Arq, Inc. (ARQ) 2025 Q4 法說會逐字稿

Greetings and welcome to the Arq fourth quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Arq 2025 年第四季財報電話會議。（操作說明）提醒各位，本次會議正在錄音。

I would now like to turn the call over to your host Anthony Nathan, Head of Investor Relations. Thank you, sir. Please go ahead.

現在我將把電話交給主持人、投資者關係主管安東尼·內森。謝謝您，先生。請繼續。

Thank you operator. Good morning, everyone, and thank you for joining us today for our fourth quarter and full year 2025 earnings results call. With me on the call today are Bob Rasmus, Arq's Chief Executive Officer; and Stacia Hansen, our Chief Accounting Officer.

謝謝接線生。各位早安，感謝各位今天參加我們的2025年第四季及全年收益業績電話會議。今天和我一起參加電話會議的有 Arq 的執行長 Bob Rasmus 和我們的首席會計長 Stacia Hansen。

This conference call is being webcasted live within the investor section of our website, and a downloadable version of today's presentation is available there as well. A webcast replay will also be available on our site, and you can contact arcs investor relations team at investors@arq.com.

本次電話會議正在我們網站的投資者關係版塊進行網路直播，今天的簡報也可在該版塊下載。本次網路直播的回放也將在我們的網站上提供，您可以透過 investors@arq.com 聯絡 arcs 投資者關係團隊。

Let me remind you that the presentation and remarks made today include forward-looking statements as defined in Section 21E of the Securities Exchange Act. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance, and business prospects and opportunities to differ materially from those expressed in or implied by these statements.

我要提醒各位，今天所作的演講和發言包含《證券交易法》第 21E 條所定義的前瞻性陳述。這些聲明是基於我們目前掌握的信息，但存在風險和不確定性，可能導致實際的未來結果、業績、業務前景和機會與這些聲明中明示或暗示的內容存在重大差異。

These risks and uncertainties include but are not limited to those factors identified on slide 2 of today's slide presentation in our Form 10-K for the period ended December 31, 2025, and other filings with the Securities and Exchange Commission.

這些風險和不確定性包括但不限於我們在截至 2025 年 12 月 31 日的 10-K 表格以及向美國證券交易委員會提交的其他文件中列出的今天幻燈片演示文稿第 2 頁所列的因素。

Except as expressly required by the securities laws, the company undertakes no obligation to update those factors or any forward-looking statements to reflect future events, developments, or changed circumstances or for any other reason.

除證券法明確規定外，本公司不承擔因未來事件、發展或情況變化或其他任何原因而更新這些因素或任何前瞻性聲明的義務。

In addition, it is especially important to review the presentation and today's remarks in conjunction with the GAAP references in the financial statements. With that, I would like to turn the call over to Bob.

此外，尤其重要的是要結合財務報表中的 GAAP 參考資料來審查本次簡報和今天的演講。接下來，我想把電話交給鮑伯。

Thank you, Anthony, and thanks to everyone for joining us this morning. The decisions we're announcing this morning require significant detail, and we'll be providing you with that today.

謝謝你，安東尼，也謝謝今天早上所有到場的各位。我們今天早上宣布的決定需要很多細節，我們今天會向大家提供這些細節。

So let me address the most significant update directly. After extensive additional evaluation and testing, we have made the decision to pause our GAC production project to conduct a comprehensive engineering and production process optimization review of the best path forward. I am confident it is the right decision for maximizing shareholder value and the long-term success of this company. So I'm going to walk you through exactly why we've reached this conclusion.

那麼，讓我直接談談最重要的更新。經過廣泛的額外評估和測試，我們決定暫停 GAC 生產項目，以便對工程和生產流程進行全面優化審查，找到最佳前進方向。我相信這是最大化股東價值和公司長期成功的正確決定。接下來，我將詳細解釋我們得出這個結論的原因。

I'm going to spend time on this, more time than you might expect, because I think it's critical that you understand not just where we are today, but how we got here, what problems we've solved, what challenges remain, why we have made this decision, and what our path forward looks like.

我會花更多時間來討論這個問題，比你預想的要多，因為我認為至關重要的是，你不僅要了解我們今天所處的位置，還要了解我們是如何走到這一步的，我們解決了哪些問題，還存在哪些挑戰，我們為什麼做出這個決定，以及我們未來的道路是什麼樣的。

Then I'll turn to path, which continues to perform extremely well and provides a growing profitable foundation for the company.

接下來，我將轉向路徑，它持續表現出色，並為公司提供了不斷增長的獲利基礎。

But first, let's start with granular activated carbon. We are pausing GAC production to conduct a comprehensive engineering and production process assessment of the optimal path forward. We do not have a firm timeline for completion. Our goal is to complete it as quickly as possible, ideally by our next earnings call.

但首先，讓我們先從顆粒狀活性碳開始。我們將暫停 GAC 的生產，以便對工程和生產流程進行全面評估，從而找到最佳的發展路徑。我們目前還沒有確切的完工時間表。我們的目標是盡快完成這項工作，理想情況下是在下次財報電話會議之前完成。

Let me be clear about what this means practically. There will be no GAC production in 2026. Our assessment will help determine when we can expect material GAC production to resume. While disappointing, it's the reality of where we are.

讓我明確一下這在實際操作中意味著什麼。2026年將不會生產廣汽片。我們的評估將有助於確定何時可以恢復顆粒活性碳的生產。雖然令人失望，但這就是我們所處的現實。

Let me walk you through the specific technical challenges we have faced thus far. First, the original design flaws. Our former engineering firm, with whom we remain in active litigation created fundamental design flaws in the plan. These weren't minor issues. They include things like having structure and equipment elevations that are materially off, having around 320 feet of duct runs that allow gasses to condense.

讓我帶您了解我們迄今為止所遇到的具體技術挑戰。首先，是最初的設計缺陷。我們先前的工程公司（我們目前仍與其進行訴訟）在設計方案中造成了根本性的設計缺陷。這些都不是小問題。其中包括結構和設備高度嚴重偏差，以及約 320 英尺長的管道允許氣體冷凝等問題。

Material conveyance systems that are ill designed for the products being handled, inadequate control systems for utility supplies, and so on. They were systemic problems that have manifested in different ways as we've attempted to commission and operate the facility, and they remain the root cause of initial cost overruns and timing delays versus the original budget.

物料輸送系統設計不合理，無法滿足所處理產品的需求；公用設施供應控制系統不完善等等。這些都是系統性問題，在我們嘗試調試和運營該設施的過程中，這些問題以不同的方式表現出來，並且仍然是導致最初成本超支和工期延誤（與原始預算相比）的根本原因。

Second, moisture content. The Corbin Wetcake feedstock's 40% moisture content created handling difficulties that were exacerbated by the ill-designed product handling systems at commercial scale. When we received at Red River, this material becomes problematic as conveyance and handling can cause moisture to squeeze to the surface, making it sticky and inhibiting efficient production. Solving the challenges created by the variable moisture content was exacerbated by the design flaws.

其次，水分含量。Corbin 濕餅原料的含水量為 40%，造成了處理上的困難，而商業規模下設計不合理的產品處理系統又加劇了這些困難。當我們在紅河收到這種材料時，由於運輸和搬運會導致水分擠到表面，使其變得粘稠，從而阻礙高效生產，因此這種材料就成了問題。解決水分含量變化帶來的挑戰，因設計缺陷而變得更加困難。

Third, design inefficiency. We identified inefficient design configurations including numerous 90-degree angles in the material conveyance processes that exacerbated our operational challenges.

第三，設計效率低。我們發現物料輸送過程中存在許多 90 度角等低效率設計配置，這加劇了我們的營運挑戰。

Fourth, and most recently, the off-gas system design. The original design created an insufficiently heated off gas duct of over 300 feet. When gasses cooled in this ductwork, they condensed and solidified, requiring frequent shutdowns for cleaning and maintenance before we could restart production. This created a cycle of constant interruption.

第四，也是最近的，廢氣系統設計。原設計造成了一條超過 300 英尺長的廢氣管道加熱不足。當氣體在管道系統中冷卻時，它們會凝結並凝固，因此我們需要頻繁停機進行清潔和維護，才能重新開始生產。這就造成了不斷中斷的惡性循環。

Fifth, we solved the off-gas system design via the installation of a thermal oxidizer. At the time we had thought this was a complete solution, but with hindsight it turned out to be just a partial solution.

