The following is a summary of the Arq, Inc. (ARQ) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Arq, Inc. reported a 4% year-over-year revenue growth in Q1 2024, despite a volume decrease of 6%.

• The company's gross margin rose drastically to 37%, more than double the figure from the prior year.

• The adjusted EBITDA saw a loss of $1.1 million, yet this shows an improvement, marking the third consecutive quarter of year-over-year growth in this area.

• Although R&D expenditure increased by $1 million, this was offset by a 16% increase in average selling price.

• Arq, Inc. updated its 2024 CapEx forecast to between $60 million and $70 million, a rise from the previously guided range.

Business Progress:

• Arq, Inc's powdered activated carbon (PAC) business is envisaged to be cash-generating throughout 2024.

• The company signed its first granular activated carbon (GAC) contract, and is optimistic about contracting the entire capacity of 25 million pounds before production commences.

• Operationally, the company performed well, with the Red River facility turnaround completed on schedule and within budget.

• Anticipating increased demand due to the EPA's new regulations on PFAS, Arq, Inc. expects a sharp rise in the demand for GAC, resulting in potential price improvements.

• The company is exploring multiple funding options for its CapEx including cash generation, cost reduction initiatives, and refinancing its existing term loan.

• Arq, Inc. remains committed to maintaining a low EBITDA to debt ratio while managing the increased CapEx and is confident in delivering a three-year payback period on its investments.

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