LiqTech International Reports 18.9% Revenue Decline for Fiscal Year 2024

LiqTech International, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $14.6 million, down 18.9% from $18.0 million in 2023. The decrease was attributed primarily to reduced deliveries of liquid filtration systems, plastics products, and aftermarket sales, which were partially offset by increased sales of diesel particulate filters (DPFs). The company's gross profit also fell sharply to $250,905, representing a gross profit margin of just 1.7%, compared to $2.8 million and a margin of 15.4% in the previous year. This decline in profitability was largely due to lower overall activity levels and an unfavorable sales mix, particularly in high-margin products.

In terms of operational changes, LiqTech underwent several strategic developments during the year, including the appointment of Phillip Massie Price as Interim Chief Financial Officer following the resignation of Simon Stadil. The company also entered into multiple distribution agreements for marine water treatment solutions across various markets, including the U.S., China, and Greece. Additionally, LiqTech established a joint venture in Nantong, China, aimed at expanding its presence in the marine water treatment market.

The company’s operational metrics reflected a challenging environment, with total operating expenses decreasing to $9.7 million from $10.6 million in 2023. Selling expenses saw a notable reduction of 36.6%, primarily due to a decrease in executive compensation and marketing costs. However, general and administrative expenses increased by 16.6% due to new hires and higher legal and insurance costs. LiqTech's employee headcount stood at 105 as of December 31, 2024, with a focus on enhancing its operational capabilities.

Looking ahead, LiqTech's management expressed cautious optimism regarding future growth, emphasizing the importance of expanding its market presence and enhancing product offerings. The company is focused on leveraging its proprietary silicon carbide technology to penetrate new markets and improve operational efficiencies. However, management acknowledged the ongoing risks posed by geopolitical tensions, supply chain disruptions, and fluctuating market conditions, which could impact financial performance in the near term. The company plans to continue investing in research and development to drive innovation and maintain competitive advantages in the filtration industry.