第五，我們透過安裝熱氧化器解決了廢氣系統設計問題。當時我們認為這是一個完整的解決方案，但事後看來，它只是一個部分解決方案。

When we conducted testing in late December to determine the modifications necessary to the existing thermal oxidizer in order to reach our target of 25 million pounds production, it became apparent that the amount of gasses, air and natural gas, needed to process the off gas and destroy the tar was grossly underestimated by the original engineering design.

我們在 12 月下旬進行了測試，以確定需要對現有的熱氧化器進行哪些修改才能達到 2500 萬磅的產量目標。測試結果表明，最初的工程設計嚴重低估了處理廢氣和破壞焦油所需的氣體（空氣和天然氣）的數量。

The original engineering did not appropriately consider or conduct the proper analysis to identify the car composition and excess amount of off gas. This excess volume of resultant off gas could not be handled by the existing plant afterburner system as originally designed by our former engineering firm.

最初的工程設計沒有適當考慮或進行適當的分析來確定汽車的成分和過量的廢氣。由此產生的過量廢氣無法透過我們前工程公司最初設計的現有工廠後燃器系統進行處理。

No amount of modification to the thermal oxidizer would overcome the initial off gas system design efficiencies.

對熱氧化器進行任何改進都無法克服初始廢氣系統設計效率的限制。

Now I want to talk about the problems we have solved. We haven't been sitting idle. We've been methodically working to find solutions to these issues. Most recently, we addressed the moisture and design issues by making the strategic decision to transition to purchase domestic bituminous coal feedstock. This is proven technology used successfully throughout the industry.

現在我想談談我們已經解決的問題。我們並沒有閒著。我們一直有條不紊地尋找解決這些問題的方法。最近，我們透過策略性地決定改用購買國內煙煤原料，解決了水分和設計問題。這是一項經過驗證的技術，已在整個行業中成功應用。

Using bituminous proven performance coal feedstock eliminates the moisture related production constraint, reduces freight costs significantly. Remember, we were essentially shipping water with the carbon feedstock and improves yield through drier input materials. We addressed the off gas system by bringing in a thermal oxidizer to properly handle the off gasses when char granules are heated during carbonization.

使用性能優良的煙煤原料可以消除與水分相關的生產限制，並大幅降低運輸成本。請記住，我們實際上是將水與碳原料一起運輸，並透過更乾燥的輸入材料來提高產量。我們透過引入熱氧化器來解決廢氣系統問題，以便在炭化過程中加熱炭顆粒時正確處理廢氣。

Meanwhile, our testing confirms that GAC product quality with purchased bituminous pole remains exceptionally high, often exceeding industry benchmarks as a direct result of our patent pending technology and technical know-how. And it is worth adding that customers don't view the feedstock source as a material factor in their purchasing decisions, so we remain entirely confident that it will not impact customer uptake.

同時，我們的測試證實，採用採購的瀝青桿的 GAC 產品品質仍然非常高，經常超過行業基準，這直接得益於我們正在申請專利的技術和技術訣竅。值得一提的是，顧客並不把原料來源視為購買決策的重要因素，因此我們完全有信心，這不會影響顧客的接受度。

These weren't minor fixes. Each represented significant technical challenges that we methodically and systematically addressed.

這些並非小修小補。每一項都代表著重大的技術挑戰，而我們則有條不紊、有系統地一一克服了這些挑戰。

This brings me to why we're pausing now after addressing these other issues as we prepared to execute the purchase coal conversion, we took what I call a proactive belt and suspenders approach. We brought in an independent outside testing firm to analyze our entire off gas system. And determine precisely what modifications would be necessary to scale from our current approximately 15 million pound capacity to our target production levels of 25 million pounds.

這就引出了我們為什麼要在解決其他問題後暫停一下的原因。在準備執行煤炭採購轉換時，我們採取了我所謂的積極主動的雙重保障措施。我們聘請了一家獨立的外部檢測公司來分析我們整個廢氣排放系統。並確定需要進行哪些具體修改，才能將我們目前的約 1500 萬磅產能擴大到我們 2500 萬磅的目標產量水平。

The testing was conducted in December. We received results in late January, and those results revealed a constraint that hadn't previously been identified.

測試於12月進行。我們在一月底收到了結果，這些結果揭示了一個先前未曾發現的限制因素。

The thermal oxidizer we brought in on short notice was only capable of handling the equivalent of 15 million pounds of annual production. The results of the December off gas testing revealed that the existing plant off gas system could not handle the excess volume of resultant gasses from properly burning off all the tires and volatiles at the thermal oxidizer at production levels of 25 million pounds or higher.

我們臨時引進的熱氧化器只能處理相當於每年 1500 萬磅的產量。12 月的廢氣測試結果表明，現有工廠的廢氣系統無法處理在熱氧化器中，當產量達到 2,500 萬磅或更高時，由於輪胎和揮發物無法充分燃燒而產生的過量氣體。

Now here's the economic reality that makes this a critical issue. Producing 15 million pounds of granular activated carbon does not provide sufficient returns on a stand-alone basis to make it economically attractive.

現在，讓我們來看看使這個問題變得至關重要的經濟現實。單就生產 1500 萬磅顆粒活性碳而言，其收益不足以使其在經濟上具有吸引力。

The margins on the first pounds are significantly lower than the margins on subsequent pounds as we achieve production scale.

隨著生產規模的擴大，首批產品的利潤率遠低於後續產品的利潤率。

The business case for GAC was always built around achieving 25 million pounds or more of production, and the return profile was predicated on the average margin across that higher volume. So it follows that a materially lower volume would not have as attractive a margin.

GAC 的商業計劃一直圍繞著實現 2500 萬磅或以上的產量而製定，其回報取決於更高產量下的平均利潤率。因此，在銷量大幅下降的情況下，利潤率也不會那麼吸引人。

At present and due to the results of the off-gas testing previously described, we don't have sufficient clarity on what it would cost to get from 15 million to 25 million pounds or whether it even makes sense to stop at 25 million when 50 million pounds might be more economically attractive given the benefits of scaling fixed costs. We have variables dependent upon variables. We have just received the final test results 10 days ago. We need to refine what the scaling will cost, what modifications will be required, and what the return profile looks like at different production levels.

目前，由於先前描述的廢氣測試結果，我們尚不清楚從 1500 萬英鎊到 2500 萬英鎊的成本是多少，或者考慮到擴大固定成本的好處，5000 萬英鎊可能更具經濟吸引力，那麼止步於 2500 萬英鎊是否有意義。我們有一些變數依賴其他變數。我們十天前才收到最終檢測結果。我們需要明確擴大規模的成本、需要進行的修改以及不同生產水準下的回報情況。

This is why we're pausing, not because we can't solve these problems. We remain committed to GAC, but we must first clarify our spending plans and operating strategy. We've reached a point where it would be imprudent to continue deploying capital without further refinement and a complete understanding of the path to overcome the current production challenges and reach economic production.

這就是我們暫停的原因，並不是因為我們無法解決這些問題。我們仍然致力於GAC，但首先我們必須明確我們的支出計劃和營運策略。我們已經到了這樣一個階段：在沒有進一步完善和完全了解克服當前生產挑戰和實現經濟生產的路徑之前，繼續投入資金是不明智的。

We're not going to spend material capital on a front-end conversion to purchase bituminous coal until we have further refined the off gas related variables, including cost, timing, and spending cadence to ensure we have the risks sufficiently mitigated.

我們不會在前期改造中投入大量資金來購買煙煤，直到我們進一步完善與廢氣相關的變量，包括成本、時間和支出節奏，以確保風險得到充分緩解。

Our job as stewards of your capital is to make disciplined decisions based on complete information, not to continue down a path just because we've already invested in it. That's the sunk cost fallacy, and it's a trap we refuse to fall into the engineering assessment we're conducting will answer several critical questions.

