Core Insights - LiqTech International, Inc. has received an order for an advanced membrane-based filtration system from North Star BlueScope Steel to treat oily wastewater [1][2] - The system is set to be commissioned in the second half of 2025 and aims to address filtration process challenges due to high oil content and variability in wastewater quality [2][3] - LiqTech's Silicon Carbide (SiC) membrane technology is designed for harsh industrial conditions, enhancing process stability and water recovery efficiency [3][4] Company Overview - LiqTech International, Inc. specializes in clean technology, manufacturing and marketing advanced filtration products for liquid and gas applications [6] - The company was founded in 2000 and its patented SiC membranes are utilized in various sectors including industrial and municipal water treatment, marine scrubbers, and oil & gas applications [6] Industry Trends - The project with North Star BlueScope Steel reflects a growing trend in the steel industry towards sustainable water management practices [5] - The addition of advanced wastewater pre-treatment filtration supports broader water reclamation initiatives within the industry [5]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][3] Value Score - The Value Style Score identifies stocks trading below their true value by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, utilizing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by assessing one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock to Watch: Donaldson Company, Inc. (DCI) - Donaldson Company, Inc. is a filtration systems manufacturer based in Bloomington, MN, with a Zacks Rank of 3 (Hold) and a VGM Score of A [12] - The company has a Value Style Score of B, supported by a forward P/E ratio of 19.31, indicating attractive valuation metrics [12] - Six analysts have raised their earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.05 to $3.66 per share, and an average earnings surprise of 2.5% [13]

Summary of Donaldson Company (DCI) FY Conference Call - June 05, 2025 Company Overview - **Company**: Donaldson Company (DCI) - **Industry**: Filtration technology, focusing on engine markets, industrial applications, and expanding into life sciences [3][6] Key Points and Arguments 1. **Strategic Positioning**: Donaldson aims to be a technology-led filtration company, emphasizing complex problem-solving for customers, which fosters deeper relationships [6][7] 2. **Revenue Segmentation**: The company has three reporting segments: Mobile Solutions (62% of revenue), Industrial Solutions (30%), and Life Sciences (8%) [8][19] 3. **Revenue Growth**: Donaldson has achieved record revenues and adjusted earnings per share for the past four years, indicating strong financial performance [9][16] 4. **Global Presence**: 75% of revenue is generated within the region it is consumed, providing a natural hedge against tariffs [11][12] 5. **Tariff Impact**: The company anticipates a $35 million headwind from tariffs but believes it can offset this through supply chain pricing and surcharges, although slight gross margin pressure is expected [13][14] 6. **Operating Margin Guidance**: The adjusted operating margin for the current fiscal year is 15.8%, with a target of 16.2% for the next fiscal year [17][50] 7. **Market Dynamics**: Despite headwinds in major end markets like construction and agriculture, Donaldson expects significant rebounds when these markets recover, potentially leading to double-digit growth [62][63] 8. **Aftermarket Revenue**: Approximately 60% of sales come from the aftermarket, which is a higher-margin segment, providing resilience against cyclical downturns [65][66] 9. **Life Sciences Segment**: The Life Sciences segment is small but has a large addressable market of $21 billion. Donaldson is focused on differentiated products and has made acquisitions to enhance its capabilities in this area [28][31] 10. **Acquisition Strategy**: The company has a strong pipeline for acquisitions, with a focus on investing in technology and organic growth [34][40] 11. **Dividend Policy**: Donaldson raised its dividend by 11%, marking the 30th consecutive year of dividend increases, highlighting its commitment to returning value to shareholders [34][35] 12. **Capital Allocation**: The company prioritizes organic investment, acquisitions, dividends, and share buybacks, with a recent buyback rate of 3.3% [36][38] Additional Important Insights - **Technological Innovation**: Donaldson is committed to innovation, with a patent granted on average every day, showcasing its focus on developing advanced filtration technologies [10][40] - **Alternative Fuels**: The company is actively working on filtration solutions for alternative fuels, including hydrogen, which presents growth opportunities in the Mobile Solutions segment [20][24] - **Operational Efficiency**: Donaldson is optimizing its manufacturing footprint and has centralized its business processes to enhance efficiency and reduce costs [51][52] - **Market Resilience**: The diversity of Donaldson's business portfolio helps mitigate risks associated with cyclical downturns in specific markets [66][67]

