Core Insights - Arq, Inc. is participating in the Water Tower Research Fireside Chat Series on March 25, 2026, at 11:00 AM Eastern Standard Time, with CEO Bob Rasmus representing the company [1][2]. Company Overview - Arq, Inc. (NASDAQ: ARQ) is a diversified environmental technology company focused on producing activated carbon and other environmentally efficient carbon products aimed at purification and sustainable materials [1][3]. - The company is the only vertically integrated producer of activated carbon products in North America, ensuring a reliable domestic supply of innovative and high-demand products [3]. - Arq leverages its expertise to develop solutions that effectively remove harmful chemicals and pollutants from water, land, and air, contributing to a cleaner and safer planet [3].

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims on behalf of investors of Arq, Inc. due to significant setbacks related to its granular activated carbon facility, which may have led to investor losses under federal securities laws [1][6]. Company Developments - On March 9, 2026, Arq, Inc. announced that its GAC production and development had been paused, and the Corbin, Kentucky facility had been idled [3]. - The facility's thermal oxidizer emissions control system limited production capacity to approximately 15 million pounds annually, leading to a recorded impairment charge of $44.8 million related to the Corbin assets [4]. - Arq is currently engaged in litigation with the engineering consultant responsible for the plant's design [4]. Financial Guidance - Arq's 2026 financial guidance excludes any contribution from the GAC initiative, projecting revenue of approximately $120 million to $125 million and adjusted EBITDA of approximately $17 million to $20 million, derived solely from its powdered activated carbon business [5]. - Following these disclosures, Arq's share price experienced a decline [5].

Core 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]

Core Viewpoint - Arq, Inc. will release its fourth quarter and full-year 2025 financial results on March 9, 2026, with a conference call scheduled for March 10, 2026, to discuss the financial performance [1]. Group 1: Financial Results Announcement - The financial results will be announced after market close on March 9, 2026 [1]. - A conference call to discuss the results is set for March 10, 2026, at 8:30 a.m. Eastern Time [1]. Group 2: Conference Call Participation - Interested parties can access the conference call via registration on Arq's website or by dialing specific phone numbers [2]. - A supplemental investor presentation will be available on the Company's website prior to the conference call [3]. Group 3: Company Overview - Arq is a diversified environmental technology company focused on producing activated carbon and other carbon products aimed at purification and sustainability [4]. - The company is the only vertically integrated producer of activated carbon products in North America, ensuring a reliable domestic supply [4].

Core Insights - Arq, Inc. reported a revenue of $35.1 million for Q3 2025, marking a 1% increase year-over-year, primarily driven by a 7% increase in average sales price (ASP) despite slightly lower sales volumes [5][8] - The company achieved an Adjusted EBITDA of $5.2 million, representing the sixth consecutive quarter of positive Adjusted EBITDA, although it faced non-recurring costs impacting this figure [5][15] - The initial commercial phase of Granular Activated Carbon (GAC) production and sales was successfully launched, contributing to revenue generation [5][6] Financial Highlights - Revenue for Q3 2025 totaled $35.1 million, up from $34.8 million in the prior year [8] - Gross margin decreased to 28.8% from 38.6% year-over-year, primarily due to lower GAC production volumes and higher fixed production costs [10] - The company reported a net loss of $0.7 million in Q3 2025, compared to a net income of $1.6 million in the same period last year [14] Operational Highlights - The company successfully commenced its first commercial GAC production and sales at the Red River facility, which is expected to enhance revenue streams [5][6] - GAC market dynamics remain strong, with increased demand for spot purchases and anticipated growth in contracted volumes [6] - The ramp-up of GAC Phase I production has faced challenges due to design issues, with nameplate capacity expected to be achieved around mid-2026 [6][7] Cost and Expense Management - Costs of revenue increased by approximately 17% to $25.0 million in Q3 2025, driven by higher direct labor, utilities, and equipment rental costs [9] - Selling, general, and administrative expenses decreased by 43% to $4.6 million, attributed to lower payroll and benefit costs [11] - Research and development costs rose to $2.6 million, reflecting expenses related to pre-commencement testing of the GAC facility [12] Capital Expenditures and Balance Sheet - Capital expenditures for the full year 2025 are projected to remain between $8 million and $12 million, with Q3 2025 capex totaling $2.2 million [17] - As of September 30, 2025, the company had cash and restricted cash totaling $15.5 million, down from $22.2 million at the end of 2024 [17] - Total debt increased to $25.9 million as of September 30, 2025, compared to $24.8 million at the end of 2024, primarily due to the revolving credit facility [18]

