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GREENWOOD VILLAGE, Colo. - Arq, Inc. (NASDAQ:ARQ), a $228 million market cap company currently rated as overvalued according to InvestingPro analysis, has completed the commissioning of its first Granular Activated Carbon (GAC) production line at its Red River Plant, the company announced Wednesday.
The facility has successfully produced its initial batches of GAC in recent weeks and has begun shipping product to customers for previously announced testing programs, generating first sales revenue from the new operation. This development comes as the company shows 14.33% revenue growth over the last twelve months, with total revenue reaching $114.47 million.
With commissioning complete, Arq is now focused on ramping up production to reach the plant’s full nameplate capacity of 25 million pounds annually, which management expects to achieve within six months.
"This is an exciting milestone for Arq," said Bob Rasmus, Chief Executive Officer. "We’ve successfully transformed a promising concept into a compelling reality."
The company stated it will begin fulfilling existing supply agreements as production increases while finalizing contract negotiations for the remaining production capacity.
Arq, which describes itself as the only vertically integrated producer of activated carbon products in North America, produces environmentally efficient carbon products for purification and sustainable materials applications.
The Red River facility’s GAC production represents a significant step in the company’s ongoing business transformation. Granular activated carbon is used in various filtration and purification processes across multiple industries.
The information in this article is based on a company press release statement.
In other recent news, Arq Inc reported its financial results for the first quarter of 2025, showing growth amid challenges. The company achieved a revenue of $27.2 million, exceeding the forecast of $26.73 million and marking a 25% increase from the same period last year. Despite this positive performance, investor concerns linger due to future challenges and delayed product launches. Craig-Hallum has initiated coverage of Arq Inc with a Buy rating and a $10 price target, highlighting the company’s transformation into an environmental technology provider. Meanwhile, Canaccord Genuity adjusted its outlook by lowering the price target from $9.00 to $8.00 but maintained a Buy rating. The firm cited the need for additional evidence to support its positive stance following two project delays. Canaccord Genuity’s analysis was based on a discounted cash flow method, considering a weighted average cost of capital of approximately 15% and a terminal growth rate of around 5%. Both firms have expressed confidence in Arq’s long-term potential, with Craig-Hallum focusing on its new leadership and Canaccord Genuity emphasizing the transition from PAC to GAC.
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