Aquaporin Q1 2025 Trading Statement - maintains full-year financial guidance for 2025

Company announcement
No. 08/2025

Aquaporin A/S
Nymøllevej 78
DK-2800 Kongens Lyngby
aquaporin.com
Company registration no.: DK28315694

KONGENS LYNGBY, Denmark , May 21, 2025 /PRNewswire/ -- Aquaporin A/S (CSE: AQP) ("Aquaporin" or the "Company"), an innovative water technology company dedicated to rethinking water filtration with biotechnology, today announces the Company's Q1 2025 Trading Statement for the period January 1 to March 31, 2025.

"In 2025, we expect to be back on our previous growth track as we advance on our journey towards profitability. The commercial traction is resuming, and we have a growing inflow of orders that will materialize throughout the year," says Matt Boczkowski, Chief Executive Officer at Aquaporin.

"As in previous years, we expect revenue to be backend loaded towards the second half of 2025. Our orderbook and pipeline have matured positively year-to-date, and we are reaffirming the communicated financial guidance for the year," says Klaus Juhl Wulff, Chief Financial Officer at Aquaporin.

Financial highlights as of March 31, 2025   

• In Q1 2025, revenue amounted to DKK 3.2 million (DKK 6.2 million for the same period in 2024), primarily driven by revenue from Forward Osmosis Market Development. Based on the observed order traction, revenue will pick up during 2025, with a significant part expected to materialize in the second half of the year.
• EBITDA (before special items) was a loss of DKK 15.3 million in Q1 2025 (a loss of DKK 19.3 million for the same period in 2024), in line with Management's expectations for the quarter.
• As of March 31, 2025, cash and cash equivalents were DKK 58.5 million (compared to DKK 2.0 million as of March 31, 2024). 
• The Company maintains its financial guidance for the full year 2025: Revenue of DKK 60-80 million; EBITDA (before special items) a loss of DKK 45-55 million. 

Business highlights Q1 2025        

• The Company's strategic accounts focus is materializing through repeat orders from a growing number of customers, decreasing dependence on specific accounts and diversifying our revenue streams.          
• Continued collaboration efforts with Gallo, with positive results, achieving excellent concentration quality levels at the pilot scale.         
• Signed a strategic framework agreement in Beijing, China, with Liaocheng Water Group as part of the Sino-Danish Water Alliance China with Grundfos, DIH, and Landson Advanced Ceramics, which is investigating ways to improve industrial wastewater treatment and management in China.

Subsequent events

• Strengthened presence in South and Latin America, with orders from system integrator, VOENS, who will utilize Aquaporin's CLEAR Series to improve wastewater recycling processes in Chile and to purify well water in Mexico.         
• Secured pilot plan contract to deliver Forward Osmosis system for Trinity College Dublin at the Irish Bioeconomy Foundation's National Bioeconomy Campus to develop new processes and products as part of a scale-up research initiative to recover bio-based products.       
• Sold 500 CLEAR membranes to Beijing-based company, CZRLO, to help increase energy efficiency significantly at a municipal wastewater incineration plant and a coal chemical plant.     
• Successfully completed trial with Singapore's National Water Agency, PUB, which demonstrated good results in line with project expectations    
• Announced that Chief Executive Officer, Matt Boczkowski, will step down for personal reasons. Matt Boczkowski will continue in his role until end September 2025 at the latest.

Commentary Q1 2025

In the first few months of the year, Aquaporin achieved milestones in both Forward Osmosis and Reverse Osmosis. In Forward Osmosis, we continued the collaboration with Gallo, the renowned industry-leading winery, demonstrating promising concentration quality results on the pilot scale. The collaboration with Gallo continues in 2025 and beyond as Aquaporin utilizes its cutting-edge Aquaporin Inside® technology to help unlock a new area of innovation and sustainability in the wine industry. In Reverse Osmosis, we have received an increased number of CLEAR membrane orders from various strategic accounts as we continue to grow our Industrial Water sales.

Aquaporin continues its work to advance the Company's presence in China. With the establishment of a physical presence during 2024, we continue to build relationships in the region – amongst other in Industrial Water with the collaboration of the Danish Water Alliance China, led by the Danish Trade Counsil in China. The alliance includes companies such as Grundfos, DHI, and Landson Advanced Ceramics, who, together with Aquaporin, jointly work to enhance industrial wastewater treatment and management.

The financial results for the first quarter of 2025 showed a decrease in revenue of DKK 3.0 million to DKK 3.2 million compared to the same period in 2024. Despite the slow start to the year, Aquaporin's orderbook and pipeline support maintaining its financial guidance for 2025, with revenue of DKK 60-80 million. The Company expects the majority of the revenue to materialize during the second half of 2025. EBITDA (before special items) improved to a loss of DKK (15.3) million from a loss of DKK (19.3) million for the same period in 2024.

In April, the Company announced that Chief Executive Officer, Matt Boczkowski, will step down as he has decided to relocate back to North America for personal reasons. Matt Boczkowski will stay in his role and as a member of the Executive Management team until end September 2025 at the latest. The Board of Directors has initiated the search for a new Chief Executive Officer.  

For further information, please contact:

Matt Boczkowski, Chief Executive Officer
Klaus Juhl Wulff, Chief Financial Officer
+45 53 55 55 19, investorrelations@aquaporin.com

About Aquaporin

Aquaporin is an innovative water technology company with operations in Denmark (HQ), Singapore, Turkey, the United States, and China. We are committed to rethinking water filtration with biotechnology to solve global water challenges. By combining three disciplines from the world of natural sciences: biology, chemistry, and physics, we have created the unique, nature-inspired Aquaporin Inside® technology which we embed into all our membranes and solutions. Our technology is based on Nobel Prize-winning research and is used to clean and reuse water in industries, in our homes, and even by NASA in space. We work with customers and partners around the globe to responsibly treat industrial wastewater, concentrate food and beverage products in a natural way, and enhance drinking water quality and accessibility.

Forward-looking statements
Matters discussed in this report may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and that can be identified by words such as "believe", "expect", "anticipate", "intend", "estimate", "will", "may", "continue", "should", and similar expressions, as well as other statements regarding future events or prospects. Specifically, this report includes information with respect to projections, estimates, and targets that also constitute forward-looking statements. The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies, and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, and other important factors include, among others: Limited experience in commercialization of the Company's products, failure to successfully implement strategies, dependence on third parties for manufacturing certain product components and the supply of certain raw materials, manufacturing disruptions, strategic collaboration, protection of the Company's intellectual property rights and other risks disclosed in Aquaporin's annual reports and company announcements. Such risks, uncertainties, contingencies, and other important factors could cause actual events to differ materially from the expectations, projections, estimates, and targets expressed or implied in this report by such forward-looking statements. The information, opinions, and forward-looking statements contained in this report speak only as at its date and are subject to change without notice. Aquaporin expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law.

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