Arq(US:ARQ) Globenewswire·2026-03-09 22:39Core Insights - Arq, Inc. reported record revenue of approximately $120 million for the full year 2025, driven by the performance of powdered activated carbon (PAC) [1][6][18] - The company achieved an Adjusted EBITDA of $13 million, reflecting a 26% improvement year-over-year [1][22] - Arq provided inaugural financial guidance for full-year 2026, expecting revenue between $120-125 million and Adjusted EBITDA of $17-20 million [1][13] Financial Highlights - Revenue for FY 2025 was $120.3 million, a 10% increase from $109.0 million in FY 2024, primarily due to improved average selling price (ASP) and product diversification [6][18] - Gross margin decreased to 27.9% in FY 2025 from 36.2% in FY 2024, attributed to higher costs related to granular activated carbon (GAC) start-up [6][19] - The company recorded a net loss of $52.6 million for FY 2025, compared to a net loss of $5.1 million in FY 2024 [22][26] Operational Updates - Arq announced a pause in GAC production to conduct a comprehensive engineering and production process optimization review, with no GAC production expected in FY 2026 [5][7] - The decision to pause GAC production follows testing results indicating that the current thermal oxidizer can only support approximately 15 million pounds of annual GAC production, which does not deliver acceptable returns [7][8] - The company is transitioning from Corbin Wetcake feedstock to bituminous proven performance coal to address design challenges [8][9] Leadership Changes - Eric Robinson has been appointed as VP Operations, bringing over 30 years of industrial experience [10][12] - The company has reorganized its finance team, promoting Anthony Nathan to VP Finance [12] Future Guidance - For FY 2026, Arq expects PAC average selling price to be between $0.88-0.91 per pound, with projected production volumes of 122-125 million pounds [13][14] - Additional revenue from other chemicals and products is anticipated to contribute approximately 13-15% of total revenue [14]