Core Viewpoint - Arq, Inc. will release its third quarter 2025 financial results on November 5, 2025, and will hold a conference call to discuss the results on November 6, 2025 [1][2]. Financial Results Announcement - The financial results for the period ended September 30, 2025, will be filed in the Quarterly Report on Form 10-Q [1]. - The conference call is scheduled for 8:30 a.m. Eastern Time on November 6, 2025 [1]. Conference Call Participation - Interested parties can register for the conference call via the Investor Resources section of Arq's website [2]. - The live conference call can be accessed by dialing (888) 396-8049 or +1 (416) 764-8646 [2]. Supplemental Information - A supplemental investor presentation will be available on the Company's website prior to the conference call [3]. - A replay of the conference call will be accessible shortly after the event and will expire after November 13, 2025 [3]. Company Overview - Arq, Inc. is a diversified environmental technology company focused on producing activated carbon products [4]. - The company is the only vertically integrated producer of activated carbon products in North America, providing a reliable domestic supply [4]. - Arq aims to develop innovative solutions to remove harmful chemicals and pollutants from water, land, and air [4].

Core Viewpoint - Arq, Inc. has published its 2024 Sustainability Report, highlighting its strong financial performance and commitment to environmental, social, and governance (ESG) excellence while advancing its mission of enabling a cleaner planet [1][2]. Financial Performance - In 2024, Arq achieved approximately $109 million in revenue and demonstrated consecutive quarters of positive adjusted EBITDA growth, indicating a successful year financially [2]. Environmental Leadership - The report emphasizes Arq's unique market position to capitalize on opportunities arising from new environmental regulations, particularly the EPA's 2024 PFAS drinking water standards, which require a reduction from 70 parts per trillion to 4 parts per trillion by the end of the decade [4]. - Arq anticipates a potential supply gap of 370 million pounds by 2030, positioning the company for sustained growth in activated carbon solutions [4]. Social Responsibility and People Excellence - The company maintains industry-leading safety performance with zero fatalities across all facilities and has 202 dedicated employees [5]. - Arq has implemented comprehensive wellness and professional development programs to support employee growth and expanded community engagement through volunteer initiatives and educational partnerships [5]. Governance and Transparency - The report reflects Arq's commitment to transparency and stakeholder engagement, providing detailed performance metrics and progress updates across ESG dimensions [6]. - Enhanced Board oversight of ESG initiatives is facilitated through the Nominating and Governance Committee, and the company has achieved a 100% completion rate for comprehensive ethics training among employees [5][6]. Innovation and Technology Leadership - Arq holds over 140 granted patents and patent applications in activated carbon and adjacent technologies, showcasing its strong R&D capabilities [5]. - The company has established a world-class R&D environment with comprehensive product testing across more than 100 potential applications [5]. Strategic Market Position and Outlook - Arq's diversified customer base spans municipal water treatment, industrial air purification, and renewable natural gas applications, validating its strategic approach [5]. - The company is nearing mechanical completion and has commenced initial equipment commissioning at its Red River facility, which is crucial for addressing PFAS contamination challenges [5].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $29 million, representing a 13% year-over-year increase, driven by enhanced contract terms and a 9% growth in average selling price (ASP) [22][6][5] - Adjusted EBITDA was approximately $3.7 million, compared to $1.1 million in the prior year, marking a more than 3x increase [23][6] - Gross margin for the quarter was approximately 33%, slightly higher than in 2024 [22] Business Line Data and Key Metrics Changes - The PAC (Powdered Activated Carbon) business has shown a successful turnaround, with all sales contracts now being net contributors in 2025, a significant improvement from 24% of volumes being loss-making as of December 2022 [24][6] - The GAC (Granular Activated Carbon) line has been successfully commissioned, with a nameplate capacity of 25 million pounds expected to be reached within six months [5][12] Market Data and Key Metrics Changes - The company has reduced its exposure to the mercury emissions market to under 40% of volumes, diversifying into new markets for both PAC and GAC, which improves margins and overall financial performance [8][9] - The granular activated carbon market is experiencing persistent supply shortages, with demand expected to grow significantly due to regulatory changes related to PFAS [10][11] Company Strategy and Development Direction - The company aims to enhance profitability through operational optimization and cost reduction initiatives while expanding into higher growth, higher margin GAC business [7][29] - Plans for a second GAC line are underway, with a final investment decision expected by the end of 2025 [14][29] Management's Comments on Operating Environment and Future Outlook - Management views the current regulatory environment as favorable, with the EPA's pragmatic approach to PFAS regulation seen as beneficial for the business [18][19] - The company is confident in its ability to finance future growth through cash flow generation and existing debt facilities, without the need for further equity issuance [66][68] Other Important Information - The company is engaged in testing programs for asphalt emulsion, which could represent a significant future revenue source [20][78] - The company has reiterated its 2025 capital expenditure forecast of between $8 million and $12 million [26] Q&A Session Summary Question: Can you elaborate on the key milestones in the commissioning process at Red River? - Management confirmed that the operations team is focused on reaching full nameplate capacity of 25 million pounds as quickly as possible, with ongoing tweaks to improve production rates [35][36] Question: What is the expected cost for the second GAC line? - Management indicated that costs are being evaluated and enhancements from the first line will likely reduce expenses for the second line [39][40] Question: What is the timeline for moving from initial sales to contracts in the RNG market? - The timeline varies from one to eight months depending on customer testing requirements, with a focus on maintaining a balanced customer mix across different industries [41][43] Question: What impact did commissioning have on gross margins? - Approximately $1.9 million in costs associated with preproduction inventory were reclassified to R&D expenses, with gross margins expected to remain above 33% going forward [46][47] Question: How confident is the company in financing the second line without issuing equity? - Management expressed confidence in financing through cash flow generation and debt availability, emphasizing a gradual investment approach [66][68]

