Aquaporin Q1 2025 Trading Statement - maintains full-year financial guidance for 2025

Aquaporin A/S reported Q1 2025 revenue of DKK 3.2 million, down from DKK 6.2 million in the same period last year, but reaffirmed its full-year revenue guidance of DKK 60-80 million and EBITDA loss of DKK 45-55 million, expecting revenue to be heavily weighted towards the second half of the year. The company highlighted strategic account growth, continued collaboration with Gallo, and a new agreement in China, while also noting CEO Matt Boczkowski will step down by the end of September 2025.

Analysis

Aquaporin A/S reported a decrease in Q1 2025 revenue to DKK 3.2 million, down from DKK 6.2 million in the corresponding period of 2024, with this revenue primarily generated from its Forward Osmosis Market Development segment. Despite the revenue shortfall, the company's EBITDA loss (before special items) showed an improvement, narrowing to DKK 15.3 million in Q1 2025 from a loss of DKK 19.3 million in Q1 2024, aligning with management’s expectations. A notable positive is the significant strengthening of the company’s financial position, with cash and cash equivalents increasing to DKK 58.5 million as of March 31, 2025, compared to DKK 2.0 million a year prior. Aquaporin has reaffirmed its full-year 2025 financial guidance, projecting revenue between DKK 60-80 million and an EBITDA loss (before special items) of DKK 45-55 million. This outlook is predicated on expectations of revenue being heavily weighted towards the second half of the year, supported by a growing inflow of orders and a positively maturing order book and pipeline. Business highlights underpinning this optimism include increasing repeat orders from strategic accounts, continued positive collaboration with Gallo, a new strategic framework agreement in China, and subsequent new orders and pilot projects in South America, Ireland, and with PUB in Singapore. However, the company also announced that Chief Executive Officer, Matt Boczkowski, will step down for personal reasons by the end of September 2025, introducing an element of leadership transition uncertainty during a period focused on commercial execution and growth.

Key Decisions for Investors

• Investors should closely monitor Aquaporin's progress in converting its growing order book into tangible revenue, particularly in the second half of 2025, to validate the reaffirmed full-year guidance following the Q1 revenue decline.
• The impending departure of CEO Matt Boczkowski by September 2025 warrants careful observation for potential impacts on strategic continuity and the company's ability to execute its commercial ramp-up.
• While the significantly improved cash position and reduced Q1 EBITDA loss provide some operational runway, continued focus should be on the materialization of commercial traction from new agreements and strategic collaborations to ensure long-term value creation.