Q4 2025 Anaergia Inc Earnings Call

March 26, 2026

Speaker #1: Test. 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 have dialed in to today's call, please press star 9 to raise your hand, and star 6 to unmute.

Speaker #1: I will now hand the conference over to Darlene Webb, Investor Relations. Please go ahead.

Speaker #2: Thank you very much, Operator, and good morning, everyone. On today's call, we'll be discussing anergia's earnings for the fourth quarter and year-end 2025, which ended on December 31, 2025.

Speaker #2: If you're following along with our slide deck, which is available here on our live streaming webcast, or you can also access it directly from the Investors section of our website, my comments relate specifically to slides 1 through 3.

Speaker #2: On slide 2, you'll see that on today's call, I'm joined by Mr. Assaf Onn, Anergia's Chief Executive Officer, Mr. Greg Wolf, Anergia's Chief Financial Officer, and Dr. Yaniv Scherson, Anergia's Chief Operating Officer.

Speaker #2: Before beginning our formal remarks, we would like to refer you to slide 3 of the presentation, which contains a caution and forward-looking information and a note on the use of non-GAAP measures.

Speaker #2: 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.

Speaker #2: Anergia does not undertake 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 perspectives that is filed with the Canadian Securities Regulators.

Speaker #2: And with that, I'll turn the call over to Assaf.

Speaker #3: Good morning, everyone. Today, I will walk you through the progress we made in 2025. And the results we achieved. 2025 was a historic year for Anergia.

Speaker #3: I'll be speaking to slides 5 through 9. A year ago, we had clear priorities. We needed to improve execution. We needed to operate with greater discipline.

Speaker #3: And focus. The business. We improved how we run the business. We focused on execution and we remained disciplined about the opportunities we pursued. Anergia today is a very different company than it was a year ago.

Speaker #3: Slide 6. The results are clear. For the full year, revenue grew 61% to more than $180 billion. Gross profit grew nearly 80%. And we ended the year with $257 million in revenue backlog, up $149% from a year ago.

Speaker #3: In the fourth quarter, revenue more than doubled compared to the prior years. For the full year, Anergia delivered positive adjusted EBITDA. Slide 7. That was our plan.

Speaker #3: We delivered it. The result of a clear strategy and disciplined execution. The turnaround is evident. It reflects the work of our teams across the company.

Speaker #3: I would like to take this opportunity to thank my team for their commitment. Slide 8. Anergia is a unique company. We address the entire value chain.

Speaker #3: We take organic waste and turn it into energy: clean water, and nutrients that we turn to the soil. Our results this year show the strength of our business and how we are now operating it.

Speaker #3: We are now on slide 9. We had a clear plan. We executed with discipline, across the company. Our results reflect that. And we will continue building this infrastructure at scale across our markets.

Speaker #3: With that, I will turn the call over to Greg, who will walk you through the numbers in detail. Greg, over to you.

Speaker #4: Thank you, Assaf. Good morning, everyone. It's always good to be able to report strong results. As Assaf mentioned, we delivered positive adjusted EBITDA for the full year 2025, marking an important milestone for the company.

Speaker #4: I'll walk you through financial results for the fourth quarter and full year ended December 31, 2025. I'm now speaking to slide 10. Revenue for Q4 2025 was $71.7 million.

Speaker #4: An increase of $111% from $34.1 million in Q4 2024. For the full year, revenue reached $180.2 million, an increase of 61% from $111.6 million in 2024.

Speaker #4: Higher capital sales activity, most notably in Italy and North America, drove this increase, reflecting percentage of completion progress on large EPC and equipment supply contracts.

Speaker #4: Gross profit for Q4 2025 was $16.1 million, reflecting a 79% increase up from $9 million in Q4 2024. For the full year, gross profit increased to $46.8 million, an 82% improvement compared to $25.6 million in 2024.

Speaker #4: Increased project activity improved execution, and our continued focus on more profitable capital sales and operational contracts drove this improvement. Gross margins for Q4 2025 were $22.5% compared to $26.4% in Q4 2024.

Speaker #4: For the full year, gross margins increased to $26% compared to $23% in 2024. The improvement in full-year margins reflects our focus on more profitable projects, improved contract-level margins, tighter cost discipline, and stronger execution across the business.

Speaker #4: SG&A expenses for the fourth quarter were $14.6 million, compared to $18.6 million in Q4 2024. For the full year, SG&A expenses were $60 million, compared to $66.8 million in 2024.

Speaker #4: This reflects cost reduction activities we implemented across the business, including reductions in accounting, legal, and other external costs. As we continue to streamline our overhead structure with discipline, while also expanding our geographical footprint to broaden our market reach.

Speaker #4: For the full year, net loss improved significantly to a loss of $4.5 million representing an improvement of 51.5 million compared to a net loss of $55.9 million in 2024.

Speaker #4: Higher revenue, gross profit, and continued cost discipline across the organization contributed to this improvement. Turning to adjusted EBITDA and profitability. Adjusted EBITDA for Q4 was positive $4.2 million, an improvement of 10.5 million or approximately $166% compared to a loss of $6.3 million in Q4 2024.

Speaker #4: For the full year, adjusted EBITDA was positive 0.6 million, an improvement of 27.5 million or approximately $102% compared to a loss of $26.9 million in 2024.

Speaker #4: This represents an important inflection point for the company, as we crossed the threshold into positive adjusted EBITDA for the full year. Turning to slide 11.

Speaker #4: As we closed out 2025, our revenue backlog and large pipeline continued to provide strong visibility into future revenue. As of December 31, 2025, our revenue backlog stood at $257 million, more than double the $103.1 million we reported at the end of 2024.

Gregory Wolf: Compared to a net loss of CAD -55.9 million in 2024. Higher revenue, gross profit, and continued cost discipline across the organization contributed to this improvement. Turning to adjusted EBITDA and profitability. Adjusted EBITDA for Q4 was CAD +4.2 million, an improvement of CAD 10.5 million or approximately 166% compared to a loss of CAD -6.3 million in Q4 2024. For the full year, adjusted EBITDA was CAD +0.6 million, an improvement of CAD 27.5 million or approximately 102% compared to a loss of CAD -26.9 million in 2024. This represents an important inflection point for the company as we cross the threshold into positive adjusted EBITDA for the full year. Turning to slide 11.

Speaker #4: An increase of 149% year over year. Our revenue backlog reflects signed contracts across our capital sales and O&M service segments, using a conservative approach to revenue backlog recognition, including modeling only contract contracted projects and limited limiting O&M revenue to approximately three years.

Speaker #4: Beyond our existing revenue backlog, we continue to pursue a large and growing pipeline of opportunities across our key markets. These opportunities include both capital sale projects and long-term service agreements, positioning the company for continued growth.

Turning to adjusted adjusted evida and profitability adjusted ebit offer Q4 was positive. 4.2 million and Improvement of 10.5 million or approximately 166% compared to a loss of 6.3 million in Q4 2024.

Speaker #4: We are now on slide 12. Although less than 10% of our total revenue, our build-own operate, or BU, assets remain an important part of our platform.

For the full year just be but I was positive, 6 million and Improvement of 27.5 million or approximately 102% compared to a loss of 26.9 million in 2024.

This represents an important inflection point for the company, as we cross the threshold into positive adjusted EBITDA for the full year.

Speaker #4: They demonstrate our technology at scale, generate operating data, and support long-term service relationships, while continuing to inform how we design, build, and operate projects for our customers.

Gregory Wolf: As we closed out 2025, our revenue backlog and large pipeline continued to provide strong visibility into future revenue. As of December 31, 2025, our revenue backlog stood at CAD 257 million, more than double the CAD 103.1 million we reported at the end of 2024. An increase of 149% year over year. Our revenue backlog reflects signed contracts across our capital sales and O&M service segments using a conservative approach to revenue backlog recognition, including modeling only contracted projects and limiting O&M revenue to approximately 3 years. Beyond our existing revenue backlog, we continue to pursue a large and growing pipeline of opportunities across our key markets. These opportunities include both capital sale projects and long-term service agreements, positioning the company for continued growth. We are now on slide 12.