Core Viewpoint - Donaldson (DCI) is expected to report quarterly earnings of $0.95 per share, a 3.3% increase year-over-year, with revenues projected at $940.49 million, reflecting a 1.4% increase compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised downward by 0.6% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Revenue Estimates - Analysts predict 'Net Sales- Industrial Solutions segment' at $284.11 million, a year-over-year increase of 5.6% [5]. - 'Net Sales- Mobile Solutions' is expected to reach $577.91 million, indicating a decrease of 1.3% from the prior-year quarter [5]. - 'Net Sales- Life Sciences segment' is forecasted at $75.23 million, reflecting a 2.2% increase year-over-year [5]. Segment-Specific Sales - 'Net Sales- Industrial Solutions- Industrial Filtration Solutions' is estimated at $239.58 million, a 4.8% increase from the previous year [6]. - 'Net Sales- Industrial Solutions- Aerospace and Defense' is projected to be $42.98 million, showing a 6.1% increase year-over-year [6]. - 'Net Sales- Mobile Solutions- Off-Road' is expected at $97.26 million, a decrease of 6.7% from the prior-year quarter [7]. - 'Net Sales- Mobile Solutions- On-Road' is forecasted at $32.98 million, indicating a decline of 7.6% from the previous year [7]. - 'Net Sales- Mobile Solutions- Aftermarket' is estimated at $446.85 million, reflecting a slight increase of 0.4% year-over-year [8]. Earnings Before Income Taxes - 'Earnings / (loss) before income taxes- Mobile Solutions' is expected to reach $106.15 million, down from $107.90 million in the same quarter last year [8]. - 'Earnings / (loss) before income taxes- Industrial Solutions' is projected at $52.13 million, compared to $50.30 million reported in the same quarter of the previous year [9]. Stock Performance - Donaldson shares have increased by 5.4% over the past month, compared to a 6.7% increase in the Zacks S&P 500 composite [9].

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]

Core Viewpoint - LiqTech International, Inc. reported strong financial results for Q1 2025, with a significant sequential revenue growth driven by a record commercial order in the oil and gas sector and ongoing projects in various markets, including a joint venture in China [4][5][6]. Recent Financial Highlights - Q1 2025 revenue was $4.6 million, a 36% increase from $3.4 million in Q4 2024 and a 9% increase from $4.2 million in Q1 2024 [5][7]. - The company expects Q2 2025 revenue to be between $4.8 million and $5.2 million, representing a 4% to 13% sequential increase and a 7% to 16% year-over-year improvement from Q2 2024 [2]. Recent Operational Highlights - A record commercial order for PureFlow™ Mobile Units was delivered to the oil and gas industry, contributing to a 36% sequential revenue growth [4]. - The company has multiple pilot and commercial projects underway, including lithium brine production and oil and gas water treatment [4][6]. - A joint venture with Jiangsu JiTRI Marine Equipment Co., Ltd. was established, leading to two marine scrubber orders and a new framework agreement for aftersales support [4][6]. Management Commentary - The CEO highlighted the successful delivery of a record order and the positive outlook for Q2 2025 based on good sales development across various products [4]. - The company is seeing a ramp-up in DPF order intakes, swimming pool systems orders, and growth in plastics, which are expected to drive further revenue growth [4]. Financial Results Overview - Gross profit for Q1 2025 was $0.1 million, with a gross profit margin of 2.7%, down from $0.3 million and 6.4% in Q1 2024, primarily due to low margins on the full-scale liquid filtration system [8]. - Total operating expenses for Q1 2025 were $2.3 million, consistent with the same period in 2024 [9]. - The net loss for Q1 2025 was $(2.4) million, unchanged from Q1 2024 [13]. Balance Sheet Highlights - As of March 31, 2025, the company had a cash balance of $10.4 million and total assets of $32.57 million [21][24]. - Total liabilities were $17.5 million, with stockholders' equity at $15.06 million [23][24].

BALLERUP, Denmark, May 13, 2025 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT), a high- tech filtration technology company, today announced a distribution and partnership agreement with NAF Aquatics LLC for the U.S. commercial swimming pool market. The agreement includes the full PurePool™ product range and marks LiqTech's first major step in its strategic expansion into the U.S. LiqTech received NSF certification for its pool filtration system in the U.S. in August 2024. This milestone supports ...

