ClearSign Technologies Corporation Q4 FY2025 earnings call

• ClearSign is an industrial technology company making low - emissions industrial burners for oil refineries, chemical plants, boilers, etc. driven by emissions regulations. - In 2025, the 26th process burner order at a petrochemical plant off the Gulf Coast of Texas was a major revenue driver. The 26 - burner order was completed and delivered by year - end, with burners on the client site waiting to be installed, scheduled to start up in October. - Announced 32 and 36 burner orders, with similar progress in engineering and testing phases. The 36 - burner order is for a different configuration (horizontal fire burners), and the 32 - burner order is a flat burner configuration. - Midstream product line has a different operation compared to process burners, with an M1 burner running well and an M25 burner starting up. - Flare product line has seen growth from ordering burner parts to full system projects, with prospective pipelines including multiple flares for existing clients and renewables applications. - A demonstration of new burner technology developed under the DOE SBI grant is scheduled for April 23rd with key decision - makers and subject matter experts attending.

For the fourth quarter of 2025, the company recognized approximately $3.7 million in revenues compared to approximately $590,000 for the same period in 2024. For the full year 2025, revenues were approximately $5.2 million compared to approximately $3.6 million in 2024. The year - end 2025 gross profit was approximately 27%, down approximately 4 percentage points from 2024. Net loss increased approximately $197,000 in 2025 compared to 2024. Process burner products were the main driver of revenue growth. Other offerings like midstream burners, flares, spare parts, and engineering services also contributed. Refining and petrochemical segments are about 60% of total clear sign product sales, with midstream and boiler products making up another 20% and flaring thermal oxidizer products combined making about 20%.

• Quarterly revenue flows are expected to be lumpy as orders are large and long - term. - Confident in overall revenues for 2026. - Projects are typically self - funding, with cash received in advance of costs. - Long - term view for the company is healthy with a large addressable market.

• Uncertainty regarding field testing and sales of ClearSign products being successfully completed. - Uncertainty about ClearSign being successful in expanding the market for its products. - Risks described in ClearSign's filings with the SEC including those in the Risk Factors section of the Annual Report on Form 10 - K for the period ended December 31, 2025.

Q: Congratulations on your results and a great start to 2026. Also, thanks for taking my questions. Just first of all, I appreciate the detail around the burner order configuration. Are you able to expand a bit more on what this will mean for your addressable markets, and how would you characterize the size of the market opportunity?

A: It's actually very large. The burner platform developed from the SBIR project allows adaptation to different shapes. The two orders talked about probably add 20% to 25% to refining coverage in just those two formats. It opens up the door to get into ethylene production which is about the size of the refining industry.

Q: For the fourth quarter, you had a big jump in revenue with that equivalent to 70% of the full year. Meanwhile, you mentioned before that Zico made a substantial effort to ship 26 burners by year end. So with your technology really being something as potentially being disruptive, big addressable market out there, orders could expand meaningfully. How should we think about the capacity of Zico and the supply chain to facilitate this large growth outlook?

A: Zico is a multi - billion dollar company with global manufacturing. There are multiple other manufacturers in Tulsa for other product lines. So there is very adequate resources within Zico and Tulsa for ClearSign.

Q: How should we think about the aftermarket pull through here, you know, maintenance, spare parts, things like that as a contributor to future revenue, like how substantial will that be?

A: It is an extremely meaningful product line. It is very profitable and as the business grows, it will continue to grow and may well end up being close to the largest source of income for ClearSign in the future.

Q: With respect to the cadence of revenues in 26, how should we think about quarterly revenue flows this year?

A: From a quarterly perspective, Q1 is not going to replicate Q4 of 2025. Revenue flows will be lumpy as orders are large and long - term.

Q: From a balance sheet perspective, are you comfortable, you know, as your orders ramp with respect to working capital needs, et cetera, to meet, you know, your growth requirements?

A: Yes. Confident in the cash position. Projects are typically self - funding with cash received in advance of costs.

Q: With sort of this current macro situation in the Middle East, in the energy space, some of the product deployments need downtime, et cetera, you know, for customers to, you know, put these things into play. Do you think you might face some push - outs from that perspective?

A: Unlikely that clear sign technology will be deployed to the Middle East in the near term as emissions regulations there are not at the same level as in the U.S.

Q: There's been also very news kind of relevant that there's been a lot of discussion of potentially the first new refinery being built in Texas. Are we seeing or hearing anything about that?

A: We are watching it closely. Have not seen any solid details about a new refinery in Texas yet.