Q1 2026 Anaergia Inc Earnings Call

May 13, 2026

Speaker #1: 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 into 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 Anaergia's earnings for the first quarter of 2026, which ended March 31, 2026.

Speaker #1: Ladies later. You have joined the meeting as an and gentlemen, thank you for joining us, and attendee and will be muted throughout the welcome to the Anaergia First meeting.

Speaker #1: Quarter 2026 Conference Call

Speaker #2: If you're following along with our slide deck, which is available here or 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 #1: and Webcast. After today's

Speaker #1: prepared remarks, we will host a

Speaker #1: question-and-answer session. If you would like to ask a question,

Speaker #1: please raise your hand. If you

Speaker #1: have dialed into today's call, please

Speaker #1: press star 9 to raise your

Speaker #1: hand, and star 6 to

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

Speaker #1: unmute. I will now hand the conference over to

Speaker #1: Darlene Webb, Investor

Speaker #1: Relations. Please go

Speaker #1: ahead.

Speaker #2: Thank you very here or on our live streaming much, Operator, and good morning, webcast, or you can everyone. On today's also access it directly from the call, we'll be discussing Anaergia's earnings Investors section of our for the first quarter of website, my comments relate specifically to slides 1 through 2026, which ended March 31, 3.

Speaker #2: Before beginning our formal remarks, we would like to refer you to slides 3 of the presentation, which contains a caution on 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: On slide 2, you'll see that on Officer. Before beginning our today's call, I am joined formal remarks, we would like to refer you by Mr. Assaf Onn, to slides 3 of the presentation, Anaergia's Chief Executive which contains a caution on Officer, Mr. Greg Wolf, forward-looking information, and a Anaergia's Chief Financial note on the use of non-GAAP Officer, and Dr. Yaniv measures.

Speaker #2: Anaergia 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 perspective, that is filed with the Canadian Securities Regulators.

Speaker #2: You may now move on to slide 4. And with that, I'll turn the call over to Assaf.

Speaker #2: Listeners are reminded, as always, statements. that today's discussion may contain Anaergia does not undertake to update any forward-looking statements that reflect current forward-looking statements except as may be required views with respect to future by applicable laws, events.

Speaker #3: Thank you, Darlene. Good morning, everyone. Thank you for joining us. We are now on slide 5. I want to start with where Anaergia stands at the close of the first quarter.

Speaker #2: Any such statements listeners are urged to review the are subject to risks and uncertainties full discussion of risk factors in the that could cause actual results to company's perspective, that is filed differ materially from those with the Canadian Securities anticipated in these forward-looking Regulators.

Speaker #3: Almost two years ago, we shifted the company to a capital-light business model, the model is built on a clear set of execution pillars. A focus on capital sales, a stronger balance sheet, operational efficiency, strategic partnerships, and geographic expansions.

Speaker #2: of risk factors in the company's

Speaker #2: perspective, that is filed with the Canadian

Speaker #2: Securities

Speaker #2: Regulators. You may now move on to slide

Speaker #2: 4, and with

Speaker #2: that,

Speaker #2: I'll turn the call over to

Speaker #3: In the first quarter of 2026, every one of those pillars is delivering. We are now on slide 6. Total revenue grew 122% year over year.

Speaker #2: Assaf.

Speaker #3: Thank you, Darlene. Good morning,

Speaker #3: everyone. Thank you for joining

Speaker #3: us. We are now on

Speaker #3: slide

Speaker #3: 5. I want to start with where pillars.

Speaker #3: Anaergia stands at the close of the

Speaker #3: first quarter.

Speaker #3: Gross profit grew 135%, adjusted EBITDA was positive for the third consecutive quarter. And revenue backlog stood at 265 million dollars, Craig will walk you through the financial detail.

Speaker #3: Almost two years ago, we shifted the

Speaker #3: business model. The model is

Speaker #3: execution pillars. A focus

Speaker #3: on capital

Speaker #3: sales, a stronger balance

Speaker #3: sheet, operational

Speaker #3: efficiency, strategic

Speaker #3: partnerships, and geographic

Speaker #3: Two items in Q1 marked important milestones for the company. We are now on slide 7. First, we entered the hybrid treated vegetable oil market, a new vertical for Anaergia.

Speaker #3: expansions. In the first quarter

Speaker #3: of 2026, every one of those pillars is

Speaker #3: delivering.

Speaker #3: We are now on slide

Speaker #3: 6. Total revenue grew

Speaker #3: 122% year over year. Gross

Speaker #3: HVO is renewable diesel made from waste oils and fats and the potential is significant. Second, our so-called biomethane facility was approved as the first project to deliver under California SB 1440.

Speaker #3: profit grew

Speaker #3: 135%, adjusted

Speaker #3: EBITDA was positive for

Speaker #3: the third consecutive

Speaker #3: quarter. And revenue backlog

Speaker #3: stood at

Speaker #3: 265 million

Speaker #3: dollars, Greg, we walk you through

Speaker #3: the financial

Speaker #3: The state long-term regulated procurement program. Yaniv will take you through both of these developments, along with the rest of the operation. The broader environment is moving in our favor.

Speaker #3: detail. Two items in

Speaker #3: Q1 marked important milestones for

Speaker #3: the company. We are

Speaker #3: now on slide

Speaker #3: 7.

Speaker #3: First, we entered the

Speaker #3: hybrid treated vegetable oil

Speaker #3: market, a new vertical for

Speaker #3: We are now on slide 8. Demand for renewable natural gas is expanding across our key geographies. As energy security becomes a dominant policy theme, in Europe, North America, and Asia, that demand is coming from large private investors, corporate developers, and utilities in our largest markets.

Speaker #3: Anaergia. HVO is

Speaker #3: renewable diesel made from

Speaker #3: waste oils and

Speaker #3: fats and the potential

Speaker #3: is

Speaker #3: significant. Second, our

Speaker #3: so-called biomethane facility

Speaker #3: was approved as the first

Speaker #3: project to deliver under

Speaker #3: California SB

Speaker #3: 1440. The state long-term

Speaker #3: regulated for cumin

Speaker #3: program. Yaniv

Speaker #3: will take you through both of these

Speaker #3: And regulators are reinforcing it with long-term program. Next slide. What set Anaergia apart is our depth of intellectual property and experience. Hundreds of active and pending patents.

Speaker #3: developments along with the rest of the

Speaker #3: operation.

Speaker #3: The broader environment is

Speaker #3: moving in our

Speaker #3: favor. We are now on

Speaker #3: slide

Speaker #3: 8. Demand for renewable

Speaker #3: expanding across our key

Speaker #3: And hundreds of reference facilities across 18 countries. Capital-light IP-riched backed by long-term demand, that is Anaergia today. After Greg and Yaniv has completed their sections, I will return to discuss what comes next.

Speaker #3: geographies. As energy

Speaker #3: security becomes a dominant policy

Speaker #3: theme, in Europe,

Speaker #3: North America, and

Speaker #3: Asia, that demand

Speaker #3: is coming from large private

Speaker #3: investors, corporate

Speaker #3: developers, and

Speaker #3: utilities in our largest

Speaker #3: markets. And

Speaker #3: Greg, over to you.

Speaker #3: regulators are reinforcing it with

Speaker #4: Thank you, Assaf. Good morning, everyone. We are excited to report progress. As Assaf mentioned, Q1 was our third consecutive quarter of positive adjusted EBITDA.

Speaker #3: long-term

Speaker #3: program. Next

Speaker #3: slide. What set Anaergia

Speaker #3: apart is our depth

Speaker #3: of intellectual property and

Speaker #3: experience. Hundreds of

Speaker #4: Let me take you through our financial results for the third three months ended March 31, 2026. Revenue for Q1 2026 was 55.2 million and increase of 122% for 30.3 million compared to 24.9 million in Q1 2025.

Speaker #3: active and pending

Speaker #3: patents, and hundreds of reference

Speaker #3: facilities across 18

Speaker #3: countries.

Speaker #3: Capital-light

Speaker #3: IP-rich, backed by long-term demand,

Speaker #3: that is Anaergia

Speaker #3: today. After

Speaker #3: Greg and Yaniv has completed their

Speaker #3: sections, I will return to

Speaker #3: discuss what comes

Speaker #4: Growth was led by our capital sales business with continued strong performance from EMEA and North America where we are seeing consistent demand and repeat business.

Speaker #3: next. Greg, over to

Speaker #3: you.

Speaker #4: Thank months ended March 31, you, Assaf. Good morning, everyone. We are excited to report another quarter of 2026. Revenue for Q1 2026 continuous was $55.2 million, an progress.

Speaker #4: Gross profit for Q1 2026 was 12.7 million and increase of 135% from 5.4 million in Q1 2025. In the quarter, gross margins were 23% and improvement from 21.7% in Q1 2025.

Speaker #4: As Assaf mentioned, increase of Q1 was our third consecutive quarter of 122% or 30.3 million positive adjusted compared to 24.9 EBITDA. Let me take you through our financial million in Q1 results for the third three months ended March 31, 2025.

Speaker #4: Improvement in year-over-year gross margin reflects the continued mix shift towards capital sales and O&M agreements. I would note that our gross margins in Q1 2026 were impacted by approximately 2 million as one of our build-on operate assets Rhode Island Bioenergy Facility continues to ramp up production since our plant reset late last year.

Speaker #4: Absent this plant's production ramp-up process, our gross margins and our adjusted EBITDA margin would have been 3.6 percentage points higher. We expect steady operational improvements at this facility throughout the year.

Speaker #2: And star 6 to

Speaker #2: unmute. I will now hand the

Speaker #4: In the agreements. I would note that our gross margins in quarter, gross margins were 23%, an Q1 2026 were improvement from impacted by approximately 2 million as one of 21.7% in Q1 our build-on operate assets Rhode 2025.

Speaker #2: conference over to Darlene Webb,

Speaker #2: Investor Relations. Please go

Speaker #2: ahead.

Speaker #4: Yaniv will touch on our improved progress as well as the recently announced CI score approval for the facility which will increase Rhode Island's top line revenue.

Speaker #3: Thank you very much, Operator. And

Speaker #4: Improvement in year-over-year Island Bioenergy Facility continues gross margin reflects the continued mix shift towards capital sales and O&M agreements. to ramp up production since our plant reset late last year.

Speaker #3: good morning, everyone.

Speaker #2: On today's call, we'll be discussing

Speaker #2: Anaergia's earnings for the first quarter of

Speaker #2: 2026, which ended

Speaker #2: March 31,

Speaker #4: With revenue more than doubling in the quarter compared to last year in the same period, our SG&A expenses substantially improved in Q1 2026 with a decrease of 18% or 3.1 million to 14.1 million, compared to 17.2 million in Q1 2025.

Speaker #2: 2026. If you're following along with

Speaker #2: our slide deck, which is available

Speaker #1: And Q1 2026 were impacted by improvements at this facility throughout the year. Yaniv will touch on our improved progress as well as the recently announced CI score approval for the facility which will increase Rhode Island's top-line revenue.

Gregory Wolf: In Q1 2026 were impacted by approximately CAD 2 million as one of our build-own-operate assets, Rhode Island Bioenergy Facility, continues to ramp up production since our plant reset late last year. Absent this plant's production ramp-up process, our gross margins and our adjusted EBITDA margin would have been 3.6 percentage points higher. We expect steady operational improvements at this facility throughout the year. Yaniv will touch on our improved progress as well as the recently announced CI score approval for the facility, which will increase Rhode Island's top-line revenue. With revenue more than doubling in the quarter compared to last year in the same period, our SG&A expenses substantially improved in Q1 2026 with a de-decrease of 18% or CAD 3.1 million to CAD 14.1 million, compared to CAD 17.2 million in Q1 2025.