Turning the slide 11.

As we closed out, 2025 our Revenue, backlog and large pipeline, continue to Pro, provide strong, visibility into future Revenue.

Speaker #4: While BU revenue was pressured in 2025, we see meaningful opportunity for growth in 2026. We continue to evaluate opportunities to optimize value at Charlotte, and at Rhode Island, our focus is moving the facility towards higher and more consistent production levels.

As of December 31st, 2025, our revenue backlog stood at $257 million, more than double the $103.1 million we reported at the end of 2024.

An increase of 149.

Percent year-over-year.

Speaker #4: At our SoCal Biomethane facility, we received recently announced that this is the first facility to supply R&G under California's SB 1440 procurement program, which is a long-term offtake contract.

Revenue backlog, reflects signed contracts across our Capital Sales, and onm Service segments.

Using a conservative approach to revenue. Backlog recognition, including modeling only contract contracted projects and limited limiting onm Revenue to approximately 3 years.

Speaker #4: Yaniv will speak to that in more detail. But we view this as a very important development for this facility's value going forward, with stronger offtake economics and approved long-term results.

Beyond our existing revenue backlog, we continue to pursue a large and growing pipeline of opportunities in our team markets.

Speaker #4: To summarize, build-own operate platform, these assets remain strategically important and with SB 1440 procurement program and increased production we believe they will contribute improved results in 2026 and forward.

These opportunities include both capital sales projects and long-term service agreements, positioning the company for continued growth.

Gregory Wolf: Although less than 10% of our total revenue, our build own operate or BOO assets remain an important part of our platform. They demonstrate our technology at scale, generate operating data, and support long-term service relationships while continuing to inform how we design, build, and operate projects for our customers. While BOO revenue was pressured in 2025, we see meaningful opportunity for growth in 2026. We continue to evaluate opportunities to optimize value at Charlotte. At Rhode Island, our focus is moving the facility towards higher and more consistent production levels. At our SoCal Biomethane facility, we recently announced that this is the first facility to supply RNG under California's SB 1440 procurement program, which is a long-term offtake contract.

We are now on, slide 12.

Speaker #4: Moving to slide 13. Overall, our results for the fourth quarter and full year reflect substantial progress in strengthening the business, improving margins, delivering positive adjusted EBITDA, and significantly expanding our revenue backlog.

Although less than 10% of our total revenue are built on operate or BOO assets, they remain an important part of our platform. They demonstrate our technology at scale, generate operating data, and support long-term service relationships, while continuing to inform how we design, build, and operate projects for our customers.

Speaker #4: Reaching this point represents an important milestone for Anaergia. It reflects strong execution across the organization and a continued focus on financial discipline. While we are pleased with the progress we made this year, we remain focused on continuing to prove execution, expand margins, and convert revenue backlog into profitable results.

Well, boo Revenue was pressured in 2025. We see meaningful opportunity for growth in 2026. We can continue to evaluate opportunities to optimize value at Charlotte and at Rhode Island. Our focus is moving the facility towards higher and more consistent production levels.

Speaker #4: With that, I'll turn the call over to Yaniv, who will walk through our operational progress and provide additional context on the projects driving that momentum.

Gregory Wolf: Yaniv will speak to that in more detail, but we view this as a very important development for this facility's value going forward with stronger offtake economics and improved long-term results. To summarize, BOO platform, these assets remain strategically important, and with SB 1440 procurement program and increased production, we believe they will contribute improved results in 2026 and forward. Moving to slide 13. Overall, our results for the Q4 and full year reflect substantial progress in strengthening the business, improving margins, delivering positive adjusted EBITDA, and significantly expanding our revenue backlog. Reaching this point represents an important milestone for Anaergia. It reflects strong execution across the organization and a continued focus on financial discipline. While we are pleased with the progress we made this year, we remain focused on continuing to improve execution, expand margins, and convert revenue backlog into profitable results.

Speaker #4: Yaniv?

Speaker #5: Thank you, Greg. We're now on slide 14. I'll focus on our commercial momentum, execution of the capital light model, and key market signals across our regions.

At our SoCal biomethane facility, we received and recently announced that this is the first facility to supply RNG under California's SB 1440 procurement program. This is a long-term off-take contract—I'll enable us to get into that in more detail. But we view this as a very important development for this facility's value going forward, with stronger offtake economics and approved long-term results.

Speaker #5: 2025 was a strong year for bookings across all regions, both in scale and in structure. Our projects across Europe, North America, and Asia-Pacific region span multiple customer segments and delivery models.

Speaker #5: Thematically, we saw growth in our municipal and private sector customer base globally. And expansion of our O&M business. This translated into multiple project awards from private equity-backed platform developers, repeat sales with corporate multinationals, and follow-on contracts with municipal customers.

To summarize build on operate platform. This these assets remain strategically in important and with sb1 14440 procurement program and increase production, we believe they will contribute improved results in 2026 and forward.

Moving the slide 13.

Speaker #5: Activity progressed steadily through the year, building momentum into the second half. By year-end, our revenue backlog more than doubled year over year. Moving to slide 15.

Overall, our results for the fourth quarter and full year reflect substantial progress in strengthening the business, improving margins, delivering positive adjusted EBITDA, and significantly expanding our revenue backlog.

Reaching this point represents an important milestone for energya. It reflects strong execution, across the organization and it continued to focus on financial discipline.

Speaker #5: In Europe, we continue to build significant momentum in the wake of the REPowerEU framework. In Spain, we secured our largest multi-project commitment to date.

Gregory Wolf: With that, I'll turn the call over to Yaniv, who will walk through our operational progress and provide additional context on the projects driving that momentum. Yaniv?

While we are pleased with the progress you made this year, we remain focused on continuing to improve execution, expand margins, and convert revenue backlog into profitable results.

Speaker #5: Our framework agreement covering more than 15 biomethane facilities and representing approximately 184 million in expected revenue. This includes the Nordigas project, representing approximately 18 million in expected revenue, and supporting continued expansion of our presence in the Spanish market.

Yaniv Scherson: Thank you, Greg. We're now on slide 14. I'll focus on our commercial momentum, execution of the capital-light model, and key market signals across our regions. 2025 was a strong year for bookings across all regions, both in scale and in structure. Our projects across Europe, North America, and Asia Pacific span multiple customer segments and delivery models. Thematically, we saw growth in our municipal and private sector customer base globally, and expansion of our O&M business. This translated into multiple project awards from private equity-backed platform developers, repeat sales with corporate multinationals, and follow-on contracts with municipal customers. Activity progressed steadily through the year, building momentum into H2. By year-end, our revenue backlog more than doubled year over year. Moving to slide 15. In Europe, we continued to build significant momentum in the wake of the REPowerEU framework.

With that, I'll turn the call over to you need who will walk through our operational progress and provide additional contacts on the projects driving that momentum you need.

Thank you, Greg. Uh, we're now on slide 14.

Speaker #5: We also entered into a multi-project agreement with Caplot, expected to generate more than 60 million across a portfolio of biomethane facilities. In Italy, we continue to build out the multi-project platform with QGM, with 68 million of contract value.

I'll focus on our commercial momentum, execution of the capital-light model, and key market signals across our region.

2025 was a strong year for booking cross Hall regions, both in scale and in structure.

Speaker #5: We expanded our relationship with TechVal, increasing scope from 5 to 7 facilities, representing over 36 million in expected revenue. We also saw continued follow-on activity across our Italian portfolio, including Molia, Ariano, reflecting ongoing expansion across our existing customer base.

Our projects across, Europe, North America, and the asia-pacific region, spend multiple customer segments and delivery models.

Thematically, we saw growth in our municipal and private sector customer base globally.

And expansion of our onm business.

Speaker #5: These projects reflect the scale of demand in the market and our ability to deliver within structured multi-project portfolios. We continue to deliver in line with our capital light model, focused on technology and EPC supply.

Activity progressed steadily through the year, building momentum into the second half. By year-end, our revenue and backlog more than doubled year-over-year.

Speaker #5: Next slide 16. In North America, we expanded scope on existing projects, including the East County Advanced Water Purification Joint Power Authority in Southern California, and continued to see follow-on work from long-standing partners.

