Overview

• Activated carbon producer's Q4 revenue rose 9%, beating analyst expectations

• Company reported a significant increase in FY net loss due to GAC start-up costs

• Company pauses GAC production for process optimization, announces leadership changes

Outlook

• Arq expects 2026 revenue of $120-125 mln

• Company projects 2026 adjusted EBITDA of $17-20 mln

• Arq anticipates 2026 PAC production of 122-125 mln pounds

Result Drivers

• PAC PERFORMANCE - Record performance in PAC business drove revenue growth, with over 117 million pounds of volume for FY 2025

• GAC START-UP COSTS - Higher costs from GAC start-up negatively impacted gross margins and profitability

• ASSET IMPAIRMENT - $45 mln non-cash impairment charge in Q4 related to decision to temporarily idle Corbin facility and transition feedstocks for GAC products

Company press release: ID:nGNX87bzRC

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$29.43 mln	$28.61 mln (5 Analysts)
Q4 Net Income	Miss	-$50.03 mln	-$2.66 mln (4 Analysts)
Q4 Operating Income	Miss	-$51.23 mln	-$694,250 (4 Analysts)
Q4 Pretax Profit	Miss	-$50.02 mln	-$2.29 mln (5 Analysts)
Q4 Operating Expenses		$55.22 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for Arq Inc is $8.00, about 150% above its March 9 closing price of $3.20

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