Financial Data and Key Metrics Changes - The company reported a strong quarter of sales execution with improved mega project shipments and a rebound in wastewater revenue, reiterating its four-year revenue guidance [3] - Operating expenses (OpEx) guidance has been reduced further due to effective cost control measures [3] Business Line Data and Key Metrics Changes - The CO2 business had a successful summer testing season, demonstrating energy savings of up to 15% at peak times and significant water savings in specific regions [8][9] - The company is focused on gaining traction in the CO2 market with plans for further updates in 2026 [4] Market Data and Key Metrics Changes - The company is optimistic about long-term trends in desalination and water treatment, although it cautions against expecting near-term results due to the lengthy infrastructure build-out [13] Company Strategy and Development Direction - The company is prioritizing efficiency and cost reduction while continuing to invest in its growing wastewater business [3] - The strategy has shifted to a top-down approach, working closely with OEMs to engage large retailers for technology adoption [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing interest from OEMs and the potential for commercialization in 2027, despite a likely delay in signing commercial agreements [25] - The company expects to see backlog building for 2026, although it will be relatively small, with a pattern of heavy second-half activity continuing [27] Other Important Information - The company has secured a $350,000 lithium extraction project in Argentina, indicating potential growth in this niche area [32] Q&A Session Summary Question: Key takeaways from the recent white paper on CO2 - The white paper validated energy savings of up to 15% and significant water savings in specific regions, along with increased performance during high heat load days [8][9] Question: Progress with OEMs and commercial agreements - OEMs are beginning discussions with large end users, but a commercial agreement is likely a year away, with an MOU signed with Hillphoenix [10][12] Question: Potential government initiatives for desalination - Long-term trends in desalination are encouraged, but near-term results are uncertain due to infrastructure timelines [13] Question: Updates on data center opportunities - No near-term opportunities in CO2 for refrigeration, but water reuse and treatment for data centers are being monitored [16] Question: Operating cost reductions and international footprint - Cost reductions were achieved independently of international expansion efforts, with proactive measures taken in response to tariffs [31] Question: Hiring criteria for wastewater efforts - The company seeks candidates with a track record in wastewater and relevant industry relationships [33] Question: Retailer tests for CO2 technology - Most installations for upcoming tests are expected to be skid installations at existing CO2 locations [34]

Financial Data and Key Metrics Changes - The company reported a strong quarter of sales execution with improved mega project shipments and a rebound in wastewater revenue, reiterating its four-year revenue guidance [3] - Operating expenses (OPEX) guidance has been reduced further due to effective cost control measures [3] Business Line Data and Key Metrics Changes - The CO2 business had a successful summer testing season, with strong OEM engagement, although commercialization is still in early stages [4] - The company is focused on gaining traction in the CO2 market in 2026 and plans to provide updates on progress [4] Market Data and Key Metrics Changes - The company is optimistic about long-term trends in desalination and water treatment, although it cautions against expecting near-term results due to the lengthy infrastructure build time [13] Company Strategy and Development Direction - The company is prioritizing efficiency and cost reduction while continuing to invest in its growing wastewater business [3] - The strategy has shifted to a top-down approach, working with OEMs to engage large retailers for technology adoption [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the CO2 product, despite a delay in commercial agreements, with expectations for significant testing in 2026 [25] - The company anticipates a slow backlog build for 2026, consistent with past patterns, with a heavier second half [27] Other Important Information - The company has secured a $350,000 lithium extraction project in Argentina, indicating potential growth in this niche area [32] - Hiring efforts are focused on individuals with a track record in the wastewater sector and relevant industry relationships [33] Q&A Session Summary Question: Key takeaways from the recent white paper on CO2 - The white paper validated energy savings of up to 15% at peak times, significant water savings in specific regions, and increased performance during high heat load days [8][9] Question: Progress with OEMs and commercial agreements - OEMs are beginning discussions with large end users, but a commercial agreement is likely a year away, with an MOU signed with Hillphoenix [10][12] Question: Potential for government initiatives in desalination - Long-term trends in desalination are encouraged, but near-term results are uncertain due to infrastructure development timelines [13] Question: Updates on data center opportunities - No near-term opportunities in CO2 for refrigeration, but water reuse and treatment for data centers are being explored [16] Question: Impact of international footprint on operating cost reduction - Cost reductions were achieved independently of international expansion efforts, driven by proactive measures in response to tariffs [31] Question: Future hiring criteria for wastewater efforts - The company seeks candidates with industry experience and existing relationships within targeted verticals [33] Question: Likely installation types for retailer tests next year - Most installations are expected to be skid installations at existing CO2 locations [34]