作為您資金的管理者，我們的職責是根據完整的資訊做出審慎的決策，而不是因為我們已經投資了就繼續走這條路。這就是沉沒成本謬誤，我們絕對不會落入這個陷阱。我們正在進行的工程評估將回答幾個關鍵問題。

What modifications are required of the thermal oxidizer and downstream off gas treatment to achieve 25 million pounds of production? What would it cost to make those modifications? What is the timing required to make the necessary modification? Does it make more sense to target 25 million pounds or to jump directly to 50 million pounds? What are the return profiles at different production levels?

要達到 2,500 萬磅的年產量，需要對熱氧化器和下游廢氣處理進行哪些改造？進行這些修改需要多少費用？進行必要修改需要多長時間？是先設定 2500 萬英鎊的目標更合理，還是直接跳到 5000 萬英鎊更合理？不同生產水準下的收益情況如何？

With all that being said, I want to address the question of market fundamentals because I know some of you are wondering whether this pause reflects concerns about the GAC market opportunity itself. The answer is an emphatic no. GAC market fundamentals remains very strong. Pricing continues at attractive levels. Supply constraints persist, and despite the delays, our customer relationships remain solid.

綜上所述，我想談談市場基本面的問題，因為我知道你們中的一些人想知道，這種暫停是否反映出對廣汽市場本身機會的擔憂。答案是斬釘截鐵的「不」。廣汽市場基本面依然非常強勁。價格繼續保持在極具吸引力的水平。供應限制依然存在，儘管出現延誤，但我們與客戶的關係仍然穩固。

A testament to how tight the market is. We're seeing persistent supply shortages against steady annual growth from existing demand drivers, not even accounting for PAT related requirements that could add significant additional demand. The opportunity is real. We remain confident in the tremendous opportunity associated with granular activated carbon development.

這足以證明市場競爭有多激烈。我們看到，在現有需求驅動因素的穩定年度成長下，供應持續短缺，而這甚至還沒有考慮到 PAT 相關要求可能會增加大量額外需求。機會確實存在。我們仍然對顆粒活性碳開發帶來的巨大機會充滿信心。

We're also taking a $45 million write down on our Corbin assets this quarter. This is an accounting measure that reflects our decision to idle Corbin operations, given our decision to switch our GAC feedstock to purchase bituminous gold.

本季我們也將對 Corbin 資產提列 4,500 萬美元的減損準備。這是一項會計措施，反映了我們決定暫停 Corbin 業務運營的決定，因為我們決定將 GAC 原料改為購買菸金。

The write down is a non-cash charge. It doesn't affect our near-term cash flow or our ability to fund operations and growth initiatives. What it does reflect is our commitment to being conservative in our accounting and transparent about the challenges we're facing.

這項減記屬於非現金支出。這不會影響我們近期的現金流，也不會影響我們為營運和成長計畫提供資金的能力。這確實反映了我們致力於在會計方面保持保守，並在我們面臨的挑戰方面保持透明。

We're continuing to advance alternative applications for Corbin Wetgate, particularly asphalt and motion blending, where we progress to the next testing phase with encouraging results, but we don't expect that these applications will generate material cash flow in 2026.

我們正在繼續推進 Corbin Wetgate 的替代應用，特別是瀝青和動態混合，我們已進入下一測試階段並取得了令人鼓舞的結果，但我們預計這些應用在 2026 年不會產生實質性的現金流。

Given the repeated challenges we face, we have been making significant changes to upgrade our leadership team.

鑑於我們面臨的許多挑戰，我們一直在進行重大改革，以提升我們的領導團隊。

We've appointed Eric Robinson as Senior Vice President of Operations. Eric is an industry veteran with direct experience optimizing activated carbon facilities, including our Red River plant. In 2012, when the Red River plant was struggling with post-construction production issues, Eric's work delivered 20% yield improvements, doubled production, and materially improved plant availability.

我們已任命埃里克·羅賓遜為營運高級副總裁。Eric 是一位業內資深人士，擁有優化活性碳設施的直接經驗，包括我們的紅河工廠。2012 年，當紅河工廠在建造後生產方面遇到困難時，艾瑞克的工作使產量提高了 20%，產量翻了一番，並顯著提高了工廠的可用性。

Eric's expertise specifically addresses the types of plant ramp up challenges we've encountered. His track record at this exact facility gives us confidence that he understands both the opportunities and the potential pitfalls.

Eric 的專業知識專門針對我們遇到的各種工廠產能提升挑戰。他在該機構的過往業績讓我們相信，他既了解機遇，也了解潛在的風險。

We've also hired an on-site process engineer with technical oversight to augment our Red River team reporting directly to Eric. The strengthened technical capability ensures we have the right expertise at the point of operation.

我們還聘請了一名現場製程工程師，負責技術監督，以加強我們的紅河團隊，直接向艾瑞克報告工作。技術能力的提升確保我們在作業現場擁有合適的專業知識。

With Eric's appointment and Corbin idling making us a single plant business, we no longer require a COO role. I want to thank Deke Williamson for his dedication since joining Arq. Deke played a pivotal role in enhancing our PA operations to their current profitable state.

隨著 Eric 的任命和 Corbin 的閒置，我們變成了一家單廠企業，因此我們不再需要營運長 (COO) 一職。我要感謝 Deke Williamson 自加入 Arq 以來所展現出的奉獻精神。Deke 在提升我們 PA 業務至目前盈利狀態方面發揮了關鍵作用。

On the financial leadership front, Jay Voncannon no longer serves as Arq's Chief Financial Officer. We have been interviewing CFO candidates with the intention to have an announcement shortly.

在財務領導階層方面，Jay Voncannon 已不再擔任 Arq 的財務長。我們一直在面試財務長候選人，打算盡快發佈公告。

Anthony Nathan will become VP Finance in addition to his current Investor Relations role. Anthony will also be responsible for strategic planning, financial analysis, and budgeting. Anthony's eight-year tenure with Arq, including oversight of all equity and credit financings in the Arq Limited ADS combination, now Arq Inc. positions him well for this expanded role.

安東尼·內森除了繼續擔任投資者關係副總裁外，還將兼任財務副總裁。安東尼還將負責策略規劃、財務分析和預算編制。Anthony 在 Arq 工作了八年，負責 Arq Limited ADS 合併（現為 Arq Inc.）的所有股權和信貸融資，這使他能夠勝任這一擴展的角色。

Stacia Hansen continues as Chief Accounting Officer responsible for accounting tax and financial reporting and will also serve as the company's principal financial officer.

Stacia Hansen 繼續擔任財務長，負責會計、稅務和財務報告，並將擔任公司財務長。

Last November, we also hired Jeanette McQueeney as Senior Vice President and Head of Sales. Jeanette has had a long and successful sales career with significant chemical and activated carbon sales experience. Jeanette is both a proven producer and a leader. In addition to her leadership abilities, Jeanette has brought the strategic orientation skills we were seeking.

去年 11 月，我們還聘請了 Jeanette McQueeney 擔任資深副總裁兼銷售主管。珍妮特擁有長期且成功的銷售生涯，在化學品和活性碳銷售方面經驗豐富。珍妮特既是一位經驗豐富的製片人，也是一位優秀的領導者。除了領導能力之外，珍妮特還具備我們所尋求的策略導向能力。

All of the changes just mentioned stem from our goal to upgrade the talent and performance level of our executive leadership team and company.

上述所有變革都源自於我們提升公司主管團隊和公司人才及績效水準的目標。

Now let me turn to our PAC business. I've spent significant time on GAC because that's what's changing and that's what requires explanation, but it's important to recognize what hasn't changed, which is that we have a profitable, growing PAC business that provides the foundation for this company.

現在讓我來談談我們的政治行動委員會（PAC）事務。我花了很多時間研究 GAC，因為 GAC 正在發生變化，需要解釋，但重要的是要認識到哪些方面沒有改變，那就是我們擁有盈利且不斷增長的 PAC 業務，這為公司奠定了基礎。

Our PAC business delivered exceptional performance in 2025-year revenues reached approximately $120 million up 10% year over year, while reported adjusted EBITDA was $13 million representing a 26% improvement over 2024. But that $13 million figure significantly understates the true performance of our operations, and I want to be explicit about this.

