Liqtech International ((LIQT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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LiqTech International’s recent earnings call painted a picture of robust revenue growth and strategic successes across its various business segments, including swimming pools, ceramics, and plastics. The company expressed an optimistic outlook for the rest of the year, despite facing challenges such as reduced gross margins and decreased sales in certain areas, along with a continued net loss.
Revenue Growth
The company reported a revenue of nearly USD 5 million for the quarter, marking an increase from $4.5 million in the same quarter last year and $4.6 million in the sequential first quarter. This growth underscores LiqTech’s ability to enhance its financial performance consistently.
Strong Performance in Swimming Pool Segment
LiqTech’s swimming pool segment delivered six systems, generating nearly $800,000 in revenue. The order flow remains strong as the company progresses into the latter half of the year, indicating sustained demand and potential for further growth in this segment.
Sequential Growth in Ceramics and Plastics
The ceramics and plastics segments experienced a 31% sequential growth, significantly contributing to the overall revenue improvement. This growth highlights the company’s strategic focus on expanding these segments.
Significant Orders and Projects
LiqTech secured a notable order from North Star Bluescope Steel for a filtration system and delivered a new pilot system to Razorback Direct, targeting a new end market opportunity. These projects reflect the company’s proactive approach to expanding its market reach.
Positive Outlook for Full Year Revenue
The company expects full-year revenue to range between USD 19 million and USD 20 million, representing a 30% to 37% increase from 2024. This optimistic forecast demonstrates LiqTech’s confidence in its growth trajectory.
Reduced Gross Margins
Gross margins were reported at 9.8%, down from 16% in the previous year, primarily due to one-off write-offs and currency effects. Despite this reduction, the company remains focused on improving its margin profile.
Decreased DPF and Ceramic Membrane Sales Year-Over-Year
Sales of DPF and ceramic membranes decreased to $1.3 million from $1.7 million in Q2 last year, indicating a challenge in these product lines that the company may need to address.
Operating Expenses and Net Loss
Operating expenses for the quarter were $2.6 million, down from $2.8 million in the same period last year, with a net loss of $2 million. This reflects the company’s efforts to manage costs while navigating financial challenges.
Forward-Looking Guidance
LiqTech has provided guidance for Q3 2025, projecting revenue between $3.8 million and $4.2 million, which would represent a 52% to 68% increase from Q3 2024. The full-year revenue is expected to range from $19 million to $20 million, marking a significant rise from 2024. The company aims to achieve an EBITDA-positive quarter, contingent on sales volume and mix, highlighting its strategic focus on profitability.
In summary, LiqTech International’s earnings call conveyed a generally positive sentiment, driven by solid revenue growth and strategic achievements across key segments. Despite challenges such as reduced gross margins and decreased sales in certain areas, the company remains optimistic about its future prospects, with strong guidance for the upcoming quarters.