Arq, Inc. announced its financial and operating results for the fourth quarter and full year ended December 31, 2024. For the full year 2024, revenues totaled $109.0 million, a 10% increase year-over-year from $99.2 million, driven by improved average selling prices (ASP) and product diversification. The company achieved a gross margin of 36.2% for the full year, up from 32.1% in the prior year.
The full year 2024 net loss was ($5.1) million, or ($0.14) per diluted share, a reduction from a net loss of ($12.2) million, or ($0.42) per diluted share, in 2023. Adjusted EBITDA for the full year was $7.7 million, a significant improvement from an Adjusted EBITDA loss of ($2.6) million in the prior year, marking the third consecutive quarter of positive Adjusted EBITDA.
Capital expenditures for full year 2024 totaled $85.2 million, exceeding previous guidance of $60-$70 million. This increase was primarily due to contractor errors related to small-bore piping ($4-$5 million), costs to maintain timely completion ($3-$4 million), and additional external professional services ($2 million). The company raised approximately $41.6 million in net equity proceeds in 2024 and closed a $30 million ABL credit facility in December 2024, which was used to refinance its outstanding $10 million CFG Loan.
For the fourth quarter of 2024, revenue totaled $27.0 million, a 4% decrease compared to $28.1 million in the prior year period, primarily due to lower one-off take-or-pay benefits compared to Q4 2023. Net loss for Q4 2024 was ($1.3) million, or ($0.03) per diluted share, compared to a net income of $3.3 million, or $0.10 per diluted share, in Q4 2023. Adjusted EBITDA for the quarter was $3.3 million, down from $7.2 million in the prior year period due to the same one-off items.
The development of the transformational GAC facility continues, with first production anticipated prior to the end of Q1 2025. The company expects to ramp up to 25 million pounds nameplate capacity in the second half of 2025. Management expressed confidence that the impact of the capex overrun on long-term profitability should be negligible and that a sustainably profitable PAC business will be complemented by a high-growth GAC business by H2 2025.
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