我們的 PAC 業務在 2025 年取得了卓越的業績，營收達到約 1.2 億美元，年增 10%；而報告的調整後 EBITDA 為 1,300 萬美元，比 2024 年成長了 26%。但1300萬美元這個數字嚴重低估了我們營運的真實業績，我想明確地說明這一點。

GAC startup costs, unplanned downtime, inefficient furnace utilization, and operational challenges cost us several million dollars in 2025. Let me break that down. Taking Corbin offline alone saves us several million dollars annually in operating costs.

2025 年，GAC 的啟動成本、計劃外停機時間、爐子利用率低下以及營運挑戰給我們造成了數百萬美元的損失。讓我來詳細解釋一下。僅將 Corbin 下線一項，每年就能為我們節省數百萬美元的營運成本。

We incurred significant expenses from GAC startup associated with plugging issues and constant maintenance shutdowns. We produced non-sellable GAC product that consumed furnace hours without generating revenue and which added costs. We had operational inefficiencies and distractions from trying to commission a troubled facility.

GAC啟動時由於堵塞問題和頻繁的維護停機，我們產生了重大費用。我們生產了無法銷售的 GAC 產品，該產品佔用了爐子運行時間，但沒有產生收入，反而增加了成本。我們在調試一個問題重重的設施時，遇到了營運效率低下和各種幹擾。

Even with the impact of certain of these GAC headwinds, our 2025 adjusted EBITDA was $13.2 million which we believe highlights the true earning power of our PAC business.

即使受到 GAC 某些不利因素的影響，我們 2025 年的調整後 EBITDA 仍達到 1320 萬美元，我們認為這突顯了我們 PAC 業務的真正盈利能力。

This context is critical because it explains our business model. We effectively operate by selling furnace hours. We have a finite number of hours we can run our furnaces each year, and we must make optimal decisions about how to allocate those hours.

這一背景至關重要，因為它解釋了我們的商業模式。我們實際上是透過出售爐灶使用時間來運作的。我們每年可以運行暖氣爐的時間是有限的，我們必須做出最佳決策來分配這些時間。

For the past year we've been allocating furnace hours to GAC production that generated losses instead of profit. By pausing GAC, we're redirecting those furnace hours back to our proven profitable PAC business. This isn't just about avoiding future GAC losses. It's about actively improving our near-term financial performance and optimizing our long-term potential.

過去一年，我們一直將爐工時分配給顆粒活性碳（GAC）生產，結果導致虧損而不是獲利。透過暫停 GAC 業務，我們將把這些爐子運行時間重新投入到我們已證明盈利的 PAC 業務中。這不僅是為了避免未來GAC的損失。其目的在於積極改善我們近期的財務業績，並優化我們的長期潛力。

We have over 15 years of experience operating this path business. This is not a novel operation or an experimental process. It is a proven profitable business that we execute consistently with Eric's activated carbon and experience at Red River. We believe we can further enhance this business.

我們在經營這條道路業務方面擁有超過15年的經驗。這並非一項全新的操作或實驗性流程。這是一個經過驗證的盈利業務，我們憑藉 Eric 在 Red River 的活性碳技術和經驗，一直穩步推進這項業務。我們相信我們能夠進一步提升這項業務。

This performance reflects our strategic transformation, sustained volume growth, enhanced product mix, and continued pricing strength as we capture higher value, higher margin applications beyond traditional power markets. Our shift towards specialty products and engineered materials commanding premium pricing has fundamentally improved our business profile.

這項業績反映了我們的策略轉型、持續的銷售成長、增強的產品組合以及持續的價格優勢，因為我們正在傳統電力市場之外，開拓更高價值、更高利潤的應用領域。我們向高端定價的特殊產品和工程材料轉型，從根本上改善了我們的業務狀況。

The pack market shows robust performance with excellent visibility. We have 96% contract visibility on 2026 targeted volumes, 75% visibility through 2027, and 43% through 2028. Our three-year customer retention rate of 86% demonstrates customer stability and loyalty. This is a stable, profitable business with long-term customer relationships and clear visibility into future demand.

包裝市場表現強勁，市場前景十分樂觀。我們對 2026 年的目標銷售量有 96% 的合約可見性，對 2027 年的目標銷售量有 75% 的可見性，對 2028 年的目標銷售量有 43% 的可見度。我們三年客戶留存率高達 86%，證明了客戶的穩定性和忠誠度。這是一個穩定、盈利的業務，擁有長期的客戶關係，並且對未來的需求有清晰的預期。

Now let me turn to guidance which we're providing in detail for the first time. I recognize the irony of introducing guidance at the same time we're announcing a major project pause. I also recognize that some of you may be skeptical given our track record with GAC over the past year, but here's the critical distinction. We're providing guidance on a business we've operated successfully for over 15 years, not on a novel facility we're still trying to commission.

現在，讓我來詳細介紹一下我們首次提供的指導意見。我意識到，在我們宣布暫停一個重大專案的同時推出指導意見，這本身就很諷刺。我也意識到，鑑於我們過去一年與 GAC 的合作記錄，你們中的一些人可能會對此表示懷疑，但關鍵的區別在於此。我們提供指導的是我們已經成功經營超過 15 年的業務，而不是我們仍在努力調試的新設施。

This is a proven operation with clear visibility into volumes, pricing, and costs. None of the factors contributing to our GAC challenges over the past year or so apply to our PAC business. With that in mind, we believe you, our investors, need a frame of reference to value this company. We're providing this detail so you can make an informed decision.

這是一個成熟的營運模式，銷售、價格和成本都清晰可見。過去一年左右導致我們 GAC 業務面臨挑戰的任何因素，都不適用於我們的 PAC 業務。有鑑於此，我們認為各位投資人需要一個參考架構來評估這家公司的價值。我們提供這些細節訊息，以便您做出明智的決定。

With that said, for full year 2026, we anticipate revenue in the range of $120 million to $125 million and adjusted EBITDA of $17 million to $20 million. These projections assume no GAC contribution and are based entirely on our path business performance.

綜上所述，我們預計 2026 年全年營收將在 1.2 億美元至 1.25 億美元之間，調整後 EBITDA 將在 1,700 萬美元至 2,000 萬美元之間。這些預測假設 GAC 沒有貢獻，並且完全基於我們的路徑業務績效。

We are also providing operational metrics that offer deeper insight into our business drivers. This includes PAC average selling price of $0.88 to $0.91 per pound compared to $0.89 in 2025 and $0.82 in 2024.

我們還提供營運指標，以便更深入地了解我們的業務驅動因素。這包括 PAC 的平均售價為每磅 0.88 美元至 0.91 美元，而 2025 年為 0.89 美元，2024 年為 0.82 美元。

Production volumes of 122 million to 125 million pounds compared to 117 million pounds in 2025 and 111 million pounds in 2024.

預計 2025 年產量為 1.22 億至 1.25 億磅，而 2024 年為 1.11 億磅。

The pricing guidance reflects continued success in market diversification and value capture. We're not just selling commodity packed products. We sell engineered products into specialty applications that command premium pricing.

定價指導反映了公司在市場多元化和價值獲取方面持續取得成功。我們不僅僅是銷售包裝好的普通商品。我們向特殊應用領域銷售工程產品，這些產品價格較高。

The volume growth demonstrates both market demand and our operational capabilities, and here's an important point pausing GAC production creates additional pack furnace capacity, enabling higher pack production than we previously anticipated.

銷售成長既反映了市場需求，也反映了我們的營運能力。此外，暫停 GAC 生產還能創造額外的包裝爐產能，從而實現比我們先前預期更高的包裝產量。

Even with GAC phase one online and at capacity, we believe it would likely not require any reduction in pack production volumes, a significant operational advantage that preserves and extends the earnings power we're demonstrating in 2026. We expect additional revenues from other chemicals and products. Will contribute approximately 13% to 15% of total revenues consistent with 2025 and previous years.

即使廣汽第一階段工程投產並達到產能，我們相信也不會需要減少包裝產量，這是一個重要的營運優勢，可以維持並延長我們在 2026 年所展現的獲利能力。我們預計其他化學品和產品也將帶來額外收入。預計貢獻總收入的 13% 至 15%，與 2025 年及以前年份一致。

Now let me turn it over to Stacia to walk through the detailed financial results and provide additional context on our Q4 performance.

