Arq Q3 results beat estimates on PAC business profitability; raises FY guidance
Overview
US activated carbon producer's Q3 revenue grew 9% yr/yr, beating analyst expectations
Net income for Q3 beat analyst expectations
Company raised low end of FY2026 adjusted EBITDA guidance
Outlook
Company raises FY26 adj EBITDA guidance to $19-20 mln from $17-20 mln
Arq reiterates FY26 revenue guidance of $120-125 mln nd capital expenditures of $8-10 million
Company sees potential growth in PAC volumes and pricing as PFAS regulations take effect in 2027
Result Drivers
HIGHER SALES VOLUMES - Co said revenue growth was driven predominantly by increased volumes
PAC BUSINESS PROFITABILITY - Co attributed improved gross margins to strength and profitability in core PAC business, including enhanced cost discipline
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $38.21 mln | $35.25 mln (6 Analysts) |
Q3 Net Income | Beat | $2.50 mln | $1.50 mln (6 Analysts) |
Q3 Operating Income | Beat | $3.13 mln | $2.26 mln (5 Analysts) |
Q3 Pretax Profit | Beat | $2.50 mln | $1.61 mln (6 Analysts) |
Q3 Operating Expenses | $12.04 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the commodity chemicals peer group is "buy"
Wall Street's median 12-month price target for Arq, Inc. is $3.50, about 90.2% above its November 3 closing price of $1.84
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)