PyroGenesis reports Q1 2025 financial results, with $3M revenue and $4.26M net loss.
From GlobeNewswire.: 2025-05-13 21:30:00
PyroGenesis Inc. reports Q1 2025 financial highlights: $3 million revenue, 27% gross margin, $4.26 million net loss, and $52 million revenue backlog. Modified EBITDA loss of $2.96 million. Post-quarter, a $5,750,000 private placement was announced. The company operates in three main business verticals: energy transition, commodity security, and waste remediation.
In the energy transition sector, Pyro Green-Gas secured a $2.5 million contract for a waste-to-energy project and a $2,400,000 contract with Norsk Hydro ASA to replace fossil fuel burners with plasma torches for aluminum melting. The multi-national client operates in dozens of countries, focusing on renewable natural gas production and emissions reduction. PyroGenesis aims to help heavy industries reduce energy costs, emissions, and maximize raw materials. PyroGenesis has entered into a co-venture with GE Vernova to develop technologies that replace fossil fuel combustion with all-electric plasma torches for high temperature industrial processes. The company also announced successful production of fumed silica materials and a multi-year product certification process with Boeing for titanium metal powder.
Additionally, PyroGenesis has been granted a European patent for its SPARC™ technology that targets the destruction of ozone depleting substances, such as refrigerants. The company also received payments under existing contracts with Raidan Oil and Gas Services Company and a U.S. aeronautics and defense client. Revenues for Q1 2025 totaled $3.0 million, with a decrease compared to Q1 2024.
In terms of financial highlights, PyroGenesis received payments under existing contracts and amended common share purchase warrants. The company’s Q4 2024 revenue was $4.22 million, up 40% year-over-year, with a full-year revenue of $15.7 million, up 27% year-over-year. The company also reported a backlog of $54.4 million. Management believes that potential U.S. tariffs on Canadian products will have little to no direct negative impact on PyroGenesis’ bottom line. An independent laboratory is conducting a detailed analysis to verify the structural and chemical properties of products, with results informing process optimization for future testing phases. DROSRITE™ sales decreased by $0.5 million due to reduced orders from existing clients, while SPARC™ sales increased by $0.2 million. Revenue expected from signed contracts is $52 million, with 88% in US dollars.
Support services for the US Navy decreased by $0.8 million, but spare parts and engineering services contracts increased. Torch-related products and services dropped by $0.4 million after completing a project. Biogas upgrading and pollution control sales rose by $1.4 million due to project advancements. Other sales and services decreased by $0.2 million due to project variations and customer demand shifts.
Cost of sales and services for Q1 2025 totaled $2.2 million, down $0.5 million from the previous year. Gross profit was $0.8 million, representing 27% of revenue, compared to 22% in Q1 2024. Selling, general, and administrative expenses decreased by $0.8 million, with reductions in employee compensation, share-based compensation, and professional fees. Research and development costs netted $0.3 million for internal projects in Q1 2025. The Company is investing in innovation to expand market offerings. R&D expenses shifted towards software development, process optimization, and design refinement, reducing material costs. Strategic investments resulted in a loss, impacting comprehensive income. The Company’s liquidity position and access to capital markets are expected to finance operations for the foreseeable future. PyroGenesis focuses on technology solutions for heavy industry, aligning with industry trends towards electrification and environmental projects. Industry and government are preparing strategies for securing critical minerals amidst rising demand. PyroGenesis shifts focus to key verticals for success in heavy industry. The company targets major industries seeking technology-based solutions for challenges like increasing demand and regulations. PyroGenesis aims for profitable growth by commercializing offerings and attracting influential customers.
PyroGenesis monitors performance with key indicators like industry depth, new industry engagements, and customer depth. The company has strong ties with industries like aluminum, military, and government, and is expanding into mining, aerospace, and more. Through studies and recurring revenue, PyroGenesis aims to grow sustainably and diversify revenue sources.
Cost control is a priority for PyroGenesis, optimizing labor and financial resources for projects. The company focuses on projects with defined benefits and risks, seeking clarity in budgeting during inflation. An ongoing Cost Optimization program identifies areas for cost reduction to ensure financial efficiency in 2025. The Company has identified $2 million in recurring cost savings through patent expenses, insurance, and workforce optimization, with a target of $3-5 million in 2025. Sales, marketing, and R&D efforts align with industrial changes in energy transition. Macroeconomic conditions bring uncertainty, impacting customer base and markets. Military conflicts in the Middle East and Eastern Europe create global economic uncertainty.
