Cadiz (CDZI) Q4 2024 earnings summary

Executive summary

• Focused on developing water supply, storage, conveyance, and filtration assets in Southern California, with a portfolio including 2.5 million acre-feet of permitted water supply, 1 million acre-feet of storage, and 220 miles of pipeline.

• Entered agreements in 2024 for 21,275 AFY of water supply, representing 85% of Northern Pipeline capacity; established Mojave Groundwater Storage Company LLC (MGSC) to fund $800 million in capital costs.

• ATEC Water Systems, acquired in 2022, drove significant revenue growth in water filtration technology.

Financial highlights

• Total revenues for 2024 were $9.6 million, up from $2.0 million in 2023, driven by ATEC sales and agricultural operations.

• Net loss for 2024 was $31.1 million, slightly improved from $31.4 million in 2023.

• Gross margin for ATEC was 45.5% in 2024; alfalfa crop operations incurred a net operating loss due to suppressed market conditions.

• Working capital at year-end 2024 was $11.4 million; cash used in operations was $21.5 million.

• Interest expense increased to $7.9 million in 2024 due to higher borrowing.

Outlook and guidance

• Short-term liquidity is supported by a March 2025 direct offering raising $18.3 million; ATEC operations expected to be self-funded in 2025.

• Long-term capital needs depend on progress of the Mojave Groundwater Bank, MGSC funding, and reimbursement of development costs.

• Additional financing may be required for future capital expenditures and working capital.