Speaker #4: We continue to run the business with discipline, while ensuring we have the right structure of support growth. Turning to the bottom line, net loss for Q1 2026 was 4.4 million, compared to a net loss of 5.9 million in Q1 2025.

Speaker #2: On slide 2, 2026. If you're following along with our slide you'll see that on today's call, I am joined deck, which is available here or on by Mr. Assaf our live streaming Onn, Anaergia's Chief Executive webcast, or you can also access Officer, Mr. it directly from the Investors section Greg Wolf, Anaergia's Chief of our website, my Financial Officer, and Dr. comments relate specifically to slides Yaniv Scherson, Anaergia's 1 through Chief Operating 3.

In q1 2026 were impacted by approximately 2 million as 1 of our build on operate assets, Rhode Island, bio energy, facility continues to ramp up production since our plant reset late last year.

Absent. This plant's production ramped up process, our gross margins and our adjusted iodine margin would have been 3.6 percentage points higher.

Speaker #4: A 26% improvement year over year. Q1 2025 benefited with a $6 million grant income recognized, excluding the $6 million grant income recognized in Q1 2025, the net loss improvement in Q1 2026 would be 7.5 million period over period or a 63% improvement.

Speaker #1: With revenue more than doubling in the quarter compared to last year in the same period, our SG&A announced credit facility strengthening our financial flexibility, and we delivered our third consecutive quarter of positive adjusted EBITDA.

Speaker #2: Listeners are Scherson, Anaergia's Chief reminded, as always, that today's discussion may Operating Officer. contain forward-looking statements that Before beginning our formal reflect current views with respect to remarks, we would like to refer you to slide future events.

Speaker #2: Any 3 of the presentation, which contains such statements are subject to risks a caution on forward-looking and uncertainties that could cause actual information and a note on the use results to differ materially from of non-GAAP those anticipated in these forward-looking measures.

Speaker #4: Now moving to adjusted EBITDA. Adjusted EBITDA for Q1 2026 was positive 1.1 million, compared to a negative 3.9 million in Q1 2025. That is an improvement of 5 million, or approximately 127% year over year.

With Revenue more than doubling in the quarter compared to last year. In the same period, our sgna expenses, substantially improved in q1 2026 with a 3. Decrease of 18% or 3.1 million to 14.1 million compared to 17.2 million in q1, 2025.

Gregory Wolf: We continue to run the business with discipline while ensuring we have the right structure to support growth. Turning to the bottom line. Net loss for Q1 2026 was CAD 4.4 million, compared to a net loss of CAD 5.9 million in Q1 2025, a 26% improvement year over year. Q1 2025 benefited with a CAD 6 million grant income recognized. Excluding the CAD 6 million grant income recognized in Q1 2025, the net loss improvement in Q1 2026 would be CAD 7.5 million period-over-period or a 63% improvement. Now moving to adjusted EBITDA. Adjusted EBITDA for Q1 2026 was CAD +1.1 million, compared to CAD -3.9 million in Q1 2025. That is an improvement of CAD 5 million or approximately 127% year over year.

We continue to run the business with discipline while ensuring, we have the right structure to support growth.

According to the bottom line.

Speaker #4: As I noted earlier, excluding the Rhode Island build-on operate gross margin loss of approximately 2 million, adjusted EBITDA would have been 3.1 million or a 5.6% adjusted EBITDA margin.

Speaker #2: You may now move statements. Anaergia does not on to slide 4, undertake to update any forward-looking and with statements except as may be required by that, I'll turn the call over to applicable laws, listeners are urged to review the full discussion Assaf.

Net loss for Q1 2026 was $4.4 million, compared to a net loss of $5.9 million in Q1 2025, a 26 percent improvement year-over-year.

Speaker #4: This is the third consecutive quarter of positive adjusted EBITDA, and it reflects the consistency we said we were building toward. Turning to the revenue backlog on slide 12.

Speaker #4: Thank you,

Speaker #4: Darlene. Good morning, everyone. Thank you for

Speaker #4: joining us. We are

Speaker #4: now on slide

Speaker #4: 5. I want to start

Speaker #4: During the first quarter, we signed over 54 million in new contract awards across our key markets. Our new contract bookings net of strong contract revenue execution in Q1 2026 increased our revenue backlog from year-end 2025 to 265 million at March 31, 2026.

Speaker #4: with where Anaergia stands at the

Q1 2025 benefited with a $9 Grant income recognized, excluding the $0 Grant income recognizing q1 2025 the net loss Improvement, in q1 2026 would be 7.5 million period over period or a 63% Improvement.

Speaker #4: close of the first

Speaker #4: quarter. Almost two years ago,

Speaker #4: we shifted the company to a

Speaker #4: capital light business model.

Speaker #4: The model is built on a clear set

Speaker #4: of execution

Now, moving to adjusted evaa, adjusted Eva for q1 2026 was positive 1.1 million compared to a negative 3.9 million in q1 2025

Speaker #4: A focus on capital sales, a stronger

Speaker #4: balance sheet, operational

Speaker #4: This is also an increase of 32% compared to Q1 2025 revenue backlog. As a reminder, our revenue backlog rule is to include only signed contract work in our capital sales segments of the reported as of the reporting date, and account conservatively only three years of long-term O&M contracts, even though those contracts are typically 5 to 15 years in duration.

Gregory Wolf: As I noted earlier, excluding the Rhode Island build-own-operate gross margin loss of approximately CAD 2 million, adjusted EBITDA would have been CAD 3.1 million or a 5.6% adjusted EBITDA margin. This is the 3rd consecutive quarter of positive adjusted EBITDA, and it reflects the consistency we said we were building toward. Turning to the revenue backlog on slide 12. During the Q1, we signed over CAD 54 million in new contract awards across our key markets. Our new contract bookings, net of strong contract revenue execution in Q1 2026, increased our revenue backlog from year-end 2025 to CAD 265 million at 31 March 2026. This is also an increase of 32% compared to Q1 2025 revenue backlog.

Speaker #4: efficiency, strategic

Speaker #4: partnerships, and

Speaker #4: Geographic expansions, in company to a capital-light

Speaker #4: the first quarter of 2026, every one of those

Speaker #4: pillars is

Speaker #4: delivering. We are now on

That is an improvement of 5 million or approximately 127% year-over-year. As I noted earlier, excluding the Rhode Island build on operate gross. Margin loss of approximately 2 million adjusted Eva would have been 3.1 million or a 5.6% adjusted ebaa margin.

Speaker #4: slide

Speaker #4: 6. Total revenue

Speaker #4: grew

Speaker #4: 122% year over

This is the third consecutive quarter of positive adjusted Evac and it reflects the consistency. We said we were building toward

Speaker #4: year. Gross profit grew

Speaker #4: Beyond our existing backlog, we have a large pipeline of capital sales and other new opportunities across our key markets. As each individual project is signed, they will be moved to our backlog.

Speaker #4: 135%, adjusted EBITDA was

Returning to the revenue, backlog on slide 12.

Speaker #4: positive for the third

Speaker #4: consecutive quarter. And revenue backlog stood at

During the first quarter, we signed over 54 million in new contract Awards across our key markets.

Speaker #4: 265 million dollars, Greg, we

Speaker #4: Moving to the credit agreement, subsequent to quarter-end, we announced a $20 million credit agreement with National Bank of Canada, with an according feature that can increase the facility up to 30 million over the next year.

Speaker #4: walk you through the financial

Speaker #4: detail. Two

Speaker #4: items in Q1 marked

Speaker #4: important milestones for the

Our new contract, bookings, net of strong contract, Revenue execution, in q1 2026. Increased our Revenue backlog from year end 2025 to 265 million at March 31st 2026.

Speaker #4: company. We are now on

this is,

Speaker #4: This facility strengthens our financial flexibility as we convert our growing revenue backlog through the P&L. We're now moving to slide 13. We are proud of the accomplishments we have made to date, to summarize, Q1 reflects what the financial pillars of our strategy look like and execution.

Speaker #4: slide

Speaker #4: 7. First, we entered

Also, an increase of 32% compared to q1, 2025 Revenue, backlog.

Speaker #4: the hydro-treated vegetable oil

Gregory Wolf: As a reminder, our revenue backlog rule is to include own signed contract work in our capital sales segments as of the reporting date and account conservatively only 3 years of long-term O&M contracts, even though those contracts are typically 5 to 15 years in duration. Beyond our existing backlog, we have a large pipeline of capital sales and other new opportunities across our key markets. As each individual project is signed, they will be moved to our backlog. Moving to the credit agreement. Subsequent to quarter end, we announced a CAD 20 million credit agreement with National Bank of Canada with an accordion feature that can increase the facility up to CAD 30 million over the next year. This facility strengthens our financial flexibility as we convert our growing revenue backlog through the P&L. We're now moving to slide 13.

Speaker #4: market, a new vertical

Speaker #4: for Anaergia.

Speaker #4: HVO is renewable

Speaker #4: diesel made from waste

Speaker #4: oils and fats and the

Speaker #4: potential is

Speaker #4: significant. Second,

Speaker #4: Capital sales driving revenue growth, operational efficiency increasing gross margins and reducing SG&A expense, our newly announced credit facility strengthening our financial flexibility, and we delivered our third consecutive quarter of positive adjusted EBITDA.

Speaker #4: our so-called biomethane

as a reminder, our Revenue backlog rule is to include only signed contract work in our Capital sales, segments of the reporting as of the reporting date and account conservatively, only 3 years of long-term, o&m contracts even though those contracts are typically 5 to 15 years in duration,

Speaker #4: facility was approved as

Speaker #4: the first project to deliver

Speaker #4: under California SB

Speaker #4: 1440. The

Speaker #4: state long-term regulated

Speaker #4: procurement program.

Beyond our existing backlog. We have a large pipeline of capital sales and other New Opportunities across our key markets. As each individual project is signed, they will be moved to our backlog.

Speaker #4: Yaniv will take you through both of these

Speaker #4: With that, I'll turn it over to Yaniv. Yaniv?

Moving to the credit agreement.

Speaker #4: developments along with the

Speaker #4: rest of the

Speaker #4: operation. The broader environment

Speaker #3: Thank you, Greg. I'll walk you through how the business performed operationally in the first quarter. The strategy we set out, nearly two years ago, rests on a set of pillars.

Speaker #4: is moving in our

Speaker #4: favor. We are now

Subsequent to quarter end. We announced a 20 million credit agreement with National Bank of Canada with an according feature that can increase the facility up to 30 million over the next year.

Speaker #4: on slide

Speaker #4: 8. Demand for

Speaker #3: A focus on capital sales, a stronger balance sheet, operational efficiency, strategic partnerships, and geographic expansion. Greg has just walked you through how the financial pillars are showing up in our results.

Speaker #4: renewable natural gas is

Speaker #4: expanding across our

Facility. Strengthens our financial flexibility as we convert. Our growing Revenue, backlog through the p&l

Speaker #4: key geographies. As

We're now moving to slide 13.

