Sandnes, Norway, 7 October 2026 - Desert Control (OSE: DSRT), a leader in soil and water conservation technology, announces that it is withdrawing its previously issued 2026 revenue guidance.
The Company is withdrawing its outlook due to lengthened sales cycles resulting from macroeconomic pressures in the United States agricultural sector and the ongoing conflict in Middle East. Further, delayed data readouts in some pilots have extended commercial conversations.
"While our record number of customer pilots in the first half of 2026 showed strongly positive results in most cases and our customers remain engaged in expansion conversations, large commercial conversions have been delayed as our customers cope with the significantly increased cost of farm inputs, principally fertilizers and diesel fuels, and seek additional data on LNC's effects on soil health and yield before making large capital investments in a time of uncertainty. LNC is performing in the field and we are seeing treated acreage expand, but unfortunately the conversion to larger contracts has been delayed," says James Thomas, CEO of Desert Control. "Overall interest in LNC remains high, with continued new customer acquisition and pilot deployment."
The Company has initiated a review of sales processes and outlook and expects to give a thorough business update on its investor update call scheduled for 19 November.
For more information, please contact:
David Borah
Chief Financial Officer
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.
Cautionary Note
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by David Borah, Chief Financial Officer of Desert Control AS, at the time and date stated above.
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.