To slide, 15.

Yaniv Scherson: In Spain, we secured our largest multi-project commitment to date, a framework agreement covering more than 15 biomethane facilities and representing approximately CAD 184 million in expected revenue. This includes the Nortegas project, representing approximately CAD 18 million in expected revenue and supporting continued expansion of our presence in the Spanish market. We also entered into a multi-project agreement with Capwatt, expected to generate more than CAD 60 million across a portfolio of biomethane facilities. In Italy, we continue to build out the multi-project platform with QGM, with CAD 68 million of contract value. We extended our relationship with Techbau, increasing scope from 5 to 7 facilities, representing over CAD 36 million in expected revenue.

In Europe, we continue to build significant momentum in the wake of the REPowerEU framework.

In Spain, we secured our largest multi- project commitment to date.

Speaker #5: We advanced development activity across wastewater and organics projects, including our Riverside project in California, which secured conditional financing of approximately $39 million in EPC with incremental O&M revenue.

A framework agreement covering more than 15 biome facilities and resenting 184 million in expected Revenue.

Speaker #5: Our relationship with Pepsi continues to grow, expanding into Latin American market with organic waste to onsite R&D facilities, being delivered in Colombia and in Mexico.

This includes the Nordic Gas project, representing approximately $18 million in expected revenue and supporting continued expansion of our presence in the Spanish market.

We also entered into a multi-project agreement with Cap. Block, expected to generate more than $60 million across the portfolio of biomethane facilities.

Speaker #5: In APAC, we advanced our position in Japan through our agreement with JGC Holdings, while continuing execution in Singapore. Construction continues on the Tuas View Basin, integrated waste management facility, one of the largest and most advanced co-digestion complexes globally.

Yaniv Scherson: We also saw continued follow-on activity across our Italian portfolio, including Ariano nel Polesine, reflecting ongoing expansion across our existing customer base. These projects reflect the scale of demand in the market and our ability to deliver within structured multi-project portfolios. We continue to deliver in line with our capital-light model focused on technology and EPC supply. Next, slide 16. In North America, we expanded scope on existing projects, including the East County Advanced Water Purification Joint Power Authority in Southern California, and continue to see follow-on work from long-standing partners. We advanced development activity across wastewater and organics projects, including our Riverside project in California. We've secured conditional financing of approximately $39 million in EPC with incremental O&M revenue. Our relationship with Pepsi continues to grow, expanding into Latin American market with organic waste to on-site RNG facilities being delivered in Colombia and in Mexico.

In Italy, we continue to build out the multi-project platform with QGM, with $68 million of contract value. We expanded our relationship with Tech Bao, increasing scope from 5 to 7 facilities, representing over $36 million in expected revenue.

Speaker #5: Now more than halfway complete and progressing toward phased commissioning. Procurement activity is increasing across the region, including global tenders in Singapore and policy development in Japan.

We also saw continued follow-on activity across our Italian portfolio, including Molia Ariano, reflecting ongoing expansion across our existing customer base.

Speaker #5: Across all regions, repeat business, multi-project awards are defining themes. We continue to add new customers and expand relationship with existing ones, often across multiple projects and geographies.

These projects, reflect the scale of demand in the market and our ability to deliver within structured multi-product portfolios.

We continue to deliver in line with our capital, a model focused on technology and EPC Supply.

Next, slide 16.

Speaker #5: This reflects confidence in delivery and the strength of our vertically integrated project delivery capabilities. We're now on slide 17. We also continue to make progress executing the strategy.

Speaker #5: A greater portion of our work is now structured around technology supply, EPC delivery, and long-term operations and maintenance. This reduces capital intensity and allows us to scale more efficiently, leveraging our central know-how and technical differentiation.

In North America, we expanded scope on existing projects including the East County, Advanced water purification enjoyed Power Authority in Southern California. And continue to see follow-on work from long-standing partners with Advanced development activities, across Wastewater and organic projects, including our Riverside project in California with secured, conditional financing, approximately 39 million in EPC with incremental onm Revenue.

Speaker #5: Next slide 18. Looking forward, we see continued momentum with strong market signals across all regions. Globally, R&D incentive schemes are generating strong market pull.

Our relationship with Pepsi continues to grow expanding into Latin American Market with organic waste to on-site RNG facilities being delivered in Colombia and in Mexico.

Yaniv Scherson: In Asia Pacific, we advanced our position in Japan through our agreement with JGC Holdings while continuing execution in Singapore. Construction continues on the Tuas View Basin Integrated Waste Management Facility, one of the largest and most advanced co-digestion complexes globally, now more than halfway complete and progressing toward phased commissioning. Procurement activity is increasing across the region, including global tenders in Singapore and policy development in Japan. Across all regions, repeat business, multi-project awards are defining themes. We continue to add new customers and expand relationship with existing ones, often across multiple projects and geographies. This reflects confidence in delivery and the strength of our vertically integrated project delivery capabilities. We're now on slide 17. We also continue to make progress executing the strategy. A greater portion of our work is now structured around technology supply, EPC delivery, and long-term operations and maintenance.

In APAC, we advanced our position in Japan through our agreement with

Speaker #5: To recap, in Italy, the national recovery and resilience plan offers 15-year government-backed tariffs and capital grants stimulating substantial biogas project investments. In the UK, the Green Gas Support Scheme provides 15-year government-backed tariffs for R&D generated from waste.

JJC Holdings, while continuing execution in Singapore.

Construction continues on the Twas View Basin Integrated Waste Management Facility, one of the largest and most advanced codigestion complexes globally.

Speaker #5: In Canada, the Clean Fuel Regulation policy has resulted in over four-fold supply of R&D into the decarbonization program. In California, Senate Bill 1440 R&D procurement program, the first such state program in the US, enables gas utilities to enter into up to 15-year fixed-price offtake contracts with an earmark specifically designated for food waste.

Now, more than halfway complete and progressing toward phase commissioning, procurement activity is increasing across the region including Global tenders and Singapore and policy development in Japan.

Speaker #5: Notably, our SoCal biomethane facility that Greg mentioned is expected to be the first project to supply R&D under this program, positioning us as a forefront in this major decarbonization policy.

Across all regions, repeat business and multi-project awards are defining themes. We continue to add new customers and expand relationships with existing ones, often across multiple projects and geographies. This reflects confidence in our delivery and the strength of our vertically integrated project delivery capabilities.

We're now on 577.

Speaker #5: Energy is strongly positioned to capitalize on these growing global R&D markets, with vertically integrated turnkey project delivery. More broadly, recent geopolitical developments have reinforced the importance of domestic energy security.

Yaniv Scherson: This reduces capital intensity and allows us to scale more efficiently, leveraging our central know-how and technical differentiation. Next slide, eighteen. Looking forward, we see continued momentum with strong market signals across all regions. Globally, RNG incentive schemes are generating strong market pull. To recap, in Italy, the National Recovery and Resilience Plan offers 15-year government-backed tariffs and capital grants, stimulating substantial biogas project investments. In the UK, the Green Gas Support Scheme provides 15-year government-backed tariffs for RNG generated from waste. In Canada, the Clean Fuel Regulations policy has resulted in over fourfold supply of RNG into the decarbonization program. In California, Senate Bill 1440 RNG Procurement Program, the first such state program in the US, enables gas utilities to enter into up to 15-year fixed-price offtake contracts with an earmark specifically designated for food waste.

We also continue to make progress executing the strategy. A greater portion of our work is now structured around technology Supply EPC delivery at long-term operations and maintenance. This reduces Capital intensity and allows us to scale more efficiently leveraging, our Central know-how and Technical differentiation.

Next, slide 18.

Speaker #5: This is driving increased policy focus on domestic, reliable sources of renewable fuel. We're now on slide 19. Overall, 2025 was a great year of significant progress across both commercial activity and operating structure.

Looking forward we see continued momentum with strong Market signals across all regions. Globally RNG incentive schemes are generating strong Market pull

Speaker #5: We delivered significant commercial results, securing major bookings across all regions, and expanding work with existing customers. We continue to execute our capital light model, structured around technology supply, EPC, and long-term O&M.