Gregory Wolf: We are proud of the accomplishments we have made to date. To summarize, Q1 reflects what the financial pillars of our strategy look like in execution. Capital sales driving revenue growth, operational efficiency increasing gross margins and reducing SG&A expense, our newly announced credit facility strengthening our financial flexibility, and we delivered our third consecutive quarter of positive adjusted EBITDA. With that, I'll turn it over to Yaniv. Yaniv?

Speaker #4: energy security becomes a

Speaker #4: dominant policy theme, in

Speaker #4: Europe, North America, and

Speaker #3: I will cover the operational side. Q1 produced four developments that show those pillars producing results in the field. Framework conversion is where our capital light model becomes most visible, and it's materializing in Spain.

Speaker #4: Asia,

Speaker #4: that demand is coming from

Speaker #4: large private investors,

We are proud of the account accomplishments we have made today to summarize, q1 reflects what the financial pillars of our strategy look like in execution, Capital sales driving Revenue growth.

Speaker #4: corporate developers, and natural gas is

Speaker #4: utilities in our

Speaker #4: largest markets. And

Speaker #4: regulators are reinforcing

Speaker #3: We signed our $184 million Canadian-Spanish framework agreement in 2025, covering more than 15 biomethane facilities. In January of this year, we began activities on two of those facilities.

Speaker #4: it with long-term

Speaker #4: programs. Next

Operational efficiency, increasing gross margins, and reducing SG&A expense. Our newly announced credit facility is strengthening our financial flexibility.

Speaker #4: slide. What

Speaker #1: With that, I'll turn it over to Yaniv. Yaniv?

Speaker #4: set Anaergia apart is

Speaker #4: our depth of intellectual

Speaker #2: Thank you, Greg. I'll walk you through how the business performed operationally in the first quarter. The strategy we set out, nearly two years ago, rests on a set of pillars.

Speaker #4: property and experience:

Yaniv Scherson: Thank you, Greg. I'll walk you through how the business performed operationally in Q1. The strategy we set out nearly 2 years ago rests on a set of pillars: a focus on capital sales, a stronger balance sheet, operational efficiency, strategic partnerships, and geographic expansion. Greg has just walked you through how the financial pillars are showing up in our results. I will cover the operational side. Q1 produced 4 developments that show those pillars producing results in the field. Framework conversion is where our capital-light model becomes most visible, and it's materializing in Spain. We signed our CAD 184 million Spanish framework agreement in 2025, covering more than 15 biomethane facilities. In January of this year, we began activities on 2 of those facilities. Andújar and Arjona projects being developed with EB Andalusia, a special purpose company, developed renewable projects in South Spain.

Speaker #3: Don Dujard and Arjona projects, being developed with DB Andalucía, a special purpose company, developed renewable projects in South Spain. Each facility will convert roughly 100,000 tons per year of olive palmis and agricultural residue abundant in southern Spain into renewable biomethane.

Speaker #4: hundreds of active and pending

Speaker #4: patents. And hundreds of

Speaker #4: reference facilities

Speaker #4: across 18

Speaker #2: A focus on capital sales, a stronger balance sheet, operational efficiency, strategic partnerships, and geographic expansion. Greg has just walked you through how the financial pillars are showing up in our results.

Speaker #4: countries. Capital light

Speaker #4: IP-riched backed by long-term

Speaker #4: demand that

Speaker #4: is Anaergia today.

Speaker #3: These are the second and third projects under the framework, with more behind them. Italy continues to deliver on two fronts. Our existing customer base is expanding scope on contracts already underway, and the broader market is being supported by sustained policy tailwinds.

Speaker #4: After Greg and Yaniv has

Speaker #4: completed their sections, I

Speaker #2: I will cover the operational side. Q1 produced four developments that show those pillars producing results in the field. Framework conversion is where our capital-like model becomes most visible, and its materializing in Spain.

Speaker #4: will return to discuss what comes

Speaker #4: next.

Speaker #4: Greg, over to

Speaker #4: you. Thank you, Assaf. Good

Speaker #4: morning, everyone. We are excited to report

Speaker #3: In March, we signed amendments to three previously announced contracts with QGM, covering biomethane production facilities in Ostellato, Coparo, and Oroverde. In northern Italy. And as a result of those amendments, our total contract value with QGM increased from $68 million to $85 million, an increase of 17 million.

Speaker #4: another quarter of continuous

Speaker #4: progress. As Assaf

Speaker #2: We signed our $184 million Canadian-Spanish framework agreement in 2025, covering more than 15 biomethane facilities, in January of this year, we being activities on two of those facilities.

Speaker #4: mentioned, Q1 was our third

Speaker #4: consecutive quarter of positive adjusted

Speaker #4: EBITDA. Let me take you through.

Speaker #4: our financial results for the third three

Speaker #2: The Andujar and Arjona projects, being developed with EV Andalucía, a special purpose company, developed renewable projects in South Spain. Each facility will convert roughly $100,000 tons per year of olive palm, this an agricultural residue abundant in southern Spain, into renewable biomethane.

Speaker #3: Italy's national recovery and resilience plan continues to support biogas project investments with 15-year government-backed tariffs and capital grants. And we're well positioned in that market through both QGM and our broader Italian customer base.

Yaniv Scherson: Each facility will convert roughly 100,000 tons per year of olive pomace, an agricultural residue abundant in southern Spain, into renewable biomethane. These are the second and third projects under the framework with more behind them. Italy continues to deliver on two fronts. Our existing customer base is expanding scope on contracts already underway, and the broader market is being supported by sustained policy tailwinds. In March, we signed amendments to three previously announced contracts with QGM covering biomethane production facilities in Ostellato, Coparo, and Derovere in northern Italy. As a result of those amendments, our total contract value with QGM increased from CAD 68 million to CAD 85 million, an increase of CAD 17 million. Italy's National Recovery and Resilience Plan continues to support biogas project investments with 15-year government-backed tariffs and capital grants, and we're well-positioned in that market through both QGM and our broader Italian customer base.

Speaker #2: These are the second and third projects under the framework, with more behind them. Italy continues to deliver on two fronts. Our existing customer base is expanding scope on contracts already underway, and the broader market is being supported by sustained policy tailwinds.

Speaker #4: Growth was led by our capital sales 2026. Revenue business with continued strong performance for Q1 2026 was from EMEA and North 55.2 million, an increase of America, where we are seeing consistent demand and 122% repeat or 30.3 million compared to business.

Speaker #3: Moving to slide 15. In February, we entered into a contract with CR Evolution, short for Circular Renewable Evolution, first of its kind project degumming soil recovery.

Speaker #4: Gross 24.9 million in profit for Q1 2026 was Q1 $12.7 million, an increase of 2025. Growth was 135% from led by our capital sales business with $5.4 million in Q1 continued strong performance from EMEA and North America, where we are 2025.

Speaker #2: In March, we signed amendments to three previously announced contracts with QGM, covering biomethane production facilities in Ostellato, Cofaro, and Oroverde. In northern Italy. And as a result of those amendments, our total contract value with QGM increased from $68 million to $85 million, an increase of $17 million.

Speaker #3: It's a $13 million demonstration scale facility, and it represents our entry into an important adjacent market. The technical context matters here. CR Evolution is building biorefinery to produce hydro-treated vegetable oil, or HVO, a clean liquid fuel used in diesel aviation and other applications, where high-energy density is required.

Speaker #4: In the quarter, gross margins were seeing consistent demand and repeat 23%, an improvement from 21.7% in Q1 business. Gross profit for 2025. Improvement Q1 2026 was 12.7 in year-over-year gross margin reflects the million, an increase of continued mixed shift towards capital 135% from 5.4 million in sales and O&M Q1 2025.

Speaker #2: Italy's national recovery and resilience plan continues to support biogas project investments with 15-year government-backed tariffs and capital grants. And we're well positioned in that market through both QGM and our broader Italian customer base.

Speaker #3: The HVO process produces a waste byproduct called degumming soil, a clay-based material that's typically landfilled, after external treatment. It's a problem the industry hasn't had a clean answer for.

Speaker #3: Our system developed by our R&D team addresses that problem in two ways. It recovers and regenerates the degumming soil for reuse, which removes the disposal burden, and it produces renewable natural gas as a clean energy byproduct, which adds a revenue stream.

Speaker #2: Moving to slide 15. In February, we entered into a contract with CR Evolution, short for Circular Renewable Evolution, first of its kind project degumming soil recovery.

Yaniv Scherson: Moving to slide 15. In February, we entered into a contract with CR Evolution, short for Circular Renewable Evolution, first of its kind project, Degumming Soil Recovery. It's a CAD 13 million demonstration scale facility, and it represents our entry into an important adjacent market. The technical context matters here. CR Evolution is building biorefinery to produce hydrotreated vegetable oil or HVO, a clean liquid fuel used in diesel, aviation, and other applications where high energy density is required. The HVO process produces a waste byproduct called degumming soil, a clay-based material that's typically landfilled after external treatment. It's a problem the industry hasn't had a clean answer for. Our system, developed by our R&D team, addresses that problem in two ways.

Speaker #4: Absent.

Speaker #3: Our scope includes our proprietary anaerobic digestion technology, along with our material handling systems, which are specifically engineered to handle materials with high dry matter content and high viscosity.

Speaker #2: It's a $13 million demonstration scale facility, and it represents our entry into an important adjacent market. The technical context matters here. CR Evolution is building biorefinery to produce hydro-treated vegetable oil, or HVO, a clean liquid fuel used in diesel, aviation, and other applications, where high-energy density is required.

Speaker #3: That technical fit is what positions us well for this contract. This plan unlocks a new market segment for us. More than 250 HVO plants operate globally today, and the market is projected to expand by more than 35% by 2030.

Speaker #2: The HVO process produces a waste byproduct called degumming soil, a clay-based material that's typically landfilled, after external treatment. It's a problem the industry hasn't had a clean answer for.

Speaker #3: It's a known industry with a known waste stream, and we have the right technology to address it. Our R&D team built that. In March, the California Public Utilities Commission conditionally approved the long-term biomethane procurement contract between our SoCal Biomethane Facility, a new climate, and Southwest Gas Corporation.

Speaker #2: Our system developed by our R&D team addresses that problem in two ways. It recovers and regenerates the degumming soil for reuse, which removes the disposal burden, and it produces renewable natural gas as a clean energy byproduct, which adds a revenue stream.

Yaniv Scherson: It recovers and regenerates the degumming soil for reuse, which removes a disposal burden, and it produces renewable natural gas as a clean energy byproduct, which adds a revenue stream. Our scope includes our proprietary anaerobic digestion technology, along with our material handling systems, which are specifically engineered to handle materials with high dry matter content and high viscosity. That technical fit is what positioned us well for this contract. This plan unlocks a new market segment for us. More than 250 HVO plants operate globally today, and the market is projected to expand by more than 35% by 2030. It's a known industry with a known waste stream, and we have the right technology to address it. Our R&D team built that.

Speaker #3: With this approval, our SoCal Biomethane Facility is set to be the first project to supply renewable natural gas under California's Senate Bill 1440, Biomethane Procurement Program.

Speaker #2: Our scope includes a proprietary anaerobic digestion technology, along with our material handling systems, which are specifically engineered to handle materials with high dry matter content and high viscosity.

Speaker #3: This is a significant milestone, and the significance is structural, not just contractual. SB 1440 is a first state-level R&G procurement mandate in the United States.

Speaker #2: That technical fit is what positions us well for this contract. This plant unlocks a new market segment for us. More than 250 HVO plants operate globally today, and the market is projected to expand by more than 35% by 2030.

