Arq beats Q1 revenue estimates, reaffirms 2026 revenue guidance

Arq

06/05/2026 22:01

Overview

US activated carbon producer's Q1 revenue rose 7% yr/yr, beating analyst expectations

Q1 net loss was smaller than expected, while adjusted EBITDA fell from prior year

Company reaffirmed 2026 revenue and adjusted EBITDA guidance; GAC optimization review ongoing

Outlook

Arq reaffirms 2026 revenue guidance of $120-$125 mln and Adjusted EBITDA of $17-$20 mln

Company expects initial results of GAC optimization review by Q3 2026

Arq says GAC market fundamentals remain strong, supporting a favorable pricing environment

Result Drivers

SALES VOLUMES - Revenue growth was driven by increased sales volumes, partially offset by decreased pricing from product mix

GROSS MARGIN PRESSURE - Gross margin declined due to lower pricing from product mix, an inventory revaluation charge, and GAC carry-costs, partially offset by higher volumes

INVENTORY REVALUATION - Adjusted EBITDA was negatively impacted by a $0.8 mln non-cash inventory revaluation charge for inventory produced in 2025

Company press release: ID:nGNXbsl0LK

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$29.05 mln
$27.78 mln (6 Analysts)
Q1 Net Income
Beat
-$842,000
-$1.45 mln (4 Analysts)
Q1 Operating Income
Slight Miss*
-$982,000
-$975,000 (4 Analysts)
Q1 Pretax Profit
Beat
-$842,000
-$1.80 mln (4 Analysts)
Q1 Operating Expenses
$10.92 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $3.50, about 47.7% above its May 5 closing price of $2.37

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.)