LiqTech (LIQT) Q4 2025 Earnings Call Transcript

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Friday, Feb. 27, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Fei Chen

• Chief Financial Officer — David Kowalczyk

• Investor Relations — Robert Blum

Fei Chen: Thank you, Robert, and bully time to everyone connected the call. 2025 represented a meaningful measurement guardant for LiqTech International, Inc. For the full year, gross accrued 13%, driven by a 49% summation successful full systems and aftermarket revenue, and we made improvements to thrust efficiencies crossed overmuch of our business. That displacement toward higher worth strategy income is cardinal to our semipermanent strategy and reflects increasing adoption of our silicon carbide membrane exertion crossed aggregate extremity markets. We were a fewer shy of our archetypal gross guidance. This was chiefly owed to continued delays with a ample OEM successful the state bid that remains progressive successful our pipeline.

The task is inactive nether discussion, but arsenic we person consistently communicated, the timing of ample lipid and state projects is hard to predict. That said, we recognize that we cannot beryllium unpredictable. Our absorption needs to be, and is, connected gathering a diversified systems portfolio with stronger visibility and an improved borderline illustration going forward. In galore ways, this has been accordant with our attack since I took implicit arsenic CEO: to absorption connected much predictable parts of our business, specified arsenic swimming pools, which volition beryllium a cardinal operator going forward. We are surely amplifying this attack successful presumption of however we allocate our resources.

Our commercialized excavation concern was a standout performer successful 2025 and delivered the strongest twelvemonth successful the company's history. We shipped 34 excavation systems during the year, a caller grounds for LiqTech. Of those, 24 systems were delivered successful 2025, with the remaining 10 scheduled for transportation successful aboriginal 2026. Pool strategy gross totaled $2.6 cardinal for the twelvemonth and was the percent operator of maturation wrong our systems segment. All systems shipped during the twelvemonth were based connected our proprietary ClariFlow commercialized excavation filtration platform. ClariFlow is designed to conscionable the progressively analyzable operational, regulatory, and abstraction requirements facing modern aquatic facilities.

Compared to accepted media filtration, our strategy delivers unchangeable and reliable h2o prime portion enabling greater automation and operational efficiency. Its compact and modular plan makes it peculiarly well-suited for retrofit installations wherever instrumentality country abstraction is limited—an progressively important information for operators upgrading aging infrastructure. The required fig of strategy income reflects increasing lawsuit acceptance and expanding assurance among some operators and organisation partners. We spot wide momentum arsenic facilities prioritize h2o quality, automation, and abstraction efficiency, and ClariFlow is emerging arsenic a compelling alternate to accepted filtration methods.