現在，我把麥克風交給史塔西亞，讓她詳細講解財務業績，並為我們第四季的業績提供更多背景資訊。

Thanks, Bob. We delivered strong financial results during the fourth quarter and full year of 2025, albeit offset by the frustrating impact of GAC startup costs in the second half of the year.

謝謝你，鮑伯。儘管下半年廣汽啟動成本帶來的不利影響抵消了部分業績，但我們在 2025 年第四季和全年都取得了強勁的財務業績。

Revenue grew 10% year over year for the second year running to approximately $120 million. This was driven primarily by solid improvements in our average selling price and volumes. Gross margin for the year was 27.9%, representing a negative impact of GAC ramp up costs, offsetting the otherwise positive momentum in pack pricing and cost efficiencies.

營收連續第二年年增 10%，達到約 1.2 億美元。這主要得益於我們平均售價和銷售量的顯著提升。本年度毛利率為 27.9%，受 GAC 產能提升成本的負面影響，抵銷了包裝定價和成本效益的正面動能。

We delivered $13.2 million in adjusted EBITDA in 2025, a very impressive 26% improvement compared to 2024. This underlines the ongoing and sustained improvements we have made to our PAC business, which built on the progress of 2024 and which we believe will continue again through 2026.

我們預計 2025 年調整後 EBITDA 將達到 1,320 萬美元，與 2024 年相比，增幅高達 26%，令人矚目。這凸顯了我們在 PAC 業務方面持續不斷的改進，這些改進建立在 2024 年的進展之上，我們相信這些進展將持續到 2026 年。

Now turning to our discussion of the fourth quarter, revenue totaled $29.4 million up around 8% on the same period, driven in part by a 7% quarter-over-quarter growth in our average selling price and positive changes in our product mix.

現在讓我們來討論一下第四季度，營收總計 2,940 萬美元，比同期成長約 8%，部分原因是平均售價較上季成長 7% 以及產品組合的正面變化。

Our gross margin for the quarter was 13.6% compared to 36% reported in the prior year period. Again, a reflection of the painful impact of our GAC ramp up costs. It is also worth noting that the lower level of take or pay contracts collected in Q4 2025 versus Q4 2024 underscores the improved demand for our products.

本季毛利率為 13.6%，去年同期為 36%。這再次反映了我們 GAC 產能擴張成本帶來的沉重打擊。值得注意的是，2025 年第四季收取的照付不議合約金額低於 2024 年第四季，這凸顯了我們產品需求的改善。

Net loss was $50 million in the fourth quarter of 2025 compared to a net loss of $1.3 million in Q4 of 2024. We generated positive adjusted EBITDA of approximately $0.3 million in the fourth quarter of 2025 compared to the adjusted EBITDA of $3.8 million in the same period during 2024.

2025 年第四季淨虧損 5,000 萬美元，而 2024 年第四季淨虧損 130 萬美元。2025 年第四季度，我們實現了約 30 萬美元的正調整 EBITDA，而 2024 年同期調整 EBITDA 為 380 萬美元。

Both these changes versus the prior year were primarily driven by the costs associated with the ramp up of our GAC production at Red River, which totaled several million dollars in fiscal year 2025. Selling general and administrative expenses totaled $6 million in Q4 of 2025, which is flat versus the prior year period.

與前一年相比，這兩項變化主要都是由於我們在紅河提高 GAC 產量所帶來的成本增加所致，2025 財年總計達數百萬美元。2025 年第四季銷售一般及行政費用總計 600 萬美元，與去年同期持平。

Overall, and on an annualized basis, our performance demonstrates our ability to operate our PAC business in a way that contributes positively to our economic position while further enabling us to pursue and execute on alternative growth opportunities within our business.

總體而言，按年計算，我們的業績表明我們有能力以積極的方式運營我們的政治行動委員會業務，從而提升我們的經濟地位，同時進一步使我們能夠在業務範圍內尋求和執行其他增長機會。

We remain extremely confident that our PAC business will continue to be cash generative in fiscal year 2026 and beyond. The strong annual performance of our PAC business in 2025 demonstrates its potential to secure a foundation on which we can continue to build.

我們仍然非常有信心，我們的政治行動委員會業務在 2026 財年及以後將繼續產生現金流。2025 年，我們的 PAC 業務表現出色，這表明它有潛力為我們繼續發展奠定基礎。

Turning to the balance sheet, we ended the year with a total cash of $15 million of which approximately $6.6 million is unrestricted. The change versus last year was driven by CapEx spend to complete the GAC line. Total debt inclusive of our financing leases at December 30, 2025, totaled $28.5 million compared to $24.8 million in 2024. With the increase driven by higher utilization of our midcap revolving credit facility.

從資產負債表來看，我們年底的現金總額為 1,500 萬美元，其中約 660 萬美元為非限制性現金。與去年相比，變化的主要原因是資本支出用於完成廣汽生產線。截至 2025 年 12 月 30 日，包括融資租賃在內的總債務為 2,850 萬美元，而 2024 年為 2,480 萬美元。成長主要由我們中型企業循環信貸額度的更高利用率所推動。

Looking ahead, not only did the PAC business perform well in 2025, but we have sufficient visibility on the performance that we are today in a position to issue financial guidance for the first time.

展望未來，PAC 業務不僅在 2025 年表現良好，而且我們對業績有了足夠的了解，因此我們今天能夠首次發布財務指導。

As Bob mentioned, for the fiscal year 2026, we expect revenue of $120 to $125 million driven in part by strong pack volumes of between $122 and 125 million pounds at an average selling price of between $0.88 and $0.91 per pound.

正如鮑伯所提到的，在 2026 財年，我們預計營收將達到 1.2 億至 1.25 億美元，部分原因是包裝銷量強勁，達到 1.22 億至 1.25 億磅，平均售價為每磅 0.88 至 0.91 美元。

Which both pricing and volume expected to improve compared to 2025. I will note that the delta between the pack total and our overall revenue is the contribution from our other chemicals and products which we anticipate will contribute between 13% and 15% of revenue as they have in previous years.

預計與 2025 年相比，價格和銷售量都將有所改善。我要指出的是，包裝總收入與我們總收入之間的差額，是我們其他化學品和產品的貢獻，我們預計這些產品將像往年一樣貢獻 13% 到 15% 的收入。

Alongside this revenue guidance, we are also providing adjusted EBITDA guidance of between $17 million and $20 million which would represent a 30% improvement on 2025 at the bottom end of the range. And as noted by Bob, but to reiterate, these forecasts assume no contribution from our GAC. While this is a source of collective frustration, it also demonstrates how strong our PAC business is performing.

除了上述營收預期外，我們還提供了調整後的 EBITDA 預期，預計在 1700 萬美元至 2000 萬美元之間，按預期下限計算，這將比 2025 年增長 30%。正如鮑伯所指出的，但為了重申這一點，這些預測假設我們的 GAC 沒有做出任何貢獻。雖然這令人感到沮喪，但也顯示我們的政治行動委員會業務表現非常強勁。

Finally, I would add that pending completion of our optimization review, we currently anticipate CapEx for 2026 to be in the range of $8 million to $10 million. This is inclusive of around $3 million relating to our routine biannual two-week maintenance, which is scheduled at our Red River plant. With that, I will turn things back to Bob.

最後，我想補充一點，在完成優化審查之前，我們目前預計 2026 年的資本支出將在 800 萬美元至 1000 萬美元之間。這其中包括與我們每半年一次、為期兩週的例行維護相關的約 300 萬美元，該維護計劃在我們紅河工廠進行。好了，接下來就交給鮑伯了。

Thanks, Stacia. Before we turn to questions, let me leave you with the key takeaways that should frame how you think about art going forward. First, we are pausing GAC to conduct a comprehensive engineering and production process optimization review of the development of the GAC business. This is a disciplined capital allocation decision, not a reflection of lost confidence in the market opportunity.

謝謝你，斯塔西亞。在進入問答環節之前，我想先和大家分享一些關鍵要點，這些要點應該會影響你們今後對藝術的思考方式。首先，我們將暫停廣汽業務，並對廣汽業務的發展進行全面的工程和生產流程優化審查。這是審慎的資本配置決策，並非反映出對市場機會失去信心。

Second, our PAC business is profitable, growing, and provides a stable foundation. We have over a decade of operating experience, clear visibility into demand, and strong customer relationship. The $17 million to $20 million adjusted EBITDA guidance we're providing for 2026 is based on this proven business, and we're confident in our ability to deliver it.

