Xebec Adsorption Inc., a global provider of sustainable gas technologies, is pleased to announce its three-year strategic plan to power its growth in sustainable gases. The plan is being presented today at Xebec’s first investor day in Denver, CO and is expected to position the company to target approximately CAD$300–$350 million in revenues and an adjusted EBITDA margin (non-IFRS)1 of approximately 8%–10% in its fiscal year ended December 31, 2024 (“FY2024”). By executing on its strategy, Xebec plans to become a global powerhouse in the field of more environmentally friendly gases for energy, mobility and industry.
Key Strategy Highlights
- Capitalizing on large addressable markets in renewable natural gas (USD$42 billion2), carbon capture & sequestration (USD$27 billion3) and the upcoming hydrogen economy (USD$2.5 trillion4)
- Adding U.S. renewable natural gas manufacturing and sales base with a focus on small-scale agriculture applications and paired with a significant ramp up in annual Biostream production run rate (from 4 units in 2020 to over 100 units targeted in FY2024)
- Going global with hydrogen business supported by target industrial customers as demand from the hydrogen mobility sector ramps up and further accelerated with a target of 20–25 decentralized hydrogen production hubs by FY2024
- Expanding our Pressure Swing Adsorption (“PSA”) and compression technologies for Carbon Capture Utilization and Storage (“CCUS”) to reduce the carbon intensity of both our Cleantech Systems and to enter new markets in CO2 source capture and transportation
- Introducing XBC Flow Services as a unified brand to encompass the U.S. Cleantech Service Network, industrial product sales & distribution, and targeting CAD$150+ million in global segment revenues by FY2024
- Building on strong partnerships in North America and China to support OEM growth and create long-term value
- Invest in new clean technologies to help drive new business models by our fiscal year ended December 31, 2025 and beyond with a target of 2%–3% per year of revenues earmarked for R&D until FY2024
- Financial goals of CAD$300–$350 million in revenues and adjusted EBITDA margin (non-IFRS) of 8%–10% in FY2024, representing up to 40% revenue CAGR and an improvement in adjusted EBITDA margin (non-IFRS) from (7%) for our fiscal year ended December 31, 2021
“Today marks an exciting chapter in Xebec’s evolution as we chart our path over the next three years to become a global leader in sustainable gases,” stated Jim Vounassis, President and CEO of Xebec Adsorption Inc. “Over the last couple of years, we have built a strong foundation to launch off and have the right team, technologies, and business models in place to execute this three-year plan. Lastly, all of this is supported by large addressable markets in renewable natural gas, hydrogen and carbon capture” he added.
Xebec to Host Live Investor Webinar Today to Present Three-Year Strategic Plan
An investor webinar will be held today on Tuesday, March 29, 2022, at 11:00 AM MDT (1:00 PM EDT) for Xebec’s first investor day. The live event will showcase the company’s multi-year strategic plan to enable the successful execution in becoming a global powerhouse in sustainable gases.