Arq (ARQ) Conference presentation summary

Business overview and market positioning

• Produces activated carbon products for environmental remediation, including PFAS removal, with a fully domestic, vertically integrated supply chain.

• Offers both Powder Activated Carbon (PAC) and Granular Activated Carbon (GAC) for water, air, and soil purification, targeting potable water, wastewater, and industrial applications.

• Only large-scale public pure-play in the activated carbon market, with significant exposure to PFAS remediation and municipal water markets.

• Benefits from U.S. tariffs due to domestic supply chain, providing a competitive edge over import-reliant competitors.

• Expanding into new markets such as biogas, asphalt additives, purified coal, rare earth materials, and synthetic graphite.

Financial performance and guidance

• Q2 2026 revenue reached $29.9M, up 5% YoY, driven by PAC pricing and volume growth; gross margin improved to 38.5%.

• Adjusted EBITDA for Q2 2026 was $5.8M, a 59% YoY increase, marking the ninth consecutive quarter of positive results.

• Full-year 2026 guidance reiterated: revenue of $120–125M and Adjusted EBITDA of $17–20M, assuming no GAC contribution.

• Cash and restricted cash stood at $12.1M as of June 30, 2026.

• Biennial plant maintenance completed under budget, supporting operational efficiency.

Strategic initiatives and optimization

• Ongoing strategic optimization review aims to boost furnace throughput, operating profitability, and product diversification.

• Targeting up to 50% Adjusted EBITDA growth through increased capacity utilization, cost optimization, and new product launches.

• No GAC production expected in 2026 or 2027 as optimization review continues; focus remains on profitable PAC production.

• New PAC for PFAS product targets utilities near EPA compliance thresholds, offering incremental volume from 2027 with minimal capex.