To recap, in Italy, the National Recovery and Resilience Plan offers 15-year government-backed tariffs and capital grants, stimulating substantial biogas project investments. In the UK, the Green Gas Support Scheme provides 15-year government-backed tariffs for RNG generated from waste.

Speaker #5: And we saw increasing support, market tailwinds across our regions, driving client demand for our integrated delivery and confidence from our strong track record. That is now reflected in larger programs for repeat business and more consistent execution across regions.

In Canada, the clean fuel regulation. Policy has resulted in over 4-fold supply of R&D into the decarbonization program.

Speaker #5: We are seeing that in our revenue backlog and our pipeline and how our customers are engaging with us, and we already seeing that carry into 2026.

Yaniv Scherson: Notably, our SoCal Biomethane facility that Greg mentioned is expected to be the first project to supply RNG under this program, positioning us at the forefront in this major decarbonization policy. Anaergia is strongly positioned to capitalize on these growing global RNG markets with vertically integrated turnkey project delivery. More broadly, recent geopolitical developments have reinforced the importance of domestic energy security. This is driving increased policy focus on domestic reliable sources of renewable fuel. We're now on slide 19. Overall, 2025 was a great year of significant progress across both commercial activity and operating structure. We delivered significant commercial results, securing major bookings across all regions and expanding work with existing customers. We continued to execute our capital-light model structured around technology supply, EPC, and long-term O&M.

In California, Senate Bill 1440—RNG procurement program—the first such State program in the US, enables gas utilities to enter into up to 15-year fixed-price opt-in contracts within the earmarks specifically designated for food waste.

Speaker #5: With that, I'll turn it back to Assaf.

Speaker #1: Thank you, Yaniv. As you have heard today, we have made a significant progress across the business. We've proved execution. We operated. We've disciplined. And we delivered results.

Notably, our SoCal Biomethane facility that Greg mentioned is expected to be the first project to supply RNG under this program, positioning us at the forefront in this major decarbonization policy.

Speaker #1: These were not easy changes, but they were necessary. You can see it in our revenues, in our margins, in our EBITDA, and in the backlog that has more than doubled.

Energy is strongly positioned to capitalize on these growing Global RNG markets with vertically. Integrated. TurnKey project delivery more broadly recent geopolitical developments have reinforced the importance of domestic energy security

This is driving increased policy, focus on domestic reliable sources of renewable fuel.

We're now on slide 19.

Speaker #1: Energy is a stronger company. And more focused company. And more disciplined company. We had a clear plan. We executed it. Next slide. We said we would do this, and we did.

Overall, 2025 was a great year of significant progress across both commercial activity and operating structure.

Speaker #3: Operator, we may now open the call to questions.

Yaniv Scherson: We saw increasing support market tailwinds across our regions, driving client demand for our integrated delivery and confidence from our strong track record. That is now reflected in larger programs, repeat business, and more consistent execution across regions. We're seeing that in our revenue backlog, in our pipeline, in how our customers are engaging with us, and we've already seen that carry into 2026. With that, I'll turn it back to Assaf.

we continue to execute our Capital light model structured around technology, supplies, EPC and long-term OEM

Speaker #4: Thank you. We will now begin the question and answer session. If you would like to ask a question, please raise your hand now. If you have dialed in to today's call, please press star 9 to raise your hand, and star 6 to unmute.

And we saw increasing support, market tailwinds across our regions driving client demand for our integrated delivery, and confidence from our strong track record.

That is now reflected in larger programs, repeat business, and more consistent execution across regions.

Speaker #4: Please stand by while we compile the Q&A roster. Your first question comes from the line of Craig Irwin with Ross MKM. Your line is open.

We are seeing that in our Revenue, backlog in our Pipeline and how our customers are engaging with us. And we already seen that carry into 2026.

With that, I'll turn it back to Assaf.

Assaf Onn: Thank you, Yaniv. As you have heard today, we have made a significant progress across the business. We improved execution, we operated with discipline, and we delivered results. These were not easy changes, but they were necessary. You can see it in our revenues, in our margins, in our EBITDA, and in a backlog that has more than doubled. Anaergia is a stronger company, a more focused company, a more disciplined company. We had a clear plan. We executed it. Next slide. We said we would do this, and we did.

Thank you, Edie.

Speaker #4: Please go ahead.

Speaker #5: Good morning and congratulations on another really strong quarter here. Assaf, I know you guys are pretty conservative the way you put your backlog together, but your projects that you've been awarded tend to have much greater scope than the projects that have been released by customers.

As you have heard today, we have made significant progress across the business. We've approved execution, we operated with discipline, and we delivered results. Please note, these were not easy changes, but they were necessary.

You can see it in our revenues, in our margins, in our EPA, and in the backlog—it has more than doubled.

Speaker #5: I know there's at least a couple dozen projects where we're waiting for the customers to officially release a quantification of this pipeline, this committed pipeline, that you might be able to share with us and how this compares year over year?

Energy is a stronger complex. The more focused company, the more disciplined company.

We had a clear plan. We executed it. Next slide.

We stand; we said we would do this, and we did.

Speaker #5: I know we're already in impressive territory. But is this continuing to grow at a faster rate? Or anything you can do to flush that out for us?

Assaf Onn: Operator, we may now open the call to questions. Thank you. We will now begin the question and answer session. If you would like to ask a question, please raise your hand now. If you have dialed in to today's call, please press star nine to raise your hand and star six to unmute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Craig Irwin with Roth MKM. Your line is open. Please go ahead.

Darlene Webb: Operator, we may now open the call to questions.

Operator: We may now open the call to questions.

Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please raise your hand now. If you have dialed in to today's call, please press star nine to raise your hand and star six to unmute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Craig Irwin with Roth MKM. Your line is open. Please go ahead.

Speaker #1: Yes, for sure. We have a pipeline of more than $1 billion. Okay? But we put the backlog only 3 to be signed. So Nordigas, we were awarded 16 projects.

Thank you. We will now begin the question and answer session. If you would like to ask a question, please raise your hand. Now, if you have dialed in to today's call, please press star 9 to raise your hand, and star 6 to unmute.

Please stand by while we compile the Q&A roster.

Speaker #1: 16 of them are in the pipeline. And only one that is actually going on right now is in the backlog. So our pipeline is growing significantly.

Speaker #1: And we see this increase actually daily, definitely now with the situation in the globe. Markets. So yes, we have quite a lot of work.

Craig Irwin: Good morning, and congratulations on another really strong quarter here. Assaf, I know you guys are pretty conservative the way you put your backlog together, but your projects that you've been awarded, you know, tend to have much greater scope than the projects that have been released by customers. You know, I know there's at least a couple dozen projects where, you know, we're waiting for the customers to officially release. Do you have a quantification of this pipeline, this committed pipeline that you might be able to share with us, and how this compares year over year? I know we're already in impressive territory, but is this continuing to grow, you know, at a faster rate?

Your first question comes from the line of Craig Irwin with Roth MKM. Your line is open. Please go ahead.

Good morning, and congratulations on another really strong quarter here. Um,

Speaker #1: But as you know, we don't give any guidance. So it's a little bit of a problem here to elaborate more.

Speaker #5: Understood. Understood. So then the next big change that the company is this 1440. And then the progress at Rhode Island your build-on operate projects look like they could be a positive contribution to possibly cash flows this year.

Speaker #5: Can you maybe flush out for us what the year-over-year potentially is on a consolidated basis? I mean, would you expect these the net result of these projects to potentially be a positive contribution to your income in 2026?

Chef, I know you guys are pretty conservative the way you put your backlog together, um, but your projects that you've been awarded, um, you know, tend to, you know, tend to have much, much greater scope, um, than, uh, the projects that have been released by customers. You know, I, I know there's at least a couple dozen projects where, uh, you know, we're waiting for the customers to officially release. Um, do you have, um, a quantification of this pipeline, this committed pipeline, that you might be able to share?

Craig Irwin: You know, anything you can do to flesh that out for us?

