Arq Publishes 2025 Sustainability Report

PAC delivered a second consecutive year of approximately 10% revenue growth, while GAC production remains paused pending review.

Rhea-AI Summary

Arq (NASDAQ: ARQ) published its 2025 Sustainability Report, covering growth in powdered activated carbon and challenges in granular activated carbon production. Total revenue was $120 million, with powdered activated carbon (PAC) delivering a second consecutive year of approximately 10% revenue growth. The granular activated carbon (GAC) line was commissioned, but production is paused pending an engineering and process optimization review.

Carbon footprint, energy consumption and waste increased year over year. Arq will use 2026 as a new baseline for normalized PAC production at Red River and evaluation of potential future targets. Corbin water usage fell approximately 50%, and operations recorded zero water quality permit non-compliance incidents. Arq also reported zero lost-time incidents in 2025 and 98% on-time and in-full deliveries across 2,230 loads.

8 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 6 points

How the balance works

Positive

• Moderate pointPAC revenue delivered a second consecutive year of approximately 10% growth.
• Minor pointTotal revenue was $120 million in 2025.
• Minor pointGAC line commissioning was completed in 2025.
• Minor pointCorbin water usage fell approximately 50%, with ~134 million gallons of clean water returned to Lynn Camp Creek.
• Minor pointRed River natural-source water use declined slightly despite the facility’s expansion.

3 minor points

• Minor pointWater quality permit non-compliance incidents were zero across operations.
• Minor pointLost-time incidents were zero in 2025.
• Minor pointOn-time and in-full deliveries reached 98% across 2,230 loads; incidents affected just 0.04% of customer deliveries.

Negative

• Moderate pointGAC production is paused pending an engineering and process optimization review.
• Minor pointCarbon footprint increased year over year in 2025.
• Minor pointEnergy consumption increased year over year in 2025.
• Minor pointWaste increased year over year in 2025.
• Minor pointRed River natural gas use increased in 2025.
• Minor pointSteam-powered electricity generation declined in 2025.

Key Figures

Total revenue: $120 million PAC revenue growth: approximately 10% Corbin water-use reduction: approximately 50% +4 more

Total revenue

$120 million

2025

PAC revenue growth

approximately 10%

Second consecutive year

Corbin water-use reduction

approximately 50%

2025

Clean water returned

approximately 134 million gallons

To Lynn Camp Creek

Scope 1 emissions

15,703.93 MT CO₂e

2025

Scope 2 emissions

3,590.23 MT CO₂e

2025

On-time and in-full deliveries

98%

Across 2,230 loads

Historical Context

1 past event · Latest: Aug 10

1 event

1. Aug 10

   Quarterly results

   24h Move

   +9.7%

   Reported Q2 growth and reaffirmed guidance; disclosed GAC output was paused during optimization review.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pac, scope 1 emissions, scope 2 emissions, pfas

4 terms

pac technical

"powdered activated carbon ("PAC") business continued to grow"

A PAC (political action committee) is an organization that collects money to support or oppose political candidates, legislation, or regulatory outcomes; think of it as a community fund used to influence rules and who makes them. Investors care because PAC activity can shape laws, tax policy, and regulatory enforcement that affect industries and company profits, so PACs can change a company’s operating environment much like a weather system changing conditions for sailors.

scope 1 emissions technical

"Scope 1 and Scope 2 emissions were 15,703.93"

Direct greenhouse gas emissions that come from sources a company owns or controls, such as fuel burned in boilers, on-site manufacturing processes, or emissions from company vehicles. Investors care because these emissions create regulatory, cost and reputation risks and signal how efficiently a business runs—think of them as the pollution coming from a household’s own car and furnace, versus emissions from the electricity it buys.

scope 2 emissions technical

"Scope 1 and Scope 2 emissions were 15,703.93"

Greenhouse gas emissions that come from the electricity, steam, heating or cooling a company buys rather than from its own on-site fuel use. Think of it like the emissions tied to your household’s power bill: the company didn’t burn the fuel itself, but its energy purchases still cause pollution upstream. Investors watch these figures because they reveal exposure to carbon-related costs, regulatory risk and reputation issues, and indicate how well a company can meet clean-energy targets and lower operating risk.

pfas technical

"address emerging contaminants, including PFAS via our PAC"