Speaker #3: It establishes requirements for California's investor-owned utilities to procure R&G derived from landfill diverted organic waste at a scale equivalent to approximately 55 SoCal biomethane-sized facilities by 2035.

Speaker #2: It's a known industry with a known waste stream, and we have the right technology to address it. Our R&D team built that. In March, the California Public Utilities Commission conditionally approved the long-term biomethane procurement contract between our SoCal Biomethane Facility, a new climate, and Southwest Gas Corporation.

Speaker #3: We're talking about a market opportunity of $55 more plants. That is a long-term regulated demand signal, and the largest gas market in North America.

Yaniv Scherson: In March, the California Public Utilities Commission conditionally approved the long-term biomethane procurement contract between our SoCal Biomethane facility, Anew Climate, and Southwest Gas Corporation. With this approval, our SoCal Biomethane facility is set to be the first project to supply renewable natural gas under California's Senate Bill 1440 biomethane procurement program. This is a significant milestone, and the significance is structural, not just contractual. SB 1440 is a first state-level RNG procurement mandate in the United States. It establishes requirement for California's investor-owned utilities to procure RNG derived from landfill diverted organic waste at a scale equivalent to approximately 55 SoCal biomethane-sized facilities by 2035. We're talking about a market opportunity of 55 more plants. That is a long-term regulated demand signal in the largest gas market in North America.

Speaker #3: Our SoCal facility, located in Victorville, California, processes up to 104,000 tons of organic waste annually and injects pipeline-quality R&G into the natural gas grid.

Speaker #2: With this approval, our SoCal Biomethane Facility is set to be the first project to supply renewable natural gas under California's Senate Bill 1440, Biomethane Procurement Program.

Speaker #3: The California Public Utilities Commission approval validates our model of retrofitting existing wastewater infrastructure to scale R&G supply from organic waste. Energy is the first company approved to deliver under that model in California, and we expect many more to follow.

Speaker #2: This is a significant milestone, and the significance is structural, not just contractual. SB 1440 is a first state-level R&G procurement mandate in the United States.

Speaker #2: It establishes requirements for California's investor-owned utilities to procure R&G derived from landfill diverted organic waste at a scale equivalent to approximately 55 SoCal Biomethane-sized facilities by 2035.

Speaker #3: Next slide. And I'll turn to our Build-Own-Operate platform, consisting Facility, in Rhode Island; the Charlotte Bioenergy Facility, in North Carolina; and SoCal Biomethane Mojave, in Escondido Bioenergy Facilities, in California.

Speaker #2: We're talking about a market opportunity of $55 more plants. That is a long-term regulated demand signal in the largest gas market in North America.

Speaker #3: The California assets continue to perform profitably. At SoCal Biomethane, the SB 1440 approval I described earlier is a major development this quarter, supporting long-term profitability.

Speaker #2: Our SoCal facility, located in Victorville, California, processes up to 104,000 tons of organic waste annually and injects pipeline-quality R&G into the natural gas grid.

Yaniv Scherson: Our SoCal facility, located in Victorville, California, processes up to 104,000 tons of organic waste annually and injects pipeline quality RNG into the natural gas grid. The California Public Utilities Commission approval validates our model of retrofitting existing wastewater infrastructure to scale RNG supply from organic waste. Anaergia is the first company approved to deliver under that model in California, and we expect many more to follow. Next slide. I'll now turn to our build-own-operate platform consisting of five assets: the Rhode Island Bioenergy Facility in Rhode Island, the Charlotte Bioenergy Facility in North Carolina, and SoCal Biomethane Mojave and Escondido Bioenergy Facilities in California. The California assets continue to perform profitably. At SoCal Biomethane, the SB 1440 approval I described earlier is a major development this quarter, supporting long-term profitability.

Speaker #3: At our Charlotte facility, the asset remains idle, as we continue to assess the best path forward for that site. The Rhode Island Bioenergy Facility continues stable operations converting food waste across New England into renewable natural gas that is supplied to Irving Oil under a long-term offtake agreement.

Speaker #2: The California Public Utilities Commission approval validates our model of retrofitting existing wastewater infrastructure to scale R&G supply from organic waste. Energy is the first company approved to deliver under that model in California, and we expect many more to follow.

Speaker #3: The facility continued its ramp-up in Q1. Production has improved year over year, approaching our targets. Recently, the facility's negative CI score was approved by the Environment and Climate Change Canada a US plant has been approved with a negative carbon intensity score.

Speaker #2: Next slide. And I'll turn to our build-on-operate platform, consisting of five assets: the Rhode Island Bioenergy Facility, in Rhode Island, the Charlotte Bioenergy Facility in North Carolina, and SoCal Biomethane Mojave in Escondido Bioenergy Facilities in California.

Speaker #3: The CI score will improve financial performance, enabling monetization of carbon credits in the CFR program, resulting in approximate 30% increase in gas offtake price.

Speaker #2: The California assets continue to perform profitably. At SoCal Biomethane, the SB 1440 approval I described earlier is a major development this quarter, supporting long-term profitability.

Speaker #3: Our focus going forward is on three things: operational improvements at the facility itself, feedstock management to ensure consistent input, and process optimization to maximize production.

Speaker #2: At our Charlotte facility, the asset remains idle, as we continue to assess the best path forward for that site. The Rhode Island Bioenergy Facility continues stable operations, converting food waste across New England into renewable natural gas that is supplied to Irving Oil under a long-term offtake agreement.

Yaniv Scherson: At our Charlotte facility, the asset remains idle as we continue to assess the best path forward for that site. The Rhode Island Bioenergy Facility continues stable operations, converting food waste across New England into renewable natural gas that is supplied to Irving Oil under a long-term offtake agreement. The facility continued its ramp up in Q1. Production has improved year over year, approaching our targets. Recently, the facility's negative CI score was approved by the Environment and Climate Change Canada Agency, marking the first time a US plant has been approved with a negative Carbon Intensity score. The CI score will improve financial performance, enabling monetization of carbon credits in the CFR program, resulting in an approximate 30% increase in gas offtake price.

Speaker #3: We're seeing measurable progress in each. We expect performance to improve progressively throughout the year. RBF is an important asset, and our focus is on bringing it to its full operating potential.

Speaker #2: The facility continued its ramp-up in Q1. Production has improved year over year, approaching our targets. Recently, the facility's negative CI score was approved by the Environment and Climate Change Canada Agency, marking the first time a US plant has been approved with a negative carbon intensity score.

Speaker #3: What ties these four developments together is that they're not isolated wins. They're evidence that the platform we built is doing what we designed it to do, in markets where the conditions are not lining up to support it.

Speaker #3: Globally, R&G incentive programs continue to accelerate. Italy's National Recovery and Resilience Plan, the UK's Green Gas Support Scheme, Canada's Clean Fuel Regulation, and now California's SB 1440.

Speaker #2: The CI score will improve financial performance, enabling monetization of carbon credits in the CFR program, resulting in approximate 30% increase in gas offtake price.

Speaker #3: Each of these creates structural multi-year demand for the kind of R&G infrastructure we deliver. And the broader push for domestic energy security is reinforcing this policy direction in nearly every market we operate in.

Speaker #2: Our focus going forward is on three things: operational improvements at the facility itself, feedstock management to ensure consistent input, and process optimization to maximize production.

Yaniv Scherson: Our focus going forward is on three things: operational improvements at the facility itself, feedstock management to ensure consistent input, and process optimization to maximize production. We're seeing measurable progress in each. We expect performance to improve progressively throughout the year. RBF is an important asset, and our focus is on bringing it to its full operating potential. What ties these four developments together is that they're not isolated wins. They're evidence that the platform we built is doing what we designed it to do in markets where the conditions are now lining up to support it. Globally, RNG incentive programs continue to accelerate. Italy's National Recovery and Resilience Plan, the UK's Green Gas Support Scheme, Canada's Clean Fuel Regulation, and now California's SB 1440. Each of these creates structural multi-year demand for the kind of RNG infrastructure we deliver.

Speaker #2: We're seeing measurable progress in each. We expect performance to improve progressively throughout the year. RBF is an important asset, and our focus is on bringing it to its full operating potential.

Speaker #3: Capital sales is converting framework agreements into firm revenue. Strategic partnerships are deepening into expanded multi-project programs. And reaching into new verticals. Geographic expansion is deepening our presence in Spain and Italy, our largest European markets.

Speaker #2: With these four developments together, is that they're not isolated wins. They're evidence that the platform we built is doing what we designed it to do.

Speaker #3: And operational efficiency is what's letting us deliver on all of that without expanding the cost base. The strategy is demonstrating success, and we expect it to continue.

Speaker #2: In markets where the conditions are not lining up to support it. Globally, R&G incentive programs continue to accelerate. Italy's National Recovery and Resilience Plan, the UK's Green Gas Support Scheme, California's SB 1440.

Speaker #3: With that, I'll turn it back to Assaf.

Speaker #1: Thank you, Yaniv. And thank you, Craig. We are now on slide 18. The first quarter of 2026 marked our third quarter of positive adjusted EBITDA.

Speaker #2: Each of these creates structural, multi-year demand for the kind of R&G infrastructure we deliver. And the broader push for domestic energy security is reinforcing this policy direction in nearly every market we operate in.

Yaniv Scherson: The broader push for domestic energy security is reinforcing this policy direction in nearly every market we operate in. Capital Sales is converting framework agreements into firm revenue. Strategic partnerships are deepening into expanded multi-project programs and reaching into new verticals. Geographic expansion is deepening our presence in Spain and Italy, our largest European markets. Operational efficiency is what's letting us deliver on all of that without expanding the cost base. The strategy is demonstrating success, and we expect it to continue. With that, I'll turn it back to Assaf.

Speaker #1: Revenue grew 122%. Capital sales grew 187%. Our revenue backlog stands at 200 and 65 million dollars. Those numbers tell you that the model is working.

Speaker #2: Capital sales is converting framework agreements into firm revenue. Strategic partnerships are deepening into expanded multi-project programs. And reaching into new verticals. Geographic expansion is deepening our presence in Spain and Italy, our largest European markets.

Speaker #1: But what they do not tell you is what we plan to do with it. So let me speak to that. First, I want our shareholders to understand that Q1 will not be the high point.

Speaker #2: And operational efficiency is what's letting us deliver on all of that without expanding the cost base. The strategy is demonstrating success, and we expect it to continue.

Speaker #2: With that, I'll turn it back to Assaf.

Speaker #1: It is a step. The work we have signed the contract in execution and the project in the pipeline are larger than what we delivered in the quarter you just heard about.

Speaker #1: Thank you, Yaniv. And thank you, Greg. We are now on slide 18. The first quarter of 2026 marked our third quarter of positive adjusted EBITDA.

Assaf Onn: Thank you, Yaniv, and thank you, Greg. We are now on slide 18. The Q1 of 2026 marked our third quarter of positive adjusted EBITDA. Revenue grew 122%. Capital sales grew 187%. Our revenue backlog stand at CAD 265 million. Those numbers tell you that the model is working, what they do not tell you is what we plan to do with it. Let me speak to that. First, I want our shareholders to understand that Q1 will not be the high point. It is a step. The work we have signed, the contract in execution, and the project in the pipeline are larger than what we delivered in the quarter you just heard about. We expect capital sales to continue. We expect backlog to continue to grow.

Speaker #1: We expect capital sales to continue; we expect backlog to continue to grow; we expect revenue to continue to build behind it. The model is repeatable.

