Aquaporin's Strategic Overview and Financial Vision
Company announcement
Aquaporin A/S
Nymøllevej 78
DK-2800 Kongens Lyngby
aquaporin.com
Company registration no.: DK28315694
Latest Developments for Aquaporin
The Board of Directors of Aquaporin A/S is making strides in the realm of innovative water technology, emphasizing their commitment to enhancing water filtration methods through biotechnology. This article provides important updates on the company's strategic review as well as guidance for the coming years.
Initiating Strategic Review
In the previous year, Aquaporin embarked on a strategic review aimed at exploring diverse avenues to raise capital. This includes potential partnerships or a strategic sale to ensure the advancement of their innovative solutions. Currently, the company's financial health necessitates the infusion of additional capital starting early in the next year to sustain its business operations and achieve ambitious growth targets.
During a special general meeting, shareholders granted the Board the authority to issue new shares through either a rights issue or other forms without pre-emptive shareholder rights. Following comprehensive discussions with existing and prospective investors, the Board resolved to conduct a rights issue expected to yield up to approximately DKK 78 million, essential for addressing immediate funding needs through mid-2027.
Should this rights issue fall short of expectations in terms of gross proceeds, it would raise significant concerns regarding the company's viability, prompting potential revisions to the business strategy, including cost reductions and exploration of alternative funding strategies, such as partnerships or sales of business segments.
As part of the strategic review, Aquaporin is determined to assess various paths for equity capital acquisition to facilitate stronger commercial growth while retaining an adaptive approach to funding strategies until profitability is achieved.
Looking Ahead: 2026 Financial Guidance
Preliminary Revenue Expectations
For the financial year 2026, Aquaporin anticipates an impressive doubling of revenue compared to 2025. While EBITDA (before special items) might present a loss within the range of DKK (40)-(50) million, these expectations are rooted in the company's preliminary budget assessment, client indications, and various assumptions surrounding the successful execution of the rights issue.
This growth is heavily reliant on anticipated advancements in the Residential Drinking Water and Forward Osmosis sectors, maintaining a stable cost structure as a crucial component of financial management.
Setting Mid- and Long-Term Financial Goals
Aquaporin is not merely focused on immediate financial stability but is also laying the groundwork for sustainable long-term growth. The new mid- and long-term strategy details crucial targets aimed at establishing group-wide profitability and breaking even on EBITDA in the medium term.
The company expects to grow revenues at an average annual rate in the mid-double digits initially, stabilizing at approximately 25%. Concurrently, Aquaporin targets enhancements to its gross margin, anticipating a positive EBITDA towards the end of the medium term, primarily driven by an evolving product mix and cost-competitive outsourcing strategies.
Looking further ahead, the company aims to achieve revenue around DKK 1 billion within a decade while aspiring for significant gross margin improvements bolstered by scaling effects. The introduction of the second-generation Aquaporin Inside technology, which is in the pipeline for launch in 2027 and 2028, is expected to further increase efficiency in Reverse Osmosis products and enhance Forward Osmosis implementation on an industrial scale.
All segments are poised for growth, with Industrial Water and Forward Osmosis leveraging Aquaporin Inside technology anticipated as key growth drivers in the long term.
Aquaporin plans to maintain stringent cost control, ensuring operating expenses (OPEX) do not significantly deviate from current levels while continuing research and development investments. As the company reaches profitability, a gradual rise in working capital needs is expected, aligning with revenue increases over time.
The guidance for mid- and long-term growth envisages key assumptions relating to funding through the imminent rights issue. Furthermore, additional capital needs will emerge before 2027 to sustain operational strategies amidst evolving market conditions.
Company Information and Further Communication
Key Contacts
For more details about the current initiatives, individuals are encouraged to reach out to:
Ulrik Lund Jakobsen, Chief Executive Officer
Klaus Juhl Wulff, Chief Financial Officer
+45 25 63 39 90
About Aquaporin
Aquaporin stands at the forefront of water technology innovation. Based in Denmark, with additional operations in regions such as Singapore, the United States, and China, we aim to redefine water filtration through biotechnology, tackling global water challenges innovatively. Our unique Aquaporin Inside technology is derived from Nobel Prize-winning research and plays a pivotal role in a variety of applications, from industrial wastewater treatment to enhancing drinking water quality.
Frequently Asked Questions
What is the purpose of Aquaporin's strategic review?
The strategic review is aimed at exploring opportunities to raise capital and enhance the company's operational capabilities while supporting growth targets.
How does Aquaporin plan to ensure short-term funding?
The company plans to carry out a rights issue expected to generate up to DKK 78 million, addressing immediate funding requirements.
What are Aquaporin's revenue expectations for 2026?
Aquaporin expects to double its revenue in 2026 compared to 2025, though EBITDA may present a loss within the range of DKK (40)-(50) million.
What long-term goals does Aquaporin want to achieve?
Aquaporin aims to reach DKK 1 billion in revenue within ten years, with significant improvements in gross margin and achieving a double-digit EBITDA margin.
How will Aquaporin maintain cost control?
The company plans to keep its operating expenses stable and maintain research and development investments to ensure sustainable growth.
