Q3 2025 Anaergia Inc Earnings Call
Ladies and gentlemen, thank you for joining us. And welcome to the energy at Q3 2025 conference call and webcast. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you've dialed in to today's call, please press star 9, to raise your hand, and star, 6 to unmute,
I will now hand the conference over to Darlene Webb, Investor Relations. Please go ahead.
Thank you very much. Operator, and good morning, everyone.
On today's call, we'll be discussing energy. Energy is earnings for the third quarter of 2025, which ended September 30th 2025.
If you're following along with our slide deck, which is available here on our live stream streaming webcast.
Or, you can also access it directly from our investor section of the website. My comments relate specifically to slides 1 through 3.
On slide 2. You'll see that on today's call. I am joined by Mr. Is saf. On energy is chief executive officer.
Mr. Greg Wolfe energy is Chief Financial Officer and Dr. Yaniv sheren energy is Chief Operating Officer.
Before beginning our formal remarks, we would like to refer you to slide 3 of the presentation, which contains a caution on forward-looking information.
And a note on the use of non-gaap or IFRS measures.
Listeners are reminded, as always, that today's discussion may contain forward-looking statements that reflect current views with respect to future events.
Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in these forward-looking statements.
Energy. It is not undertaken to update any forward-looking statements, except as may be required by applicable laws.
Listeners are urged to review. The full discussion of risk factors in the company's perspective that is filed with the Canadian Securities regulators.
And with that, I'll turn the call over to us off.
Thank you, Darlene. Good morning, everyone. We are now on slide 4.
With these real privileges to be here today, sharing our results. Q3 was not just a defining quarter for the GM; it was a glimpse of our future. After many consecutive quarters of negative adjustability, we are once again in positive territory. This is a remarkable milestone and, more than that, it is proof that our transformation is real.
When we launched the junior 2.0. We re rebuilding From the Inside Out, not simply fixing what was broken? But reimagining, what was possible? We set out to design a company capable of doing, what? Only a handful of others in the world can and do it better to reimagine every stage of the wage to renewable cycle and to show that turning waste into clean energy is not a dream. It is where science meets engineering where curiosity meets precision and where technology begins to serve both people and planet.
And now you can see that Vision taking shape revenue is growing sharply, margins are extending and adjusted in.
Is positive once again, but more what matter most is not only that numbers are improving. Is this why they are improving?
Improving because this team believes because our strategy is precisely because our purpose is powerful.
Even now, now move to slide 5.
We said energy, I would become The Benchmark for this industry and quarter by quarter. We are proving it, our Revenue backlog reached 20087 million dollars by quarter end nearly triple where we began the year.
That is not only growth. It is momentum. It shows that our customers trust us.
Reliability, performance and innovation.
Energy is no longer a company transition.
it is a company in motion, a company that is
earning its place among the most trusted names in clean energy, not because of marketing. But because of results,
When we introduced to the gs2.0, we committed to 5 priorities, operational efficiency, Capital sales, Geographic expansion, strategic Partnerships, and a stronger Financial in. Q3 we delivered progress on all 5. We are executing with Precision scaling, intelligently and bringing a technology and purpose together. In a way, a few companies can
Energy have to follow is working and very importantly, it is working the right way with discipline with hearts. And with vision, the company we are building is not only financial is stronger.
it is becoming a simple of what clean energy future can look like,
Profitable.
Circular and sustainable.
That's what drives me every day. They believe the Innovation and responsibility. I think we exist and that doing good for the planet. Can also be doing well for shareholders.
This is how great companies are born through Clarity to the courage to challenge convention and to believe in what is possible.
It is that belief that drive us forward, the conviction that Innovation and discipline can coexist that engineering can be art and that progress but Pursuit repurpose can truly shape the world.
That is what energy stands for.
With that, I will turn the call over to Greg, who will walk you through the financials and details behind the quarter's performance, right?
Thank you, Sir, and good morning, everyone. I'm now speaking to slides 6 and 7. Q3 was a defining quarter for Anaergia and one that truly reflects the financial strength now emerging under Energy at 2.0.
Revenue for the quarter was 51.4 million and increase the 77% or 22.3 million compared to 29 million in the same period in 20204.