Speaker #1: Revenue grew 122%. Capital sales grew 187%. Our revenue backlog stands at 265 million dollars. Those numbers tell you that the model is working. But what they do not tell you is what we plan to do with it.

Speaker #1: That is the point again, and again, and again. Second, I want to underscore where the demand is coming from. It is not coming from one customer or one country.

Speaker #1: So let me speak to that. First, how won't our shareholders understand that Q1 will not be the high point? It is a step. The work we have signed the contract in execution and the project in the pipeline are larger than what we delivered in the quarter you just heard about.

Speaker #1: It is coming from large private investors, regulators, government, and utilities in our large market who are setting policy on the long-term time zone. That kind of demand does not turn on and off during a quarter.

Speaker #1: We expect capital sales to continue; we expect backlog to continue to grow; we expect revenue to continue to build behind it. The model is repeatable.

Speaker #1: It compounds. We are positioned in every one of those markets. With technology, with reference plants, and with execution teams already on the ground. Third, I want to talk about discipline.

Assaf Onn: We expect revenue to continue to build behind it. The model is repeatable. That is the point of a capital-light model. You do it again and again and again. Second, I want to underscore where the demand is coming from. It is not coming from one customer or one country. It is coming from large private investors, regulators, government, and utilities in our large market who are setting policy on the long-term time zone. That kind of demand does not turn on and off during a quarter. It compounds. We are positioned in every one of those markets with technology, with reference plans, and with execution teams already on the ground. Third, I want to talk about discipline. Less than two years ago, we made hard decisions about what this company was going to be and what it was not going to be. We are still making those decisions.

Speaker #1: That is the point of a capital-like model. You do it again, and again, and again. Second, I want to underscore where the demand is coming from.

Speaker #1: Less than two years ago, we made hard decisions. About what this company was going to be and what it was not going to be.

Speaker #1: It is not coming from one customer or one country. It is coming from large private investors. Regulators, government, and utilities in our large market who are setting policy on the long-term time zone.

Speaker #1: We are still making those decisions. We are still focused on margin, on cash, and on every one of the pillars Greg, Yaniv, and I have walked you through this morning.

Speaker #1: Nothing about that focus is going to change. In the quarters ahead. I want to thank our shareholders. For staying with us through the work it took.

Speaker #1: That kind of demand does not turn on and off during a quarter. It compounds. We are positioned in every one of those markets. With technology, with reference plants, and with execution teams already on the ground.

Speaker #1: To get here. I want to thank our employees across the world. For the quarter you delivered. And I want to thank our partners. And our customers for their trust.

Speaker #1: Third, I want to talk about discipline. Less than two years ago, we made hard decisions. About what this company was going to be and what it was not going to be.

Speaker #1: They have placed in this company. We are not finished. We are not at the end. We are merely at the beginning. Darlene, over for you for questions.

Speaker #1: We are still making those decisions. We are still focused on margin, on cash, and on every one of the pillars Greg, Yaniv, and I have walked you through this morning.

Assaf Onn: We are still focused on margin, on cash, and on every one of the pillars Greg, Yaniv, and I have walked you through this morning. Nothing about that focus is going to change in the quarters ahead. I want to thank our shareholders for staying with us through the work it took to get here. I want to thank our employees across the world for the quarter you delivered, and I want to thank our partners and our customers for the trust they have placed in this company. We are not finished. We are not at the end. We are merely at the beginning. Darlene, over to you for questions.

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

Speaker #1: Nothing about that focus is going to change in the quarters ahead. I want to thank our shareholders. For staying with us through the work it took to get here.

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 into today's call, please press star 9 to raise your hand, and star 6 to unmute.

Speaker #1: I want to thank our employees across the world for the quarter you delivered. And I want to thank our partners and our customers for their trust.

Speaker #4: Please stand by while we compile the Q&A roster. Your first question comes from the line of Ann Lee. Would National Bank, your line is open, please go ahead.

Speaker #1: They have placed in this company. We are not finished. We are not at the end. We are merely at the beginning. Darlene, over for you for questions.

Speaker #5: Hi, good morning. Thank you. This is Ann Lee for Baltej Sidhu at National Bank. Thanks for taking my questions. So maybe just a two-part question on capital sales revenue cadence.

Speaker #3: Thank you, Assaf. Operative, we may now open the call to questions.

Speaker #5: Given the better-than-expected execution in Q1, could you help us frame how much of the revenue outperformance reflected perhaps accelerated project timings versus more steady step-up in execution capacity?

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

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 into today's call, please press star 9 to raise your hand, and star 6 to unmute.

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 Ruida Li with National Bank. Your line is open. Please go ahead.

Speaker #5: And two, as we think about the remainder of the year, how should we think about the quarterly cadence of backlog conversion particularly across the larger European projects currently underway?

Speaker #4: Please stand by while we compile the Q&A roster. Your first question comes from the line of Ann Lee. Would National Bank, your line is open, please go ahead.

Speaker #1: Yaniv, you want to take it?

Speaker #6: Yeah, I think what the numbers that Greg has gone over is showing that our backlog continues to grow and we're seeing continued cadence of bookings year over year.

Speaker #5: Hi, good morning. Thank you. This is Yaniv Onn for Baltic Studio at National Bank. Thanks for taking my questions. So maybe just a two-part question on capital sales revenue cadence.

Ruida Li: Hey, good morning. Thank you. This is Ruida Li on for Baltej Sidhu at National Bank. Thanks for taking my questions. Maybe just a 2-part question on capital sales re-revenue cadence. Given the better-than-expected execution in Q1, could you help us frame how much of the revenue outperformance are reflected perhaps as like accelerated project timings versus more steady step-up in execution capacity? 2, as we think about the remainder of the year, how should we think about the quarterly cadence of backup conversion, you know, particularly across the largest European projects currently underway?

Rupert Van Veen: Hey, good morning. Thank you. This is Ruida Li on for Baltej Sidhu at National Bank. Thanks for taking my questions. Maybe just a 2-part question on capital sales re-revenue cadence. Given the better-than-expected execution in Q1, could you help us frame how much of the revenue outperformance are reflected perhaps as like accelerated project timings versus more steady step-up in execution capacity? 2, as we think about the remainder of the year, how should we think about the quarterly cadence of backup conversion, you know, particularly across the largest European projects currently underway?

Speaker #5: Given the better-than-expected execution in Q1, could you help us frame how much of the revenue outperforms reflected perhaps accelerated project timings versus more steady step-up in execution capacity?

Speaker #6: We have inter-quarter shifts with timing maybe shifting from one quarter to the next, but generally speaking, the trend we've seen consistently year over year is a substantial increase in backlog as we compare '24 to '25 and now entering into '26.

Speaker #5: And two, as we think about the remainder of the year, how should we think about the quarterly cadence of backlog conversion? Particularly across the largest European projects currently underway.

Speaker #6: As far as our recognition, most of our projects are a year and a half to two years of execution to fully deliver. For the most part, and within our O&M segment, as noted before, we're accounting for three years of the backlog in our figures, although those operating contracts tend to be typically much longer in duration, 5, 10 years, or longer.

Speaker #1: Yaniv, you want to take it?

Assaf Onn: Yaniv, you wanna take it?

Speaker #5: Yeah, I think we're well, what the numbers that Greg has gone over is showing that our backlog continues to grow. And we're seeing continued cadence of bookings year over year.

Yaniv Scherson: Yeah, Well, you know what? The numbers that Greg has gone over is showing that our backlog continues to grow, and we're seeing, you know, continued cadence of bookings year over year. We have inter-quarter shifts with timing maybe shifting from one quarter to the next. Generally speaking, the trend we've seen consistently year over year.

Speaker #1: Okay. No, thank you. That's helpful. And I just want to ask a couple of follow-ups too. On the O&M service side of things, revenue was down modestly year over year.

Speaker #5: We have inter-quarter shifts with timing maybe shifting from one quarter to the next. But generally speaking, the trend we've seen consistently year over year is this essential increase in backlog as we compare '24 to '25 and now entering into '26.

Speaker #1: Due to lower field services activity in North America as reported. Could you help us understand whether that stop net was primarily timing-related in nature or reflective of resources being redeployed to larger capital sales execution opportunities?

Yaniv Scherson: is a substantial increase in backlog as we compare 2024 to 2025 and now entering into 2026. As far as far as our recognition, most of our projects are 1.5 to 2 years of execution to fully deliver.

Speaker #5: As far as our recognition, most of our projects are a year and a half to two years of execution to fully deliver. For the most part, and within our O&M segment, as noted before, we're accounting for three years of the backlog in our figures, although those operating contracts tend to be typically much longer in duration, 5, 10 years, or longer.

Speaker #1: And as we think about balance of '26, do you still expect the O&M business to resume to a more stable growth trajectory?

Yaniv Scherson: For the most part within our O&M segment, as noted before, we're accounting for 3 years of the backlog in our figures, although those operating contracts tend to be typically much longer in duration, 5, 10 years or longer.

Speaker #6: Yeah, absolutely. The O&M business will still remain a pillar of our revenue growth as we move forward. The shifts in the figures are adjustments in sizing, mostly timing-related.

Speaker #1: Okay. No, thank you. That's helpful. And I just want to ask a couple of follow-ups too. On the O&M service side of things, revenue was down modestly year over year.

Ruida Li: Okay. No, thank you. That's helpful. I just want to ask a couple of follow-ups too. On the O&M service side of things, revenue was down modestly year over year due to lower field services activity in North America, as reported. Could you help us understand whether that statement was primarily timing related in nature or reflective of, you know, resources being gathered and redeployed to larger capital sales execution opportunities? As we think about balance of 2026, do you still expect the O&M business to resume to a more stable and growth trajectory?

Rupert Van Veen: Okay. No, thank you. That's helpful. I just want to ask a couple of follow-ups too. On the O&M service side of things, revenue was down modestly year over year due to lower field services activity in North America, as reported. Could you help us understand whether that statement was primarily timing related in nature or reflective of, you know, resources being gathered and redeployed to larger capital sales execution opportunities? As we think about balance of 2026, do you still expect the O&M business to resume to a more stable and growth trajectory?

Speaker #6: In our capital-like strategy, we are shifting risk out of our operating agreements and as a result, there's variability. Some of our agreements we have pass-through costs or cost-plus situation.

Speaker #1: Due to lower field services activity in North America, as reported. Could you help us understand whether that stop net was primarily timing-related in nature or reflective of resources being redeployed to largest capital sales execution opportunities?

Speaker #6: And so there may be shifts in revenue that may go down over a quarter to quarter, but that's simply a timing matter on when expenses hit and passing-through costs up to our customers.

Speaker #1: And as we think about balance of 2026, do you still expect the O&M business to resume to a more stable growth trajectory?

Speaker #6: The laser focus going forward is our capital sales. The majority of our revenue is driven by the capital sales segment, which is the engine.

Speaker #6: To our business. And our operating agreements, we are working on growing that in the future. It's often an add-on service to clients who purchase a system from us and would like to maintain a long-term relationship with us involved either through service or operations.

Speaker #5: Yeah, absolutely. The O&M business will still remain a pillar of our revenue growth as we move forward. The shifts in the figures are adjustments in sizing, mostly timing-related.

Yaniv Scherson: Yeah, absolutely. The O&M business will still remain a pillar of our revenue growth as we move forward.

Yaniv Scherson: You know, the shifts in the figures are adjustments in sizing, mostly timing related.

