Arq narrows FY2026 EBITDA range after Q3 record revenue and PAC margin gains

Financial results

Arq reported record third‑quarter revenue of $38.2 million, up 9% year‑over‑year, and net income of $2.5 million. Gross margin rose to 39.7% from 28.8% in Q3 2025 (approximately 1,100 basis points improvement). Adjusted EBITDA was $8.8 million versus $5.2 million a year earlier, driven by improved profitability in the powdered activated carbon (PAC) business; operating profit was $3.1 million. SG&A was $7.2 million and R&D totaled $0.8 million for the quarter.

Guidance and capital

Arq narrowed full‑year 2026 Adjusted EBITDA guidance to $19–20 million (prior range $17–20 million) and reiterated revenue guidance of $120–125 million and capital expenditure guidance of $8–10 million. Q3 capex was $1.0 million. Cash at September 30 was $19.1 million (including $11.3 million restricted) and total debt, including financing leases, was $28.2 million.

PAC for PFAS™ and growth initiatives

Initial customer testing of PAC for PFAS™ was completed with further testing continuing through year‑end 2026 across multiple parties. Management said the product could support utilities marginally outside the 4 parts per trillion threshold as an interim or permanent compliance path and expects potential meaningful orders in 2027 tied to the EPA’s April 2027 monitoring deadline. The company is also pursuing furnace efficiency improvements, evaluating monetization options for the Corbin Facility and related technologies, and expanding asphalt testing.