What are the competitive advantages of the QureFlow system, and how long did the steel customer operate the initial unit before ordering four more?

Fei Chen explained that the QureFlow system's silicon carbide membrane with patented coating is uniquely suited for dirty water with high oil and suspended particle content. Its crossflow design allows continuous self-cleaning, reducing blockages. The steel manufacturer ran their initial system for 10 months stably, which led to the follow-on order due to superior performance compared to polymer membranes. “Our crossflow system is based on our silicon carbon membrane. And this is very unique because our membrane has the patented coating, makes it very suitable for the waters with very, very dirty content, high oil content and high suspended particles and also different impurity in the water.”

Are Commercial Pool sales seeing a larger number of systems sold or larger sales per system?

Fei Chen stated they are seeing both. While the majority of sales are in Europe, they are expanding into the U.S. market where systems tend to be larger. He noted that they prefer larger systems for faster revenue and more efficient sales, and are observing growth in both volume and size. “We see both. I mean we -- right now, majority of our sales still is in Europe, especially in North Europe. And -- but we're now coming to U.S. with a strong partner. And also, as you hear, we actually already finished the first pool system. It's going to be installed in U.S. in the quarter 3 -- by the end of quarter 3. So if we continue coming to the U.S., we will continue to come to U.S. In U.S., the systems are bigger. they are much bigger than Europe.”

What is the forecast for iCER water treatment unit sales in an average year, and what is the annual capacity?

Fei Chen clarified that the market includes both iCER (30%) and EGR (70%) technologies, and LiqTech is targeting both. He cited internet data indicating 600 boats/vessels to be delivered by 2028-2029 with iCER/EGR. The company aims for a substantial share of these. Assembly capacity is flexible through partners in China, allowing for rapid scaling. The focus is on standardizing marine systems to speed up sales and delivery. “I mean the market is quite big, not only iCER, it's iCER combined with EGR because iCER is about 30% of market and EGR is 70% of market. So these 2 technology, they kind of parallel and share the market. And we are very happy. We already got EGR sales order, and we're going to deliver by end of this year. So we are also going to the EGR market. So right now, according to the Internet data, there's 600 boats and vessels to be delivered from now to 2028, '29 and the combination of iCER and EGR.”

LIQT

LiqTech (LIQT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 12, 2026

Source: earnings call transcript

Executive summary

LiqTech Q2 FY26 — Record Commercial Pool Revenue Offset by Water for Energy Project Delay

LiqTech reported mixed Q2 FY26 results, with strong performance in Commercial Pool and Marine segments, alongside significant balance sheet strengthening from a recent public offering. However, a major Water for Energy project delay led to a downward revision of full-year revenue guidance. The company is now accelerating its strategic shift towards more predictable, repeatable solutions in Commercial Pool and targeted industrial wastewater applications to drive sustainable profitability.

Highlights

Commercial Pool revenue reached a record $1.5 million, up from $0.8 million in Q2 FY25.
Marine revenue increased to $0.7 million from $0.4 million in Q2 FY25.
Secured a $2.1 million follow-on order from a U.S.-based steel manufacturer for 4 additional systems, with 75% expected delivery by end of 2026.
Completed an underwritten public offering generating approximately $18 million in net proceeds, significantly strengthening the balance sheet with $15.7 million cash on hand.
Received a new order from a U.S. customer for a QureFlow QF-6 ceramic membrane filtration system for industrial wastewater treatment.

Concerns

Revised full-year 2026 revenue guidance down to $20 million to $23 million due to a delay in a major Water for Energy project.
Total revenue for Q2 FY26 decreased 12% year-over-year to $4.4 million from $5 million.
Gross margin declined to 8.4% ($0.4 million) in Q2 FY26 from 9.8% ($0.5 million) in Q2 FY25.
Net loss for Q2 FY26 increased to $3.1 million compared to $2.2 million in Q2 FY25.
Adjusted EBITDA was negative $1.6 million, a decline from negative $1.3 million in Q2 FY25.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year Revenue	$20 million to $23 million high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Commercial Pool Strongest area of business, reflecting work to standardize the QlariFlow platform, strengthen distribution partnerships, and establish a broader base of reference installations. QlariFlow platform standardizeddistribution partnerships strengthenedfirst U.S. commercial pool project in Worland, Wyominglarge pool system in Den Helder, Netherlands, operating successfully	$1.5 million	record (from $0.8 million)	—	—
Marine Continued execution, reestablishing a stronger position in Marine by combining LiqTech's membrane technology with localized engineering, sourcing, assembly, and service through the China joint venture. factory acceptance test approval for the first 2 iCER dual-fuel water treatment unitsexpect to deliver 1 additional iCER dual-fuel water treatment unit and 2 marine scrubber water treatment systems in the third quartersecured a commercial order of 4 water treatment systems for EGR-equipped vessels in China with the first system currently expected to be delivered in December	$0.7 million	up from $0.4 million	—	—
Water for Industry Near-term opportunity set is becoming increasingly tangible, particularly in steel and other industry wastewater applications, demonstrating progress in customer relationships and technology validation. $2.1 million follow-on order from a U.S.-based steel manufacturer for 4 additional industry wastewater filtration systemsnew U.S. customer for a QureFlow QF-6 ceramic membrane filtration system to be installed at its new facility in Freeport, Texas	—	—	—	—
DPF and Membrane Decrease primarily reflected temporary production delays caused by constrained availability of critical raw material.	$1 million	decrease from $1.3 million	—	—
Plastics Customer purchasing decisions slowed during the quarter due to raw material prices and broader market uncertainty.	$0.9 million	decrease from $1.2 million	—	—

Deals & partnerships

Public investors Underwritten public offering of common stock $18 million net proceeds

The offering closed on June 8 and generated approximately $18 million in net proceeds.

