SANDNES, Norway, Nov. 6, 2025 /PRNewswire/ -- Desert Control AS (DSRT) announces its third-quarter report and interim financial results for the fiscal period ending 30 September 2025.
Operational Highlights:
-- Woodland Hills Country Club, Desert Control's first Pay-As-You-Save
$(PAYS)$ client, achieved significant irrigation savings and improved turf
quality in Q3.Estimated savings and potential incentives may exceed USD
100 000, underscoring LNC's value.
-- Desert Control launched its first almond pilots in California to evaluate
LNC's impact on water-use efficiency and yield performance in this
important permanent crop. The trial marks a key step toward scaling LNC
across high-value crops such as pistachios, walnuts, vineyards, and
citrus.
-- Partners in Saudi Arabia and the UAE advanced research and
commercialization efforts. Saudi Desert Control confirmed over 2×
water retention and 3× nutrient gains in field data, while Soyl
secured a 4 million-liter commercial award for Al Reem Hills in Abu Dhabi,
showcasing large-scale deployment of LNC in sustainable landscaping.
Financial Highlights:
-- Desert Control strengthened its balance sheet during the quarter through
the completion of a fully subscribed NOK 75 million rights issue, legally
finalized before quarter-end and registered in October 2025.
-- The transaction reinforced the Group's equity position and extended
liquidity runway into second half of 2026.
Revenue Outlook:
-- Revenue for the third quarter and the first nine months of 2025 remained
modest compared to the same periods last year, reflecting the structure
of the U.S. PAYS contract under which income is recognized only once
measurable water savings have been verified by the customer.
-- While substantial application work was completed during the period,
related revenues had not yet been recognized as of Q3 2025.
-- The Company expects revenue realization to begin in the fourth quarter,
as customer validation milestones are achieved and invoicing commences
under the PAYS framework
EBITDA Performance:
-- Total operating expenses increased during the quarter and the first nine
months of 2025, resulting in a decline in EBITDA compared with the same
periods last year.
-- The increase primarily reflects higher field activity in the U.S.,
production scaling to support upcoming commercial deliveries, and
continued investment in organizational capacity to enable future growth.
-- The period also included approximately NOK 2.5 million in one-off
restructuring costs, with limited remaining effects expected in the
fourth quarter of 2025.
-- Excluding these temporary items, the underlying cost base remained
broadly stable compared with prior periods, reflecting continued cost
discipline.
Net Result Impact:
-- The net loss for the third quarter and first nine months of 2025
increased compared to the same periods last year. In addition to effects
from the U.S. ramp-up and restructuring activities, the year-to-date
result was influenced by foreign exchange movements totalling
approximately NOK 9.5 million, mainly recognized earlier in the year. The
impact was primarily driven by the strengthening of NOK against USD,
resulting in both realised and unrealised losses on USD-denominated
balances. These non-cash translation effects do not affect the Company's
underlying operations or liquidity position.
Equity and Cash Position
-- Total equity improved slightly compared to the same quarter last year,
supported by the completion of the fully subscribed NOK 75 million rights
issue in September 2025.
-- The transaction was legally completed before quarter-end and recognized
within equity as of 30 September, with proceeds presented under "Other
paid-in capital pending registration."
-- The shares were registered and cash proceeds received in early October,
providing net funds of NOK 70.6 million after transaction-related costs.
-- These proceeds have significantly strengthened liquidity and are expected
to fund operations well into 2026, supporting the Company's continued
scale-up and commercialization agenda.
-- Cash and cash equivalents decreased during the third quarter, reflecting
planned investments in product development, commercial deployment, and
organizational growth.
-- During Q3 2025, the Company also received a NOK 2.3 million SkatteFUNN
grant, compared to NOK 1.5 million in the same period last year, related
to approved R&D activities.
Q3 Report 2025:
The information enclosed is subject to the disclosure requirements pursuant to sections 5-12 of the Norwegian Securities Trading Act.
The report can be downloaded from the company webpage: https://desertcontrol.com/investors/
A webcast presentation for Desert Control's Q3 2025 Report and Company Update will be held on Thursday, 6 November 2025 at 09:00 CET. Register: DSRT Q3 Webcast Registration
For more information, please contact:
James Thomas Chief Executive Officer
Email: james.thomas@desertcontrol.com
Mobile $(USA)$: +1 203 984 7658
About Desert Control:
Desert Control develops innovative solutions to enhance soil health, conserve water, and promote ecosystem resilience. Our proprietary Liquid Natural Clay $(LNC)$ allows sandy, fast-draining soils to retain water and nutrients, improving soil health, crop yields, and ecosystem vitality while conserving water. Desert Control provides customized solutions to strengthen sustainability, profitability, and prosperity for agriculture, forests, and green landscapes. In collaboration with partners and clients, we aim to preserve natural resources, enhance food security, and ensure a climate-resilient future.
Important Notice:
This information is considered to be inside information pursuant to the EU Market Abuse Regulation $(MAR)$ and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock exchange announcement was published by Leonard Chaparian, CFO in Desert Control AS, at the time and date stated above in this announcement.
Cautionary Note:
This release contains forward -looking information and statements relating to the business, performance, and items that may be interpreted to impact the results of Desert Control and/or the industry and markets in which Desert Control operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "aims," "anticipates," "believes," "estimates," "expects," "foresees," "intends," "plans," "predicts," "projects," "targets," and similar expressions. Such forward-looking statements are based on current expectations, estimates, and projections, reflect current views concerning future events, and are subject to risks, uncertainties, and assumptions, and may be subject to change without notice. Forward-looking statements are not guarantees of any future performance, and risks, uncertainties, and other important factors could cause the actual business, performance, results, or the industry and markets in which Desert Control operates to differ materially from the statements expressed or implied in this release by such forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecasted performance, capacities, or results will be achieved, and you are cautioned not to place any undue reliance on any forward-looking statements.
For more information, visit https://www.desertcontrol.com/
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SOURCE Desert Control AS
(END) Dow Jones Newswires
November 06, 2025 00:52 ET (05:52 GMT)
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