That growth was led by Capital, our Capital sales business with a particularly strong performance in Italy and North America regions where we're seeing consistent demand and repeat business.
Gross profit for the quarter was 14.8 million up 146% from 6 million in Q3 last year.
That's a dramatic Improvement. Mainly driven by higher gross profit in our Capital sales segment, and the efficiency gains. We have all been working towards
Gross margins climbed to 28.8%, up from 20.7% in Q3 2024. That's an 8.1% gross margin increase.
The result of a business that is sharper, leaner, and more focused on profitability at every stage.
Sgn, sg&a expense expenses, were 14 million down 16% or 2.7 million from 16.7 Million. Last year, we continue to run the business with discipline while ensuring we have the right structure to support growth.
These reductions are robust and reflect lasting changes on how we operate.
Turning to the bottom line, net loss was 0.5 million in Q3 2025 compared to a net loss of 15.6 million in Q3 2024, that's an improvement of more than 15 million year-over-year. A clear step towards sustainable profitability. And evidence that our transformation is taking hold,
The incident really underscores how far we have come, and it's incredibly rewarding to see the progress show up clearly in our results.
Now, moving to adjusted ibida. Adjusted ibida, was positive 2.6 million compared to a loss of 6.4 Million last year and Improvement of 9 million or nearly 140% Improvement.
This is the first time in over 2 years that the company achieved positive results. These results are different from the past. This is not a 1-off quarter. This is what we set out to be in July of 2024, a sustainable long-term profitable RNG technology company that delivers full TurnKey Solutions around the world.
This is just the beginning of our journey with a positive direction in Revenue growth. Solid growth margins, and a growing pipeline of opportunities.
And our adjusted IBA lost narrow to just 3.6 million compared to a 20.6 million loss last year and 82.5% Improvement on a year-over-year basis.
That's a substantial turnaround and it's been driven by Management's focus on our to core technology platform, TurnKey delivery offerings and project execution.
Now, moving to slide a revenue backlog. As a reminder, our backlog rule is only signed contract work in our Capital sales segment. As of the reporting date, and conservatively, we only count 3 years of long-term O&M contracts, even though O&M contracts are typically 5 to 15 years in duration.
Our revenue backlog continues to grow, reaching $287 million at quarter end, up from $244 million in Q2 and $103 million at the start of the year. That's a 179% increase year-to-date. This shows the strength of our customers' confidence and market demand for energy technology and our delivery model.
Backlog growth was led.
By new signed contracts in Italy and North America. In addition, we announced a 184 million multi-site framework in Spain of which the first project of the 16 projects was signed into Revenue backlog, during Q3 2025, the remaining 15% will be added to revenue backlog, as they are executed,
We continue to our position in the in Europe's renewable gas market as well as Advance our work in North America with a focus on Project sales under our Capital light model.
The substantial backlog and internal pipeline provide visibility, stability, and confidence in the quarters and years ahead, in summary. This is a breakthrough financial quarter for energy revenue, substantially through margins. Improved overhead costs continue to come down and are adjusted. EVA turned positive for the first time in over 2 years.
And that's just the start.
With that, I'll turn it over to you need. We'll take you through the operational highlights and the execution driving these results. You need
Thank you. Greg. We're now on slide 10.
2 3 was an exceptional quarter for energy of not only in terms of results, but in what those results represent,
The business continues to strengthen and aligned across segments.
The strong Revenue growth, uh, that Greg just described the results of the successful execution of Revenue backlog, and the successful launch of our recently booked projects.
Across our Global operations. Execution has been our priority. This past quarter Europe, has seen a surge in bookings in large in part due to strong incentive tailwind and discipline focused, and strategic regions where we have long-standing presence.
In Italy, construction is progressing on the Vernal facility, the country's first plant to address wastewater sludge and source-separated organics for biomethane production.
Our Partnerships with bioenergetics with follow-on orders across projects, molia, Ariano and ostellato.
That together represent 44 million in expected revenues.
These repeat collaborations, demonstrate the confidence. Our customers have in energized, technology, and delivery records
In Spain momentum is strong, our agreement with pre zero near Bilbao marks our First Source separate Organics to biomethane project in the country. Representing about 7 million in expected Revenue.
