Activated carbon producer Arq's Q2 results beat on higher pricing, volumes in core business

Arq

10/08/2026 21:54

Overview
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

Outlook
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

Result Drivers
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

Company press release: ID:nGNX94hwHN

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$29.88 mln
$28.60 mln (6 Analysts)
Q2 Net Loss
Beat
$733,000
$787,000 (6 Analysts)
Q2 Operating Income
Beat
-$68,000
-$187,600 (5 Analysts)
Q2 Pretax Loss
Beat
$733,000
$961,500 (6 Analysts)
Q2 Operating Expenses
 
$11.58 mln
 

Analyst Coverage
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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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)