Anaergia (ANRG) Q1 2025 earnings summary

Executive summary

• Achieved strong operational discipline and progress under the Energia 2.0 strategy, focusing on execution, cost control, and a capital-light model.

• Backlog more than doubled year-over-year to CAD 200 million (up 94.1% from CAD 103.1 million at December 2024), driven by capital sales in Italy and North America.

• Enhanced capital market presence with OTCQX listing, improving visibility and accessibility for U.S. investors.

• Strategic actions post-Marny Investment SA's July 2024 investment have enhanced financial foundation and investor confidence.

Financial highlights

• Q1 2025 revenue was CAD 24.9 million, a slight decrease of 0.4% year-over-year, mainly due to lower capital sales and food revenue, offset by higher O&M services and North America growth.

• Gross profit was CAD 5.4 million, down 16.6% year-over-year; gross margin declined to 21.7% from 26%.

• Capital sales gross profit margin more than doubled to 26.8% from 12.1% year-over-year.

• SG&A expenses were CAD 17.2 million, up 3.4% due to a CAD 2.95 million accounts receivable reserve; excluding this, SG&A declined 14.3%.

• Net loss improved 48.6% to CAD 5.9 million from CAD 11.5 million year-over-year; adjusted EBITDA loss improved 34.5% to CAD 3.9 million from CAD 6 million loss year-over-year.

Outlook and guidance

• Backlog growth and multi-project orders from key customers expected to sustain momentum over multiple quarters.

• Margins expected to improve as BU assets ramp up and capital sales remain strong; SG&A run rate anticipated around CAD 14–15 million per quarter.

• Management continues to pursue a robust pipeline of opportunities and has already secured additional awards since Q2 2025 began.

• No formal forward-looking backlog number provided, but project durations range from 8 to 24 months.

• Strategic focus remains on executing the Anaergia 2.0 vision and capitalizing on the growing waste-to-value market.