Anaergia Inc. (“Anaergia,” the “Company,” “we,” or “our”) (TSX: ANRG) (OTCQX: ANRGF), a global provider of integrated waste-to-value solutions that help reduce greenhouse gas emissions by converting organic waste into renewable natural gas (RNG), fertilizer, and water, has released its financial results for the three- and six-month periods ended June 30, 2025 (“Q2 2025”). The Company also filed its Management’s Discussion and Analysis (“MD&A”) for the period. All financial figures are presented in Canadian dollars unless otherwise noted.
Strategic Shift Fuels Strong Quarterly Performance
The second quarter of 2025 marked a pivotal phase in Anaergia’s ongoing business transformation. The Company’s decisive move to adopt a capital-light business model was the primary driver behind notable improvements in revenue growth, gross profit margins, and order backlog.
By focusing on technology-driven solutions and reducing the need for heavy capital deployment, Anaergia is positioning itself to scale more efficiently while maintaining a leaner balance sheet. This approach enables the Company to accelerate project delivery, expand its global footprint, and tap into the rapidly expanding market for sustainable waste management and carbon-negative energy solutions.
Anaergia operates at the intersection of environmental responsibility and economic opportunity, offering comprehensive resource recovery systems that not only manage waste more effectively than landfills or traditional composting but also create valuable products such as RNG, nutrient-rich fertilizers, and reclaimed water. These solutions align with global climate goals and address both regulatory requirements and corporate sustainability commitments.
CEO Perspective: A Year of Transformation
Reflecting on his first year as Chief Executive Officer, Assaf Onn highlighted the Company’s progress in redefining its strategic focus:
“We have strategically repositioned Anaergia as a leading technology provider in the RNG sector, delivering complete, integrated solutions through our capital sales business. The transition to a capital-light model is paying off, as demonstrated by our strong second-quarter results. We are now better equipped to capture emerging opportunities in this high-growth market.”
Mr. Onn also pointed to a substantial increase in Revenue Backlog—a key indicator of future revenue visibility and market demand. At the end of Q2 2025, the backlog stood at $244 million, up sharply from $200 million in the prior quarter and more than doubling from $104 million at the beginning of the year. This momentum continued beyond the quarter’s close, with an additional $43.8 million in new contracts announced since June 30.
“Our growing backlog reflects strong market confidence in our solutions,” Onn added. “With our new contracts and improved operational execution, we have increased visibility into our growth pipeline and strengthened our optimism for the future. We believe the most exciting developments for Anaergia are still ahead.”
Q2 2025 Financial Highlights
Anaergia delivered significant year-over-year improvements in key financial metrics for the quarter ended June 30, 2025:
- Revenue: $32.3 million, up 36.8% (or $8.7 million) from $23.6 million in Q2 2024. The increase was primarily driven by strong performance in the Capital Sales segment, particularly in Italy and North America.
- Gross Profit Margin: 32.5%, a substantial improvement from 17.6% in Q2 2024, representing a 14.9 percentage point increase. All three operating segments—Capital Sales, Build-Own-Operate (“BOO”), and Operations & Maintenance (“O&M”)—delivered higher margins, reflecting stronger project execution and a favorable sales mix.
- Adjusted EBITDA Loss: ($2.2 million), a 72.1% improvement from the ($8.0 million) loss recorded in Q2 2024. This reduction in losses underscores the benefits of the capital-light transition and higher gross profitability.
Business Model Evolution and Market Positioning
Anaergia’s capital-light model represents a significant shift in how the Company approaches growth. Historically, the Company invested heavily in building and owning its own facilities, which required substantial upfront capital and extended project timelines. The new strategy prioritizes delivering proprietary technology and expertise to third-party-owned projects, allowing for faster revenue recognition, reduced capital intensity, and improved scalability.
The RNG market—fueled by global efforts to decarbonize energy supply chains—is experiencing accelerating growth. Regulatory mandates, such as renewable fuel standards in North America and carbon-reduction directives in Europe, are creating long-term demand for RNG and other renewable fuels. In parallel, municipalities and corporations are under increasing pressure to divert organic waste from landfills to meet environmental goals.
By offering turnkey solutions that integrate waste processing, anaerobic digestion, and RNG upgrading technologies, Anaergia is well-positioned to address these market needs. The Company’s global presence, with operations and partnerships in Europe, North America, and Asia, enhances its ability to serve diverse markets and adapt to region-specific regulations.
Operational Highlights
During Q2 2025, Anaergia achieved several operational milestones:
- Project Execution: Strong progress in key capital sales projects in Italy and North America, with improved delivery timelines and cost control.
- Backlog Growth: Secured large-scale contracts that expanded the backlog to $244 million by quarter-end, with continued momentum into Q3 2025.
- Segment Profitability: All business segments posted margin improvements, reflecting disciplined cost management and the benefits of a higher-value sales mix.
The Company’s Operations & Maintenance (O&M) services continue to generate recurring revenue, providing long-term stability alongside the more variable capital sales revenue stream. The BOO segment, while smaller under the new model, remains a strategic component for select high-return opportunities.
Outlook for the Remainder of 2025 and Beyond
Looking ahead, Anaergia anticipates continued revenue growth and margin expansion as the capital-light strategy gains further traction. The growing backlog provides a solid foundation for sustained performance, while the additional $43.8 million in contracts announced after Q2 strengthens near-term visibility.
The Company remains committed to advancing its technology leadership in RNG and resource recovery. This includes ongoing R&D investment to improve efficiency, reduce costs, and expand the range of feedstocks that can be processed.
Management sees significant potential in expanding partnerships with municipalities, industrial clients, and agricultural operations seeking to reduce waste, lower carbon footprints, and meet renewable energy targets.
CEO Closing Remarks
“The transformation we set in motion is delivering tangible results,” said Onn. “Our improved financial performance, strong backlog, and expanding pipeline of opportunities all point to a promising future for Anaergia. We are building a business that is both financially resilient and environmentally impactful, and we believe the momentum we’ve established will carry us into the next phase of growth.”
About Anaergia
Anaergia provides integrated waste-to-value solutions worldwide, helping communities and industries divert organic waste from landfills, produce renewable natural gas, recover valuable nutrients, and reclaim water. Through its proprietary technologies and global infrastructure network, Anaergia enables cost-effective, sustainable waste management solutions that reduce greenhouse gas emissions and support the transition to a circular economy.
