Arq (ARQ) investor relations material

Executive summary

• Achieved record full-year 2025 revenue of $120.3 million, up 10% year-over-year, driven by strong PAC business performance.

• Adjusted EBITDA for 2025 reached $13.2 million, a 26% increase year-over-year, despite significant GAC start-up costs.

• Net loss for 2025 was $52.6 million, primarily due to a $45 million non-cash impairment charge at the Corbin facility and GAC-related write-downs.

• GAC production paused for a comprehensive engineering and process optimization review, with no GAC production expected in 2026.

• Leadership restructuring included new appointments in operations and finance, elimination of COO and CFO roles, and a focus on aligning expertise with business priorities.

Financial highlights

• Full-year 2025 revenue was $120.3 million, up from $109.0 million in 2024; Q4 2025 revenue was $29.4 million, up 9% year-over-year.

• Adjusted EBITDA for 2025 was $13.2 million (+26% YoY); Q4 Adjusted EBITDA was $0.3 million.

• Gross margin for 2025 was 27.9% (down from 36.2% in 2024), with Q4 2025 gross margin at 13.6% due to GAC ramp-up costs.

• Net loss for 2025 was $52.6 million, primarily due to Corbin impairment and GAC write-downs; Q4 2025 net loss was $50 million.

• Ended 2025 with $15 million in cash ($6.6 million unrestricted) and $28.5 million in total debt.

Outlook and guidance

• 2026 revenue guidance: $120–125 million, all from PAC and other chemicals (no GAC contribution).

• Adjusted EBITDA guidance for 2026: $17–20 million, a 30% improvement at the low end.

• PAC production volume expected at 122–125 million lbs, with ASP of $0.88–0.91/lb.

• 96% contract visibility on 2026 PAC volumes; strong pricing and specialty product mix expected.

• 2026 guidance incorporates a biennial two-week maintenance turnaround at the Red River plant.