其次，我們的政治行動委員會（PAC）業務獲利能力強，發展迅速，並提供了穩定的基礎。我們擁有十多年的營運經驗、對市場需求的清晰洞察以及牢固的客戶關係。我們給出的 2026 年調整後 EBITDA 預期為 1700 萬美元至 2000 萬美元，這是基於這項已證明有效的業務，我們有信心實現這一目標。

Third, we're taking our pain upfront rather than spreading it across multiple quarters, and we're making the difficult decisions necessary to position this company for sustainable success.

第三，我們選擇提前承受痛苦，而不是將其分散到多個季度，我們正在做出必要的艱難決定，以使公司能夠實現可持續的成功。

I'm confident that we're making the right decisions for the long-term value of this business, and as I am always keen to remind you, both I and many members of the board and management team are significant shareholders. We must not overlook that we have a profitable core operation.

我相信我們正在為這家企業的長期價值做出正確的決定，而且我一直都想提醒大家，我和董事會及管理團隊的許多成員都是重要的股東。我們不能忽視我們擁有獲利的核心業務。

We have experienced leadership in place to optimize it, and we have the discipline to make smart capital allocation decisions rather than continuing down a path that may not generate acceptable returns. We're committed to rebuilding your confidence through consistent execution. That starts with delivering on our 2026 path guidance, and it continues with providing you with a clear, well-supported plan for GAC when our assessment is complete.

我們有經驗豐富的領導團隊來優化運營，並且我們有足夠的紀律性做出明智的資本配置決策，而不是繼續走一條可能無法產生可接受回報的道路。我們致力於透過持續有效的執行來重建您的信心。首先，我們要落實 2026 年的發展路徑指導；其次，在評估完成後，我們將為您提供一個清晰、有充分依據的 GAC 計劃。

With that, I'll hand it back to our moderator to open for questions.

接下來，我將把發言權交還給主持人，由他來回答問題。

(Operator Instructions)

（操作說明）

Gerry Sweeney, Roth Capital Partners.

Gerry Sweeney，Roth Capital Partners。

Thanks for all the detail. I appreciate it. I'm just going to start off. Anything that you see today that would prevent you from not pursuing GAC I understand there's costs associated with some of these changes and opportunities, but you know our channel checks continuously indicate.

謝謝你提供的所有細節。謝謝。我先來拋磚引玉。今天你所看到的，任何會阻止你追求 GAC 的事情，我理解這些變化和機會會帶來一些成本，但你知道，我們的管道調查不斷表明這一點。

An extreme amount of demand for GAC on a go forward basis. The demand characteristics are very positive. And I think even some of the larger competitors have had issues expanding some of their facilities and they're taking a year, if not 18 months longer than anticipated, but just curious if there's anything that would stop you from pursuing GAC.

未來對廣汽的需求量極大。需求特徵非常積極。而且我認為，即使是一些規模較大的競爭對手在擴建部分設施方面也遇到了問題，他們花費的時間比預期要長一年，甚至 18 個月。我只是好奇，有沒有什麼事情會阻止你追求 GAC。

Really, the answer is an emphatic no. The market fundamentals, as you just articulated and I tried to express in the prepared remarks, the market is in an extreme undersupply versus excess demand imbalance. We expect that imbalance to persist for many years to come, and that's even before the PFAS regulations formally come into effect.

實際上，答案是斬釘截鐵的「否」。正如你剛才闡述的，也是我在準備好的發言稿中試圖表達的，市場基本面是，市場處於極度供不應求的狀態。我們預計這種不平衡狀況將在未來很多年內持續存在，甚至在 PFAS 法規正式生效之前也是如此。

A pricing continues to rise and there are barriers to entry for both greenfield entrants as well as existing players and so that we, I don't see any reasonable alternative other than we should say. Reasonable alternative, but any alternative but that we would go forward because the market fundamentals are so great and we're so well positioned to capture that once we use this pause to further refine what modifications are necessary to be able to attack the market.

價格持續上漲，無論是新進入者還是現有玩家都面臨著進入門檻，因此，我認為除了我們應該說之外，沒有其他合理的替代方案。這是一個合理的替代方案，但我們寧願選擇任何其他方案，而不是繼續前進，因為市場基本面非常良好，而且我們已經做好了充分的準備，一旦我們利用這段暫停期進一步完善必要的調整，就能抓住市場機會。

Got it. Switching gears to PAC, obviously lots of, visibility into contracts, which is great. I mean, especially for this year and even into next year, but I think in the, in your press release you did highlight or mention that, there are some regulatory, undercurrents that I think that have been ebbing and flowing, we'll say, anything, any commentary on that in terms of, any potential changes on that front that you're seeing.

知道了。轉而談到 PAC，顯然有很多關於合約的信息，這很棒。我的意思是，尤其對於今年乃至明年而言，但我認為，在您的新聞稿中，您確實強調或提到了一些監管方面的暗流，我認為這些暗流一直在起伏變化，我們不妨就此發表一些評論，談談您看到的任何潛在變化。

So two things as you mentioned, we've got excellent visibility on the PAC business with 96% of our expected volumes or targeted volumes for 2026 already contracted and 75% for 2027. So we like the way that business is positioned for future growth.

正如您所提到的，有兩件事，我們對 PAC 業務有非常好的了解，2026 年預期銷量或目標銷量的 96% 已經簽訂了合同，2027 年的預期銷量或目標銷量的 75% 也已簽訂了合同。因此，我們很欣賞該公司為未來成長所做的定位。

As it relate to potential regulatory uncertainty. There really isn't regulatory uncertainty. There was some discussion from the EPA about new regulations that have been pushed further back, but that was not a rollback of existing regulations. So therefore no effect on our existing PAC business.

因為它與潛在的監管不確定性有關。監管方面確實不存在任何不確定性。美國環保署曾討論過一些新法規的實施日期被進一步推遲，但這並不意味著現有法規的倒退。因此，這對我們現有的PAC業務沒有影響。

Understood. And then one last question, guidance $17 million to $20 million CapEx $8 million to $10 million, you back up some interest costs. I think that implies maybe some fee free cash flow for $4 million or $5 million to upwards to $8 million. Is that a, back of the envelope it does appear that you're going to be free cash flow, generating free cash flow for the year, and is there anything else that we should be thinking about on the balance sheet?

明白了。最後一個問題，指導預算為 1700 萬至 2000 萬美元資本支出，800 萬至 1000 萬美元，您需要支付一些利息成本。我認為這可能意味著會有 400 萬或 500 萬美元到 800 萬美元的免手續費現金流。粗略估計，你們今年似乎會有自由現金流，產生自由現金流。關於資產負債表，我們還有其他需要考慮的嗎？

I think your your math is good in terms of, calculations. We expect the PAC business to be a free cash flow generator. We are doing the biennial plant turnaround scheduled for April. That's going to be about $3 million. That's included in that CapEx guidance as it relates to that. So next year we would expect that maintenance cap for the PAC business to be even less and to generate even more free cash flow.

我認為你的數學能力，尤其是計算能力，很不錯。我們預計 PAC 業務將產生自由現金流。我們正在進行兩年一度的工廠檢修，計劃於四月進行。那大概要300萬美元。這部分內容已包含在相關的資本支出指引中。因此，我們預計明年 PAC 業務的維護上限會更低，並產生更多的自由現金流。

I lied. One more quick question. Obviously there's a little bit of excess capacity still at Red River, I think it's 150-ish you're running around 120, 125 if, hot summer, lots of power generation power I mean AI is driving that to some degree, but there's potential upside, you have capacity to supply the market if there's more upside demand, is that correct?

