CDT Environmental Reports 38.8% Revenue Decline to $18.2M, $10.3M Loss
CDT Environmental reported 2025 revenues of $18.2 million, down 38.8% year-over-year, and a net loss of $10.3 million driven by $1.7 million in stock-based compensation and a $14.7 million credit loss provision. As of March 31, 2026 it holds a backlog of three wastewater projects worth US$26.8 million and is bidding on two additional systems.
1. 2025 Financial Performance
Total revenues for the year ended December 31, 2025 fell by $11.5 million, or 38.8%, to $18.2 million, driven by a 39.2% drop in sewage treatment system installations to $17.3 million and a 29.8% decline in treatment services to $0.9 million, resulting in gross profit of $7.6 million at a 41.5% margin and a net loss of $10.3 million.
2. Operating Expenses and Provisions
Operating expenses more than doubled, increasing by $10.0 million, or 107.7%, to $19.2 million, primarily due to a $1.7 million rise in stock-based compensation and a $14.7 million provision for credit losses, reflecting heightened credit risk and collectability concerns.
3. Project Backlog and New Bids
As of March 31, 2026, the company held three wastewater treatment projects in backlog with a provisional contract value of RMB 187 million (US$26.8 million): Phase VI of the Jimei Guankou Project (RMB 30 million), the Xiamen Xinglin Pipeline Renovation Project (RMB 87 million), and the Hubei Wuxue Project (RMB 70 million), and it has bids on two additional systems.
4. Liquidity and Strategic Focus
Working capital stood at $26.4 million as of December 31, 2025, underscoring reliance on timely payments from state-owned customers; the company is prioritizing investments in innovation and new energy opportunities to bolster long-term growth.