Anaergia Inc. (“Anaergia”, the “Company”, “us”, or “our”) (TSX: ANRG) (OTCQX: ANRGF), a global leader in integrated waste-to-value solutions that convert organic waste into renewable natural gas (“RNG”), fertilizers, and clean water, today announced its financial results for the three and nine months ended September 30, 2025 (“Q3 2025”). The Company also released its accompanying Management’s Discussion and Analysis (“MD&A”) for the period. Unless otherwise noted, all financial figures are reported in Canadian dollars.
Highlights Reflect Strategic Transformation
Anaergia’s third-quarter results showcase the company’s successful transformation following the implementation of its capital-light business model, introduced in early 2024. This strategic shift has fundamentally improved the Company’s operating efficiency, profitability, and financial flexibility. The results highlight significant revenue growth, improved margins, and a return to positive Adjusted EBITDA, reinforcing Anaergia’s position as a high-performing technology provider within the renewable energy and waste management sectors.
The quarter’s achievements are a testament to the company’s renewed focus on capital sales, operational excellence, and the expansion of its global project pipeline. Anaergia’s approach has enabled it to strengthen partnerships across North America, Europe, and Asia, while supporting global decarbonization efforts through innovative waste-to-energy systems.
Leadership Commentary
“Anaergia’s return to positive Adjusted EBITDA and our substantial increase in revenues during the third quarter of 2025 demonstrate the strong execution of our strategic initiatives,” said Assaf Onn, Chief Executive Officer of Anaergia. “These results underscore the success of our capital-light business model, which allows us to capitalize on our core technology and deliver sustainable growth with lower capital intensity.”
Onn emphasized that Anaergia is operating from a position of strength as governments, municipalities, and corporations accelerate their transition toward renewable energy solutions. “Our leadership in the renewable natural gas (RNG) market positions us to capture the expanding global demand for sustainable energy and waste diversion,” he said. “We continue to see growing momentum in our project pipeline, which reinforces our confidence in the company’s long-term trajectory.”
He added, “Importantly, our Revenue Backlog continues to build quarter after quarter—rising to $287 million at the end of Q3 2025, up from $244 million in Q2 2025 and $103 million at the beginning of the year. This consistent growth demonstrates strong customer confidence and the accelerating global adoption of our technology.”
Financial Performance Overview
Anaergia delivered robust financial performance in Q3 2025, reflecting solid execution in its capital sales segment and improving profitability across key markets.
Revenue Growth:
The Company reported revenue of $51.4 million, a 76.9% increase, or $22.3 million, compared to $29.1 million in Q3 2024. The surge was driven primarily by accelerated project execution in Italy and North America, highlighting Anaergia’s ability to meet the growing global demand for renewable energy infrastructure and sustainable waste management solutions.
Gross Profit Margin Expansion:
Gross profit margin improved significantly to 28.8%, up from 20.7% in Q3 2024—an 8.1 percentage point increase. The margin improvement reflects higher profitability in the capital sales segment, efficient cost control, and a shift toward higher-margin projects.
Return to Positive Adjusted EBITDA:
Anaergia achieved Adjusted EBITDA of $2.6 million, representing an improvement of approximately $9.0 million, or 139.9%, compared to an Adjusted EBITDA loss of $6.4 million in the same period last year. This marks a major milestone for the company, signaling a successful turnaround and the operational strength of its new business model.
Overall, Anaergia’s financial performance in Q3 2025 reflects steady progress toward achieving profitability, strengthening its balance sheet, and positioning itself for sustainable long-term growth.
Strategic and Market Position
Anaergia continues to lead in the organic waste-to-renewable energy industry, providing comprehensive, integrated resource recovery solutions that address both environmental mandates and customer needs for cost-effective sustainability.
The company’s proprietary technologies and modular systems enable the efficient conversion of organic waste into carbon-negative fuels such as renewable natural gas, along with valuable by-products like fertilizer and clean water. By helping municipalities and industrial clients divert waste from landfills and reduce greenhouse gas emissions, Anaergia supports global efforts to meet climate targets and circular economy goals.
In 2025, the company has continued to experience growing demand fueled by supportive government policies and corporate decarbonization commitments. The market for renewable natural gas is expanding rapidly as countries strengthen mandates for renewable fuels and sustainable waste management.
Anaergia’s strong project pipeline—combined with its proven track record in engineering, procurement, and construction—positions it to capture these opportunities effectively. The Company remains focused on enhancing shareholder value through disciplined growth, operational efficiency, and selective investments in high-return projects.
The Capital-Light Model: A Catalyst for Growth
Under the capital-light business strategy, Anaergia prioritizes technology licensing, capital sales, and service-based contracts rather than heavy capital expenditures on project ownership. This shift enables the company to reduce balance-sheet risk while maintaining recurring revenue streams through operation and maintenance (O&M) contracts.
The model enhances cash flow stability, accelerates project delivery, and expands Anaergia’s addressable market by allowing it to serve a wider range of customers globally. As demonstrated in Q3 2025, this approach has significantly improved profitability metrics and freed up resources for innovation and business development.
Understanding Non-IFRS Measures
Anaergia’s financial reporting includes certain non-International Financial Reporting Standards (non-IFRS) measures that provide additional insight into the company’s operating performance. These metrics, which include Adjusted EBITDA, EBITDA, and Revenue Backlog, are intended to supplement—not replace—IFRS-compliant financial information.
- Adjusted EBITDA is defined as net earnings before finance costs, taxes, depreciation, and amortization, adjusted for normalized proportionate interest in Build-Own-Operate (BOO) assets, stock-based compensation, one-time or non-recurring items, asset impairment charges, restructuring costs, foreign exchange effects, and other extraordinary factors.
- EBITDA represents earnings before interest, taxes, depreciation, and amortization.
- Revenue Backlog refers to the total unrecognized, undiscounted revenue from signed contracts within the Capital Sales and O&M Services segments. For the O&M segment, Anaergia models only three years of contracted revenue, even though most agreements span five to fifteen years, underscoring its conservative reporting approach.
Management uses these non-IFRS measures to track performance trends, assess operating efficiency, and guide financial planning. Investors and analysts frequently rely on these measures to evaluate companies in the renewable energy sector, where project timing and one-off costs can obscure underlying performance in IFRS results.
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