Speaker #5: In our capital-like strategy, we are shifting risk out of our operating agreements and, as a result, there's variability. Some of our agreements, we have pass-through costs or a cost-plus situation.

Speaker #6: And so a number of our clients that we're working with now, we anticipate having incremental operating contracts again in an asset-like model where we're not assuming commodity or volatility risk in our agreements.

Yaniv Scherson: in our capital-light strategy, we are shifting risk out of our operating agreements. As a result, there's variability. Some of our agreements we have, you know, pass-through costs or a cost-plus situation. There may be shifts in revenue that may go down and over a quarter to quarter, but that's simply a timing matter on when expenses hit.

Speaker #5: And so there may be shifts in revenue that may go down over a quarter to quarter, but that's simply a timing matter on when expenses hit and passing-through costs up to our customers.

Speaker #1: No, thanks for that.

Speaker #6: Yeah, I guess I would just note that as we continue the capital sales and we're growing that faster than any other segment that we have, the O&M side of the business, as your question was around, will continue to grow as well as we complete projects the demand for us to do O&M at the end of the project cycle is there.

Yaniv Scherson: passing through costs up to our, our customers. The laser focus going forward is our capital sales. The majority of our revenue is driven by the capital sales segment, which is the engine to our business. Our operating agreements, we are working on growing that in the future. It's often an add-on service to clients who purchase a system from us and would like to maintain a long-term relationship with us involved, either through service or operations. A number of our clients that we're working with now, we anticipate having incremental operating contracts again, in an asset-light model where we're not assuming commodity or volatility risk in our agreements.

Speaker #5: The laser focus going forward is our capital sales. The majority of our revenue is driven by the capital sales segment, which is the engine.

Speaker #5: To our business and our operating agreements, we are working on growing that in the future. It's often an add-on service to clients who purchase a system from us and would like to maintain a long-term relationship with us, involved either through service or operations.

Speaker #6: So we expect that to continue to grow. But as a percentage of our total, because cap sales is so much larger and growing so much faster, it will continue to grow as a segment of our overall business and profitably.

Speaker #6: It's just the cap sales is just going to grow a lot faster in the next several years.

Speaker #5: And so, a number of our clients that we're working with now—we anticipate having incremental operating contracts again, in an asset-light model, where we're not assuming commodity or volatility risk in our agreements.

Speaker #1: No, thank you. That's very helpful. And lastly, congrats on the news yesterday. With the Canadian CFR negative CI approval for the Long Island facility, could you discuss how meaningful that could become from a monetization perspective all times?

Speaker #1: No, thanks for that.

Ruida Li: No, thanks.

Speaker #5: Yeah, I guess I would just note that as we continue the capital sales and we're growing that faster than any other segment that we have, the O&M side of the business, as your question was around, will continue to grow as well as we complete projects the demand for us to do O&M at the end of the project cycle is there.

Rupert Van Veen: No, thanks.

Gregory Wolf: Yeah. Yeah. I guess I would just note that, you know, as we continue the capital sales and we're growing that faster than any other segment that we have, the O&M side of the business, as your question was around, will continue to grow as well. As we complete projects, you know, the demand for us to do O&M at the end of the project cycle is there.

Speaker #1: Should we think about that primarily as margin enhancement opportunity for the BOO segment, or could it be potentially influence how you approach a future R&D set development more broadly?

Speaker #5: So we expect that to continue to grow. But as a percentage of our total, because cap sales is so much larger and growing so much faster, it will continue to grow as a segment of an overall business and profitably.

Gregory Wolf: We expect that to continue to grow. As a percentage of our total, because cap sales is so much larger and growing so much faster, it will continue to grow as a segment of our overall business and profitably. It's just, the cap sales is just gonna grow a lot faster in the next several years.

Speaker #5: Well, more broadly speaking, it's a validation and market advantage that we bring to our clients even if clients that are a capital sale client where we won't be owning the assets.

Speaker #5: It's just the cap sales is just going to grow a lot faster in the next several years.

Speaker #5: A number of our clients are monetizing or basing their performers off CFR participation. And the expertise that we have by being as mentioned the first US facility to achieve a negative CI score is a value add to our clients to assist them with navigating the regulatory process and participating in monetizing in that program to an optimal level.

Speaker #1: No, thank you. That's very helpful. And lastly, congrats on the news yesterday. With the Canadian CFR negative CI approval for the Rhode Island facility, could you discuss how meaningful that could become from a monetization perspective all times?

Ruida Li: No, thank you. That's very helpful. Lastly, congrats on the news yesterday with the Canadian CFR negative CI approval for the Rhode Island facility. Could you discuss how meaningful that could become from a monetization perspective over time? Like should we think about that primarily as margin enhancement opportunity for the BOO section, or could it be potentially influence how you approach a future RNG asset development more broadly?

Rupert Van Veen: No, thank you. That's very helpful. Lastly, congrats on the news yesterday with the Canadian CFR negative CI approval for the Rhode Island facility. Could you discuss how meaningful that could become from a monetization perspective over time? Like should we think about that primarily as margin enhancement opportunity for the BOO section, or could it be potentially influence how you approach a future RNG asset development more broadly?

Speaker #5: What it does mean for the asset is a top-line revenue enhancement. The facility can now participate in monetizing CFR credits. It's a challenging market to get a CI score approved under the regulatory timeline is long.

Speaker #1: Should we think about that primarily as margin enhancement opportunity for the BOO segment, or could it be potentially influence how you approach a future R&D asset development more broadly?

Speaker #5: Well, more broadly speaking, it's a validation and market advantage that we bring to our clients even if clients that are a capital sale client where we won't be owning the assets.

Speaker #5: And so this is really a breakthrough moment through what's been a very challenging and long process for review and approval. Financially, the price will be variable as carbon prices are shifting in that market, although quite high.

Yaniv Scherson: Well, more broadly speaking, it's a validation and market advantage that we bring to our clients. Even if clients that are a capital sale client where we won't be owning the assets, a number of our clients are monetizing or basing their pro formas off CFR participation. The expertise that we have by being, as mentioned, the first US facility to achieve a negative CI score, is value add to our clients to assist them with navigating the regulatory process and participating and monetizing in that program to an optimal level. What it does mean for the asset is a top line revenue enhancements. The facility can now participate in monetizing CFR credits. It's a challenging market to get a CI score approved under. The regulatory timeline is long.

Speaker #5: A number of our clients are monetizing or basing their performance off CFR participation. And the expertise that we have by being, as mentioned, the first U.S. facility to achieve a negative CI score is a value-add to our clients, to assist them with navigating the regulatory process and participating in monetizing in that program to an optimal level.

Speaker #5: But we anticipate a roughly 30% increase in the gas sale price as a result. And further enhancements in the future as we convert to permanent CI score.

Speaker #5: That's the next round.

Speaker #1: That's awesome. Thank you. I appreciate the color. I'll jump back to the queue.

Speaker #4: Your next question comes from the line of Craig Irwin. With Roth Capital Partners, your line is open. Please go ahead.

Speaker #7: Hey, guys. It's Andrew on for Craig. Congrats on the strong results and thanks for taking my questions. So the first one for me is great to see adjusted EBITDA positive again, I think, for the third consecutive quarter.

Yaniv Scherson: This is really a breakthrough moment, through what's been a very challenging and long process for revenue approval. Financially, you know, the price will be variable as carbon prices are shifting in that market, although not quite high. We anticipate a roughly 30% increase in the gas sale price, as a result, and further enhancements in the future as we convert to a permanent CI score as the next round.

Speaker #7: As you guys kind of continue to scale in the business, can you talk about where you guys see areas where you can continue to drive operating leverage whether it may be continued reductions in SG&A or margin improvements or maybe elsewhere?

Speaker #5: But we anticipate a roughly 30% increase in the gas sale price as a result. And further enhancements in the future as we convert to permanent CI score.

Speaker #1: Greg?

Speaker #8: Yeah, I would say for us, we continue to look at projects on our capital sales business. We have obviously a very, very nice margins in our capital sales business and our O&M business.

Speaker #5: As the next round.

Speaker #1: That's awesome. Thank you. I appreciate the color. I'll jump back to the queue.

Ruida Li: That's awesome. Thank you. I appreciate the color. I'll jump back to the queue.

Rupert Van Veen: That's awesome. Thank you. I appreciate the color. I'll jump back to the queue.

Speaker #2: Your next question comes from the line of Craig Irwin. With Roth Capital Partners, your line is open. Please go ahead.

Operator: Your next question comes from the line of Craig Irwin with Roth Capital Partners.

Speaker #8: I think we'll see some continued advantage as noted in the release. As we get our build-on operate facilities such as Rhode Island, the other build-on operates are profitable facilities.

Speaker #4: Hey, guys. It's Andrew Onn for Craig. Congrats on the strong results and thanks for taking my questions. So the first one for me is great to see adjusted EBITDA positive again, I think, for the third consecutive quarter.

[Analyst] (Roth Capital Partners): Hey, guys. It's Andrew on for Craig. Congrats on the strong results, and thanks for taking my questions. The first one for me is great to see adjusted EBITDA positive again, I think for the 3rd consecutive quarter. As you guys kind of continue to scale on the business, can you talk about where you guys see areas where you can continue to drive operating leverage, whether it may be, you know, continued reductions in SG&A or margin improvements or maybe elsewhere?

Speaker #8: And Rhode Island is a great facility as well and as Yaniv mentioned, we have now the CI score obviously, that was a drag on our margin and our EBITDA for this quarter, but we looked as the remaining of the year runs out, that's going to be an improvement in both gross margin percentages and adjusted EBITDA for us.

Speaker #4: As you guys kind of continue to scale on the business, can you talk about where you guys see areas where you can continue to drive operating leverage whether it may be continued reductions in SG&A or margin improvements or maybe elsewhere?

Speaker #8: So that's an area that we are definitely focused on making sure that that gets turned around as the year continues on. And so that's going to be a margin enhancement for us.

Speaker #1: Greg?

Speaker #8: But the market, because of our technology platform, we have a lot of leverage in the market. We are the leader in this space. Our clients come to us because we know how to get it done.

Speaker #3: Yeah, I would say for us, we continue to look at projects on our capital sales business. We have obviously a very, very nice margins in our capital sales business and our O&M business.

Yaniv Scherson: Greg?

Assaf Onn: Greg?

Gregory Wolf: I would say, for us, you know, we continue to look at projects on our capital sales business. We have obviously a very nice margins in our capital sales business and our O&M business. I think we'll see some continued advantage as noted in the release, you know, as we get our build-own-operate facilities such as Rhode Island. The other build-own-operates are profitable, good facilities, and Rhode Island is a great facility as well. As Yaniv mentioned, we have now the CI score. Obviously, that was a drag on our margin and our EBITDA for this quarter. We look as the remaining of the year runs out, that's gonna be an improvement in both gross margin percentages and adjusted EBITDA for us.

Speaker #3: I think we'll see some continued advantage, as noted in the release, as we get our build-own-operate facilities—such as Rhode Island—the other build-own-operates, our profitable good facilities in Rhode Island is a great facility as well. And as Yaniv mentioned, we have now the CI score. Obviously, that was a drag on our margin and our EBITDA for this quarter, but we looked, as the remaining of the year runs out, that's going to be an improvement in both gross margin percentages and adjusted EBITDA for us.

Speaker #8: We've been doing it for two decades and we continue to execute the projects at the margins that we go out at. And we certainly have a lot of opportunities to grow the top line.

