LiqTech International, Inc. Q4 FY2025 earnings call

• 2025 revenue increase driven by 49% growth in systems and aftermarket revenue, but shy of original guidance due to delay in large oil and gas OEM order. - Pool business: commercial pool business was standout, shipped 34 pool systems in 2025, ClariFlow pool filtration platform gaining acceptance, new modular design improving margins. Expanded distribution in UK, working on US pool project. - Water for energy: oil and gas projects have timing issues, but industrial wastewater treatment showing traction. Added sales resources and opened service center in Texas. - Marine segment: broke ground on new R&D center in China, completed spare parts warehouse, 3 marine orders for 8 vessels in backlog. - Resource allocation: focusing on more predictable parts of business, allocating resources to standardized, higher - margin system platforms.

For 2025, revenue increased 13%. Systems and aftermarket revenue grew 49%. Pool business was a standout: 2025 pool system revenue totaled $2.6 million, with 34 pool systems shipped, 24 in 2025 and 10 scheduled for early 2026; 2026 pool revenue expected $5 million to $6 million. Water for energy: oil and gas has timing challenges, but water - for - industry applications saw success with advanced membrane - based filtration system at North Star BlueScope Steel; 2025 water - for - energy and water - for - industry - related revenue $4.1 million, 2026 expected $5 million to $8 million. Marine segment: 2025 marine revenue approx $1.5 million, 2026 target $4 million. Legacy DPF and plastics business: 2025 revenue ~$8 million, 2026 expected ~$9 million.

• 2026 revenue expected $23 million to $27 million. - Adjusted EBITDA positive in mid to high range of revenue guidance assuming constant currency. - Growth driven by continued expansion in pool systems, industry applications, and marine. - Revenue range reflects unpredictability of oil and gas project timing.

• Forward - looking statements subject to known and unknown risks and uncertainties that may cause actual results to differ. - Timing of large oil and gas projects is difficult to predict which may impact results. - Tariffs and other factors may affect competitiveness and results of US oil and gas business.

Q: When can we expect revenue from the large oil and gas order pushout to be booked?

A: David Kowalczyk said it's in the customer's hands, but ideally Q2 2026 finalization.

Q: Do tariffs affect your US oil and gas business? Are your products competitively priced?

A: Fei Chen said tariffs are a moving target, they've had good discussions with customers, focus on cost reduction, standardization, and efficiency to balance tariff impact.

Q: Do you need capital in 2026?

A: Fei Chen said they have a clear growth plan with revenue guidance $23 million to $27 million and are evaluating financial options to support growth.

Q: What are the drivers of your 2026 revenue outlook of $23 million to $27 million?

A: Fei Chen said growth drivers include pool business ($5 million to $6 million in 2026), marine business ($4 million), water - for - energy and water - for - industry ($5 million to $8 million), and legacy DPF and plastics business slight increase from $8 million to $9 million, with more reliable and predictable revenue from diversified verticals.