PFAS are a group of human-made chemicals used in many everyday products, such as non-stick cookware, water-repellent clothing, and food packaging, because they resist heat, water, and grease. They are often called "forever chemicals" because they do not break down easily in the environment or the human body, potentially leading to health concerns. For investors, the presence of PFAS-related risks can impact companies’ reputations, legal liabilities, and future costs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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GREENWOOD VILLAGE, Colo., Sept. 30, 2026 (GLOBE NEWSWIRE) -- Arq, Inc. (NASDAQ: ARQ) (the "Company" or "Arq"), a producer of activated carbon and other environmentally efficient carbon products, today announced the publication of its 2025 Sustainability Report. The report gives a transparent account of a dynamic year for Arq, in which its core powdered activated carbon ("PAC") business continued to grow while the commissioning and subsequent pause of its granular activated carbon ("GAC") line brought challenges and lessons that will shape the Company's sustainability strategy going forward.

“2025 was a year of ongoing transformation at Arq. Our PAC business continued to thrive, and we successfully commissioned our GAC line,” said Bob Rasmus, CEO of Arq. “However, the difficulties we then faced in bringing GAC to reliable, full-scale commercial production affected our sustainability performance, and we have chosen to report on that openly. Alongside those challenges, the report shows a great deal to be proud of - from resetting our core values with safety at their center, to lower water use, excellent delivery performance and continued land reclamation.”

2025 at a Glance:

• $120 million in total revenue, with PAC delivering a second consecutive year of approximately 10% revenue growth
• 116 active customers across 217 sites, served by 204 full-time employees
• 74 U.S. and 16 international patents issued or allowed as of December 31, 2025
  
  

Environmental Stewardship:

• Reduced water usage at the Corbin facility by approximately 50%, returning ~134 million gallons of clean water to Lynn Camp Creek, with zero water quality permit non-compliance incidents across operations
• Achieved a small reduction in natural-source water use at Red River despite the facility’s expansion
• Reclaimed 29 acres and 1,826 linear feet of stream at our Five Forks Mine in 2025, with 72,200 trees planted since 2012
  
  

People, Safety and Supply Chain:

• Formally embedded safety as the first of Arq’s five reset core values, with zero lost-time incidents in 2025
• 98% on-time and in-full deliveries across 2,230 loads, with incidents at just 0.04% of customer deliveries
• Continued the three-level Continuing Carbon Education series and employee volunteering in local communities
  
  

Governance and Ethics:

• Adopted a Global Modern Slavery and Anti-Human Trafficking Policy, with a Supplier Code of Conduct now implemented as of September 2026
• 100% of directors and employees acknowledged [and committed to complying with] Arq’s key corporate policies
• Six-member Board, two-thirds are male and one-third are female, and two-thirds are Independent
  
  

Transparency on Growth and a New Baseline

The report provides important context around the increases in natural gas use at Red River and the reduction in steam-powered electricity generation due to expected impacts from growth and expansion in 2025. In addition, the report discusses the factors that led to Arq’s increased carbon footprint, energy consumption and waste year-over-year. In 2025, Scope 1 and Scope 2 emissions were 15,703.93 and 3,590.23 MT CO₂e respectively. With GAC production paused pending a comprehensive engineering and process optimization review, Arq will treat 2026 as a new baseline year for normalized PAC production at Red River, creating the foundation for meaningful year-over-year comparison and the evaluation of future potential targets.

“Our mission to improve the quality of the air we breathe, the water we drink and the soil our children play on is as important as ever,” added Rasmus. “We are focused on expanding our portfolio of advanced activated carbons to address emerging contaminants, including PFAS via our PAC for PFAS™ products. In addition, we continue to responsibly manage more than $500 million of assets that provide the foundation for a profitable and sustainable business. None of this would be possible without our people, so I'm especially pleased to be able to report such a strong ongoing safety record.”

The full 2025 Sustainability Report is available on Arq's Sustainability Page.

About Arq, Inc.

Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.

Source: Arq, Inc.

Investor Contact:
Anthony Nathan, Arq
Marc Silverberg, ICR
investors@arq.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why is Arq’s GAC production paused?

Arq’s GAC production is paused pending an engineering and process optimization review. The line was commissioned in 2025, but the company encountered difficulties bringing it to reliable, full-scale commercial production.

What emissions did Arq report for 2025?

Arq reported Scope 1 emissions of 15,703.93 MT CO₂e and Scope 2 emissions of 3,590.23 MT CO₂e in 2025. These figures are measured in metric tons of carbon dioxide equivalent.