Local partners in China Joint venture for Marine segment operations

The China joint venture has allowed us to reestablish a stronger position in Marine by combining LiqTech's membrane technology with localized engineering, sourcing, assembly and service.

U.S.-based steel manufacturer Follow-on order for 4 additional industry wastewater filtration systems $2.1 million

Announced a $2.1 million follow-on order from a U.S.-based steel manufacturer for 4 additional industry wastewater filtration systems.

New U.S. customer Order for a QureFlow QF-6 ceramic membrane filtration system for industrial wastewater treatment

Announced an order from a new U.S. customer for a QureFlow QF-6 ceramic membrane filtration system to be installed at its new facility in Freeport, Texas.

Risks & headwinds

Water for Energy Project Delay remainder of 2026

reduced our revenue visibility for the remainder of 2026; no longer prudent to maintain our previous full year revenue guidance

Mitigation:putting greater emphasis and resources behind the markets where we see more repeatable demand, shorter sales cycles and a better revenue visibility; continue to pursue significant opportunities in Water of Energy, but in a more selective and increasingly partnership-driven manner.

DPF and Membrane Production Delays second quarter

DPF and membrane revenue was approximately $1 million compared with $1.3 million in both the previous year quarter and the first quarter of '26.

Plastics Segment Customer Purchasing Slowdown second quarter

Plastics revenue was $0.9 million compared to $1.2 million in the second quarter of '25 and approximately $1 million in the first quarter of '26.

Fixed Production Costs Absorption ongoing

Improving gross margins level depends on both revenue scale and mix.

Mitigation:Standardized Commercial Pool, Marine and selected industrial systems are important to that effort because they provide opportunities to reuse engineering, improve procurement, simplify manufacturing and create better operating leverage as volume increases.

What to watch in Q3 FY26

Water for Energy Project Status

Next quarter

Current Delayed, active opportunity, customer internal evaluation restarted.

Target Progress in customer internal evaluation and approval process, potential for firm order.

Why it matters

This project significantly impacted FY26 revenue guidance; its progression is key to future revenue visibility.

The project has not been terminated and remains an active opportunity. Our relationship with the customer remains intact, and we continue to engage closely with the new decision makers as they work through their internal evaluation and approval process.

Find out whether LIQT delivers this. Inve re-checks your case every morning.

Q&A highlights

Where are the near-term opportunities for process improvements to drive profitability (sales, assembly, engineering, etc.)?

Fei Chen detailed efforts in product standardization across all applications (Marine, Commercial Pool, Water for Industry) to reduce costs and achieve economies of scale. He also highlighted improved procurement processes, leveraging the China joint venture for cheaper components, inventory optimization, production efficiency, and quality control. From a sales perspective, they are using CRM to control resource allocation for commercial results.

“We actually have been working intensively in the past 1 and 2 years really to make the cost reduction for our processes in order to speed up the profitability. I can mention, first of all, we are doing the standardized product across all the applications, as we mentioned, the marine area, the commercial pool area and also the water for industry area, we are now having our product standardized and that reduce the cost and also provide the scales of economy when the sales goes up.”

asked by Robert Blum · answered by Fei Chen

2 min read 6 chapters

Detailed narrative

Strategic Shift and Capital Allocation

LiqTech completed a public offering, raising $18 million in net proceeds, which significantly strengthened its balance sheet and repaid outstanding notes. The company emphasizes financial discipline and careful capital allocation, focusing on execution and translating technology into sustainable financial performance. This capital provides flexibility for working capital and targeted growth investments, aligning with a commitment to shareholder responsibility.

Market Focus Refinement

The company is refining its go-to-market strategy, particularly for Water for Energy and Water for Industry. In Water for Energy, the focus shifts to strategic commercial partnerships to accelerate market penetration. For Water for Industry, a more targeted approach is adopted, concentrating on applications like the steel industry where clear customer needs and technology fit exist, aiming for repeatable and scalable opportunities.

Water for Energy Project Delay

A major Water for Energy project, previously expected to contribute revenue in 2026, experienced delays due to organizational changes at the customer, requiring a restart of internal evaluation processes. While the project is not terminated and the underlying need for technology remains, this delay significantly impacted near-term revenue visibility and necessitated a revision of full-year guidance.

Industrial Wastewater Traction

LiqTech is seeing increasing tangible opportunities in industrial wastewater, exemplified by a $2.1 million follow-on order from a U.S. steel manufacturer and a new order for a QureFlow QF-6 system from a U.S. customer in Freeport, Texas. These successes validate the strategy of proving technology in demanding applications and scaling from initial installations to broader deployments, demonstrating clear economic and environmental benefits.

Commercial Pool and Marine Progress

The Commercial Pool segment achieved record revenue of $1.5 million, driven by standardized QlariFlow platforms, strengthened distribution, and successful installations in Australia, the U.S., and the Netherlands. The Marine segment, supported by its China joint venture, saw revenue of $0.7 million and secured a commercial order for four water treatment systems for EGR-equipped vessels, indicating growing traction in a key market.

Operational Efficiency and Cost Management

Management is actively pursuing process improvements to drive profitability, including product standardization across applications, optimizing procurement for raw materials and components, and leveraging the China joint venture for cost-effective sourcing. Efforts are also underway in inventory optimization, production efficiency, and quality control, alongside disciplined management of sales resources to improve cost-effectiveness.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.