Azure Holding Group Corp ($AZRH) Posts Strong 2nd Quarter 2025 Results, Strengthens Balance Sheet

Rhea-AI Summary

Azure Holding Group Corp (AZRH) reported strong Q2 2025 results with sales of $1.42 Million and EBITDA of $0.03 Million for December 2024 through February 2025. The company significantly improved its balance sheet by reducing liabilities by $4.3M, mainly through discontinuing CST Drilling Fluids.

Key developments include: a Letter of Intent to acquire Button Energy, projected to add $56M in sales and $3.32M EBITDA; negotiations with major oil & gas operators in Permian Basin and Eagle Ford Shale; and announcement of a share repurchase program of up to 5M common shares, potentially retiring 35.9% of free-trading market cap.

The company projects $30M revenue for 2025, with potential additional $75M from Button Energy acquisition. Management expects minimum $20M organic revenue for 2025. AZRH plans to uplist to OTCQX by September/October 2025, with audit engagement scheduled for April/May 2025.

Positive

• Q2 sales reached $1.42M with positive EBITDA of $0.03M
• Significant debt reduction of $4.3M through strategic restructuring
• LOI to acquire Button Energy with projected $56M sales and $3.32M EBITDA
• Share repurchase program to potentially retire 35.9% of float
• Strong revenue guidance of $30M for 2025 with additional $75M potential from acquisition

Negative

• Low EBITDA margin of 2.1% ($0.03M on $1.42M sales)
• Discontinuation of CST Drilling Fluids business unit
• Pending audit and uplisting process creates uncertainty
• Revenue projections heavily dependent on acquisition completion

Azure Holding Group Corp ($AZRH) 2nd Quarter 2025 Results

• Company strengthens external and internal Financial Reporting, setting a new standard for published Quarterly Financial Statements on the OTC Market in financials published and released in less than 12 days from the quarter end date

• Strong operational performance for the second quarter and six months ending February 28, 2025 driven by organic growth and successful integration of completed mergers of Freedom Well Testing, and Coil Tubing Technologies, leading to sales for December 2024 through February 28, 2025 of $1.42 Million and income from operations / EBITDA of $0.03 Million

• The Company strengthened it's balance sheet by alleviating over $4.3M in liabilities, primarily driven by the discontinuation of CST Drilling Fluids entity which relieved the company of over $3.8M in liabilities, and through the settlement of it's vendor debt with US Energy through an Escrowed Restricted Stock registration

• Announced execution of Letter of Intent to acquire 100% of Button Energy, which prospectively will $56.0M in sales for 2024 and income from operations / EBITDA of $3.32 Million

• Announced prospective appointment of Michael Woods as the Company's Chairman of the Board of Directors planned for March 2025

• Announced developments in the Company's business development and sales, leading to the negotiations around pricing and service lines with several new Super Major, Major, and Large Independent Oil & Gas Exploration & Production Operators across the Permian Basin and the Eagle ford Shale

• Announced Accelerated Share Repurchase Program of up to 5,000,000 common shares in the current float with the potential to retire up to 35.9% of our free trading market cap held at DTC

• Announced update on capital formation strategy to pursue further acquisitions

• Formally Announced OTC Shell status designation removal planned for mid April 2025

• Formally Announced Audit Timeline including intention to engage and begin the audit by late April and early May 2025

• Formally Announced Uplist Timeline to OTCQX planned for September or October 2025

MIDLAND, TX / ACCESS Newswire / March 12, 2025 / Azure Holding Group Corp (OTC PINK:AZRH) today announced their 2^nd Quarter earnings report for the 6 months ending February 28, 2025 which is now viewable under the disclosures section of the company's profile on OTCMarkets.com.

"Our Second Quarter was focused on organic growth with the company's existing customer relationships, while beginning to develop new customer relationships as we actively negotiate several MSAs (Master Service Agreements) with multiple new Super Major Oil & Gas Exploration & Production customers. Now that we have a clear plan for sustainable and continued growth of all of our acquired businesses, we are focused on Working together, off of a strong 12 months in 2024 despite greater macro political forces that drove a lot uncertainty into the American markets, we are proud to announce a $30.0 Million revenue projection as guidance for the 12 months ending December 31, 2025 in the year ahead which includes growth by additional mergers and acquisitions, not factoring the acquisition of Button Energy which we anticipate will add another $75.0 Million in revenue to our company on a consolidated basis for 2025.

As it stands, with no growth, we believe that our existing business will achieve at least $20.0 Million in revenue organically for the 12 months ending December 31, 2025 on a non-US GAAP and non-fiscal year basis, riding off of the bench strength of our current customer relationships, as well as the formation of new ones.