Additionally, in Spain.
as we heard from Greg, we secured a major multi-site framework agreement to supply Advanced Technologies from over 15 biomethane plants, provide a roughly 184 million
Among these are contracts with Nordic gas journalists, assisted subsidiary of Nordic, gas group will convert organic waste into renewable. Biomes, an important component of our broader Spanish presence with about 18 million to ex expected revenue for energy, go.
Taken together these projects represent, meaningful customer commitments, this quarter, and momentum, behind energy of 2.0.
For the market opportunity, it is translating into measurable growth.
Beyond Europe, we are continuing to deliver on projects worldwide. In Singapore, construction continues on the Integrated Waste Management Facility at the Tuas View Basin, one of the largest and most advanced codigestion complexes in the world. The project is roughly halfway complete and remains on track for phase commissioning beginning next year.
In North America, our Wastewater code digestion to RNG development project in. Riverside California secret conditional. Financing commitment for EPC and onm. Services anticipated to generate 39 million of Revenue.
Moving to slide 11.
Operate facilities. Remain important. Contributors the SoCal biomethane. Uh, plan continues to perform as it a wage approval of its long-term. Off-take agreement under California Senate bills, 1440 program
In New England, our Rhode Island, bio energy facility continues to ramp up production converting food waste from across the region into renewable natural gas supply to Irving Oil. Under a long-term optic agreement with CI score under CFR waiting approval
These projects are strengthening energy as Global platform and presence through geographically Diversified exposure. Enabling the company to capitalize on global bio gas Tailwind.
Inside the company, our focus is on operational efficiency that discipline is allowed us to contribute to a record quarter with Revenue up, 77% year-over-year and the company returning to positive adjusted Eva. We're now on slide 12.
Our Revenue, backlog continued to grow this quarter 18% over Q2, reaching 287 million, at the end of September, nearly triple what it was the start of the year.
and on July 13th,
across continents and industries energy as part of a global shift.
Turning waste into renewable energy, reducing emissions and building infrastructure for regional energy security.
that's what energy at 2.0 is about Precision, partnership and performance a platform that turns Innovation into impact,
With that. I'll turn it back to myself.
Thank you. I need
you 3 marks more than a financial turning point. It marks the moment in the GI begin to realize the full potential of the company.
We achieved positivity, we expanded Revenue backlog, and we proved that the disciplined Purpose Driven strategy.
Delivers results.
But more importantly, we sparked a new belief in this company in the mission of the company. And it was in a GST stand for
Can move to the next slide.
We are the engineers of change to return waste into something valuable and we do it at scale reliably efficiently. And with purpose that is what energy at 2.0 represents. Not only a turnaround, but a transformation, a company becoming desired because it stands for something greater than itself, a company that lives by example.
Our momentum is real. Our vision is both and our future is bright, and this is only the beginning.
Thank you for your continued support and belief in energy. Are we look forward to sharing more Pro progress with you next quarter?
I will now turn the call back over to Darlene. We open the Q&A portion of the call, Charlene.
Thank you as soft.
Operator. We will now open the call to questions.
Thank you.
We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please raise your hand. Now, if you've dialed in today's call, please press star 9, to raise your hand and start 6 to unmute please stand by while we compile the Q&A roster.
Your first question comes from the line of Craig Irwin with Roth Capital Partners, your line is open. Please go ahead.
Hi, Craig. I'm sorry, sorry. Sorry. Thank you. Uh, good morning and congratulations on this really strong quarter here. Um, can you maybe just unpack for us a little bit the $16 million ahead of our model? It's really impressive. Um, you know,
Where are things going really right for you guys? I know you have to actually, you know, build and install a lot of this equipment, um, you know, for across, across the globe to be able to deliver Revenue like this. Clearly your supply chain is working. Your manufacturing is, is is clicking together with the good margins. Um, you know, what's what's going? So very well with you, on the execution side,
Yeah. Craig I think it's a good question, appreciate it. The you know, the the
What's clicking for us is repeat business and multiple contracts where we have similar scopes. This allows us to drive efficiencies because of...
