LanzaTech: LanzaTech Announces Fourth-Quarter and Full-Year 2024 Financial Results

In This Article: LanzaTech Inc. CHICAGO, April 15, 2025 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech" or the "Company"), a carbon management solutions company, today filed its annual report for the fiscal year ended December 31, 2024 (the "Form 10-K"). Key Takeaways: Reported total revenue of $12.0 million for fourth-quarter 2024 as compared to $20.5 million for fourth-quarter 2023. The decrease was driven primarily by fourth-quarter 2023 benefiting from engineering services performed across several projects which were subsequently completed. Fourth-quarter 2024 revenue was within the forecasted range of potential outcomes previously provided, albeit at the low end of the range due to continued timing delays with several large biorefining projects that remain underway. Reported revenue of $49.6 million for full-year 2024 as compared to $62.6 million for full-year 2023. The year-over-year decrease was primarily driven by 2023 results benefiting from projects that have since reached the completion of their current development phase, coupled with timing delays related to several large biorefining projects experienced throughout 2024. Shifting the Company's core operational focus from research and development to global deployment LanzaTech's commercially proven technology is underway, with actions being taken to sharpen the business focus and improve the Company's cost structure. Evaluating liquidity enhancing initiatives, including capital raising, partnership or asset-related opportunities, and other strategic options. Management has concluded that these initiatives and cost reduction plans do not alleviate substantial doubt about the Company's ability to continue as a going concern, per applicable GAAP requirements. Fourth-Quarter and Full-Year 2024 Financial Results The table below outlines key reported fourth-quarter and full-year 2024 results ($ millions, unless noted): Three Months Ended December 31, Years Ended December 31, 2024 2023 2024 2023 Revenue $ 12.0 $ 20.5 $ 49.6 $ 62.6 Cost of revenue 5.6 12.0 26.0 45.0 Gross Profit 6.5 8.5 23.6 17.7 Operating expenses 33.5 27.1 132.6 124.0 Net loss (27.0 ) (18.7 ) (137.7 ) (134.1 ) Adjusted EBITDA loss (1) $ (21.2 ) $ (19.6 ) $ (88.2 ) $ (80.1 ) (1) See "Non-GAAP Financial Measures" and "Reconciliations of GAAP Net Loss to Adjusted EBITDA" sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release. LanzaTech Inc. Revenue Reported total revenue of $12.0 million and $49.6 million for fourth-quarter and full-year 2024, respectively, as compared to total revenue of $20.5 million and $62.6 million for fourth-quarter and full-year 2023, respectively. The decrease during both periods was driven primarily by 2023 results benefiting from engineering and other services contracts with existing customers and government entities whose projects have since reached completion of their current development phase. Additionally, several large projects experienced timing delays during 2024, which impacted their transferring to the phase where revenue is recognized. Fourth-quarter 2024 revenues were within the forecasted range of potential outcomes previously provided, albeit at the low end of the range due to the aforementioned project delays. Two key projects that did not transfer to a third party, the phase in which revenues are recognized for these projects, were Project Drake in the European Union, and LanzaTech's site under development in Norway. In addition, LanzaTech continues to expect additional LanzaJet shares to be issued with sublicensing events of LanzaJet's alcohol-to-jet technology. These projects remain underway during 2025. Fourth-quarter 2024 results include revenue attributable to Project SECURE, which, in December of 2024, was awarded Department of Energy funding for the initiation of phase one of the project. Project SECURE is led by Technip Energies, in partnership with LanzaTech. Joint Development Agreement ("JDA") & Contract Research revenue for fourth-quarter and full-year 2024 was $1.7 million and $10.6 million, respectively, as compared to $4.2 million and $14.6 million for fourth-quarter and full-year 2023, respectively. The year-over-year decline in both cases was attributable to certain government projects being completed, compounded by a period of downtime prior to new projects commencing, primarily during the second half of 2024. CarbonSmart revenue for fourth-quarter and full-year 2024 was $3.9 million and $7.9 million, respectively, as compared to $2.1 million and $5.3 million for fourth-quarter and full-year 2023, respectively. Fourth-quarter 2024 revenues increased by 88 percent as compared to fourth-quarter 2023 due to incremental direct fuel sales as a result of establishing licensing arrangements, partners, and supply chain infrastructure during third-quarter 2024. Cost of Revenue Fourth-quarter and full-year 2024 cost of revenue was $5.6 million and $26.0 million, respectively, as compared to $12.0 million and $45.0 million for fourth-quarter and full-year 2023, respectively. Cost of revenue for fourth-quarter 2024 was largely comprised of the cost of the CarbonSmart product sold and headcount allocations related to the delivery of biorefining services and JDA work. Gross margin for fourth-quarter 2024 was 54 percent largely as a function of revenue mix, including additional lower-margin CarbonSmart sales. Operating Expenses Fourth-quarter and full-year 2024 operating expenses were $33.5 million and $132.6 million, respectively, as compared to $27.1 million and $124.0 million for fourth-quarter and full-year 2023. The increase year-over-year was driven primarily by project-related expenses, like those incurred for Project Drake and LanzaTech's project in Norway, that are expected to be recovered once the projects advance to Final Investment Decision ("FID"). Net Loss Fourth-quarter and full-year 2024 net losses were $27.0 million and $137.7 million, respectively, as compared to fourth-quarter and full-year 2023 net losses of $18.7 million and $134.1 million, respectively. The increase was attributable to a non-cash expense on financial instruments, as well as the same factors that drove the reduction in revenue as compared to prior periods. Adjusted EBITDA Loss Fourth-quarter and full-year 2024 adjusted EBITDA losses were $21.2 million and $88.2 million, respectively, as compared to adjusted EBITDA losses of $19.6 million and $80.1 million for fourth-quarter and full-year 2023, respectively. The increases in losses year-over-year are mainly attributable to the same factors that drove the reduction in revenue for the comparative periods. Balance Sheet and Liquidity As of December 31, 2024, LanzaTech had $58.1 million in total cash, restricted cash, and investments, compared to total cash of $89.1 million at the end of third-quarter 2024. About LanzaTech LanzaTech Global, Inc. (NASDAQ: LNZA) is the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein. Using its biorecycling technology, LanzaTech captures carbon generated by energy-intensive industries at the source, preventing it from being emitted into the air. LanzaTech then gives that captured carbon a new life as a clean replacement for virgin fossil carbon in everything from household cleaners and clothing fibers to packaging and fuels. For more information about LanzaTech, please visit https://lanzatech.com . Forward Looking Statements This press release includes forward-looking statements regarding, among other things, the plans, strategies and prospects, both business and financial, of LanzaTech. These statements are based on the beliefs and assumptions of LanzaTech's management. Although LanzaTech believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, LanzaTech cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends" or similar expressions. The forward-looking statements are based on projections prepared by, and are the responsibility of, LanzaTech's management. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside LanzaTech's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements, including the Company's ability to continue to operate as a going concern. LanzaTech may be adversely affected by other economic, business, or competitive factors, and other risks and uncertainties, including those described under the header "Risk Factors" in its Form 10-K and in future SEC filings. New risk factors that may affect actual results or outcomes emerge from time to time and it is not possible to predict all such risk factors, nor can LanzaTech assess the impact of all such risk factors on its business, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements, which speak only as of the date hereof. All forward-looking statements attributable to LanzaTech or persons acting on its behalf are expressly q