Assaf Onn: Yes, for sure. We have a pipeline of more than $1 billion, okay? You know, we put the backlog only things to be signed. Nortegas, we were awarded 16 projects. 15 of them are in the pipeline, and only one that is actually going on right now is in the backlog. Our pipeline is growing significantly. We see this increase actually daily, definitely now with the situation in the global markets. Yes, we have a lot of work, but as you know, we don't give any guidance, so it's a little bit of a problem here to elaborate more.

Share with us, um, and how this compares year-over-year. I know, I know we're already in impressive territory, um, but is this—is this continuing to grow, you know, at a faster rate or, um, you know, um, anything—anything you can do to, to flush that out for us.

Yes, for sure. Um,

Speaker #1: The answer is for sure, yes. Greg, you want to take over?

we have a 59 off.

Speaker #6: Yeah. When you look at what we have out there, obviously, Charlotte is idle. But we're looking for opportunities there with that facility. And then when you go to Rhode Island, we're ramping up after last year.

More than $1 billion.

Speaker #6: We did a dewatering. And so it's been a reset. It's been a very positive event for the plant. SoCal under the 1440 will generate higher revenues and that's going to always been it's always a profitable plant as it is.

Okay, but you know, we put in the backlog only things to be signed. So, Nordica, we were awarded 16 projects—16 of them are in the pipeline, and only one is actually going on right now using the backlog.

So our pipeline is growing significantly, and we see this increase actually daily, definitely. Now, with the situation in the global,

Markets. So,

Speaker #6: But this offtake agreement is a step up in value as far as the rates are concerned. And so overall, it's going to be an improvement over 2025 for sure, which was a bit of a wait for us.

Yes, we—we have. What are the work?

Craig Irwin: Understood. The next big change at the company is, you know, this SB 1440, and then the progress at Rhode Island. You know, your build own operate projects look like they could be a positive contribution to possibly cash flows this year. Can you maybe flesh out for us what the year over year potential is on a consolidated basis? I mean, would you expect these, the net results of these projects to potentially be, you know, a positive contribution to your income in 2026?

Speaker #6: But our goal is to get it to cash positive this year as a combined group. We have two other smaller facilities which already are very, very cash positive.

Speaker #6: So SoCal and then we've got Rhode Island for Charlotte. So we think that this year is just a good turnaround year for those build-on operate assets to be collectively a positive event for later in the year.

But as you know, we don't give any guidance. So it's a little bit of a problem here to elaborate more, I understood understood. So then the, the next big change that the company is, you know, this 1440. And then and then the progress of Rhode Island. You know, you're you're you're billed on operate projects look. Like they could be a positive uh, contribution to um,

Possibly cash flows this year.

Um, can you maybe flush out for us? Um, what the year-over-year? Uh,

Speaker #5: Understood. Understood. And I'm trying to put together what the potential outlook is on the gross margins, right? You guys had record gross margins in the services segment, which is obviously a record.

Assaf Onn: The answer is for sure yes. Greg, you want to take over?

Potentially, is that on a consolidated basis? I mean, would you expect these, um, the net result of these projects to potentially be, um, you know, a positive contribution to your income in '26?

Gregory Wolf: Yeah. When you look at what we have out there, obviously Charlotte is idle, but we're looking for opportunities there with that facility. When you go to Rhode Island, we're ramping up after last year we did a dewatering, and so it's been a reset. It's been a very positive event for the plants. SoCal under SB 1440 will generate higher revenues, and that's always been, you know, it's always a profitable plant as it is. This offtake agreement is a step up in value as far as the rates are concerned. Overall, it's gonna be an improvement over 2025 for sure, which was a bit of a wait for us.

The answer is for sure. Yes. Greg, you want to take over?

Speaker #5: And then big upside on the capital sales side but we know that usually the larger sales have slightly lower margins. What would you expect the sales mix to kind of be in 2026?

Speaker #5: Are we going to have very large lumpy sales like what we saw in this fourth quarter giving you this nice upside? Is that going to be something that's repetitive in 2026?

Speaker #5: And services seems to be following a trend of improving margins. Is that something where maybe there's something structural in there that's helping us with profitability?

Speaker #1: Indeed, you want to take this?

Speaker #6: Sure. Craig answers. Yeah, we expect this momentum to continue. The service business has been improving substantially in part because those capital sales lead to ongoing O&M and service work.

Gregory Wolf: You know, our goal is to get it to cash positive this year as a combined group. We have two other smaller facilities which already are very cash positive. SoCal, and then we've got Rhode Island before Charlotte. We think that this year is just a good turnaround year for those build own operate assets to be collectively a positive effect for later in the year.

Speaker #6: Our track record is strong. Our client reference base is positive. And we get repeat business and scope add-ons as well with our within our O&M business.

Speaker #6: But as mentioned before, it's a organically driven business off the tailwind of the capital sales. And with the European and particularly European and North American R&D frameworks that I summarized in my commentary, I mean, we see and we expect that pipeline that Assaf mentioned to continue to keep the trend.

Agreement is a, is a, is a step up in, in value, as far as, uh, the rates are concerned. And so, overall, it's going to be an improvement over 2025 for sure, which was a bit of a wait for us. But, uh, you know, our goal is to get it to, uh, cash positive. This year, as a combined group, we have two other smaller facilities, which already are very, very cash positive. So, um, SoCal, and then we've got Rhode Island, of course, Charlotte. So we think that this year is just a good turnaround year for those build-own-operate assets to be, uh, collectively, uh, positive.

Craig Irwin: Understood. I'm trying to put together what the potential outlook is on the gross margins, right? You guys had record gross margins in the services segment, which is, you know, obviously a record. You know, big upside on the capital sales side, but we know that, you know, usually the larger sales have slightly lower margins. You know, what would you expect the sales mix to kind of be in 2026? Are we gonna have very large lumpy sales, like what we saw in this Q4, giving you this nice upside? Is that gonna be something that's repetitive in 2026? You know, services seems to be following a trend of improving margins.

Positive effect for later in the year.

Speaker #6: I mean, the volume of gas procured and the repowered EU framework is mind-boggling. And these platforms of multi-project commitments those some which we have released are all expected to hit NTP to get into the backlog and book.

Speaker #6: So we expect sort of the large number of projects to continue sequential bookings in Europe. And in the US, where laser-focused on our EPC delivery and large technology package supply contracts, and so that trend, again, will continue we still have the tailwinds of some of the federal incentive schemes of IRA that still remain in place.

Craig Irwin: You know, is that something where, you know, maybe there's something structural in there that's helping us with profitability?

Assaf Onn: Yaniv Scherson, do you want to take this?

Understood understood. And I'm trying to put together what the potential Outlook is on the gross margins, right? You guys had uh, record, uh, gross margins in the, in the services segment, which is, you know, obviously a record and then uh you know, big upside on the on the capital sales side. But we know that, you know, usually the larger sales have slightly lower margins. You know, what would you expect? The sales mix to kind of be in, in, in, in, in 26. So are we going to have very large, lumpy sales, like like what we saw in this fourth quarter, giving you this nice subside, um, is that going to be something that's repetitive in in 26? And, uh, you know, Services seems to seems to be following a trend of improving. Margins, you know, is that something where, you know, maybe there's structure something structural in there, um, that's helping us with profitability.

Indeed, you want to take this?

Yaniv Scherson: Sure. So I think the answer is, yeah, we expect this momentum to continue. The service business has been improving substantially, in part because those capital sales lead to ongoing O&M and service work. Our track record is strong. Our client reference base is positive, and we get repeat business and scope add-ons as well, within our O&M business. You know, as mentioned before, it's a organically driven business off the tailwind of the capital sales. With the European and particularly European and North American RNG frameworks that I summarized in my commentary, I mean, we see and we expect that pipeline that Assaf Onn mentioned to continue to keep the trend.

Speaker #6: Incentives remain for power. Production tax credit has favorable signals from the IRS and recent guidance. And the CFR program is very robust with strong credit price signals and we're continuing to advance getting accreditation in that program.

Speaker #5: Excellent. Well, last question before I jump back in the queue. Seasonality in 2026, you guys had a very strong Finnish to 2025. Should we look at a similar spread of revenue generated across this year that we're currently in?

