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(Sharecast News) - MyCelx Technologies said in an update on Tuesday that it achieved profitability in 2025, materially outperforming market expectations, as strong revenue growth, tighter cost control and a higher contribution from higher-margin activity drove a sharp improvement in earnings.
The AIM-traded clean water and clean air technology group said it expected full-year revenue of around $11.7m, a 140% increase on 2024, although slightly below market expectations of $12.5m.
EBITDA was expected to be $680,000, compared with market forecasts for a loss of $200,000, with the figure including a $160,000 gain from the sale of the company's Saudi Arabia operations.
Excluding that gain, EBITDA was expected to be around $520,000, still a significant improvement on the prior year.
Profit before tax was expected to be about $360,000, including the disposal gain, compared with market expectations for a loss of $600,000.
On an underlying basis, excluding the gain, profit before tax was expected to be around $200,000.
MyCelx said the outperformance reflected strict cost discipline, operating leverage and an increased contribution from higher-margin revenue streams.
Cash and cash equivalents at year-end were $860,000, including $50,000 of restricted cash, with the company also expecting to collect around $4m in cash during the first quarter of 2026.
The company said it entered the new financial year with a stronger earnings profile, a streamlined organisation and improving commercial momentum across its core markets in the US and internationally.
While encouraged by the outlook, the group said it was maintaining current-year guidance for now and will update the market once there was greater visibility on several major contracts.
As part of a strategic update, MyCelx said it had refined its focus to three core markets - produced water treatment, PFAS remediation and industrial water services.
Produced water remained the primary focus, while PFAS remediation was emerging as a significant opportunity, with the company targeting specific verticals where budgets were currently available.
In water services, MyCelx said it continued to generate high-margin revenue from niche applications and plans to grow this business incrementally.
The company also announced senior management changes, with Matthew Goysich promoted to executive vice president from director of engineering, and Jim Weidler appointed executive vice president of business development.
Both had joined the executive management team and would attend board meetings.
Additional hires in engineering and business development were planned in the first quarter to support growth, particularly in the Permian Basin.
"Achieving profitability represents an important inflection point for MyCelx," said chief executive officer Connie Mixon.
"Our reputation for delivering advanced technology that economically provides better performance is increasingly recognised among key market players globally."
She added that the group remained focused on executing its strategy to win new business and strengthen its financial profile over the long term.
At 1601 GMT, shares in MyCelx Technologies Corporation were up 22.81% at 35p.
Reporting by Josh White for Sharecast.com.