LiqTech's Q2 2025 Earnings Call: Unraveling the Contradictions in Sales Growth, Profitability, and Pilot Programs

Order pipeline and sales growth, EBITDA profitability timeline, Razorback pilot focus, Pilot evaluation timeline and commercialization, and full-year revenue outlook are the key contradictions discussed in LiqTech International's latest 2025Q2 earnings call.



Revenue Growth and Segment Performance:
- LiqTech International reported revenue of $5 million for Q2, up from $4.5 million in the previous year's first quarter and $4.6 million in the sequential first quarter.
- Growth was driven by strong performance in swimming pool systems, water system deliveries, and ceramics and plastics business.

Diversification and Pipeline Growth:
- The company secured multiple orders, including a new pilot system for a different industry and an order from North Star Bluescope Steel.
- This diversification supports the company's strategic pipeline, with ongoing pilot programs expected to drive broader, large-scale orders.

Operational Efficiency and Cost Management:
- LiqTech achieved improved gross margin of 9.8%, up from a low of 2.7% in Q1.
- This improvement was attributed to cost management efforts, including cost improvements and volume growth, despite some one-off costs.

Swimming Pool Segment Momentum:
- LiqTech delivered 6 swimming pool systems, generating nearly $800,000 in revenue, marking a significant uptick from previous quarters.
- This success was driven by leveraging broad distribution agreements to source new opportunities in the swimming pool market.

DPF and Ceramics Segment Stabilization:
- DPF and ceramic membrane sales were $1.3 million, down from the year-ago second quarter but up compared to the first quarter.
- Stabilization in this segment is due to strong order intake and anticipation of continued positive performance for the remainder of the year.