LiqTech International reported fourth‑quarter and full‑year 2025 results that showed a 13% increase in revenue to $16.5 million, up from $14.6 million in 2024. Gross profit rose to $1.3 million, giving a margin of 7.6% versus 1.7% in the prior year. Operating expenses fell slightly to $9.6 million from $9.7 million, while the net loss narrowed to $8.6 million from $10.3 million. The company’s financial performance reflects a shift toward higher‑margin system sales and improved manufacturing utilization.
The systems and aftermarket segment drove the revenue growth, with a 49% increase in sales that lifted the water segment to $1.98 million in Q3 and turned the plastics segment profitable. LiqTech also expanded its marine and pool system offerings, adding new product lines that contributed to the overall revenue lift. Management highlighted that the focus on high‑margin water and marine systems is paying off, noting that “2025 represented a meaningful step forward for LiqTech. For the full year, revenue increased 13%, driven by a 49% increase in total systems and aftermarket revenue and we made improvements to drive efficiencies across much of our business.”
Margin expansion was driven by a higher mix of high‑margin system sales and better manufacturing utilization. The company’s CEO, Fei Chen, added that “That shift toward higher‑value system sales is central to our long‑term strategy and reflects growing adoption of our silicon carbide membrane technology across multiple end markets.” Chief financial officer David Kowalczyk also noted that “we continue to be below our optimal revenue level, we continue to have fixed production costs that are not being fully absorbed, and thus lower‑than‑normalized gross margins.”
LiqTech invested in its China joint venture to support growth in that market, while also expanding its marine and pool system portfolio to diversify revenue sources. Fei Chen emphasized that “We understand that we cannot run on unpredictable oil. Our focus needs to be and is on building a diversified systems portfolio with stronger visibility and improved margin profile going forward.” The company’s investment in the joint venture and new product lines signals a strategic pivot toward more predictable, high‑margin business segments.
For 2026, LiqTech raised its revenue guidance to $23 million–$27 million, above the $21.9 million consensus estimate. Management expressed confidence in sustaining the momentum, stating “At the same time, we remain firmly focused on scaling the business to position LiqTech for durable, profitable growth over the long term.” The guidance reflects the company’s belief that the high‑margin system strategy and expanded product offerings will continue to drive revenue growth and improve profitability.
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