Despite the uncertainties, there is an accelerated need for PyroGenesis’ solutions in heavy industries transitioning to new energy sources. The Company’s diverse customer base and cost-cutting measures help mitigate revenue fluctuations. The Company is not directly impacted by military conflicts in Russia, Belarus, or Ukraine. Global supply chain threats increase interest in the Company’s solutions within minerals and metals industries.
Upcoming milestones include confirming business strategies, with near-term developments focusing on outstanding receivables and energy transition projects. PyroGenesis has signed contracts for plasma torch testing in alumina calcination and glass recycling projects. An LOI for large-scale plasma remelting furnaces with Constellium was announced in Q2 2024. In Q4 2024, PyroGenesis progressed to advanced negotiations for the first project under a LOI with Constellium, with an anticipated announcement in late Q2 2025. Ongoing discussions with other clients for similar contracts are also underway. Live furnace tests using plasma are being conducted with major aluminum companies and other potential partners.
Client B’s iron ore pelletization torch trials faced delays due to unforeseeable challenges but are progressing. Client B remains committed, with ongoing live trials using PyroGenesis plasma torches until sufficient performance data is gathered. A Q2 2025 timeline is estimated for completion of performance testing. Client C continues to work with PyroGenesis on plasma decarbonization initiatives, with an expected Q2 2025 completion date for the current project.
Boeing is undergoing a multi-year product certification process with PyroGenesis for titanium metal powder produced by NexGen plasma atomization. Technical requirements for titanium coarse metal powder have been met, and PyroGenesis expects to be formally added to Boeing’s supplier list soon. The Fumed Silica Reactor project with HPQ Polvere successfully completed commissioning and commenced pre-commercial production tests in Q1 2025. PyroGenesis conducted Drosrite furnace trials for aluminum dross processing in Q4 2024. Data analysis ongoing for potential system purchases. Discussions for Plasma Resource Recovery and SPARC Refrigerant Waste systems nearing final negotiations in Europe and the US. Negotiations for plasma-based glass valorization in Canada ongoing with an estimated $2 million contract value.
Future plans include negotiations for plasma torches in cement production and carbon black, with potential values ranging from $500,000 to $3 million. Discussions for the sale of plasma torches and systems for carbon black, hydrogen, and graphite production are underway, with a potential project value of $2 million. Discussions for Drosrite systems with aluminum manufacturers globally are in various stages, including potential purchases from Middle Eastern and European companies.
PyroGenesis is in discussions with various companies in North America and Europe for the sale of titanium metal powder, as well as for the production of green cement additive PozPyro. PozPyro has shown promising results in compressive strength tests, potentially leading to a future pilot plant contract worth $15-20 million. Long-term discussions for silicon, nano-silicon, and silica production are ongoing with potential customers, including a major global automaker, a US battery manufacturer, and a raw material supplier to the construction industry. A South Asian raw material producer is discussing a production system worth $10-15 million. They are in early talks with an Asian commodity producer about using plasma for transforming waste into silica compounds. Negotiations are ongoing with a North American hazardous waste facility for a plasma torch system to replace incineration processes, including for PFAS chemicals. EarthGrid is in talks for a plasma torch system sale, expecting a multi-year partnership. A European consortium’s plasma waste-to-energy system project is on hold due to lost financing. Discussions with a European entity for plasma torches in waste-to-energy initiatives are ongoing. The company is a leader in developing plasma processes for various industries, with shares traded on the TSX in Canada, OTCQX in the US, and Frankfurt Stock Exchange in Germany. PyroGenesis issued forward-looking statements regarding future events and performance, based on opinions, assumptions, and estimates subject to uncertainties and risks. Factors affecting actual results include those listed in PyroGenesis’ filings. The Toronto Stock Exchange and OTCQX Best Market do not guarantee the accuracy of the press release. Contact VP of IR/Comms for more information.
Read more at GlobeNewswire.:: PyroGenesis Announces First Quarter 2025 Results