Yaniv Scherson: I mean, the volume of gas procured in the REPowerEU framework is mind-boggling. These platforms of multi-project commitments, you know, those, some which we have released, are all expected to hit NTP to get into the backlog and book. We expect sort of a, you know, large number of projects to continue sequential bookings in Europe. In the US, we're laser focused on our EPC delivery, and large technology package supply contracts. That trend again will continue. We still have the tailwinds of some of the federal incentive schemes of IRA that still remain in place. Incentives remain for power, for Production Tax Credit, have favorable signals from the IRS in recent guidance.

Speaker #5: Is there anything that's changed fundamentally maybe from the geopolitical situation or the overall energy scarcity, energy challenges in Europe that might impact the seasonality of the way this the revenue book comes together in 2026?

Sure. Yeah, we we, we expect this, uh, momentum to continue. Uh, the service business has been improving substantially uh, in part because uh, those Capital sales lead to ongoing onm and service work. Um, our track record is strong, our client reference, bases positive, and we get uh, repeat business and scope add-ons as well, um, with our within our own and business. But, you know, as mentioned before it it it's a, uh, organically driven, uh, business off the Tailwind of the capital sales and with with the European and, uh, particularly European and North American RNG Frameworks that I, I summarized in my commentary. I mean, we we see, and we expect that pipeline that it's off mentioned to continue to keep the trend. I mean, the, the volume of of gas procured and the repower EU framework is uh, mind-boggling and uh, these platforms of multi-project commitments, uh, you know, those some

Speaker #6: Greg, I would say that it is a bit we have seasonality in some, obviously, Q4 is always a strong quarter for us from an execution perspective.

Speaker #6: And then when you move into the year. And so I think it stays roughly the same for us going forward. Meaning it's seasonality Q1, Q2, Q3 just as kind of we walk through it.

Some some which we have released uh, are all expected to hit ntp to get into the backlog and and, and book. So we we expect sort of the, you know, large number of projects uh to to continue sequential bookings uh, in Europe and in the US, uh, we're laser focused on our VPC delivery, um, and large technology package Supply contracts. Um, and so that that Trends again will continue.

We still have the tailwinds of

Speaker #6: As we continue to grow our pipe in our backlog and actual execution, consistency in revenues starts to happen more and more. Especially from the top-line part of it from the cap sales.

Yaniv Scherson: The CFR program is very robust, with strong credit price signals, and we're continuing to advance, getting accreditation in that program.

Speaker #6: The spread between O&M and the build-on operates and the cap sales will continue as the cap sales grow, obviously, that percentage of the other two will be less as a total percentage, but should continue to grow as we finish projects, get more long-term O&M contracts, and that sort of thing.

Craig Irwin: Excellent. Well, last question before I jump back in the queue. Seasonality in 2026. You know, you guys had a very strong finish to 2025. Should we look at a similar spread of revenue generated across this year that we're currently in? You know, is there anything that's changed fundamentally, maybe from the geopolitical situation or the overall, you know, energy scarcity, energy challenges in Europe, that might impact the seasonality and the way the revenue book comes together in 2026?

Some of the federal incentives, uh, schemes of, uh, IRA that still remain in place, uh, it incentives. Remain for power. Um, for production tax credit, uh, it has had favorable signals from, uh, the IRS in recent, in recent, uh, guidance. Uh, and the CFR program is very robust, uh, with strong credit price signals. Um, and we're continuing to advance, uh, getting your accreditation in that program.

Speaker #6: And obviously, the build-on operate platform should have some improvements in the revenue side, but not significant enough to mean that it's moving the top-line needle, but it will from a profitable standpoint.

Speaker #6: So but yeah, we should be there is some seasonality to the fourth quarter, but great for us as a total year combined. So yeah.

Speaker #5: Understood. Great. Well, big print. And huge progress. So congrats.

Excellent. Well, last question, before I, I jump back in the queue, um, seasonality in 2026. Um, you know, you guys had a very strong finish, um, to 2025. Should we look at a similar spread, um, of of revenue generated across this, uh, this year that we're currently in, you know, is there any anything that's changed fundamentally maybe from the, uh, the geopolitical situation or the overall, um, you know, energy, uh, scarcity, energy challenges in Europe, um, that, that, that might impact the seasonality the way. This, uh, you know, the revenue book comes together, um, in in 26.

Gregory Wolf: Craig, I would say that, you know, it is a bit, we have seasonality in some. Obviously Q4 is always a strong quarter for us from an execution perspective. Then you move into the year. I think it stays roughly the same for us going forward, meaning it's seasonality, Q1, Q2, Q3, just as kind of we walk through it. As we continue to grow our pipeline in our backlog and actual execution, consistency in revenues starts to happen more and more, especially from the top line part of it, from the EPC sales bit. The spread between, you know, O&M and the build-own-operate and the EPC sales will continue.

Speaker #1: Thank you, Greg.

Speaker #6: Thanks, Greg.

Speaker #4: Your next question comes from the line of Donna Jello, Volpe, Woodbeacon Securities. Your line is open. Please go ahead.

Speaker #7: Hey, good morning, guys. Congratulations on the excellent results. Just looking at the EBITDA number, so a huge milestone achieved, hitting positive adjusted EBITDA for the year.

Correct, I would say that, you know, it it is a bit. Uh, we have seasonality in some obviously Q4 is always a strong quarter for us from an execution perspective, um and then you move into the year and so I think it's it stays roughly, the same for us going forward. Um, meaning meaning, it's seasonality, uh, q1 Q2 Q3. This is kind of where we walk through it as we continue to grow.

Speaker #7: Just wondering what kind of scale you guys think needs to be achieved to kind of reach that 10% mark? And if you think there could potentially be enough contribution from the BOO assets to make this feasible and in late 2026, early 2027?

Our pipe, you know, our backlog and actual execution consistency in revenues starts to happen more and more. Um, especially from the Top Line, part of it from the cap sales, that the spread between, um, you know, onm.

Gregory Wolf: As the cap sales grow, obviously that percentage of the other two will be less as a total percentage, but should continue to grow as we finish projects, get more long-term O&M contracts and that sort of thing. Obviously the build-own-operate platform should have some improvements in the revenue side, but not significant enough to mean that it's moving the top line needle, but it will from a profitable standpoint. There is some seasonality to the Q4, but 2026 looks great for us as a total year combined.

Speaker #6: Yeah, I think so for us to hit those milestones, obviously, we've got to continue to ramp up the business. I think we came in somewhere around 5, 6 percent, right, for the quarter.

Speaker #6: So as we move forward and we continue to build, we're going to hit that milestone. That's our a little bit longer-term goal, but that's absolutely achievable.

Speaker #6: And there's different ways, obviously, we continue to look at SG&A cut that cost and understand how we can optimize that piece of our business.

Speaker #6: So there's several ways that we can do this. One, obviously, is the top-line growth, which we discussed in our working on and expect to continue growth here.

Craig Irwin: Understood. Great. Well, big print and, you know, huge progress, so congrats.

Get get more, uh, long-term onm contracts. And that, that sort of thing, and obviously, the bill don't operate platform, should have some improvements in the revenue side, but not significant enough to mean that it's, uh, moving the Top Line needle but it will from a profitable standpoint. So but uh, yeah, it's, uh, we should be there is some seasonality to the fourth quarter but um, 2020. Uh, 6 here looks great for us as a total year combined. So,

Gregory Wolf: Thank you, Craig.

Yaniv Scherson: Thanks, Craig.

Understood, great. Well, big print and, you know, huge progress. So, congrats.

Speaker #6: The second part is to continue to drive down the SG&A component as well. So the combination of that on our longer-term outlook is 10% plus.

Greg. Thanks for

Operator: Your next question comes from the line of Donangelo Volpe with Beacon Securities. Your line is open. Please go ahead.

Your next question comes from the line of Donna. Giello vopay would be in securities.

Speaker #6: So yeah.

Donangelo Volpe: Hey, good morning, guys. Congratulations on the excellent results. Just looking at the EBITDA number, so a huge milestone achieved hitting positive adjusted EBITDA for the year. Just wondering what kind of scale you guys think needs to be achieved to kind of reach that 10% mark, and if you think there could potentially be enough contribution from the BOO assets to make this feasible in late 2026, early 2027.

