Anaergia Inc.

Thank you very much, operator, and good morning, everyone. On today's call, we'll be discussing Energia's earnings for the second quarter of 2025, which ended June 30, 2025. If you're following along with our slide deck, which is available here on our live streaming webcast, or you can also access it directly from the investor sections of our website, my comments relate specifically to slides one through three. On slide two, you'll see that on today's call, I'm joined by Mr. Essof Ahn, Energia's Chief Executive Officer, Mr. Greg Wolfe, Energia's Chief Financial Officer, and Dr. Yaniv Sherson, Energia's Chief Operating Officer. Before beginning our formal remarks, we would like to refer you to slide three of the presentation, which contains a caution on forward-looking information and a note on the use of non-IFRS measures. Listeners are reminded, as always, that today's discussion may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in these forward-looking statements. Energia does not undertake to update any forward-looking statements except as may be required by applicable laws. Listeners are urged to review the full discussion of risk factors in the company's prospectus that is filed with Canadian securities regulators. And with that, I'll turn the call over to Asaf.

Thank you, Darlene, and good morning, everyone. Thank you for joining us here today. I am now speaking to slide four. We are now deep into our transformation under Energia 2.0, and the results are starting to speak for themselves. Quarter over quarter, year over year, we are seeing clear improvements. Momentum is building, and the strategy we put in place is delivering. You have heard us talk about our five pillars, operational efficiency, capital sales, geographic expansion, strategic partnerships, and a stronger balance sheet. This quarter, we made real progress on each of these. We are now on slide five. Our project teams are delivering. Backlog is being converted into revenue. Execution is picking up pace, and our closing backlog is up 22% over Q1 and a significant 137% since year-end, a strong sign that customer demand and market confidence are both growing. and that confidence is well earned. In Europe, we expanded our agreement with TechVal and signed a multi-portrait deal with CapWatt. In North America, we secured a significant change order on the East County project. These are well-established partners coming back to us for more business. That must say something. Inside the business, we are sharper, leaner, and more disciplined. We are managing costs, We are tightening project controls and we are staying laser focused on profitable growth. Moving to slide six. The result, a stronger company, a company that is turning in the corner and building real momentum. We are doing it in a market that needs exactly what we offer. So what do we offer? End-to-end solutions, global reach, proven results, We convert waste into fuel, clean water and fertilizer, and we do it at the commercial scale in complex environments for customers who need us to deliver. That includes customers with large projects, small projects or portfolio that spend both because our model is scalable up or down across geographies and tailored to real world conditions. That combination is rare. and he's creating real opportunities for Energia. Energia 2.0 is working. We are scaling smarter, we are winning the right kind of work, and we are building a platform that creates lasting value for our customers, our partners, and our shareholders. I will now pass the call over to Greg. He will walk you through the numbers and show you exactly how Energia's strategy is turning into performance. Greg?

Thank you, Asaf, and good morning, everyone. I'm now referring to slide 7 and 8. Let me take you through how our strategy is starting to translate into performance. Revenue for the second quarter was $32.3 million, an increase of 36.8% or $8.6 million compared to the same period in 2024, and an increase of $7.4 million or 30% compared to the first quarter of 2025. This revenue growth was primarily driven by increased capital sales project execution in North America and Italy, as well as higher service revenues in North America. These gains were partially offset by lower BOO revenues as some facilities continue to ramp towards full production capacity. Regionally, revenue increased in North America, Italy, and the broader European region. Revenue in the Asia-Pacific region declined slightly primarily due to decreased activity in the integrated waste management facility capital sale project in Singapore. Gross profit for the quarter was $10.5 million, more than double last year's figure of 152.9%. The strong performance is driven by improved margins in all three segments of our business, capital sales, whose and O&M services. Capital sales is leading the way with newer projects now under construction in Italy and North America. Gross margins for the second quarter was significantly higher at 32.5%, up from 17.6% in Q2 2024. The overall increase in gross margin reflects better cost management and stronger project delivery across the business. SG&A expenses for Q2 2025 slight decrease of 3.7% or approximately $600,000 compared to $14.9 million in Q2 2024. This reflects continued cost control with savings in audit and professional fees offset with some increases in net labor costs. Net loss for the quarter was $9.5 million, an improvement of 29% or 3.9 million, compared to a net loss of 13.4 million in Q2 2024. The improvements in net loss was mainly due to increased revenues and higher gross margins, as well as decreases in SG&A. Adjusted EBITDA for the quarter was a loss of 2.2 million, reflecting a large improvement of 72.1%, or a $5.8 million improvement, compared to a loss of 8 million in Q2 2024. As I have noted, the improvement was the result of higher revenues and gross margins coupled with a slight decrease in SG&A in Q2 2025 compared to Q2 2024. Now moving to slide nine. As of June 30, 2025, our total revenue backlog was $243.9 million, an increase of $140.9 million, or 137% growth. compared to $103.1 million backlog at December 31, 2024. Year-to-date, June 30, 2025, we have capital sale backlog of $191 million and O&M services backlog of $52.9 million. As a reminder, our definition of backlog is only signed capital sales agreements and three years of modeled revenue from long-term O&M contracts. even though many of our O&M contracts have longer terms of 10 plus years. In addition, since June 30th, 2025, we have announced another 43.8 million in new capital sales signed contracts. The growth is mainly driven by new contract signings, particularly in Italy and North America, and reflects growing demand for energy as solutions across multiple markets. In summary, Q2 marked another large step forward in our transformation. We delivered strong year-over-year improvements in revenue, gross profit, and adjusted EBITDA, which is the result of disciplined execution and focused delivery across our business. Margins improved and backlogged more than doubled since year-end 2024, providing a clear line of sight of future revenue. We're building a stronger, more resilient business, one that's grounded in execution, discipline, and cost management in a growing pipeline of high-quality projects. With that, I'll turn it over to Yaniv for an update on our operations and the progress we are making on the project pipeline. Yaniv?

