1. LiqTech reported Q4 2024 revenue growth of 37% sequentially. 2. A record order for PureFlow units indicates strong market confidence. 3. Cost reduction strategies aim to lower break-even revenue targets. 4. FY 2024 total revenue decreased by 18.9% compared to 2023. 5. Q1 2025 revenue is expected to rise by 26% to 38%.
The sequential revenue growth and a significant new order indicate positive momentum. Previous instances of significant orders have led to sustained price increases.
The article highlights operational improvements and strategic initiatives that could drive near-term profitability, impacting investor confidence.
Initial revenue growth is expected shortly in Q1 2025. Immediate effects from recent orders can quickly influence market sentiment.
/PRNewswire/ -- LiqTech International, Inc. (Nasdaq: LIQT) ("LiqTech"), a clean technology company that manufactures and markets highly specialized filtration technologies, today announced its financial results for the fourth quarter and fiscal year 2024 for the period ended December 31, 2024.
"The 37% sequential revenue growth experienced during Q4 2024 came within the expectations we provided back in November 2024 as we expanded the number of pilot systems in operation and saw improvement in our swimming pool business. Since that time, we received a record commercial order for our PureFlow Mobile Units to the oil and gas industry which will be completed and contribute to further sequential revenue growth expected during Q1 2025. All told, our expectation for Q1 2025 shows sequential revenue growth of 26% to 38% as recent orders received during the past few months are shipped," commented Fei Chen, CEO of LiqTech.
"Further, we have implemented a cost reduction strategy aimed at lowering our break-even target, measured on an adjusted EBITDA basis, to a quarterly revenue of approximately $5.5 to $6.0 million. These initiatives include a reduction in headcount, reduction in basic salary for senior management, and a reduction in cash compensation by the board of directors. With revenue growth expected and cost savings implemented, we are on the pathway to profitability, a key management objective for 2025."
"The landmark commercial oil and gas order in North America is a remarkable milestone for LiqTech as we continue to validate our solutions in the global energy industry. Energy operations often face significant challenges in managing water quality due to the highly variable nature of water sources, harsh environmental conditions, and the remote locations of many sites. The LiqTech PureFlow™ units are designed to excel in some of the most demanding environments and can help unlock opportunities in a wide variety of addressable markets. Specifically, I believe this order highlights the growing confidence in our ability to deliver cutting-edge solutions tailored to the unique needs of our customers within oil and gas and look forward to leveraging this success in the coming months and years."
"With growing market adoption in key market verticals, particularly within oil and gas and swimming pools, reentering marine water treatment systems, coupled with pilot unit testing underway across a variety of new addressable end markets, I believe we are making incremental commercial progress that will translate into widespread adoption of our leading-edge filtration technology. Backed by a strong balance sheet with more than $10 million in cash and a commitment to driving profitability, I look forward to a positive year at LiqTech."
Revenue for the year ended December 31, 2024, was $14.6 million compared to $18.0 million for the same period in 2023, representing a decrease of 18.9%. The decline was mainly due to reduced deliveries of liquid filtration systems, plastics products, ceramic membranes, and aftermarket sales, partly offset by increased sales of DPFs. The decrease in deliveries of liquid filtration systems was primarily driven by reduced deliveries of pool filtration systems and marine scrubber systems.
The decline in aftermarket sales was primarily due to remediation work executed in the same period in 2023. The reduction in sales of plastic products was largely due to a significant one-time sale recorded in 2023 that did not recur in the current period. The increase in sales of DPFs was primarily driven by the effective execution of strategies designed to capitalize on the increased market demand for DPFs.
Gross profit for the year ended December 31, 2024, was $0.3 million, reflecting a gross profit margin of 1.7%, compared to $2.8 million, or a gross profit margin of 15.4%. This decline in gross profit can be attributed to the decrease in revenue, resulting in lower overall activity levels and underutilization of our manufacturing capacity, as well as an unfavorable sales mix, which resulted in a lower proportion of high-margin products such as liquid filtration systems and ceramic membranes.
Total operating expenses for the year ended December 31, 2024, were $9.7 million, representing a decrease of $0.8 million, or 7.9%, compared to $10.6 million for the same period in 2023. Selling expenses for the year ended December 31, 2024, were $2.7 million, compared to $4.3 million for the same period in 2023, representing a decrease of $1.6 million, or 36.6%. This decline was primarily driven by a reduction in executive officers, along with reductions in bonus payouts, travel costs, marketing expenses, and expenditures related to external sales consultancy services.
The Company expects Q1 2025 revenue to be between $4.3 million and $4.7 million which would equate to a 26% to 38% sequential increase from Q4 2024, and a 2% to 10% year-over-year improvement from Q1 2024.
Date and Time: Friday, March 28, 2025, at 9:00 a.m. ET
Call-in Information: Interested parties can access the conference call by dialing (833) 535-2206 or (412) 902-6741.
Webcast: Interested parties can access the conference call via a live webcast, which is available in the Investor Relations section of the Company's website at liqtech.com/investor-relations.
LiqTech International, Inc., a Nevada corporation, is a high-tech filtration technology company that provides state-of-the-art ceramic silicon carbide filtration technologies for gas and liquid purification.
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements.