Birchtech Reports Second Quarter 2025 Financial Results

Executive Summary

• Birchtech Corp. reported second-quarter 2025 revenues of $3.3 million, a slight decrease from $3.4 million in the prior year period, driven by customer outages and product mix changes.
• The company announced revised financial guidance, projecting air business revenues of at least $18 million for 2025 and an annual revenue run-rate of at least $40 million by the end of 2026, citing timing shifts due to legal proceedings and contract expirations.
• Management highlighted a $57 million patent infringement verdict in their favor, with counsel requesting $160 million in damages, enhancements, interest, and legal fees, while also noting the appointment of new leadership for the water treatment division.

Key Details

• Q2 2025 Financial Performance:
  • Revenues: $3.3 million (vs. $3.4 million in Q2 2024).
  • Gross Profit: $1.0 million (29.8% margin vs. 31.6% in Q2 2024).
  • Net Loss: $1.5 million ($0.02 per share), improved from a $6.2 million loss ($0.07 per share) in Q2 2024.
  • Adjusted EBITDA: ($1.0 million), improved from ($3.3 million) in Q2 2024.
  • Cash Position: $1.5 million as of June 30, 2025 (down from $3.5 million at Dec 31, 2024); no debt.
• Operational Expenses:
  • SG&A: $1.7 million (down from $4.6 million in Q2 2024).
  • R&D: $0.5 million (vs. $0 in Q2 2024), related to water treatment product development.
• Guidance & Outlook:
  • 2025 Air Business Revenue: At least $18 million (excludes water treatment and IP judgments).
  • 2026 Air Business Run-Rate: At least $40 million annually.
  • Water Business: Expected to begin generating revenue in the second half of 2025 via services and product sales.
• Legal & Intellectual Property:
  • Pending final judgment on a $57 million patent infringement verdict.
  • Counsel requested $160 million total, inclusive of enhancements, interest, and legal fees.
  • Post-trial outreach ongoing to offer non-licensed adopters license or supply agreements.
• Regulatory Environment:
  • U.S. EPA and President Trump Proclamation granted a two-year exemption to certain coal-fired power plants from updated Mercury Air Toxics Standards (MATS), allowing 47 major plant owners and 60+ plants to remain online through at least 2029.
• Leadership Appointments:
  • Dr. David Mazyck appointed Executive Director of Innovation and Commercialization (oversees water treatment tech development and commercialization).
  • Christopher Rinaldi appointed Director of Strategic Operations (30+ years experience in water treatment).
• Conference Call Details:
  • Date: August 14, 2025, at 5:00 p.m. Eastern Time.
  • Dial-in: 1-877-407-0792 (US/Canada), 1-201-689-8263 (International).
  • Conference ID: 13755018.

Notable Quotes

• "In the second quarter of 2025, we achieved consistent revenues in our core air business while positioning our water business for growth with new leadership and expected upcoming initial sales in the second half of this year,” said Richard MacPherson, CEO of Birchtech.
• “Following the $160 million our counsel requested following the unanimous jury verdict from 2024, which is inclusive of enhancements, interest and legal fees, we believe our air business is positioned for strong, sustained growth.”
• “In our new water treatment business, we reached a pivotal stage in our technology development and bolstered our leadership to strengthen future prospects and secure a strong market position in the water sector.”