Aquaporin Reports Q1 2025, Confirms Full-Year Financial Expectations

Aquaporin A/S Releases Q1 2025 Trading Statement

Aquaporin A/S, an innovative water technology company based in Denmark, released its Trading Statement for the first quarter of 2025, covering the period from January 1 to March 31. The company is known for its groundbreaking approach to water filtration by utilizing biotechnology, and this quarter's report emphasizes their commitment to growth and resilience despite challenges.

CEO Matt Boczkowski expressed optimism for 2025, stating, "We expect to return to our previous growth trajectory as we progress towards profitability. The commercial traction is returning, and we are witnessing a growing inflow of orders expected to materialize throughout the year." This perspective is bolstered by CFO Klaus Juhl Wulff, who reiterated the company's decision to maintain its financial guidance for the year.

Financial Performance Overview

During Q1 2025, Aquaporin's revenue reached DKK 3.2 million, which is a decrease from the DKK 6.2 million recorded in the same period of 2024. The decline in revenue was attributed primarily to pressures in the Forward Osmosis market, a crucial component of the company's strategy. Despite this, management remains confident that revenue will rebound as the year progresses, particularly in the latter half, when a more significant portion of the expected income is anticipated.

The company reported a loss of DKK 15.3 million in EBITDA (before special items) for Q1 2025, an improvement over the DKK 19.3 million loss from the same timeframe last year. Cash and cash equivalents significantly increased to DKK 58.5 million by March 31, 2025, up from just DKK 2.0 million a year prior, demonstrating a stronger liquidity position.

Key Business Developments

Aquaporin's strategic initiatives are showing promising results. The company reported that its focus on strategic accounts is yielding repeat orders from an expanding customer base, mitigating reliance on individual accounts and diversifying revenue streams. Notable collaborations include ongoing efforts with Gallo, a prominent winery, which have yielded positive trial results for concentration quality at the pilot scale.

Additionally, Aquaporin signed a significant strategic framework agreement in Beijing, China, with Liaocheng Water Group, as part of the Sino-Danish Water Alliance. This partnership aims to enhance industrial wastewater treatment practices in China, showcasing the company's dedication to addressing global water issues. The alliance with major players such as Grundfos and Landson Advanced Ceramics highlights Aquaporin's commitment to collaborative innovation.

The company's expansion into South and Latin America is also noteworthy, with new orders from system integrators utilizing Aquaporin's innovative CLEAR Series to improve wastewater recycling in Chile and purify well water in Mexico. Furthermore, a pilot contract to deliver a Forward Osmosis system for Trinity College Dublin reflects the company's growing influence in international research and development initiatives.

Future Outlook and Leadership Changes

Despite facing hurdles, Aquaporin’s optimistic outlook for the future remains intact. The firm continues to anticipate that most of its revenue will appear in the latter half of the year, supporting their maintained guidance of total 2025 revenues between DKK 60-80 million and an expected EBITDA loss of DKK 45-55 million.

In a notable management change, CEO Matt Boczkowski will step down by the end of September 2025 for personal reasons, after completing his term. The board is actively searching for a successor to lead the company through its next phase of development. This transition underscores the evolving nature of leadership as Aquaporin navigates the complexities of the global water technology market.

Conclusion

Aquaporin A/S demonstrates resilience in a competitive landscape. Through strategic partnerships and innovative technology, the company is firmly positioned to tackle future challenges while working towards sustainable water solutions globally. The financial statements of Q1 2025 project a cautious yet optimistic outlook as the company readies itself for growth in the forthcoming months.