PyroGenesis Announces Second Quarter 2025 Results

Executive Summary

• PyroGenesis Inc. reported financial and operating results for the second quarter ended June 30, 2025, showing a decline in revenue but a significant improvement in gross margin.
• The company achieved key operational milestones, including the completion of a major hydrogen production project for Tata Steel and the achievement of approved supplier status with Boeing for its titanium metal powder.
• The company announced the completion of a non-brokered private placement loan of up to $5.75 million with CEO P. Peter Pascali, having already closed the first tranche of $2.385 million.

Key Details

• Financial Performance (Q2 2025):
  • Revenue: $3.0 million (down 23.6% from $3.9 million in Q2 2024).
  • Gross Margin: 56% (up from 29% in Q2 2024).
  • Net Loss: $2.9 million.
  • Modified EBITDA Loss: $2.1 million.
  • Revenue Backlog: $51.1 million as of August 6, 2025 (83% in USD).
• Revenue Breakdown (Q2 2025):
  • Torch-related sales: $1.23 million (down from $2.79 million).
  • Biogas upgrading and pollution controls: $780,000 (up from $176,000).
  • Refrigerant destruction (SPARC™): $333,000 (up from $149,000).
  • PUREVAP™ silicon: $136,000.
  • DROSRITE™ recovery: $125,000.
  • U.S. Navy development/support: $146,000.
• Operational Highlights:
  • Tata Steel Project: Completed the $9.3 million coke-oven gas valorization and hydrogen production project in India; systems are in continuous 24/7 operation.
  • Boeing Approval: Achieved approved supplier status for "coarse cut" Ti64 titanium metal powder produced via the NexGen™ plasma atomization system.
  • Fumed Silica Reactor (FSR): Confirmed third-party lab analysis of material produced by the FSR pilot plant was fumed silica with expected impurities; received accelerated sample requests from multiple potential clients.
  • Constellium Contract: Signed a contract for plasma torch technology and peripheral components for an aluminum remelting furnace (Phase 2), expected to complete by Q1 2026.
  • Waste Remediation: Signed a €379,000 (~$600,000) contract with a major European environmental services company for plastic waste solutions.
• Financing Activities:
  • Completed a non-brokered private placement loan with CEO P. Peter Pascali for up to $5.75 million.
  • Closed the first tranche of the loan for $2.385 million in May 2025.
  • Amended up to 1,581,250 common share purchase warrants, extending expiration from July 22, 2025, to November 18, 2025.
• Cost and Expense Analysis:
  • SG&A expenses totaled $3.6 million in Q2 2025, largely due to a $3.8 million reversal of expected credit loss/bad debt in the prior year; excluding this, SG&A decreased by $0.4 million.
  • R&D costs were $0.4 million in Q2 2025.
  • Net financial income was $0.8 million in Q2 2025, driven by a $1.0 million non-cash gain from the revaluation of a business combination balance.
• Liquidity:
  • Cash on hand: $1.2 million as of June 30, 2025.
  • Term loan balance: $0.3 million.
  • Credit facility fully reimbursed and extinguished during the six-month period.

Notable Quotes

• “This quarter marked significant milestones that advanced our strategic objectives,” said P. Peter Pascali, President and CEO. “We made meaningful progress toward the commercialization of our fumed silica reactor process and achieved approved supplier status with one of the world’s leading aerospace companies...”
• “Although we achieved solid operational progress this quarter, our financial performance was affected by delayed project starts, leading to lower-than-expected revenue... we remain focused on what we can control: driving continued cost optimization... and expanding our global outreach...”