Anaergia (ANRG) Q1 2025 earnings summary

Executive summary

• Achieved record revenue backlog of $200 million as of March 31, 2025, up 94% from year-end 2024, driven by capital sales in Italy and North America.

• Q1 2025 revenue was $24.9 million, down 0.4% year-over-year, with gross profit declining 16.6% to $5.4 million.

• Net loss improved to $5.9 million from $11.5 million year-over-year; adjusted EBITDA loss improved 34.5% to $3.9 million.

• Strategic focus on capital sales execution, backlog building, disciplined cost control, and Anaergia 2.0 initiative.

• Enhanced capital market presence with OTCQX listing, improving visibility and accessibility for U.S. investors.

Financial highlights

• Gross margin declined to 21.7% from 26% year-over-year; capital sales gross margin rose to 26.8% from 12.1% year-over-year.

• SG&A expenses were $17.2 million, up 3.4% due to a $2.95 million accounts receivable reserve; excluding this, SG&A declined 14.3% to $14.2 million.

• Revenue by region: North America 68%, Italy 14%, APAC 5%, Other 13%.

• Total assets at March 31, 2025 were $223 million, down from $233.3 million at December 31, 2024.

• Equity at March 31, 2025 was $49.3 million; total liabilities were $173.8 million.

Outlook and guidance

• Backlog growth is expected to sustain over multiple quarters, driven by multi-project orders from major customers in Europe and North America.

• Margins are expected to improve as BU assets ramp up and capital sales remain strong; SG&A is expected to remain stable or trend down, excluding one-time items.

• Management continues to pursue a robust pipeline of opportunities and has already secured additional awards since Q2 2025 began.

• Market momentum is supported by government incentives in Europe, especially Italy and Iberia, and strong demand for renewable natural gas.

• Strategic focus remains on executing the Anaergia 2.0 vision and capitalizing on the growing waste-to-value market.