Your line is open. Please go ahead.

Speaker #7: Okay. Awesome. Thanks for the color there. And then just pivoting over, just on the expanded scope of activities with QGM, I'm just wondering if these projects are still on timeline for completion for mid-2026 or if these timelines have been pushed out a little bit with the additional work.

Speaker #1: Yaniv?

Speaker #6: Timelines are on track. These projects are following the procurement scheme. Deadlines. And so we're on track to be delivering to be able to monetize those credits for our customers.

Hey, good morning, guys. Uh, congratulations on the excellent results. Um, just, uh, just looking at the uh number. So a huge milestone achieved hitting positive adjusted. You've been Duff for the year. Uh, just wondering what kind of scale you guys. Uh, thing needs to be achieved to kind of reach that 10% Mark, and if you think, there could potentially be enough contribution from, uh, the bo assets to make this feasible and in late 26th early 27th,

Gregory Wolf: Yeah, I think for us to hit those milestones, obviously we've got to continue to ramp up the business. I think we came in somewhere around 5-6%, right, for the quarter. As we move forward and we continue to build, we're gonna hit that milestone. That's our a little bit longer term goal, but that's absolutely achievable. There's different ways. Obviously, we continue to look at SG&A, cut that cost, and understand, you know, how we can optimize that piece of our business. There's several ways that we can do this. One, obviously, is the top line growth, which we discussed and are working on and expect a, you know, continued growth here. The second part is to continue to drive down the SG&A component as well.

Speaker #7: Okay. Thank you. And then final one for me, and then I'll pass the line. Just wondering what the capital allocation strategy for 2026 is.

Speaker #7: Will the key focus be on debt reduction, or is there an attractive pipeline of M&A that could potentially be a creative on the EBITDA front?

Speaker #1: Donna Jello, this is both. And I think that you know the company. So we are making sure that the bottom line talks as you can see.

Speaker #1: We executed that. So we are looking on many, many other directions too.

Gregory Wolf: The combination of that, on our longer term outlook, you know, is 10%+.

Speaker #7: Okay. I'll congratulations again, guys. I'll pass the line.

Yeah, I think um, that so for us to hit that to hit those Milestones, obviously we got to continue to wrap up the business. I think we came in somewhere around 5 6% right for the quarter. So as we move forward and we continue to build what we're going to hit that Milestone. That's our that's our long, a little bit longer term goal but that's absolutely achievable. And um, there's different ways. Obviously we continue to look at sgna cut that cost um and and understand, you know, how we can uh um optimize that piece of our business. So there's several ways that we can do this 1, obviously the Top Line growth which which we discussed in our working on and the expected, you know, continued growth here. The second part is to continue to drive down the sgna component as well. So the combination of that, um, on our longer term Outlook, you know, it's 10% plus, so,

Speaker #4: It's a kind reminder. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute.

Donangelo Volpe: Okay, awesome. Thanks for the color there. Just pivoting over, just on the expanded scope of activities with QGM. I'm just wondering if these projects are still on timeline for completion for mid-2026 or if these timelines have been pushed out a little bit with the additional work.

Speaker #4: Your next question comes from the line of Baltej Sidhu, Wood National Bank. Your line is open. Please go ahead.

Gregory Wolf: Can you

Okay, awesome. Thanks for the caller there, and then, uh, just pivoting over, just, uh, on the expanded scope of activities with QGM. I'm just wondering if these projects are still on timeline for completion for mid-'26, or if, uh, if these timelines have been pushed out a little bit with the additional work.

Yaniv Scherson: Timelines are on track. These projects are following the procurement scheme deadlines. We're on track to be delivering to be able to monetize those credits for our customer.

Can you?

Speaker #8: Hey, good morning. And congrats on the smaller finish to the year. Assaf, can you highlight what you're seeing in the market on the back of the war and from the context of countries looking forward towards having control of their energy sources or better control, I should say?

Donangelo Volpe: Okay, thank you. Final one from me, and then I'll pass the line. Just wondering what the capital allocation strategy for 2026 is. Will the key focus be on debt reduction or is there an attractive pipeline of M&A that could be, that could potentially be accretive on the EBITDA front?

Timelines are on track. These, uh, projects, uh, are, uh, following the procurement scheme, uh, deadlines. And so, uh, we're, uh, on track to be delivering—to be able to monetize those credits for our customer.

Speaker #8: Are you seeing an increase in impounds from customers and are there any geographies popping up that you haven't interacted with before?

Speaker #6: Yeah. In the past 18, 19 days, we have been getting very interesting calls from locations that we have not been before. And the calls are coming from the actual governments.

Okay, thank you. And then final 1 for me and then I'll pass the line. Uh, just wondering what the capital allocation strategy for 2026 is uh, will the key Focus be on De reduction or is there an attractive pipeline of m&a that could be? That could potentially be a creative on the on the EB itself front.

Assaf Onn: Donangelo Volpe, this is both. I think that you know the company. We are making sure that the bottom line talks. As you can see, we executed that. We are looking in many other directions too.

Speaker #6: But again, Baltej, this is an opportunity that, as you can understand, we will take in both hands. But we also have to make sure that we can execute what the world understands right now, that if you do not have your own gas, you will be it will be a problematic for you going forward.

This is both and I think that you, you know, the company. So we are, we are, we are, we are making sure that the bottom line

Talks. And as you can see, we executed that. So we are looking in many, many other directions too.

Donangelo Volpe: Okay. Congratulations again, guys. I'll pass the line.

Okay, I'll uh, congratulations again guys. I'll uh, I'll pass the line.

Operator: As a kind reminder, if you would like to ask a question, please raise your hand now. If you have dialed in to today's call, please press star nine to raise your hand and star six to unmute. Your next question comes from the line of Baltej Sidhu with National Bank. Your line is open. Please go ahead.

Speaker #6: So yes, we have a lot of interested parties, which we are now addressing.

It's a kind reminder. If you would like to ask a question, please raise your hand. Now, if you have dialed in to today's call, please press star 9, to raise your hand, and star, 6 to unmute,

Speaker #8: Fantastic. And could you give an indication as to kind of the capacity that you have should incremental demand come, call it one and a half or twofold, threefold?

Baltej Sidhu: Hey, good morning, and congrats on the solid finish to the year. Assaf, can you highlight what you're seeing in the market on the back of the war and from the context of countries looking forward towards having control of their energy sources or a better control, I should say. Are you seeing an increase in inbound from customers and are there any geographies popping up that you haven't interacted with before?

Your next question comes from the line of baltes Seadoo with National Bank. Your line is open, please go ahead.

Speaker #8: Do you have incremental capacity on hand within your manufacturing facilities to satisfy that demand profile?

Speaker #6: Definitely. Definitely, Baltej. We are now working in one shift. We already now are preparing to work in two shifts in all of our manufacturing facilities.

Speaker #6: We can do three shifts. So we are not even we have so much more to give. The minute that we would be needed. So there is not a problem from our side in any way.

Assaf Onn: Yeah. In the past 18, 19 days, we have been getting very interesting calls from locations that we have not been before, and the calls are coming from the actual government. Again, Baltej, this is an opportunity that, as you can understand, we will take in both hands. We also have to make sure that you know we can execute what the world understands right now, that if you do not have your own gas, it will be a big problem for you going forward. Yes, we have a lot of interested parties, which we are now addressing.

Hey, good morning and, uh, congrats on the solid finish to the year. Um, so can you highlight what you're seeing in the market on the back of the war? And, and from the context of country is looking forward towards having control of their energy sources or or better control, I should say, are you seeing an increase in inbound from customers and and are there any geography popping up that you haven't interacted with before?

Yeah, in the past 18, 19 days, we have been

getting very interesting calls from

Speaker #8: Fantastic. And just one last one for me here. So it's been alluded to in the prepared remarks and we see it in the numbers that capital sales execution was notably strong in the quarter, particularly in Italy and North America where Yaniv had highlighted.

