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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>Arq reported 3Q24 revenue of $34.8 million and EBITDA of $5.1 million, up from $29.8 million in revenue and $0.9 million in EBITDA in 3Q23.</li><li>The strong results were driven by further PAC pricing increases (sixth consecutive quarter of &gt;10% ASP increases), operating efficiency, and the benefits of a more diversified customer base.</li><li>While 3Q is typically the strongest seasonal quarter, the results far surpassed 3Q23 and 3Q22, showing the success of the company’s efforts to restructure its PAC business through improved contract terms and operating execution.</li></ul>

Arq reported 3Q24 revenue of $34.8 million and EBITDA of $5.1 million, up from $29.8 million in revenue and $0.9 million in EBITDA in 3Q23.The strong results were driven by further PAC pricing increases (sixth consecutive quarter of &gt;10% ASP increases), operating efficiency, and the benefits of a more diversified customer base.While 3Q is typically the strongest seasonal quarter, the results far surpassed 3Q23 and 3Q22, showing the success of the company’s efforts to restructure its PAC business through improved contract terms and operating execution.

Arq, Inc. - Strong 3Q Highlights Improving PAC Performance

<ul><li>Arq to report 3Q24 results on November 7 before market open with a conference call at 8:30 am ET on the same day. </li><li>We forecast $30.2 million in revenue, gross margin of 37%, and EBITDA of $3.3 million versus consensus of $30.4 million in revenue and EBITDA of $3.3 million.</li><li>We expect another strong quarter of operating results on the back of PAC pricing improvements and operating efficiency. </li></ul>

Arq to report 3Q24 results on November 7 before market open with a conference call at 8:30 am ET on the same day. We forecast $30.2 million in revenue, gross margin of 37%, and EBITDA of $3.3 million versus consensus of $30.4 million in revenue and EBITDA of $3.3 million.We expect another strong quarter of operating results on the back of PAC pricing improvements and operating efficiency. 

Arq, Inc. - 3Q Preview - Look for Continued Momentum in PAC Performance

<ul><li>A diversified environmental technology company focused on developing and providing solutions for air, water, and soil purification.</li><li>Arq is a leading producer of powdered activated carbon (PAC) and is expanding into the faster-growing and higher-margin granular activated carbon (GAC) market, which should drive significant EBITDA growth in the coming years.</li><li>Focus on execution and cash flow. Since new CEO Bob Rasmus took the helm in 2H23, Arq has delivered improving performance with its foundational and cash-generating PAC business through operational efficiencies, better contracting terms, and penetration of new markets.</li></ul>

A diversified environmental technology company focused on developing and providing solutions for air, water, and soil purification.Arq is a leading producer of powdered activated carbon (PAC) and is expanding into the faster-growing and higher-margin granular activated carbon (GAC) market, which should drive significant EBITDA growth in the coming years.Focus on execution and cash flow. Since new CEO Bob Rasmus took the helm in 2H23, Arq has delivered improving performance with its foundational and cash-generating PAC business through operational efficiencies, better contracting terms, and penetration of new markets.

Arq, Inc. - Significant EBITDA Growth from Execution and Expansion into Faster-Growth Markets

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Key points (machine generated)<ul><li>The EPA will be implementing regulations to reduce levels of PFAS chemicals in municipalities, due to the health risks associated with them.</li><li>Major retailers like Amazon, Lowe's, and McDonald's are adopting policies to eliminate and prohibit the use of PFAS chemicals in their products.</li><li>3M, a major supplier of PFAS, agreed to a $10 billion settlement in June 2023.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)The EPA will be implementing regulations to reduce levels of PFAS chemicals in municipalities, due to the health risks associated with them.Major retailers like Amazon, Lowe's, and McDonald's are adopting policies to eliminate and prohibit the use of PFAS chemicals in their products.3M, a major supplier of PFAS, agreed to a $10 billion settlement in June 2023.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Advanced Emissions Solutions (ADES) - Monday, Nov 6, 2023

Thematic (Sector/Industry)

<ul><li>The WTR Sustainable Index was down by 1.9% W/W versus the S&amp;P 500 Index (down 0.1%), the Russell 2000 Index (down 2.1%), and the Nasdaq Index (down 1.2%).</li><li>Energy Technology (12.5% of the index) was down by 6.2%, while Industrial Climate and Ag Technology (55.5% of the index) was down by 1.2%, ClimateTech Mining was down 3.7% and Advanced Transportation Solutions (26% of index) was down 1.8%.</li><li>Top 10 Performers: LICY, ADES, ARVL, SMR, EH, EGT, RIDE, FF, CVW, LIS</li></ul>

The WTR Sustainable Index was down by 1.9% W/W versus the S&amp;P 500 Index (down 0.1%), the Russell 2000 Index (down 2.1%), and the Nasdaq Index (down 1.2%).Energy Technology (12.5% of the index) was down by 6.2%, while Industrial Climate and Ag Technology (55.5% of the index) was down by 1.2%, ClimateTech Mining was down 3.7% and Advanced Transportation Solutions (26% of index) was down 1.8%.Top 10 Performers: LICY, ADES, ARVL, SMR, EH, EGT, RIDE, FF, CVW, LIS

Weekly Sustainable Investing Surveyor - Week Ended March 15, 2024

United States

Arq, Inc. operates as a environmental technology company. The Company offers activated carbon technologies to remove harmful chemicals and pollutants, such as PFAS, from water supplies, contaminated land sites, and air emissions which controls the mercury and other contaminants for power generation and industrial companies. Arq serves customers in the United States.

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Arq (ARQ US)

Arq, Inc. - Strong 3Q Highlights Improving PAC Performance

Arq reported 3Q24 revenue of $34.8 million and EBITDA of $5.1 million, up from $29.8 million in revenue and $0.9 million in EBITDA in 3Q23.

Water Tower Research

Arq, Inc. - 3Q Preview - Look for Continued Momentum in PAC Performance

We forecast $30.2 million in revenue, gross margin of 37%, and EBITDA of $3.3 million versus consensus of $30.4 million in revenue and EBITDA of...

Water Tower Research

Arq, Inc. - Significant EBITDA Growth from Execution and Expansion into Faster-Growth Markets

A diversified environmental technology company focused on developing and providing solutions for air, water, and soil purification.

Water Tower Research

Advanced Emissions Solutions (ADES) - Monday, Nov 6, 2023

The EPA will be implementing regulations to reduce levels of PFAS chemicals in municipalities, due to the health risks associated with them.

Value Investors Club

Weekly Sustainable Investing Surveyor - Week Ended March 15, 2024

The WTR Sustainable Index was down by 1.9% W/W versus the S&P 500 Index (down 0.1%), the Russell 2000 Index (down 2.1%), and the Nasdaq Index (down...

Water Tower Research

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