Anything, you do execute the same projects and Designs. We've done in the past but under a standardized approach.
With larger larger scope and value.
Well, the, you know, that's that's an impressive result. I mean, 15 million dollars is a lot of Revenue to generate as far as upside. So, um, next question I have is around is around the the backlog in the booking. So 244 to 287, you know, that's, you know, 40 million plus sequential increase in backlog but you still had a, you know, better than 50 million dollar uh, quarter there. So chunky bookings again, this quarter, but you only booked a small portion of some of these projects like your your project in Spain, you know. Can can you maybe talk about the um the scope that's out there um, in your existing agreements? Um, that could uh could contribute to backlog that burns off in 26, for example, you know, you've done 1 project for Spain, you know. Could you potentially finish another 1 or 2 in the fourth quarter? How many a year would you would you see as reasonable inside inside the total, I think you set a a 14 plants that could be built.
You want to take that 1 krag? I think. Um, what, what we're seeing is, you know, obviously those projects, get signed and they go into our backlog, we have 1 signed in the 233 so it's just beginning actually. So actual revenue of that project will be over, you know, the next 18 months. But every time we add another
1 obviously would continue to have to our Revenue that will be produced over the duration of each and every project. Right? So um so so those projects will continue to get signed in into um our backlog, you know, it's a committed pipeline, but uh, they they go into our backlog as we sign each and every 1 of them. So, in 2026, we expect, um, um, a sizable amount of the number of contracts, we have out there to sign into, um, production
Congratulations again on this really strong quarter. I'll go ahead and hop back in the queue.
Thanks Craig.
Comes from Ben Stalkers with Haywood. Your line is open. Please go ahead.
Yeah. Hi good morning. Thanks for taking my question and uh, congrats on the strong quarter. I'm just looking at Eva to growth. How do you guys plan to sustain long-term need to grow going forward under this new capital White model?
Sure. You know, when we look at the market, it is very young. So, when we look at the opportunities, we're seeing not only what we have in backlog right now but also what we have in the pipeline.
Um, you know, we look at uh, you know, a decade plus of just really sizable growth in our um, our back in our pipeline backlog, as well as every project that we complete. We look for a long-term onm contract which then becomes, you know, uh repeat business for on 15 to 15 year type agreements. Um, so it's we're we're in a very good.
Spot in the industry. The fact that we are, you know, worldwide can do EP work, engineering procurement, and any EPC work in North America and Europe right now. We're in a great spot, and so we look at repeat revenues and growth through backlog, growth, and execution year-over-year.
That makes sense. Thank you for that. And I guess for my follow-up, uh, how should we be looking at sgna? Moving forward as your revenues continue to ramp uh working through this large backlog.
Sure. So our sgna is, um, really the overhead side of it, you know, as we take on more engineering, more in-house project management, that becomes all project, um, cost of sales, um, you know, costed to produce these projects which is what we've been doing, um, our sgna. We expected to be uh, you know, normal increases in in, um, inflationary type type of increases for people. And so we we expected not to grow very much at all in the next.
The few years, um, other than normal increases, in what we need to do as a company to retain the best.
Contact. Appreciate the caller. I'll hop back in the queue.
Your next question comes from Don Angelo vulpe with Beacon Securities. Your line is open. Please go ahead.
Hey, good morning, guys. Uh, kind of just a follow-up to the previous questions. Uh, can we can we talk about the size of the overall, uh, pipeline, how we should look at, uh, backlog expansion SL execution as we're heading into, uh, physical 26. And maybe if you guys, could provide some color on some of the geographies you guys are most optimistic about. We had good growth out of Italy, and North America. Just curious on other hubs, we should be focused on
You want to speak to that 1? Sure.
We we are we see still uh Europe and North America. Not just North America, the Americas are the major potential for for the upcoming revenues but Asia is as a locations is growing quite rapidly. And as you know, we are already there. So we see a potential for the 2026 and 27 onwards with the, a few Asian companies, countries, sorry that we are under negotiation at the moment.
