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Arq Inc (ARQ)
NASDAQ:ARQ
Earnings Data
Report Date
May 12, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
-0.03Last Year’s EPS
-0.09Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Mar 05, 2025
|% Change Since: -21.01%
|Next Earnings Date:May 12, 2025
Earnings Call Sentiment|Positive
The earnings call reflected a successful year for Arq with strong revenue growth and profitability improvements, enhanced by effective cost management and successful refinancing efforts. However, challenges such as CapEx overruns, unplanned shutdowns, and decreased gross margins in Q4 were noted. Despite these issues, the company's strategic initiatives, particularly the launch of GAC production, indicate a positive outlook.Company Guidance
During the ARQ Q4 and Full Year 2024 Earnings Call, the company reported a 10% year-over-year increase in revenue to approximately $109 million, driven by a 14% rise in average selling price (ASP) in Q4. They achieved a gross margin expansion of 410 basis points over the previous year, reaching 36.2% for 2024. The company also reported a reduction in SG&A expenses by about 15% year-over-year, from $34 million in 2023 to $29 million in 2024. ARQ successfully refinanced their term loan, reducing the cost of capital and enhancing financial flexibility. They attracted approximately $42 million in new net equity investment, and their market capitalization more than doubled in 2024. Despite challenges, including a CapEx overrun of $10 million on the Red River Project, ARQ is optimistic about the future, projecting ongoing improvements and potential growth in profitability and revenues, bolstered by their expansion into the granular activated carbon (GAC) market.Revenue Growth and Profitability
Arq reported a 10% year-over-year increase in revenues for the full year 2024, reaching approximately $109 million. The company also achieved a 14% increase in average selling price in the fourth quarter and completed the year with another quarter of positive adjusted EBITDA.
Cost Reduction and Margin Expansion
Arq successfully controlled cost of goods sold increases to approximately 3%, enabling expansion in gross margins by approximately 410 basis points year-over-year. SG&A expenses were reduced by about 15%, from $34 million in 2023 to $29 million in 2024.
Successful Debt Refinancing and Equity Investment
The company attracted approximately $42 million in new net equity investment and refinanced its existing $10 million CFG term loan with a more cost-effective $30 million revolving asset-back facility from Midcap Financial.
Granular Activated Carbon (GAC) Production Launch
Arq is on track to begin commercial production of its GAC line imminently, with expectations to reach nameplate capacity of 25 million pounds by the second half of 2025.
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ARQ Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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ARQ Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Mar 05, 2025 | $4.95 | $4.66 | -5.86% |
| Nov 07, 2024 | $6.02 | $6.72 | +11.63% |
| Aug 12, 2024 | $5.64 | $5.90 | +4.61% |
| May 08, 2024 | $8.02 | $7.60 | -5.24% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Arq Inc (ARQ) report earnings?
Arq Inc (ARQ) is schdueled to report earning on May 12, 2025, TBA Not Confirmed.
What is Arq Inc (ARQ) earnings time?
Arq Inc (ARQ) earnings time is at May 12, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ARQ EPS forecast?
ARQ EPS forecast for the fiscal quarter 2025 (Q1) is -0.03.
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