated carbon (GAC) at the Red River facility is expected by the end of Q1 2025, with a ramp-up to a nameplate capacity of 25 million pounds anticipated in H2 2025 [1][5][22] Management Commentary - The CEO emphasized the successful transformation of the PAC business into a cash flow contributor, highlighting the positive trajectory of the company's performance [6] - The CEO acknowledged frustrations regarding capital expenditure overruns but expressed confidence in the long-term profitability and returns profile [6] - The imminent start of GAC production is viewed as a major milestone, with expectations for rapid ramp-up to full capacity [6]