Liqtech 2025 Q1 Earnings Modest Revenue Growth Amidst Narrowed Losses

Liqtech (LIQT) reported its fiscal 2025 Q1 earnings on May 14th, 2025. Total revenue increased by 9% to $4.62 million, and net loss narrowed to $2.36 million. The company’s results were in line with expectations, showing a revenue increase year-over-year despite ongoing net losses. The guidance for Q2 2025 anticipates revenue between $4.8 million and $5.2 million, indicating a promising 4% to 13% sequential growth. Liqtech's strategic initiatives, including cost-saving measures and expanded market ventures, align with efforts to improve profitability.

Revenue

Liqtech's total revenue rose to $4.62 million in Q1 2025, up 9% from $4.24 million in Q1 2024. The water segment generated $2.69 million, ceramics contributed $953,846, and plastics provided $969,973, reflecting a balanced growth across different business areas.

Earnings/Net Income

Liqtech narrowed its losses, reporting a loss of $0.25 per share in Q1 2025, compared to $0.41 per share in Q1 2024, a 39% improvement. Net loss was $2.36 million, slightly less than the $2.39 million loss a year earlier. The improved EPS indicates a positive trend for the company.

Post-Earnings Price Action Review

The strategy of buying Liqtech shares when revenue misses and holding for 30 days is seen as high-risk and high-reward. Investors might expect a rebound in stock prices following a revenue miss, hoping for market correction. This approach assumes that the revenue shortfall is temporary rather than a sign of deeper issues. However, if other negative factors accompany the revenue miss, such as increasing losses or operational challenges, stock prices may decline further. Market sentiment will also influence Liqtech's stock performance, as negative perceptions could extend any downturn, even if fundamentals improve. Additionally, holding the stock during volatile market periods could either lead to a quick recovery or further losses. Investors should assess the company's fundamentals and broader market conditions before making investment decisions, setting stop-loss levels or exit strategies to limit potential losses.

CEO Commentary

Fei Chen, CEO of LiqTech International, expressed optimism about the company's Q1 2025 performance, highlighting a 36% sequential revenue growth driven by record commercial orders in the oil and gas industry. Chen noted progress in a joint venture in China, delivering marine scrubber orders after a 1.5-year gap. The company is witnessing growth across multiple verticals, focusing on profitability through better manufacturing utilization and cost-saving initiatives.

Guidance

For Q2 2025, LiqTech anticipates revenue between $4.8 million and $5.2 million, representing a 4% to 13% sequential increase and 7% to 16% year-over-year growth. The company expects a diversified revenue breakdown with contributions from pilot unit rentals, swimming pools, DPFs, ceramic membranes, and increased aftermarket sales, aiming for improved profitability metrics driven by enhanced manufacturing efficiency and cost reductions.

Additional News

In May 2025, LiqTech International announced a significant partnership with NAF Aquatics LLC to expand in the U.S. commercial swimming pool market. This agreement marks LiqTech's strategic entry into the U.S., leveraging NAF Aquatics' strong market presence in the Northeast. The partnership aims to accelerate LiqTech's revenue growth and strengthen its position in sustainable water filtration solutions. In addition, David Kowalczyk was appointed as the new Chief Financial and Operating Officer effective March 1, 2025, bringing extensive experience in financial management and operational efficiency to the company. These strategic moves are part of LiqTech's ongoing efforts to optimize operations and expand its market footprint.