Locations that we have not been to before, and the calls are coming from the actual government.

Speaker #8: How do we think about the sustainability of this run rate looking forward in this fiscal 2026? And was there any pull forward of revenue, or does this reflect a more durable step-up in execution and cadence?

But again, bus station, this is—this is an opportunity that, as you can understand, we will take in both hands, but we also have to make sure that, you know, we can execute with that.

The world understands right now that if you do not have your own gas,

Speaker #1: Yaniv, you want to take this, please?

Speaker #6: Yeah. I mean, we the way to think about this is what we expect momentum to continue into 2026. There wasn't a pull forward. This is just the natural cadence of projects that once we book, there's a couple of months of delay to start getting wheels in motion.

Be, it will be a problem back for you, going forward.

so yes, we have a lot of interested parties, which we are now addressed

Baltej Sidhu: Fantastic. Could you give an indication as to kind of the capacity that you have should, you know, incremental demand come, call it 1.5-fold, 2-fold, 3-fold? Do you have incremental capacity on hand within your manufacturing facilities to satisfy that demand profile?

Speaker #6: But the projects are that we booked to have typically a 12 to 24-month booking period for recognition. So we're as mentioned in the remarks, in the beginning or approaching the halfway mark on a lot of projects that were recently booked in the backlog, as well as announced and identified projects that are committed exclusively to us that are not in the backlog that we anticipate to convert into backlog because these projects have to meet in some of the jurisdictions, have to meet tariff deadlines.

Assaf Onn: Definitely, Baltej Sidhu. We are now working in one shift. We already now are preparing to work in two shifts in all of our manufacturing facilities. We could do three shifts. We are not even, you know, we have so much more to give, the minutes that we would be needed. There is not a problem from our side in any way.

Fantastic. Could you give an indication as to kind of the capacity that you have should, you know, incremental, demand come call, it 1 and a half or 2434. Would do you have incremental capacity on hand within your manufacturing facilities to to to satisfy it to satisfy that demand profile?

Definitely, definitely. But

we are not working in 1 shift. We already now are preparing to work in 2 shifts in in in all of our manufacturing facilities we can do, 3, shifts. So we we are not even, you know, we have so much more to give

I mean, it's that that we would be needed, so there's not a problem from our side in any way.

Baltej Sidhu: Fantastic. Just one last one for me here. You know, it's been alluded to in the prepared remarks, and we see it's the numbers that capital sales execution was notably strong in the quarter, particularly in Italy and North America, where Yaniv had highlighted. How do we think about the sustainability of this run rate, looking forward into fiscal 2026? Was there any pull forward of revenue, or does this reflect a more durable step up in execution and cadence?

Speaker #6: So they have to be online in sort of cyclical dates during the year. So we're executing now through this first tranche of Europe. And there's the other tiers and waves of projects that will be entering the backlog to meet subsequent deadlines that are coming up.

Assaf Onn: Yaniv, you wanna take this please?

About to come and just 1 last 1 for me here. So, um, you know, it's been a, it's been a good into the, the prepared remarks, um, and we see the numbers, a couple of sales execution, was notably strong in the quarter, particularly in Italy. And, and North America, where you need had. Highlighted, how do we think about the sustainability of this run rate, um, looking forward in this fiscal 26 and was there any pull forward of Revenue, or does this reflect the more durable uh, step up and execution and and and and

Yaniv Scherson: Yeah. I mean, we. The way to think about this is we expect the momentum to continue into 2026. You know, there wasn't a pull forward. This is just the natural cadence of projects that once we book, there's a couple months of delay to start getting wheels in motion. But you know, the projects that we booked to have typically a 12 to 24 month booking period for recognition. We're, as mentioned in the remarks, you know, in the beginning or approaching the halfway mark on a lot of projects that were recently booked in the backlog.

Speaker #6: And we continue that momentum to continue in North America as well. The project timelines are quite long, and reasonable amount of the business is on a recurring revenue base with our O&M and increasing contributions from our build-on-operate assets that have received positive economic enhancements this year, notably the 1440 uptake.

Give me, if you want to take this, please.

Speaker #6: So that we expect to shore up that revenue base of security that is predictable and will be a contributor for the year.

Yeah, I mean we we the way to think about this is we expected I mentioned to continue into 26. Um, you know, there wasn't a pull forward. This is just the natural Cadence of, um, you know, projects that once we booked there's, you know, a couple months of delay to, uh, um, you know, start getting Wheels in Motion, but, uh, you know, the projects are that we booked, you know, to have uh, typically a 12 to 24 months, um,

Speaker #8: Very good. Thank you for the color. And I'll turn over the line. Thanks again, Assaf.

Yaniv Scherson: As well as, you know, announced and identified projects that are committed exclusively to us that are not in the backlog that we anticipate to convert into backlog because these projects have to meet tariff deadlines in some of the jurisdictions, so they have to be online in sort of cyclical dates during the year. We're executing now through this first tranche of projects, particularly for the large batch in Europe. There's the other tiers and waves of projects that will be entering the backlog to meet subsequent deadlines that are coming up. Again, we continue that momentum to continue.

Speaker #4: There are no further questions at this time. I will now turn the call back to Darlene Webb for closing remarks.

Booking period, uh, for recognition. So, you know, we we're, we're as, as mentioned in the remarks, you know, in the beginning or approaching the halfway mark on, uh, a lot of projects that were recently, uh, booked in the backlog, as well as, you know, announced and identified

Speaker #9: As always, we thank everyone for joining us on our call today. For additional information or should you have any questions, please contact your IR team at IR@energia.com or visit us online at energya.com.

Speaker #9: Thank you all again for your time today. And operator, you may now end the call. Thank you.

Yaniv Scherson: In North America as well, you know, the project timelines are quite long, and a reasonable amount of the business is on a recurring revenue base with our O&M and increasing contributions from our build-own-operate assets that have received a positive, you know, economic enhancements this year, notably the SB 1440 offtake. That we expect to, you know, shore up that revenue base of security that is predictable and will be a contributor for the year.

The projects that are committed exclusively to us, uh, that are not in the backlog that we, uh, anticipate to convert into backlog because these, uh, projects have to meet— in some of the jurisdictions— have to meet tariff deadlines. So they have to be online and sort of cyclical, uh, dates during the year. So we're, we're, um, executing now through this first tranche of projects, particularly for the large batch in Europe, um, and, uh, there's the other tiers and waves of projects that will be, uh, entering the backlog to meet such, I think, deadlines, uh, that are coming up. Uh, and we, we continue that, uh, momentum to continue in North America as well. Uh, you know, their, the project—

Quite a long and, uh, reasonable amount of the business is on a recurring revenue base, with our O&M, and increasing contributions from our, uh, build-own-operate assets. That...

Received a positive, you know, economic enhancement.

This year, notably the 1,440 optics of that, we expect to, you know, shore up that revenue base of security, that—that, uh,

Uh, it is predictable and will be a contributor for the year.

Baltej Sidhu: Very good. Thank you for the color, and I'll turn over the line. Thanks again and congrats.

Assaf Onn: Thank you.

Operator: There are no further questions at this time. I will now turn the call back to Darlene Webb for closing remarks.

Very good, thank you for the color and I'll turn over the line. Thanks again.

There are no further questions at this time. I will now turn the call back to Darlene Webb for closing remarks.

Darlene Webb: Oh, apologies. As always, we thank everyone for joining us on our call today. I was on mute. For additional information, or should you have any questions, please contact your IR team at ir@anaergia.com or visit us online at anaergia.com. Thank you all again for your time today. Operator, you may now end the call. Thank you.

Oh, apologies. As always, we thank everyone for joining us on our call today.

I was on mute.

For additional information, or should you have any questions, please contact your IR team in Iran or visit us online at naga.com.

Operator: This concludes today's call. Thank you all for attending. You may now disconnect.

Thank you all again for your time today and operator, you may now end the call. Thank you.

This concludes today's call. Thank you all for attending. You may now disconnect

Baltej Sidhu: All right, thanks.

Assaf Onn: All right, thanks.

All right, thanks.

Q4 2025 Anaergia Inc Earnings Call

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