LiqTech International (LIQT, Financial) has secured a contract to supply an advanced membrane filtration system aimed at treating oily wastewater for North Star BlueScope Steel, a prominent steel manufacturer in the United States. The filtration technology utilizes LiqTech's durable Silicon Carbide membrane, engineered to handle challenging industrial water conditions and ensure steady, high-quality filtration.
This cutting-edge ceramic ultrafiltration system is slated for commissioning and operational deployment in the latter half of 2025. It is intended to address the frequent filtration disruptions caused by significant oil content and inconsistent wastewater quality. As a vital pre-treatment step for a subsequent reverse osmosis system, it is expected to enhance process stability and improve water recovery efficiency.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for LiqTech International Inc (LIQT, Financial) is $3.60 with a high estimate of $3.60 and a low estimate of $3.60. The average target implies an upside of 141.61% from the current price of $1.49. More detailed estimate data can be found on the LiqTech International Inc (LIQT) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, LiqTech International Inc's (LIQT, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for LiqTech International Inc (LIQT, Financial) in one year is $1.76, suggesting a upside of 18.12% from the current price of $1.49. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the LiqTech International Inc (LIQT) Summary page.
LIQT Key Business Developments
Release Date: May 14, 2025
- Revenue: $4.6 million, up 36% sequentially from $3.4 million in Q4 2024 and up from $4.2 million in Q1 2024.
- Water Systems Sales: $2.7 million, up from $1.5 million in Q1 2024 and $1.4 million in Q4 2024.
- DPF and Ceramic Membrane Sales: $1 million, down from $1.8 million in Q1 2024 and $1.1 million in Q4 2024.
- Plastics Revenue: $1 million, up from $0.9 million in Q1 2024 and Q4 2024.
- Gross Margin: 2.7%, compared to 6.4% in Q1 2024 and negative in Q4 2024.
- Operating Expenses: $2.3 million, consistent with Q1 2024 and up from $2.2 million in Q4 2024.
- Net Loss: $2.4 million, unchanged from Q1 2024.
- Cash Balance: $10.5 million, down from $10.9 million at the end of December 2024.
- Accounts Receivable: Increased to $3.4 million from $2.4 million in December 2024.
- Q2 2025 Revenue Guidance: Expected to be between $4.8 million and $5.2 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue grew 36% sequentially to $4.6 million, driven by record commercial orders of PureFlow mobile units to the oil and gas industry.
- Successful grand opening of the joint venture in China, leading to new marine scrubber orders and a framework agreement for aftersales support.
- Pilot units in various markets, including lithium brine extraction and oil and gas water treatment, have shown positive results and extended agreements.
- Expected revenue growth in Q2, with projections between $4.8 million and $5.2 million, indicating continued sequential growth.
- Implementation of cost-saving initiatives aimed at lowering the breakeven rate, expected to improve profitability metrics in Q2.
Negative Points
- Gross margin for Q1 was only 2.7%, down from 6.4% in the year-ago period, indicating challenges in achieving optimal revenue levels.
- DPF and ceramic membrane sales were down from $1.8 million in Q1 last year to $1 million, showing a decline in this segment.
- Operating expenses remained flat at $2.3 million, with increases in SG&A due to costs associated with the China joint venture.
- Net loss for the quarter was $2.4 million, unchanged from the comparable period of 2024, indicating ongoing financial challenges.
- Accounts receivable increased significantly due to a large order shipped in late Q1, impacting cash flow management.
