LiqTech(US:LIQT)2026-02-27 15:02Financial Data and Key Metrics Changes - Revenue for the year increased to slightly above $16.5 million, up from $14.6 million a year ago, representing a 13% growth [5][16] - Gross margins improved to 7.6% from 1.7% in the previous year, driven by higher overall revenue and improved contribution margins [18] - Adjusted EBITDA was -$5 million, an improvement from -$6.1 million in the prior year [21] Business Line Data and Key Metrics Changes - Systems and aftermarket sales reached $8.2 million, compared to $5.5 million in the prior year, driven by increased deliveries in pool filtration and industry systems [16][17] - Pool system revenue totaled $2.6 million for the year, with a record sale of 34 pool systems [6][7] - Marine revenue, including service sales, was approximately $1.5 million in 2025, with a target of $4 million in 2026 [13] Market Data and Key Metrics Changes - The company expects pool revenue of approximately $5 million-$6 million in 2026, compared to $2.6 million in 2025 [9] - Water for energy and water for industry-related revenue is anticipated to be between $5 million and $8 million, compared to $4.1 million in 2025 [12][22] - The legacy DPF and plastics business is expected to remain stable, with a slight increase from $8 million to $9 million [14][22] Company Strategy and Development Direction - The company is focusing on building a diversified systems portfolio with stronger visibility and improved margin profiles [5][6] - There is a strategic shift towards more predictable business segments, such as swimming pools, which are expected to drive future growth [6][9] - The company aims to scale standardized, higher-margin system platforms while maintaining disciplined cost control [15][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged delays in a large oil and gas order but remains optimistic about its potential to materialize in 2026 [5][27] - The company is committed to leveraging its silicon carbide filtration technology to address global water challenges and support sustainability goals [24][25] - Future growth is expected to be driven by continued expansion in pool systems, industry applications, and marine [15][22] Other Important Information - The company ended the year with $5.1 million in cash [22] - A dedicated service center was opened in Texas to enhance customer support and service capabilities [11] Q&A Session Summary Question: When can we expect revenue from the large oil and gas order push-out to be booked? - Management expects the oil and gas project to materialize in 2026, ideally by Q2 [27] Question: Do tariffs affect your U.S. oil and gas business? Are your products competitively priced? - Management is actively managing tariff impacts and focusing on cost reduction and standardization to maintain competitiveness [29] Question: What are the drivers of your 2026 revenue outlook of $23 million-$27 million? - The revenue growth is driven by diversified segments, including pool systems, marine, and water for energy and industry, with a focus on higher predictability [32][33]