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Jun 30, 2023
LanzaTech Q2 2023 Earnings Report
LanzaTech demonstrated progress in its mission to recycle the world’s waste carbon supply, with revenue growth driven by demand for capacity increases and advancement of projects through the pipeline.
Key Takeaways
LanzaTech Global Inc. reported a 31% year-over-year revenue increase to $12.9 million for the second quarter of 2023. The company is tightening its 2023 revenue guidance to $80 to $100 million. They are reiterating their forecast to achieve positive Adjusted EBITDA by the end of 2024.
Had zero lost time injuries and zero recordable injuries across global operations.
On target to grow cumulative installed nameplate capacity by over 100% over 2022 capacity, to more than 300,000 tons per year by the end of 2023.
LanzaJet continues to make progress towards the 2023 completion of the world’s first ethanol-based alcohol-to-jet SAF plant at the LanzaJet Freedom Pines Fuels facility in Georgia.
Saw year-on-year revenue growth of 31% to $12.9 million for the second quarter.
Revenue by Segment
Forward Guidance
LanzaTech is tightening its 2023 revenue guidance to $80 to $100 million and updating its 2023 Adjusted EBITDA guidance to a range of negative $75 million to negative $65 million. The company reiterates the forecast to achieve positive Adjusted EBITDA by the end of 2024.
Positive Outlook
- Expect to see expansion of our engineering services and equipment revenues in the back half of the year which will also be kind of positive gross margin improvements over some of the work we did in the first half.
- The revenue that has kind of slipped out of 2023 into 2024 sets us up nicely for that type of revenue growth.
- Medium-term outlook for the business shows a faster execution of our planned strategy, gross profit growth, and lower normalized future expense run rates.
- Expect cash burn to reduce in the second half of the year.
- LanzaTech is fully funded through mechanical completion and start-up of Freedom Pines Fuels.
Challenges Ahead
- Dragon runs at a negative gross margin; it’s work that we’re doing with funding that’s provided from the UK Government.
- Macro dynamic, combined with continued investment in people and focus on retention has led to upward pressure on overall compensation expense.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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