Thank you, Greg, and good morning, everyone. I'm addressing slide 10 now. In the second quarter, we advanced key projects across our build, own, operate, and capital sales segment. We also grew our closing backlog by 22% over Q1, reflecting continued commercial traction and momentum across our global platform. Each of the projects I'll touch on today plays an important role in Energia's long-term strategy. They demonstrate how we're deploying our technology to generate an increasing backlog, strengthening our operational track record, and building market credibility. Let's start with our asset-owned portfolio. At Soka Baomethane, the facility continues operating profitably, serving the organic waste recycling needs of dozens of customers, including blue chip companies such as Amazon and Costco, while supplying RNG to Southwest Gas' natural pipeline. Recently, Southwest Gas submitted an advice letter to the California Public Utilities Commission seeking approval of a long-term RNG supply contract under Senate Bill 1440. The asset demonstrates a repeatable model of retrofitting existing digestion infrastructure at municipal wastewater treatment plants with energy and technology and operations know-how. In New England, the Rhode Island Bioenergy Facility continues ramping up, converting food waste from across New England into RNG that is supplied to Irving Oil on a long-term supply contract. The asset continues to have its carbon intensity score under review by ECCC as part of credit generation in the Canadian Clean Fuel Regulation, or CFR, program. Turning to capital sales, on slide 11... In Singapore, the execution of the TWAS Nexus Integrated Waste Management Facility continues, recognizing $1.2 million in revenue this quarter. This is a landmark contract for the region, valued at over $35 million Singaporean dollars, with a globally recognized client, Singapore's National Environment Agency. Once completed, the facility will process 400 tons per day of organic waste. We announced important new developments this quarter that further strengthen both our global footprint and our global backlog. In Italy, we expanded the scope of our existing contract with TechPAL to supply anaerobic digestion equipment for biomethane production. Initially covering five sites in southern Italy, the agreement now includes seven facilities, with total expected revenue of over $36 million. These plants will be connected to Italy's gas pipeline grid and are scheduled to be completed by mid-2026. In parallel, we signed a binding letter of intent with CapWatt to supply nine advanced biomethane facilities across Portugal, Spain, and Italy. These sites will process agro-industrial waste and are expected to generate more than $60 million in revenue. The first contract for a facility in central Italy, known as Metanex, is valued at approximately $7.3 million, is now underway, and these projects demonstrate repeatable biogas solutions with Tier 1 clients. And in California, Our work with the East County Advanced Water Purification Project expanded engineering and equipment supply of approximately $8.6 million in revenue to our previously announced contract. The project continues to move towards firming up supply of an integrated food waste and renewable power package. Altogether, these projects reflect meaningful progress across our five strategic pillars. They have substantially increased our backlog with top-tier customers, endorsing energy with multi-project and expanding scope contracts. As we scale globally, our focus remains on profitable growth with disciplined execution. Back to you, Asaf.

Thank you, Aniv. I'm now on slide 12. This quarter results will make one thing clear. Energia 2.0 is delivering. We are winning the right project, building lasting partnerships, and converting backlog into profitable growth. Our technology, Our people and our disciplined approach are driving measurable improvements, and we are just getting started. For the market, the markets we work in are growing. Around the world, customers are looking for proven solutions to turn waste into fuel, clean water, and fertilizer. Few companies can deliver that at our scale in the environment where we operate. With a track record we have built. That is why demand is strong and the reason that our pipeline continues to grow. We have the right strategy. We have the right team. And we are executing with focus and discipline to create long-term value for our customers, our partners, and our shareholders. Thank you for your time today and for your continued confidence in Energia. I look forward to updating you on our progress next quarter. Darlene.

Thank you, Asaf. And thank you, everyone. As always, for additional information, or should you have any questions, please contact the IR team at ir.anergia.com or visit us online at energia.com. Thank you all again for your time today. And operator,

You may now end the call. Thank you for attending. You may now disconnect.