Core Viewpoint - Donaldson Company, Inc. (DCI) is experiencing operational challenges due to weaknesses in both its off-road and on-road businesses, alongside rising expenses that are expected to impact earnings in the near future [1][5][6]. Business Performance - The on-road business has seen a sales decline of 24.4% year-over-year, primarily due to lower global truck production linked to softness in industrial markets [5]. - The off-road business has also been affected, with a sales decline of 12.8% year-over-year, driven by weak agricultural markets and soft global end-market demand [5]. Expense Trends - Selling, general and administrative expenses increased by 1.5% in the second quarter of fiscal 2025, attributed to rising headcount and costs from acquired businesses [6]. - Overall operating expenses rose by 3.9% year-over-year to $369.2 million in the first half of fiscal 2025, with operating expenses as a percentage of total revenues increasing by 30 basis points to 20.9% [6]. Foreign Exchange and Supply Chain Issues - DCI's international operations expose the company to economic, political, and environmental risks, as well as fluctuations in foreign currencies [7]. - Supply-chain disruptions could impact operations, as DCI relies on a variety of raw materials and components, necessitating price adjustments that may affect competitiveness [8].

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]

Financial Data and Key Metrics Changes - Sales for Q1 2025 were $417 million, a decrease of 2.4% compared to $427 million in the same period last year, primarily driven by unfavorable foreign exchange and lower volumes [16][26] - Adjusted EBITDA was $82 million, or 19.6%, compared to $80 million, or 18.8% in the prior period, excluding $9 million of one-time standalone costs [17][28] - Adjusted earnings per share was $0.63 in Q1 2025, up from $0.60 last year [29] - Adjusted free cash flow was $20 million, compared to an outflow of $13 million in the prior year [29] Business Line Data and Key Metrics Changes - The company continues to focus on aftermarket sales, which account for over 80% of revenue, demonstrating resilience despite market challenges [11] - The first fit market is expected to decline, with heavy-duty market projections down 5% to 15% and medium-duty down 10% to 20% [23][24] Market Data and Key Metrics Changes - The overall impact on end markets remains unclear due to economic uncertainty and tariff implications [18] - The company expects total revenue for 2025 to remain flat to up 4% compared to the prior year, with global sales projected between $1.67 billion and $1.735 billion [24][25] Company Strategy and Development Direction - The company is executing a four-pillar growth strategy focusing on first fit growth, aftermarket expansion, supply chain transformation, and industrial filtration market expansion [11][12][15] - The company is actively pursuing inorganic growth opportunities in the industrial filtration sector, although M&A activity is currently soft due to economic uncertainty [15][38] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving tariff environment and adapting quickly, although visibility remains limited [19][20] - The company anticipates pricing actions to offset input costs and expects a revenue increase of approximately 3.2% year-over-year from pricing adjustments [21][22] Other Important Information - The company has repurchased $10 million of stock in Q1 2025, totaling $30 million since the program's announcement [6] - The effective tax rate for Q1 2025 was 21.3%, down from 22% last year due to a change in the mix of earnings among tax jurisdictions [30] Q&A Session Summary Question: Potential manufacturing transitions due to tariffs - Management indicated that while they are monitoring the tariff situation closely, no long-term manufacturing changes are currently planned [34][35] Question: M&A pipeline activity in a challenging environment - Management acknowledged that while the market is fragmented, the degree of difficulty in finding targets has increased due to uncertainty, but they remain focused on building a strong M&A pipeline [38] Question: Revenue outlook amidst currency and market changes - Management confirmed that the revenue outlook remains near the midpoint of their guidance, despite softening market conditions [42][44] Question: Pricing expectations for the year - Management expects pricing to ramp up throughout the year, with a gradual increase leading to the anticipated 3.2% for the full year [49][50] Question: Impact of potential EPA regulation rollbacks - Management is closely monitoring the EPA's review of regulations and believes they are well-positioned to support customers regardless of regulatory changes [73][75] Question: Shipping route reconfigurations to mitigate tariffs - Management confirmed that they have already enacted some shipping route adjustments to mitigate tariff impacts and will continue to explore further options [81][82]