The 3 months ending February 28, 2025 was not only a great quarter, but a reminder that our country and our industry is heading in the right direction. Confidence in our customer base with the Super Major Oil & Gas companies has never been stronger, and we are proud to serve American in leading the Fight against rising energy prices for the greater good of the American People, nationwide." - Josh Watson and Josh Cohen

About Azure Holding Group
Azure Holding Group Corp. is an acquisition corporation focused on Oil Field Services and Construction, Oil & Gas Exploration & Production, and Oil & Gas Distribution. Azure Holding Group Corp. has completed Reverse Mergers with the following companies: American Industries, Freedom Well Testing, and CST Drilling Fluids. The Company has completed a Joint Venture with Coil Tubing Technologies. The Company is currently evaluating mergers with Button Energy, Bullzeye Wireline, Oil Field Services AI, and several other companies. The Company is currently evaluating a joint venture Drilling Program with Mountain V Oil & Gas.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about Azure's expectations, beliefs, plans or forecasts. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to: any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations or business strategy; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Words such as "estimate," "project," "predict," "will," "would," "should," "could," "may," "might," "anticipate," "plan," "intend," "believe," "expect," "aim," "goal," "target," "objective," "commit," "advance," "likely" or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release unless an earlier date is specified. Unless legally required, Azure does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise.

Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. Actual outcomes or results may differ from anticipated results, sometimes materially. Factors that could cause results to differ from those projected or assumed in any forward-looking statement include, but are not limited to: general economic conditions, including slowdowns and recessions, domestically or internationally; Azure's indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; Azure's ability to successfully monetize select assets and repay or refinance debt and the impact of changes in Azure's credit ratings or future increases in interest rates; assumptions about energy markets; global and local commodity and commodity-futures pricing fluctuations and volatility; supply and demand considerations for, and the prices of, Azure's products and services; actions by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producing countries; results from operations and competitive conditions; future impairments of Azure's proved and unproved oil and gas properties or equity investments, or write-downs of productive assets, causing charges to earnings; unexpected changes in costs; inflation, its impact on markets and economic activity and related monetary policy actions by governments in response to inflation; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including Azure's ability to timely obtain or maintain permits or other government approvals, including those necessary for drilling and/or development projects; Azure's ability to successfully complete, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or divestitures; risks associated with acquisitions (including our anticipated acquisition of Button Energy), mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties and liabilities associated with acquired and divested properties and businesses; uncertainties about the estimated quantities of oil, NGL and natural gas reserves; lower-than-expected production from development projects or acquisitions; Azure's ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes and improve Azure's competitiveness; exploration, drilling and other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver Azure's oil and natural gas and other processing and transportation considerations; volatility in the securities, capital or credit markets, including capital market disruptions and instability of financial institutions; government actions, war (including the Russia-Ukraine war and conflicts in the Middle East) and political conditions and events; health, safety and environmental (HSE) risks, costs and liability under existing or future federal, regional, state, provincial, tribal, local and international HSE laws, regulations and litigation (including related to climate change or remedial actions or assessments); legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, and deep-water and onshore drilling and permitting regulations; Azure's ability to recognize intended benefits from its business strategies and initiatives, such as Azure's low-carbon ventures businesses or announced greenhouse gas emissions reduction targets or net-zero goals; potential liability resulting from pending or future litigation, government investigations and other proceedings; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, power outages, natural disasters, cyber-attacks, terrorist acts or insurgent activity; the scope and duration of global or regional health pandemics or epidemics, and actions taken by government authorities and other third parties in connection therewith; the creditworthiness and performance of Azure's counterparties, including financial institutions, operating partners and other parties; failure of risk management; Azure's ability to retain and hire key personnel; supply, transportation and labor constraints; reorganization or restructuring of Azure's operations; changes in state, federal or international tax rates; and actions by third parties that are beyond Azure's control.

CONTACT:
josh@controlleddev.com
(917) 584-7042

SOURCE: Azure Holding Group Corp.

View the original press release on ACCESS Newswire

FAQ

What are AZRH's Q2 2025 financial results?

AZRH reported Q2 2025 sales of $1.42 Million and EBITDA of $0.03 Million for the period December 2024 through February 28, 2025.

How much debt did AZRH reduce in Q2 2025?

AZRH reduced liabilities by $4.3M, primarily through discontinuing CST Drilling Fluids which relieved $3.8M in liabilities.

What is AZRH's revenue projection for 2025?

AZRH projects $30M revenue for 2025, plus potential additional $75M from Button Energy acquisition, with minimum $20M expected from organic growth.

What is AZRH's share repurchase program details?

AZRH announced a share repurchase program of up to 5,000,000 common shares, potentially retiring 35.9% of free-trading market cap held at DTC.

When does AZRH plan to uplist to OTCQX?

AZRH plans to uplist to OTCQX by September or October 2025, with audit engagement scheduled for April/May 2025.