Arq's net loss widens in Q4 on impairment charge; pauses GAC production

Arq

09/03/2026 23:14

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)