Upon securing a substantial new contract, shares of Arq Inc. (NASDAQ: ARQ) exhibited a bullish trend during the after-market session on Tuesday. The ARQ stock surged by 12.42% in the extended trading period on the US stock charts.

Second Major Sales Contract Announcement

Arq Inc. (ARQ) has announced its second major sales contract for the provision of Granular Activated Carbon (GAC) from its strategic Red River facility. This new agreement, involving a company specializing in personal and industrial air purification devices, is set to commence in January 2025 and will scale up to an ultimate run-rate requirement of 4 million pounds of GAC per year.

This follows a previous agreement announced in May 2024, which involved a 5 million pound per year supply of GAC. Combined, these two contracts represent approximately 36% of the Red River facility's initial 25 million pounds per year GAC nameplate capacity, scheduled to become operational by the end of 2024. This latest contract is not merely a victory for Arq; it also underscores the industry's confidence in the company's GAC solutions and strategic vision.

While the first contract addressed the PFAS market through a North American solutions provider of water and wastewater treatment, the current agreement focuses on specialized air purification. This demonstrates the market's recognition of Arq's superior product quality, the value of its environmental technology, and the extensive range of its potential industry applications.

Strategic Positioning And Future Prospects

Arq's ongoing discussions with additional potential customers are progressing favorably, placing the company in a strong position to fully contract its capacity under compelling terms before the commencement of production at the end of 2024. This second agreement solidifies ARQ's standing as a strategic partner to clients seeking high-quality GAC for specialty products.

It also highlights the increasing demand for GAC products across a broad spectrum of applications and the effectiveness of Arq's sales strategy. Securing this second contract with attractive terms marks a pivotal moment for Arq validating the company's leadership and expansion into diverse GAC applications.

This agreement serves as a powerful endorsement of Arq's product performance and its commitment to environmental technology. Moving forward, ARQ will continue to innovate and collaborate with its customers to provide superior solutions for compliance and sustainability.