Okay, thank you. And then uh, I guess just follow just to follow up. Uh, just looking at the adjusted ibida figure, uh, consider it to be out performance for the quarter, for sure, 2.6 million. Um, just kind of curious on what levers you guys have available to kind of Drive margins higher, where we can kind of see this growing too in the future. And if we should continue, uh, continuously see margin expansion as, uh, as the company continues to scale.
Yeah, I would, you know, we always start looking for further margin expansion where we can get it.
Uh, you know, some things that are helpful for us is the kind of the rinse and repeat projects that we have, we have some that are uh, of size. And so we're able to leverage, um, you know, our subcontractors, our equipment aside, it's more efficient right with materials, as we're building in house. So, our cost structure goes down, as we have more of the same, uh, type of work. Obviously, on the equipment side that we manufacture, um,
With our all of our patents is clearly, we get economies of scale there. Um, as well as also on the on the construction side. As we're as we're building several with the same contractors, we were able to drive down overall cost and and increase margins where we can. But so we're always looking to increase the margins, we're very focused on operational, um results and and it's very important to us obviously. So yeah, we we think there's opportunity to continue to grow that area as we leverage others.
Okay, great. Thanks for the color. Uh, congratulations on the results, guys. Keep up the positive momentum. I'll hop back in the queue.
Your next question comes from the line of Alexandria, Richie with Paradigm Capital, your line is open, please go ahead.
Hi. This is Trey Smith here. Alex, reaching first. Just congratulations. Everyone on
the first positive order of my questions involves around gross margin.
Very able to speak to, you know, what do you expect for normalized gross margin moving forward? And then, do you see any seasonality as well with the business kind of coming into these winter months?
Sure. We, you know, gross margins. We we Peg, our our project, our cap sales in the 20 to 30% range. Um, you know, our onm in the 40 Mark. Um,
Our build on operate, um, even even this year has been a little bit of a drag on our, on our, uh, on our gross margins in the business. But um, in general, though, we still are in the upper 20s cities. Um, Market perspective. So we think that, you know, the range for ours is right in that right in this area. So we think we're, we're we're in a very good spot. You know, we got these projects are large, so um, they have large projects, producing these markets is um, obviously attributable to our technology platform and our know-how to achieve such such a good market and just use size contracts.
Okay, awesome. Thank you. And then the seasonality around the business. Yeah, seasonality. Um, there really isn't seasonality. It's really, um, it's it's, you know, going to go on construction schedules. 18 months is, you know, probably the average duration of project builds. But, um, if it can go 2 years, but in the beginning of a project, it's a little bit. It's a little bit slower as you're ramping up on the engineering and and getting everyone lined up and then when you get in the middle of the project, that's when you're hitting it heavy.
And so it's not seasonal to to to you know, to to the time of the year. It's really just you know, it's a project cycle, right? So the beginning is a little bit slower, the tail end of it. As you wrap up, certain things and get commissioning done, and you'll roll into like a longer term. Mowing down the deck that can be like a little bit of a, you know, ramp down on a project cycle, 1 project. And in the middle of the project, you're very heavy in in construction and manufacturing of our equipments.
Follow up. We'll just check competitions. Have you guys been seeing it in the big? Oh, sorry. It's hard to... it's hard to hear.
You know, we don't have a lot of competition across the system, um, it's usually we go in with some engineering up front and um, pretty much. It's about a 909% chance we get the work. After we finish the engineering, the preliminary engineering, um, there are others that, you know, manufacture certain other pieces of equipment that sort of stuff, but not the technology that we have uh that produces a much higher yield um, for for our investors. So, um, we don't really see a, a direct competitor per se that, you know, can do this. If someone takes the lead on a on type of project, we're always in the EP side of it and the technology platform, which is excellent.
For us. So um from the from the competition standpoint we really don't have
um, a lot of direct competition anywhere and in our system,
okay, thank you and congrats again for
As a reminder to ask a question, please raise your hand now.
We have no further questions in the queue. I will now turn the call back over to Darlene Webb for closing remarks.
Thank you, operator, and thank you, everyone.
As always, for additional information or should you have any questions? Please contact the IR. Team at Irene gia.com or visit us online at energia.com
Thank you all again for your time today.
Operator. You may now end the call.
This concludes today's call, thank you for attending. You may now disconnect