LiqTech Targets Profitability Through Standardized Filtration Growth

LiqTech International (NASDAQ:LIQT) outlined a strategy centered on expanding standardized filtration platforms, converting initial installations into follow-on sales and improving profitability through higher production volumes and operating leverage during the Lytham Partners Fall 2026 Investor Conference.

Chief Executive Officer Fei Chen said the Danish clean-technology company manufactures patented silicon carbide membranes in Denmark and incorporates them into filtration systems for demanding water-treatment and emissions applications. LiqTech operates across six business areas: aquatics, marine, water for industry, water for energy, DPF and membrane, and plastics. The company estimates its targeted addressable markets at roughly $6 billion.

LiqTech reported 2025 revenue of $16.5 million and reaffirmed 2026 revenue guidance of $20 million to $23 million, representing projected growth of 21% to 39%. Chen said the company’s June financing generated approximately $8 million in net proceeds, leaving it with $15.7 million in cash and restricted cash at the end of the second quarter and substantially debt-free.

Focus shifts toward shorter sales cycles

Chen said LiqTech is placing greater emphasis on applications where systems can be configured from standardized platforms rather than engineered from the ground up. The approach is intended to shorten sales cycles, reduce per-system costs and support margin improvement as volumes increase.

“We have learned that a strong technical result does not necessarily mean fast commercial conversion,” Chen said, noting that large industrial and energy projects can require years of testing, budgeting and capital approvals.

The company intends to pursue fewer, more qualified water-for-energy projects and increasingly work through strategic partners in that market. In contrast, aquatics and marine are being positioned as LiqTech’s primary growth engines, while industrial water applications are being selectively scaled through repeatable systems.

Chen said LiqTech’s silicon carbide membranes are designed for water streams that may be hot, oily, abrasive or chemically aggressive. The membranes offer chemical and thermal resistance, efficient cleaning and long service life, according to the company. LiqTech sells membrane components, complete filtration systems and aftermarket products and services, including replacement membranes, spare parts and system expansions.

Aquatics, marine and industrial orders provide commercial proof points

In aquatics, LiqTech’s QlariFlow platform is sold primarily through local distributors. The company sold a record 34 pool systems in 2025, Chen said. During 2026, it expanded through projects in Australia and the Netherlands and installed its first U.S. QlariFlow project in Wyoming. Aquatics revenue reached a quarterly record of $1.5 million in the second quarter.

Marine is another key focus, with LiqTech providing water-treatment systems for scrubbers, fuel ISO systems and EGR systems on commercial vessels. The company has more than 300 systems installed worldwide, including more than 170 marine scrubber installations.

Through its joint venture in Nantong, China, LiqTech has moved engineering, sourcing, assembly and service closer to Chinese shipyards while continuing to manufacture its core silicon carbide membranes in Denmark. Chen said the company received orders for eight iCER systems in the second quarter of 2026, while the first two iCER units passed factory acceptance testing. LiqTech also received an order for four EGR water-treatment systems in China.

In industrial water, Chen highlighted a U.S. steel customer that initially deployed one LiqTech system and subsequently placed a $2.1 million follow-on order for four additional systems. The company also received an order for a QureFlow QF-6 system for industrial wastewater reuse in Freeport, Texas.

“The model is simple: land, prove, expand,” Chen said, describing the company’s objective of using successful installations to drive additional deployments with existing and similar customers.

Margin improvement and profitability targets

Systems and aftermarket revenue has become LiqTech’s largest reported segment, Chen said. The segment includes aquatics, marine, industrial water and energy-water systems, and is intended to build the installed base that supports future replacement, service and expansion revenue.

The company said operating expenses were approximately $9.7 million in 2024 and $9.6 million in 2025, despite revenue growth. Operating expenses were about $5.4 million in the first half of 2026. Gross margin improved from 1.7% in 2024 to 7.6% in 2025 and 8.9% in the first half of 2026.

Chen acknowledged that margins remain below the company’s desired level. LiqTech expects higher manufacturing utilization, increased system revenue, a stronger product mix and more standardized engineering to support further improvement. The company believes its existing production capacity could support revenue several times higher with limited additional capital expenditures.

Adjusted EBITDA improved to a loss of approximately $5 million in 2025 from a loss of about $6.1 million in 2024. LiqTech’s internal goals call for approximately 40% revenue growth and positive adjusted EBITDA in 2027, followed by another year of approximately 40% growth, positive EBIT and positive free cash flow in 2028. Chen emphasized that the 2027 and 2028 figures are internal goals rather than formal financial guidance.

The company plans to use capital selectively for backlog delivery, working capital and commercial opportunities tied to defined milestones. Chen said LiqTech’s objective is to grow revenue faster than its cost base while translating greater scale into improved margins and profitability.

About LiqTech International (NASDAQ:LIQT)

LiqTech International, Inc is a clean-technology company that develops and manufactures advanced filtration products based primarily on silicon carbide ceramic membranes. Its technologies are designed to provide high-performance separation and purification for demanding liquid and gas treatment applications.

The company’s products and systems serve industrial and municipal wastewater treatment, water reuse, aquaculture, oily-water separation, and other specialized water-filtration markets.