Arq Inc Pauses GAC Production, Takes $45M Write-Down; Guides $120–125M Revenue
Arq Inc paused GAC production for engineering reviews after design flaws and moisture issues caused cost overruns and a $45 million write-down. Its PAC segment grew revenue 10% to $120 million with 96% 2026 contract coverage, and management guided 2026 revenue of $120–125 million and $17–20 million adjusted EBITDA.
1. GAC Production Project Pause
Arq Inc halted its GAC production project in early 2026 to conduct a comprehensive engineering and production process optimization review after encountering original design flaws and high moisture content issues. These technical challenges led to significant cost overruns, delayed timelines and a $45 million write-down on its Corbin assets, with no GAC output expected in 2026.
2. PAC Business Growth and Financial Guidance
The company’s PAC segment delivered a 10% year-over-year revenue increase to approximately $120 million, driven by stable demand and long-term contracts covering 96% of volumes in 2026 and 75% in 2027. For the first time, management provided full-year guidance calling for $120–125 million in revenue and $17–20 million in adjusted EBITDA for 2026 based on this proven performance.
3. Operational Leadership and Future Outlook
To bolster operational efficiency, Arq Inc appointed Eric Robinson as Senior Vice President of Operations to optimize its activated carbon facilities. Despite the CFO departure and GAC delays, executive management expressed confidence in capturing undersupplied PAC market demand and outlined plans to refine GAC production processes before resuming operations.