Norway · Delayed Price · Currency is NOK Desert Control AS Earnings Call Transcripts
Fiscal Year 2025
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Organizational restructuring and expanded U.S. operations set the stage for accelerated growth in 2026, with strong traction in California's golf and agriculture sectors. Financial discipline maintained, but supply constraints and slow Middle East contract conversion remain key risks.
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Q3 saw strengthened capital through a NOK 75 million rights issue, U.S. R&D relocation, and expanded pilots in California and the Middle East. Revenue remains modest but is expected to grow as validation milestones are met, with strong water savings demonstrated in turf applications.
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Q2 2025 saw operational challenges in major U.S. projects, but these have been addressed, and the company remains focused on growth in core U.S. and Middle East markets. Revenue declined due to contract structure, but cost control extended the financial runway into Q4 2025.
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Q1 2025 saw revenue growth, record LNC deployments, and a CEO transition, with strong momentum in the U.S. and Middle East. Production capacity is now the main constraint, and the company expects exponential growth in 2025, supported by new market incentives and expanded partnerships.
Fiscal Year 2024
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LNC revenues and volumes more than doubled in 2024, with a tenfold increase projected for 2025, driven by major technology breakthroughs and strong commercial traction in the US and Middle East. Financial position remains robust, with NOK 64 million in cash and no debt.
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Secured first full-scale US golf course contract and first Middle East royalties, doubling LNC revenue and volume year-over-year. Next-gen production system and strong partnerships position for scalable growth in 2025, with a robust financial runway and expanding opportunity pipeline.
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Technological breakthroughs and expanded deployments drove record revenue growth and improved EBITDA, with a strong cash position and no debt. Progress in the U.S. and Middle East, new partnerships, and a robust project pipeline support a positive outlook for larger contracts and profitability in 2025.