Birchtech Reports Fourth Quarter 2024 Financial Results
Company Drives Fourth Quarter 2024 Revenues of $5.6 Million; Leverages World-Class Activated Carbon Expertise to Launch New Water Purification Business
CORSICANA, Texas, March 31, 2025 (GLOBE NEWSWIRE) -- Birchtech Corp. (TSX:BCHT) (OTCQB:BCHT) ("Birchtech" or the "Company"), a leader in specialty activated carbon technologies for sustainable air and water treatment, has reported financial results for the fourth quarter and year ended December 31, 2024.
Key Fourth Quarter 2024 & Subsequent Operational Highlights
Pending final judgement following the $57 million patent infringement verdict, from which the Company's counsel requested $160 million inclusive of enhancements, interest and legal fees.
Management provided guidance of revenues of at least $23 million in 2025, excluding potential cash received from IP defense as well as revenues in new water purification technologies.
Air business annual revenue run-rate expected to be at least $40 million by the end of 2026.
Launched new water purification business with the opening of two new laboratory "design centers" located in Grand Forks, North Dakota, and State College, Pennsylvania, for analytical testing and carbon development.
Signed agreement to purchase up to 2,000 tons of feedstock annually to be used for treatment of drinking water, with the potential to generate an estimated $7 million annually in product sales for Birchtech expected to start mid-2025.
Secured non-exclusive agreement with a second coal-fired power utility named as a defendant in the Company's lawsuit previously announced on July 30, 2024.
Filed a patent infringement lawsuit against Evergy, a major power utility company in the Midwest. The lawsuit has been transferred to the U.S. District Court for the Southern District of Iowa and consolidated with other lawsuits previously announced on July 30, 2024.
Added Mitzi H. Coogler, CPA, to the Board of Directors, a certified public accountant with and accounting practice specializing in management support and guidance for closely held businesses.
Announced corporate name change to "Birchtech" and stock symbol change to BCHT concurrent with an uplisting to the TSX.
Management Commentary
"The fourth quarter of 2024 was highlighted by the launch of our new water purification business and the accelerating pace of wins in our core air business line," said Richard MacPherson, CEO of Birchtech Corp. "Our air business drove robust revenues of $5.6 million in the fourth quarter of 2024 with a strong 60% gross margin profile, with significant upside potential from our successful post-trial outreach program, converting adopters of our technology to licensees or product supply customers. This is all in addition to the $160 million our counsel requested following the unanimous jury verdict from 2024, which is inclusive of enhancements, interest and legal fees.
"Most recently we announced a patent infringement lawsuit against Evergy, a major power utility company in the Midwest, and a non-exclusive agreement with a second coal-fired power utility named as a defendant in a lawsuit filed in mid-2024. Our outreach across the power industry continues, including ongoing discussions with other defendants named in our recent lawsuits in our efforts to establish positive business relationships. We expect to see additional license agreements and/or supply contracts with many of these utilities, and an increasing market share due to our patent defense and business first approach. Financially, we believe our air business will generate at least $23 million in revenue in 2025, excluding any cash received from legal claims, and excluding water treatment revenue as well. In 2026, we believe our air business annual revenue run-rate has the potential to further scale to $40 million.
"During the quarter we announced the formal launch of our water purification business with the opening of two new design centers, located in Grand Forks, North Dakota, and in State College, Pennsylvania. Our water business is focused on pioneering sustainable potable water treatment to meet today's environmental challenges and future demands. With U.S. water utilities facing more than $1 Billion annually in expected PFAS compliance costs over a five-year period, we aim to revolutionize the treatment of toxins in water, inclusive of the dreaded PFAS/PFOS forever chemicals, with proprietary, innovative, environmentally-friendly, and affordable solutions to ensure the safety and purity of water for future generations. In July, we signed an agreement to purchase up to 2,000 tons of feedstock to be used for treatment of drinking water, which feedstock has the potential to generate an estimated $7 million in product sales. We expect to sell this product during the middle part of this year, adding a new revenue source that is expected to be incremental to our aforementioned guidance for the air business.
"Operationally, with our business growing to become a multi-faceted environmental technology firm and strong experience and competencies in multiple sectors, we rebranded our corporate name to ‘Birchtech'. Subsequently, we graduated to the main board in Canada with a move onto the Toronto Stock Exchange, one of the most prominent exchanges in North America. We were also privileged to elect Mitzi H. Coogler, CPA, to the Board of Directors. Mitzi's vast experience in finance and accounting makes her a strong addition to our Board that will serve us well as we enter an exciting new phase of growth and development, including the expectation to pursue ...