Speaker #8: And SG&A being down to as we continue to look at SG&A, lowering the cost there as much as we possibly can, but as we grow the top line to different levels, everything's going to be falling to the bottom line from a gross margin perspective.

Speaker #8: I guess is the way I would think about it.

Speaker #3: So that's an area that we are definitely focused on, making sure that gets turned around as the year continues on. And so that's going to be a margin enhancement for us.

Gregory Wolf: That's an area that we are definitely focused on, making sure that that gets turned around as the year continues on. That's gonna be a margin enhancement for us. You know, the market, because of our technology platform, we have a lot of leverage in the market. We are the leader in this space. Our clients come to us because we know how to get it done. We've been doing it for 2 decades and, you know, we continue to, you know, execute the projects at the margins that we go out at. We certainly have a lot of opportunities to grow the top line. SG&A being down to, you know, as we continue to look at SG&A, lowering the cost there as much as we possibly can.

Speaker #7: Great. I appreciate the detail there. And then second one for me, I saw the IWMF project in Singapore's 80% complete now. Can you just kind of talk about what it will take to get that project across the finish line?

Speaker #3: But the market—because of our technology platform—we have a lot of leverage in the market. We are the leader in this space. Our clients come to us because we know how to get it done.

Speaker #7: And then secondly, kind of once the project is completed, does that kind of open up doors to new relationships and other projects within the region?

Speaker #3: We've been doing it for two decades, and we continue to execute the projects at the margins that we go out at. And we certainly have a lot of opportunities to grow the top line.

Speaker #5: Yeah, is continuing to execute per plan. It's a large contract with a multi-year execution timeline. And so we're continuing to progress execution per plan on schedule and per budget as executed originally.

Speaker #3: And SG&A being down to as we continue to look at SG&A, lowering the cost there as much as we possibly can, but as we grow the top line to different levels, everything's going to be falling to the bottom line from a gross margin perspective, I guess is the way I would think about it.

Gregory Wolf: As we grow the top line to different levels, everything's gonna be falling to the bottom line from a gross margin perspective, I guess is the way I would think about it.

Speaker #5: The significance of the site is material for us. The client is a globally recognized top-tier utility and will be the largest facility in Singapore of its kind.

Speaker #4: Great. I appreciate the detail there. And then second one for me, I saw the IWMF project in Singapore's 80% complete now. Can you just kind of talk about what it will take to get that project across the finish line?

[Analyst] (Roth Capital Partners): Great. Appreciate the detail there. Second one for me, I saw the IWMF project in Singapore is 80% complete now. Can you just kind of talk about what it'll take to get that project across the finish line? Secondly, kind of, you know, once the project is completed, does that kind of open up doors to new relationships and other projects within the region?

Speaker #5: So the association and having the reference with the PUBs is going to bring a lot of attention and clearly having successful reference with top clients is a key establishment of trust and confidence in converting our pipeline and other clients to make selections to go with our technical solution.

Speaker #4: And then, secondly, once the project is completed, does that open up doors to new relationships and other projects within the region?

Speaker #5: Yeah, absolutely. The project is continuing to execute per plan. It's a large contract with a multi-year execution timeline, and so we're continuing to progress execution per plan, on schedule and per budget as executed originally.

Yaniv Scherson: Yeah. Absolutely. The project is continuing to execute per plan. It's, you know, a large contract with a multi-year execution timeline. We're continuing to progress execution per plan on schedule and per budget as executed originally. The significance of the site is material for us. The client is a globally recognized, top-tier utility. This will be, you know, the largest facility in Singapore of its kind. The association and having the reference with the PUB is gonna bring a lot of attention. Clearly having successful reference with top clients is a key establishment of trust and confidence in converting our pipeline and other clients to make selections to go with our technical solutions.

Speaker #5: So we do anticipate it to be a tailwind and a motivator unlocking more of our municipal pipeline in Asia. And to help accelerate other projects to a go with successful model.

Speaker #5: The significance of the site is material for us. The client is a globally recognized top-tier utility. And this will be the largest facility in kind.

Speaker #7: Great. Well, thanks for taking my questions and congrats on the continued progress.

Speaker #4: Thanks for the reminder. If you would like to ask a question, to please raise your hand using the button at the bottom of your screen.

Speaker #5: So the association and having to reference with the PUBs is going to bring a lot of attention and clearly having successful reference with top clients is a key establishment of trust and confidence in converting our pipeline and other clients to make selections to go with our technical solution.

Speaker #4: If you have dialed in to today's call, please press star 9 to raise your hand. And star 6 to unmute. Your next question comes from the line of Donangelo Volpe, with Beacon Securities.

Speaker #4: A kind reminder to press star 6 to unmute. Your line is open. Please go ahead.

Speaker #5: So we do anticipate it to be a tailwind and a motivator unlocking more of our municipal pipeline in Asia. And to help accelerate other projects to a go with successful model.

Speaker #9: Hey, good morning, guys. Congratulations on the quarter and receiving that negative carbon intensity score for the Rhode Island facility. I guess just looking for a little bit more granularity here.

Yaniv Scherson: We do anticipate it to be a tailwind and a motivator unlocking more of our municipal pipeline in Asia, and to help accelerate other projects to a go with successful model.

Speaker #9: Understanding that the facility is progressing through operational ramp-up, what's the expected timeline for full ramp-up? I guess if we could quantify it on a quarterly basis, and then when we can expect positive contribution to the overall earnings profile?

Speaker #4: Great. Well, thanks for taking my questions, and congrats on the continued progress.

[Analyst] (Roth Capital Partners): Great. Well, thanks for taking my questions and, congrats on the continued progress.

Speaker #2: Kind reminder: If you would like to ask a question, please raise your hand using the button at the bottom of your screen. If you have dialed in to today's call, please press star nine to raise your hand.

Operator: Kind reminder, if you would like to ask a question, to please raise your hand using the button at the bottom of your screen. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. Your next question comes from the line of Devin Schilling with Beacon Securities. A kind reminder to press star 6 to unmute. Your line is open. Please go ahead.

Speaker #5: We're continuing to work on the improvements in the plant. Mostly on the feedstock side, which is been improving on a consistent basis annually. We have a goal to be able to hit profitability by year-end.

Speaker #2: And star six to unmute. Your next question comes from the line of Donagello Volpe, with Beacon Securities. A kind reminder to press star six to unmute.

Speaker #2: Your line is open. Please go ahead.

Speaker #5: Part of this is going to be timing with enhanced credit monetization, some government incentives as well that we're working on on the federal level.

Speaker #5: Hey, good morning, guys. Congratulations on the quarter. And receiving that negative carbon intensity score for the Rhode Island facility. I guess just looking for a little bit more granularity here.

Devin Schilling: Good morning, guys. Congratulations on the quarter and receiving that negative Carbon Intensity score for the Rhode Island facility. I guess just looking for a little bit more granularity here. Understanding that the facility's progressing through operational ramp up, what's the expected timeline for full ramp up? I guess if we could quantify it on a quarterly basis. When we can expect a positive contribution to the overall earnings profile.

Donangelo Volpe: Good morning, guys. Congratulations on the quarter and receiving that negative Carbon Intensity score for the Rhode Island facility. I guess just looking for a little bit more granularity here. Understanding that the facility's progressing through operational ramp up, what's the expected timeline for full ramp up? I guess if we could quantify it on a quarterly basis. When we can expect a positive contribution to the overall earnings profile.

Speaker #5: Domestically in the US, and working with our feedstock suppliers to sort of optimize the mix going forward. So we're executing very focused on this plan.

Speaker #5: Understanding that the facility is progressing through operational ramp-up, what's the expected timeline for full ramp-up? I guess if we could quantify it on a quarterly basis, and then when we can expect positive contribution to the overall earnings profile?

Speaker #5: Make the plant contribute around the end of the year is our target and our goal. And we expect to have improvements quarter over quarter towards that mark.

Speaker #1: We're continuing to work on the improvements in the plant. Mostly on the feedstock side, which is been improving on a consistent basis annually. We have a goal to be able to hit profitability by year-end.

Yaniv Scherson: We're continuing to work on the improvements in the plant, mostly on the feedstock side, which is been improving on a consistent basis annually. We have a goal to be able to hit profitability by year-end. Part of this is gonna be timing with, you know, enhanced credit monetization, some government incentives as well that we're working on the federal level, domestically in the US. Working with our feedstock suppliers to sort of optimize the mix going forward. We're executing very focused on this plan, make the plant contribute around the end of the year, is our target and our goal. We expect to have improvements quarter over quarter towards that mark.

Speaker #9: Okay, thank you. And then just looking at the O&Ms, O&M side of things, I'm just wondering if there's kind of a lag from the capital sales because we've seen capital sales growing significantly.

Speaker #9: I'm just wondering how we should look at O&M moving forward if we treat it kind of as a year lag to the rising capital sales?

Speaker #1: Part of this is going to be timing with enhanced credit monetization, some government incentives as well that we're working on at the federal level.

Speaker #1: Domestically in the U.S., and working with our feedstock suppliers to sort of optimize the mix going forward. So we're executing, very focused on this plan.

Speaker #5: That's about right. I mean, the O&Ms start after the cap sales complete. So we may have a commitment with an O&M contract, but revenue contribution from that O&M won't start until the operations start, right, when we're done building the plant.

Speaker #1: We expect the plant to contribute around the end of the year. That is our target and our goal, and we expect to have improvements quarter over quarter towards that mark.

Speaker #5: So typically, you're going to have to two years to build a plant and then that's when the O&M contribution initiates so that's probably the best way to think about the sequence and timing.

Speaker #5: Okay, thank you. And then just looking at the O&Ms, O&M side of things, I'm just wondering if there's kind of a lag from the capital sales because we've seen capital sales growing significantly.

Devin Schilling: Okay. Thank you. Just looking at the O&Ms, O&M side of things, I'm just wondering if there's kind of a lag from the capital sales, because we've seen capital sales growing significantly. I'm just wondering how we should look at O&M moving forward if we treat it kind of as like a year lag to the rise in capital sales.

Donangelo Volpe: Okay. Thank you. Just looking at the O&Ms, O&M side of things, I'm just wondering if there's kind of a lag from the capital sales, because we've seen capital sales growing significantly. I'm just wondering how we should look at O&M moving forward if we treat it kind of as like a year lag to the rise in capital sales.

Speaker #9: Okay, perfect. Thank you. And then final one for me, just looking at the cash sitting at about 22 million excluding the restricted cash. Just wondering what some of your minimum liquidity targets are and what the expected cash usage should be over the next few quarters?

Speaker #5: I'm just wondering how we should look at O&M moving forward if we treat it kind of as a year lag to the rising capital sales?

Speaker #5: Yeah, Daniel, we don't give guidance on that, but clearly, we're a growing business, quite substantially, and we expect to continue to grow throughout the year, both in revenues and our backlog.

Speaker #1: That's about right. I mean, the O&Ms start after the cap sales complete. So we may have a commitment with an O&M contract, but revenue contribution from that O&M won't start until the operations start, right, when we're done building the plant.

Yaniv Scherson: That's about right. I mean, you know, the O&M start after the cap sales complete. We may have a commitment with an O&M contract, but revenue contribution from that O&M won't start until the operations start, right? When we're done building the plant. Typically a year and a half to 2 years to build a plant, and then that's when the O&M contribution initiates. That's probably the best way to think about the sequence and timing.