我撒謊了。最後一個問題。顯然，紅河電站還有一些過剩產能，我認為大概有 150 左右，如果是炎熱的夏季，發電量很大的話，大概在 120 到 125 之間。我的意思是，人工智慧在某種程度上推動了這種情況，但還有上升空間，如果需求增加，你們有能力供應市場，是這樣嗎？

That's absolutely correct. As I mentioned in my prepared remarks, when we bring on the 25 million pounds of GAC, we don't expect that to cannibalize pack production at all. So we definitely have room in this interim period to further expand the PAC volumes and take advantage of high net gas prices, increased electricity demand as it relates to AI and data centers, and or any weather-related increase in power demand. But again, PG&I, while it's an important component of the PAC business, is just a component of the PAC business.

完全正確。正如我在準備好的演講稿中提到的，當我們引進 2500 萬磅 GAC 時，我們預計這根本不會對包裝生產造成蠶食。因此，我們絕對有空間在這個過渡時期進一步擴大 PAC 的銷量，並利用高淨天然氣價格、與人工智慧和資料中心相關的電力需求增加，以及任何與天氣相關的電力需求增加。但話說回來，PG&I 雖然是 PAC 業務的重要組成部分，但它只是 PAC 業務的一個組成部分。

Got it. That's fair too. All right, thanks.

知道了。這也很合理。好的，謝謝。

Thank you, Gerry.

謝謝你，傑瑞。

Aaron Spychalla, Craig-Hallum Capital Group.

Aaron Spychalla，Craig-Hallum Capital Group。

Yeah, hi Bob, thanks for asking questions, maybe first for me, I appreciate all the color just kind of want to square it with what we heard in April, back in November. So just want to confirm, on the thermal oxidizer side of things it sounded like you were looking to purchase a new one of those and thought that that could take care of some of the issues now, it sounds.

是的，嗨，鮑勃，謝謝你提問，這可能是我第一次問問題，我很欣賞你提供的所有信息，只是想把它和我們四月份，也就是十一月份聽到的內容核對一下。所以我想確認一下，關於熱氧化器方面，聽起來您是想買一個新的，並且認為這樣可以解決一些問題，是嗎？

Like it's more on the off gas side of things and making sure you have the proper, kind of capacity and equipment there, but you know at this point just want to confirm, you think that those issues are solvable, it's just still trying to take a step back and you know determine the right path forward from a cost and and capital standpoint.

感覺更多的是廢氣處理方面的問題，要確保有合適的產能和設備，但你知道，目前我只是想確認一下，你認為這些問題是可以解決的，現在只是需要退一步，從成本和資金的角度確定正確的前進方向。

Yeah, absolutely, Erin. I think what you're referring to is in our remarks last November, I mentioned that we expected to spend about $8 million to $10 million for a thermal oxidizer, and that was the case. But what we did is we decided to take a proactive approach to ensure that if we spent that $8 million to $10 million we would solve problems associated with getting production from 15 million pounds to 25 million pounds.

是的，沒錯，艾琳。我想你指的是去年11月我們發表的講話，我提到我們預計要花費大約800萬到1000萬美元購買一台熱氧化器，而事實也確實如此。但我們採取的措施是，我們決定採取積極主動的方式，確保如果我們投入這 800 萬到 1000 萬美元，就能解決將產量從 1500 萬磅提高到 2500 萬磅的相關問題。

Part of that proactive approach was the addition of Eric Robinson to our team. While he formally was added as Senior VP of Operations at the beginning of March, he's been serving as a consultant to us since late 2025.

這種積極主動的做法之一是將埃里克·羅賓遜加入我們的團隊。雖然他於 3 月初正式加入公司擔任營運高級副總裁，但自 2025 年底以來，他一直擔任我們的顧問。

But what really happens is we needed so much more than just a thermal oxidizer. We need a complete air quality control system, which means heat recovery, acid gas removal, particulate control, etc. And the reason that was determined again was we decided to do that.

但實際情況是，我們需要的遠不止一個熱氧化器。我們需要一套完整的空氣品質控制系統，這意味著熱回收、酸性氣體去除、顆粒物控制等等。之所以再次確定這一點，是因為我們決定這樣做。

Proactive approach, but we conducted kiln off gas testing by a third-party lab right ahead of Christmas, and the results of that found that the kiln off gas contained heavier tar fractions than anticipated from the original flawed engineering design.

我們採取了積極主動的方式，在聖誕節前夕委託第三方實驗室對窯爐廢氣進行了測試，結果發現窯爐廢氣中焦油成分比最初有缺陷的工程設計所預期的要重。

In essence, this heavier tar would require additional heat and air inputs to the thermal oxidizer at the higher 25 million pound throughput rates.

從本質上講，這種較重的焦油在較高的 2500 萬磅吞吐量下，需要向熱氧化器輸入額外的熱量和空氣。

And the existing off gas system, the afterburner sulfur scrubber downstream of the thermal oxidizer, wouldn't be able to handle the extra heat and gas volume. That, the net result is we need to install an entirely new separate off gas train comprising the new thermal oxidizer we discussed back in November along with some additional items like water, quencher, heat exchanger, wet scrubber, ID fan, a new stack, and as a result of all this is why we've hit the pause button.

現有的廢氣處理系統，即熱氧化器下游的後燃器硫洗滌器，無法處理額外的熱和氣體量。最終結果是，我們需要安裝一套全新的獨立廢氣處理系統，包括我們在 11 月討論過的新型熱氧化器，以及一些其他零件，如水、淬火器、熱交換器、濕式洗滌器、引風機、新煙囪等等。正因如此，我們才按下了暫停鍵。

So we can use this optimization period to refine the recommendations, and that will determine the final timing and cost. I apologize for being so long winded, but I understand people's frustration, and I wanted to be able to provide detail for your answer.

因此，我們可以利用這段優化期來完善建議，這將決定最終的時間安排和成本。很抱歉我說了這麼多，但我理解大家的沮喪，所以我想盡可能詳細地回答您的問題。

No, I appreciate that. Thanks. And then, maybe second, on the third-party feedstack switching there, you kind of in your commentary talked about often exceeding industry benchmarks. I just want to kind of confirm, you feel comfortable with, the switch in the feedstock and kind of the resulting product. It's just about, again solving, the equipment and kind of the production line, dynamics.

不，我很感激。謝謝。其次，關於第三方饋送堆疊切換，你在評論中提到過，它經常超越行業基準。我只是想確認一下，您是否對原料的改變以及最終產品感到滿意。歸根究底，還是要解決設備和生產線的運作問題。

Absolutely we feel comfortable we've done testing of the material and in fact we originally evaluated. Over 55 potential feedstocks. We narrowed that down to 13, did extensive and even more extensive testing on those feedstocks. We narrowed that down to seven and we further narrowed it down to five that were essentially interchangeable as it relates to that. So you know we've done testing of the material. It's a proven process in the industry and we know this is going to work.

我們當然有信心，我們已經對材料進行了測試，事實上，我們最初就是評估過這種材料的。超過55種潛在原料。我們最終篩選出 13 種原料，並對這些原料進行了廣泛而深入的測試。我們縮小範圍到七個，然後進一步縮小到五個，這五個基本上可以互換。所以你知道，我們已經對這種材料進行了測試。這是業內行之有效的流程，我們知道它一定會成功。

All right, thank you for taking the question. I will turn it over.

好的，謝謝你回答這個問題。我把它翻過來。

Thanks, Earn.

謝謝，Earn。

Jason Tilton, Canaccord Genuity.

Jason Tilton，Canaccord Genuity。

Good morning and thanks for taking my question. The guidance implies the PAC ASP growth of sort of 1% at the midpoint. Obviously, you're lapping very strong growth from the past few years, but curious, what are some of the puts and takes to consider with that, range of pricing expectations relative to recent trends.

早上好，感謝您回答我的問題。此指引暗示 PAC ASP 成長率中位數為 1% 左右。顯然，你們正在延續過去幾年的強勁成長勢頭，但我很好奇，在這種成長勢頭下，有哪些需要考慮的因素和預期，以及相對於近期趨勢的價格預期範圍。

We've seen excellent pricing growth on our ASP over the last 9, 10, 12 quarters, as we have said in previous calls that that pace, that double-digit pace of price increases had to moderate.

在過去的 9、10、12 個季度裡，我們的平均售價 (ASP) 實現了優異的價格增長，正如我們在之前的電話會議中所說，這種兩位數的價格增長速度必須放緩。

We still expect to see price increases from the base business and also as we expand into more value-added markets which are more highly engineered and sell at much higher prices than the than our ASP are more commodity-like sales.

