Arq, Inc. announced its financial and operating results for the third quarter ended September 30, 2024, reporting a revenue of $34.8 million, a 17% increase compared to $29.8 million in the prior year period. This growth was driven by a favorable product mix, higher pricing, and slightly increased consumables volumes.
The company achieved a gross margin of 38.6% for the quarter, an improvement from 30.6% in the prior year, and reported a net income of $1.6 million, or $0.04 per diluted share, compared to a net loss of $2.2 million, or ($0.07) per diluted share, in Q3 2023. Adjusted EBITDA significantly improved to $5.1 million from $0.9 million year-over-year.
The strategic Granular Activated Carbon (GAC) project at Red River remains on target for first deliveries in Q1 2025, with modular commissioning already underway. Arq expects to ramp the Red River GAC run-rate to 25 million pounds nameplate capacity by the end of Q1 2025 and has identified potential to increase this capacity by 10-20% with no anticipated additional capital expenditures by Q3 2025.
Capital expenditures for the nine months ended September 30, 2024, totaled $42.2 million, compared to $17.0 million in the prior year, driven by the expansion of the Red River and Corbin facilities. The company's full-year 2024 capital expenditure guidance remains between $60 million and $70 million. Arq also raised approximately $27 million in net equity proceeds in September 2024, contributing to a total of $42 million in net equity proceeds raised year-to-date through Q3 2024.
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