Speaker #5: So as we move forward, operationally, we now have a new line of credit and so I think that's a very strategic for us to have that in place for flexibility for financial flexibility but from a cash basis, I think we'll continue to run around these areas that it's been at in the past.

Speaker #1: So, typically, a year and a half to two years to build a plant, and then that's when the O&M contribution initiates. So, that's probably the best way to think about the sequence and timing.

Speaker #5: Okay, perfect. Thank you. And then, final one for me—just looking at the cash, sitting at about $22 million, excluding the restricted cash. Just wondering what some of your minimum liquidity targets are, and what the expected cash usage should be over the next few quarters.

Speaker #5: And so in keeping everything as tight as possible, we obviously are laser-focused on collections, laser-focused on operations, and all of our projects are cash flow positive.

Devin Schilling: Okay. Perfect. Thank you. Final one from me. Just looking at the cash sitting at about CAD 22 million, excluding the restricted cash. Just wondering what some of your minimum liquidity targets are and what the expected cash usage should be over the next few quarters.

Donangelo Volpe: Okay. Perfect. Thank you. Final one from me. Just looking at the cash sitting at about CAD 22 million, excluding the restricted cash. Just wondering what some of your minimum liquidity targets are and what the expected cash usage should be over the next few quarters.

Speaker #5: From day one, throughout the duration of the project. So I would just note that we are very comfortable in the position where we're at today and on a forward basis.

Speaker #1: Yeah, Daniel, we don't give guidance on that, but clearly, we're a growing business, quite substantially, and we expect to continue to grow throughout the year, both in revenues and our backlog.

Gregory Wolf: Devin Schilling. We don't give guidance on that. Clearly, you know, we're a growing business quite substantially, and we expect to continue to grow throughout the year, both in revenues and our backlog. As we move forward, you know, operationally, we now have a new line of credit. I think that's very strategic for us to have that in place for flexibility, for financial flexibility. From a cash basis, I think we'll continue to run around these areas that it's been at in the past. You know, in keeping everything as tight as possible, we obviously are laser focused on collections, laser focused on operations, and all of our projects are cash flow positive from day one throughout the duration of the project.

Speaker #9: Okay, great. Thanks for answering my questions. I'll hop back in the queue.

Speaker #4: One more, if you would like to ask a question, please raise your hand using the raise hand button at the bottom of your screen.

Speaker #1: So, as we move forward operationally, we now have a new line of credit, and so I think that's very strategic for us to have in place for financial flexibility. But from a cash basis, I think we'll continue to run it around these areas that it's been at in the past.

Speaker #4: If you have dialed in to today's call, please press star 9 to raise your hand. Your next question comes from the line of Poe Fratt.

Speaker #4: With Alliance Global Partners, a kind reminder, it is star 6 to unmute. Your line is open. Please go ahead.

Speaker #1: And so in keeping everything as tight as possible, we obviously are laser-focused on collections, laser-focused on operations, and all of our projects are cash flow positive.

Speaker #10: Thanks for taking my question. I had two questions. One is on the backlog. What do you expect to realize or burn off in the backlog that 265?

Speaker #1: From day one, throughout the duration of the project. So I would just note that we are very comfortable in the position where we're at today and on a forward basis.

Gregory Wolf: I would just note that we are very comfortable in the position where we're at today and on a forward basis.

Speaker #10: What do you think your burn off for the rest of the year?

Gregory Wolf: I would just note that we are very comfortable in the position where we're at today and on a forward basis.

Speaker #5: Okay, great. Thanks for answering my questions. I'll hop back in the queue.

Speaker #5: There's different projects that are in there, of course, different timing when we signed it, right? So it's not an exact science to say it take X number of months divided by the backlog, right?

Devin Schilling: Okay, great. Thanks for answering my questions. I'll hop back in the queue.

Donangelo Volpe: Okay, great. Thanks for answering my questions. I'll hop back in the queue.

Speaker #2: One more, if you would like to ask a question, please raise your hand using the raise hand button at the bottom of your screen.

Operator: Once more, if you would like to ask a question, please raise your hand using the Raise Hand button at the bottom of your screen. If you have dialed in to today's call, please press star nine to raise your hand. Your next question comes from the line of Poe Fratt with Alliance Global Partners. A kind reminder, it is star six to unmute. Your line is open. Please go ahead.

Speaker #5: Certain projects are in the middle stages, which are work is more aggressively occurring. On the beginning and the end of the projects, it's ramp-up and ramp-down is what you have in construction work and contract work.

Speaker #2: If you have dialed in to today's call, please press star nine to raise your hand. Your next question comes from the line of Poe Fratt.

Speaker #2: With Alliance Global Partners, a kind reminder, it is star six to unmute. Your line is open. Please go ahead.

Speaker #5: But that said, we expect this year not with any we're not giving any guidance, but we expect, obviously, year-over-year growth in revenue and year-over-year growth in backlog on a full-year basis.

Speaker #3: Thanks for taking my question. I had two questions. One is on the backlog. What do you expect to realize or burn off in the backlog that 265?

Poe Fratt: Thanks for taking my question. I had 2 questions. One is on the backlog. What do you expect to realize or burn off in the backlog? You know, that CAD 265, what do you think you'll burn off for the rest of the year?

Speaker #5: So take it as it is, but we will that means that our sales have to be continue to be strong, which we expect. And what we know we have in our pipeline and our execution has to be there as well.

Speaker #3: What do you think your burn off for the rest of the year?

Speaker #1: There's, well, there's different projects that are in there, of course, different timing when we signed it, right? So it's not an exact science to say it take X number of months divided by the backlog, right?

Gregory Wolf: Well, you know, there's different projects are in there, of course, different timing when we signed it, right? It's not an exact, you know, science to say it take X number of months over divided by the backlog, right? Certain projects are in the middle stages, which work is more aggressively occurring on the beginning and the end of the projects. You know, it's a ramp up and ramp down is what you have in project and, you know, construction work and contract work. But that said, we expect this year, we're not giving any guidance, but we expect obviously year-over-year growth in revenue and year-over-year growth in backlog on a full year basis. Take it, take it as it is.

Speaker #5: Q1 is typically seasonally a little bit slower in the revenue side, just because of weather constraints in some areas. But we expect the year to continue to ramp up and be ahead of the past.

Speaker #1: Certain projects are in the middle stages, which is where work is more aggressively occurring. At the beginning and the end of the projects, it's ramp-up and ramp-down—that's what you have in project construction work and contract work.

Speaker #5: So that's what I would.

Speaker #10: Great. That's helpful. And then could you talk about your pipeline? The pipeline numbers are just at least in the presentations I've looked at are huge.

Speaker #1: But that said, we expect this year not with any we're not giving any guidance, but we expect, obviously, year-over-year growth in revenue and year-over-year growth in backlog on a full-year basis.

Speaker #10: As probably an understatement, can you talk about the pipeline in the context of what you think might be decided or move forward in 2026, maybe 2027?

Speaker #1: So take it as it is, but we will that means that our sales have to be continue to be strong, which we expect. And what we know we have in our pipeline and our execution has to be there as well.

Gregory Wolf: We will. That means that our sales continue to be strong, which we expect and what we know we have in our pipeline. And our execution has to be there as well. Q1 is typically seasonally a little bit slower in the revenue side, just because of weather constraints in some areas. We expect the year to continue to ramp up and be ahead of the, you know, the past.

Speaker #10: I mean, are we talking about potential projects in the $500 million range or in total? Or if you could just give me some framing on what how you're looking at that pipeline.

Speaker #1: Q1 is typically, seasonally, a little bit slower on the revenue side, just because of weather constraints in some areas. But we expect the year to continue to ramp up and be ahead of the past.

Speaker #9: Oh, pipeline is our pipeline is big. And what we put in the pipeline is I'll give you an example. We have signed 16 contracts with Nortegas, the gas company of Spain.

Speaker #1: So that's what I would.

Speaker #3: Great. That's helpful. And then could you talk about your pipeline? The pipeline numbers are just at least in the presentations I've looked at are huge.

Poe Fratt: Great. That's helpful. Could you talk about your pipeline? You know, the pipeline numbers are just, at least in the presentations I've looked at, are, you know, huge, as probably an understatement. Can you talk about the pipeline in the context of what you think might be decided or, you know, move forward in 2026, maybe 2027? I mean, are we talking about potential projects in the CAD 500 million range or, you know, in total? If you could just give me some framing on what, you know, how you, how you're looking at that pipeline.

Speaker #9: And we are working on one. So one is a backlog. And the other 15 is in the pipeline. So it is a committed pipeline.

Speaker #9: Our majority of the pipeline is committed. So we see us going through the pipeline. Within the next 24 to 32 months.

Speaker #3: As probably another statement, can you talk about the pipeline in the context of what you think might be decided or move forward in 2026, maybe 2027?

Speaker #10: And I guess I may have missed it. What is your current pipeline then?

Speaker #3: I mean, are we talking about potential projects in the $500 million range or in total? Or if you could just give me some framing on what how you're looking at that pipeline.

Speaker #9: Again, our pipeline is quite big. We have 265 million dollars of backlog, and we have around a billion dollar of a pipeline.

Speaker #1: Oh, pipeline is our pipeline is big. And what we put in the pipeline is I'll give you an example. We have signed 16 contracts with Nortegas, the gas company of Spain.

Assaf Onn: Our pipeline is big. What we put in the pipeline is I'll give you an example. We have signed 16 contracts with Nortegas, the gas company of Spain, and we are working on one. One is a backlog, and the other 15 is in the pipeline. It is a committed pipeline. Our majority of the pipeline is committed. We see us going through the pipeline within the next 24 to 32 months.

Speaker #10: Okay. Thank you.

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

Speaker #1: And we are working on one. So one is a backlog. And the other 15 is in the pipeline. So it is a committed pipeline.

Speaker #10: Thank you, Operator. And as always, thank you, everyone, for joining us on the call today. For additional information or should you have any further questions, please do not hesitate to contact the IR team at iratenergy.com or visit us online at energy.com.

Speaker #1: Our majority of the pipeline is committed. So we see us going through the pipeline within the next 24 to 32 months.

Speaker #3: And I guess I may have missed it. What is your current pipeline, then?

Poe Fratt: I guess I may have missed it. What is your current pipeline then?

Speaker #10: Thank you all again for your time today. Operator, you may now end the call.

Poe Fratt: I guess I may have missed it. What is your current pipeline then?

Speaker #1: Again, our pipeline is quite big. We have $265 million of backlog, and we have around a billion dollars of pipeline.

Assaf Onn: Again, our pipeline is quite big. We have CAD 265 million of backlog, we have around CAD 1 billion of a pipeline.

Poe Fratt: Again, our pipeline is quite big. We have CAD 265 million of backlog, we have around CAD 1 billion of a pipeline.

Speaker #3: Okay. Thank you.

Poe Fratt: Okay. Thank you.

Speaker #2: There appears to be no further questions at this time. I will now turn the call back to Darlene Webb for a closing remarks.

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

Speaker #3: Thank you, operator. And as always, thank you, everyone, for joining us on the call today. For additional information or should you have any further questions, please do not hesitate to contact the IR team at iratenergy.com or visit us online at energy.com.

Darlene Webb: Thank you, operator. As always, thank you everyone for joining us on the call today. For additional information or should you have any further questions, please do not hesitate to contact the 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.

Speaker #3: Thank you all again for your time today. Operator, you may now end the call.

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