我們仍然預期基礎業務的價格會上漲，而且隨著我們擴展到更多高附加價值市場，這些市場的產品技術含量更高，售價也比我們目前的平均售價高得多，而我們目前的銷售更像是大宗商品銷售。

Okay, great, that's very helpful and, one quick follow-up in the release you also talked about some of the alternative applications for the corporate web cake and those continuing to advance. Perhaps you could just maybe expand a bit more about, how those developments are trending.

好的，太好了，這很有幫助。還有一個後續問題，在發布過程中，您還談到了企業網路蛋糕的一些替代應用程式以及這些應用程式的持續發展。或許您可以再詳細談談這些發展趨勢。

Sure, really alternative uses for the carbon feedstock really come down to asphalt emulsion, synthetic graphite, graphene, and potentially isolating rare earth minerals or critical elements as part of the washing process. The most advanced is the asphalt emulsion we've completed with a third-party asphalt company that the initial round of testing we've progressed to the next round.

當然，碳原料的真正替代用途實際上歸結為瀝青乳液、合成石墨、石墨烯，以及在洗滌過程中可能分離稀土礦物或關鍵元素。最先進的是我們與第三方瀝青公司合作完成的瀝青乳液，我們已經完成了第一輪測試，並進入了下一輪測試。

Recently, so we're making good progress there. However, I think it would be premature to expect significant revenues from asphalt emulsion in 2026 from Corbin. Synthetic graphite and graphene are more longer-term. We're working with several firms, and including the government in doing and conducting research in that regard, and I would put those as potential, but I'd say more sizzle than steak or sirloin.

最近，我們在這方面取得了不錯的進展。不過，我認為現在就指望 Corbin 在 2026 年從瀝青乳液中獲得可觀的收入還為時過早。合成石墨和石墨烯具有更長遠的應用前景。我們正在與幾家公司合作，並包括政府參與這方面的研究，我認為這些都是潛在的成果，但更多的是噱頭，而不是實實在在的成果。

Very helpful. Thank you very much.

很有幫助。非常感謝。

Thank you.

謝謝。

Peter Gastreich, Water Tower Research.

Peter Gastreich，水塔研究。

Thank you. Good morning, everybody, and thanks for taking my questions. I do appreciate the detail and clear action plan. Hello, sorry, can you hear me?

謝謝。各位早安，感謝你們回答我的問題。我非常欣賞這份詳盡的細節和清晰的行動計畫。你好，不好意思，你聽得到我說話嗎？

Yeah, absolutely.

是的，絕對的。

Okay, great. Thank you. So yeah, I appreciate the detail and the clear action plan here and, it's great to see the, formal forward guidance, including the operating metrics that coming through as well. Yeah, just a couple of questions. In the past you've, mentioned that there are, tariff benefits for, domestic producers like Arq.

好的，太好了。謝謝。是的，我很欣賞這裡詳盡的細節和清晰的行動計劃，而且很高興看到正式的前瞻性指引，包括營運指標也一併公佈。嗯，就問幾個問題。您過去曾提到，像 Arq 這樣的國內生產商可以享受關稅優惠。

Just kind of curious if you are realizing that now and is any of your EBITDA guidance for this year taking into account, effective care of benefits just because it would seem there would be some good operational leverage there if that if that is the case.

我只是有點好奇，您現在是否意識到了這一點，以及您今年的 EBITDA 預期是否考慮到了有效的福利待遇，因為如果真是這樣的話，似乎會有一些不錯的營運槓桿。

The guidance we've provided reflects steady state business and doesn't give any benefit from tariffs and the imposition of tariffs on our competitors, most of whom import material from overseas.

我們提供的指導意見反映了穩定的業務狀況，並未考慮關稅以及對競爭對手徵收關稅所帶來的任何好處，而我們的大多數競爭對手都是從海外進口原材料。

Okay, great. Thank you. And just a little bit more on the contract volume visibility of, 75% for 2027 and 43% for 2028, just for some context, would you characterize that as a typical to your visibility for you or is that stronger than usual? It would appear that you're in a very good place just looking at this year, given that your outlook is that is for PAC volumes to be rising.

好的，太好了。謝謝。關於合約量可見性，2027 年為 75%，2028 年為 43%，為了便於理解，您認為這是您通常的可見性水平，還是比往常更高？從今年的情況來看，你似乎處境非常好，因為你預計 PAC 交易量將會上升。

I'd say it's the usual position that we are in. We have an extremely high renewal rate thanks to the quality of Jeanette McQueeney and her sales team. We typically renew 86% or more on average of our contracts. Some of those contracts are multi-year, some are one year, some are two years.

我認為這是我們通常所處的境地。多虧了 Jeanette McQueeney 和她的銷售團隊的出色表現，我們的續約率非常高。我們平均續約率通常在 86% 以上。這些合約有的為期多年，有的為期一年，有的為期兩年。

So hence the visibility profile. But we would expect that when we get to this same time next year, that we would have similar numbers going out the next three years.

所以這就是可見性概況的由來。但我們預計，到明年這個時候，未來三年的數據將與此類似。

Okay, thank you. And just one more question, I reckon you might not be able to answer this, but just regarding any potential litigation recovery in the future, would you be looking for, a startup costs, or lost revenues in terms of damages, or are we still in kind of a wait and see mode right now?

好的，謝謝。還有一個問題，我估計您可能無法回答，但關於未來任何潛在的訴訟賠償，您會尋求賠償啟動成本或收入損失等損失，還是我們現在仍然處於觀望狀態？

As we mentioned, the lawsuit is ongoing, and it's our policy not to comment on the particulars of active litigation, but I will say that we feel very confident in our position.

正如我們之前提到的，訴訟仍在進行中，我們的政策是不評論正在進行的訴訟的具體細節，但我可以說，我們對自己的立場非常有信心。

Okay, great, thank you very much. I'll get back in the queue.

好的，太好了，非常感謝。我重新排隊。

Thank you, ladies and gentlemen, this concludes our question-and-answer session. I'll turn the floor back to Mr. Rasmus for any final comments.

謝謝各位，我們的問答環節到此結束。現在我把發言權交還給拉斯穆斯先生，請他作最後的總結發言。

Thanks, Melissa. In closing, I want to emphasize that our PAC business has been transformed from a cash consumer to a cash generator, one which after maintenance cap acts creates free cash flow to help fund our GAC expansion.

謝謝你，梅麗莎。最後，我想強調，我們的 PAC 業務已經從現金消耗者轉變為現金創造者，在維持上限措施之後，它能夠創造自由現金流，以幫助資助我們的 GAC 擴張。

Our PAC business had a good 2025 and 2026 will be very good as it relates to the PAC business. The company, even without GAC, is profitable, is growing, and has visibility to sustain the Pack growth. It isn't a hockey stick style growth, but it's steady growth.

我們的 PAC 業務在 2025 年表現良好，2026 年 PAC 業務也將非常好。即使沒有 GAC，該公司也獲利、發展，並且有信心維持 Pack 業務的成長。這不是那種爆發式成長，而是穩定成長。

Demand for GAC is not an issue. There's definitely a demand supply imbalance that has persisted, and we think will continue to persist for many years. In addition, there are regulatory benefits and barriers to entry which will delay any new entrant or greenfield expansion for many years.

對GAC的需求不是問題。目前確實存在供需失衡的情況，我們認為這種情況還會持續很多年。此外，監管方面的利多和准入壁壘將使任何新進入者或綠地擴張計劃推遲多年。

For Arq and investors, the upside is about refining what is needed to complete line one, execute on the build, and successfully produce GAC. Bringing on experienced activated carbon operating management in the form of Eric Robinson and others will help further improve the business and mitigate that execution risk.

對 Arq 和投資者而言，有利之處在於完善完成第一條生產線所需的條件，執行建設，並成功生產 GAC。引進像 Eric Robinson 等經驗豐富的活性碳營運管理人員，將有助於進一步改善業務並降低執行風險。

Thank you very much and we look forward to providing updates on our next quarterly call.

非常感謝，我們期待在下次季度電話會議上提供最新進展。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。您可以在此時斷開線路。感謝您的參與。