Anaergia is a cleantech stock with promise, Beacon says

Beacon Securities analyst Donangelo Volpe said Anaergia (Anaergia Stock Quote, Chart, News, Analysts, Financials TSX:ANRG) is showing signs of a turnaround after a difficult restructuring, with major international contract wins and a swelling backlog positioning the company for renewed growth.

Anaergia is a global provider of waste-to-value solutions, converting organic waste into renewable natural gas, clean water and fertilizer. With more than 18 years of experience, it has delivered over 1,500 facilities worldwide and holds more than 250 patents supporting its vertically integrated model. Anaergia’s global headquarters are located in Burlington, Ontario.

In a Sept. 8 watchlist report, Volpe said that Anaergia’s backlog has tripled since its 2024 restructuring, which included management changes, insider ownership climbing above 80%, and a $41-million investment from Marny Investissement. Shares have since rebounded from a low of 20 cents to $2.81.

“Notably, the company’s backlog has already tripled this year to over $300M, compared to approximately $100M at the end of fiscal 2024, signalling renewed customer confidence and sustained growth momentum,” he said, pointing to momentum across Europe, the U.S. and Asia-Pacific.

Europe has delivered Anaergia’s largest deal to date: an agreement with Nortegas subsidiary Norbiogas to build more than 15 biomethane plants in Spain, expected to generate $184-million in revenue, marking the largest capital sale in Anaergia’s history. Volpe said the contract could be only the beginning.

“All facilities are expected to be fully operational and integrated into Spain’s gas pipeline network within 48 months,” he said. “There is potential for additional contract awards over time as Nortegas plans to invest €600M in the construction of around 60-70 plants by 2030.”

The U.S. remains the company’s core market, accounting for over 60% of revenue, with four operating build-own-operate assets and two more in development. Regulatory tailwinds from California’s SB1383 and SB1440, alongside federal Inflation Reduction Act incentives, are supporting renewable natural gas demand. Anaergia is also building a presence in Asia-Pacific, with projects in Singapore, Japan and South Korea, including the $40-million Jeju Bio Energy Biogas Plant.

Volpe added that Anaergia’s partnership with PepsiCo on food waste-to-biogas projects could expand significantly, tying into Pepsi’s 2040 net-zero commitments.

“The contracts involve converting organic waste from manufacturing (such as potato peels, food scraps, and wastewater sludge) into biogas through anaerobic digestion, which is then upgraded to biomethane,” he said. “The biomethane is then used as renewable fuel to power facilities, reducing reliance on fossil fuels and cutting emissions. PEP has increasingly integrated biomethane production into its operations as part of its sustainability strategy, which aims to achieve net-zero emissions by 2040.”

Financial results also point to progress. Second-quarter revenue rose 37% year-over-year to $32-million, with gross margins improving to 33% from 18% and Adjusted EBITDA losses narrowing to $2-million from $8-million. First-half revenue totaled $57-million, meaning nearly $100-million in second-half sales will be needed to meet consensus estimates for 2025.

“A strong second half would represent the inflection point in terms of becoming Adjusted EBITDA positive,” Volpe said.