PAC business profitability - Co said Q2 results were driven by increased pricing and volumes in its core PAC business, as well as improved cost discipline.
Lower R&D expenses - Co attributed reduced research and development costs to the absence of prior-year GAC ramp-up expenses.
Plant turnaround cost control - Biennial Red River Plant turnaround was completed under budget and did not disrupt customer service.
Outlook reaffirmed
Arq reaffirms 2026 revenue guidance of $120 mln to $125 mln.
Company maintains 2026 adjusted EBITDA forecast of $17 mln to $20 mln.
Arq reiterates 2026 capex guidance of $8 mln to $10 mln.
Q2 results beat expectations
U.S. activated carbon producer's Q2 revenue rose 5%, beating analyst expectations.
Adjusted EBITDA for Q2 increased 59% yr/yr, driven by PAC business profitability.
Net loss for Q2 narrowed and beat analyst estimates.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the commodity chemicals peer group is "buy".
Wall Street's median 12-month price target for Arq, Inc. is $3.50, about 68.3% above its August 7 closing price of $2.08.
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