LiqTech International (LIQT -2.03%) reported second-quarter 2025 results on Aug. 13, 2025, delivering almost $5 million in revenue. Revenue was up quarter over quarter, and management set a full-year revenue outlook of $19 million to $20 million, representing a 30%-37% year-over-year increase from 2024. Management highlighted sequential growth in ceramics and plastics, strong swimming pool systems performance, and operational progress with key strategic partners, while guiding toward EBITDA-positive operations (non-GAAP) in the fourth quarter.

Sequential growth boosts LiqTech International ceramics and plastics revenue

Combined ceramics and plastics revenues rose 31% sequentially, with plastics generating $1.2 million (up from $1 million in the first quarter of 2025), offsetting a year-over-year ceramics decline compared to the second quarter of 2024, caused by fewer large orders than the prior year, and supporting more stable revenue streams.

"Again, these two areas combined, ceramics and plastics, were up 31% sequentially. One final area that showed nice progress was our aftermarket sales within the marine industry, driven by several membrane housing replacements. This growth was boosted by the China GOV after-sales framework agreement we discussed in detail last quarter."
-- Fei Chen, CEO

This diversification in revenue sources bolsters resilience against fluctuations in any single end market.

LiqTech International secures major industrial and pilot orders

LiqTech International landed a significant project with NorthStar BlueScope Steel and delivered a new pilot system to Razorback Direct for expansion into a yet-unnamed industrial market segment, marking a material step forward in penetrating new end markets. Revenue recognition for large projects has shifted to a percentage-of-completion basis, aiming for reduced earnings volatility.

"One item I would like to mention is the order we received from NorthStar BlueScope Steel, a major US-based steel producer. The system, designed to resolve recurring filtration process abscesses caused by the high oil content and the variability in wastewater quality, is scheduled to be commissioned and begin operation in the second half of the calendar year 2025. That said, based on consultation with our accounting firm, we have mutually agreed moving forward that when orders exceed a certain threshold, we will record revenue on a percentage of completion basis. For the second quarter, we recognized about $200,000 for this project, with another $300,000 or so to be recognized during the second half of the year."
-- Fei Chen, CEO

This approach to revenue recognition is intended to smooth financial results and reflects the company's growing presence in large-scale industrial water applications.

Full-year revenue guidance signals highest results since 2021

Management outlined its 2025 outlook with revenue guidance of $19 million to $20 million, with third-quarter revenue expected between $3.8 million and $4.2 million (a 52%-68% year-over-year increase).

"We are also introducing full-year expectations with 2025 revenue to be between $19 million and $20 million, which would equate to a 30% to 37% increase from full-year 2024."
-- David Kowalczyk, CFO and COO

The outlook for the highest post-pandemic annual revenue in 2025, combined with strong sequential sales momentum, raises the probability of near-term EBITDA profitability.

Looking ahead

Management guided for 2025 revenue in the $19 million to $20 million range (up 30%-37% year over year), based on full-year guidance, with third quarter revenue projected at $3.8 million to $4.2 million and the fourth quarter expected to be EBITDA positive, assuming a quarterly run rate of $6.2 million to $6.6 million in the fourth quarter. The company anticipates commercial rollout at a major U.S. energy client and expects imminent participation in a third-quarter marine water treatment bidding process. No additional forward-looking quantitative guidance was provided regarding margins or cash flow beyond the EBITDA comment.