Core Insights - Company reported a 13% year-over-year increase in revenue, reaching $28.6 million in Q2 2025, driven by higher average sales prices and increased volumes sold [6][9] - Achieved a significant milestone with the commissioning of the first Granular Activated Carbon (GAC) line at Red River, contributing to a positive financial outlook [5][7] - Company has maintained five consecutive quarters of positive Adjusted EBITDA, which reached $3.7 million in Q2 2025, compared to $1.1 million in the prior year [14][39] Financial Highlights - Revenue for Q2 2025 was $28.6 million, up from $25.4 million in Q2 2024, primarily due to a 9% increase in average sales price [6][9] - Gross margin improved to 33.3% in Q2 2025 from 32.2% in the prior year, attributed to better pricing and higher volume, despite start-up costs for the GAC line [11][14] - Total debt increased to $28.7 million as of June 30, 2025, compared to $24.8 million at the end of 2024, mainly due to a rise in the revolving credit facility balance [18] Operational Highlights - The successful commissioning of the GAC line at Red River marks a pivotal point in the company's transition to higher growth and margin businesses [5][7] - The company plans to make a final investment decision for a second GAC line by the end of 2025, targeting a production capacity of 25 million pounds [7][8] - Company is exploring additional growth opportunities in renewable natural gas, having already sold initial GAC products to RNG customers [8] Cost Management - Selling, general, and administrative expenses decreased by 16% to $5.9 million in Q2 2025, down from $7.0 million in the prior year, due to lower payroll and benefits [12] - Research and development costs rose to $2.7 million in Q2 2025, up from $0.9 million in the prior year, primarily due to non-recurring expenses related to GAC facility testing [13] Cash Flow and Capital Expenditures - Cash and restricted cash totaled $15.4 million as of June 30, 2025, down from $22.2 million at the end of 2024, largely due to capital expenditures for the GAC facility [17] - Capital expenditures for the full year 2025 are expected to remain between $8 million and $12 million [16]

Core Viewpoint - Arq, Inc. will release its second quarter 2025 financial results on August 11, 2025, and will hold a conference call to discuss the results on August 12, 2025 [1]. Financial Results Announcement - The financial results for the period ended June 30, 2025, will be filed in the Quarterly Report on Form 10-Q [1]. - The conference call is scheduled for 8:30 a.m. Eastern Time on August 12, 2025 [1]. Conference Call Participation - Interested parties can access the conference call via the Investor Resources section of Arq's website or by registering through a provided link [2]. - The live conference call can also be accessed by dialing specific phone numbers and referencing Arq [2]. Supplemental Information - A supplemental investor presentation will be available on the Company's website prior to the conference call [3]. - A replay of the conference call will be accessible shortly after the event, with specific dial-in details provided [3]. Company Overview - Arq is a diversified environmental technology company focused on producing activated carbon and other environmentally efficient products [4]. - The company is the only vertically integrated producer of activated carbon products in North America, ensuring a reliable domestic supply [4]. - Arq aims to develop innovative solutions to remove harmful chemicals and pollutants from water, land, and air [4].