CDT Environmental Reports $18.2M Revenue for 2025, Net Loss of $10.3M Amid Project Delays and Credit Provisions

CDT Environmental Technology Investment Holdings Limited (Nasdaq: CDTG), a Chinese provider of waste treatment systems and services, announced on May 15, 2026, the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2025, with the U.S. Securities and Exchange Commission. The report reveals a challenging year for the company, with total revenues falling 38.8% to approximately $18.2 million, compared to $29.7 million in 2024. The decline was primarily driven by a 39.2% drop in sewage treatment system installation revenues to $17.3 million, attributed to delays in projects initiated between 2021 and 2024 due to prolonged local government reviews and a reduction in new contracts secured in 2025.

The company reported a net loss of $10.3 million for 2025, reversing net income of $1.4 million in 2024. The loss was largely due to a $14.7 million provision for credit losses, net of recoveries, compared to a net recovery of $6.5 million the prior year, reflecting increased credit risk and collectability concerns amid China’s economic downturn. Stock-based compensation also rose by $1.7 million. Despite this, gross profit margin improved to 41.5% from 37.8%, as the company completed more profitable projects.

Operating expenses surged 107.7% to $19.2 million, driven by the credit provision and stock compensation. However, CDT’s working capital remained stable at $26.4 million as of December 31, 2025. The company highlighted restructuring activities that have streamlined operations and improved efficiency, supporting a more competitive cost structure.

As of March 31, 2026, CDT had three projects in backlog with a total provisional contract value of approximately $26.8 million: Phase VI of the Jimei Guankou Project ($4.3 million), the Xiamen Xinglin Pipeline Network Renovation Project ($12.5 million), and the Hubei Wuxue Project ($10 million). The company is also bidding on two new wastewater treatment system projects, with results expected by the third quarter of 2026.

Looking ahead, CDT is prioritizing investments in new energy opportunities, aiming to convert organic solid waste into renewable energy. The company is in discussions with potential partners to support China’s ‘Dual Carbon’ goals and diversify revenue streams. CEO Li Yunwu expressed confidence in long-term demand for water treatment services, driven by municipal needs, and expects improved core sales growth and stable margins in 2026.

CDT’s annual report can be accessed on the SEC’s website at www.sec.gov or the company’s site at https://www.cdthb.cn. The company’s ability to recover accounts receivable and secure new contracts will be critical to its financial performance in the coming year.

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