PyroGenesis Inc. announces Q3 2025 financial results, with revenue of $3.25 million, a gross margin of 24%, and a net loss of $2.25 million. They secure a $1.2 million contract with a cement industry customer and make major strides in fumed silica reactor performance, tripling material surface area from Q2 to Q3.

In August, PyroGenesis signs a contract with Constellium for plasma torch technology to be used in an aluminum remelting furnace. In September, they secure a $1.2 million contract with a European cement industry customer for a plasma torch system. They announce improved fumed silica quality and receive a contract for titanium metal powder.

The company continues to focus on innovation in industrial technology, with a strong finish planned for Q4 2025. PyroGenesis’ revenue for Q3 2025 is down 18.7% compared to Q3 2024, with a gross margin of 24%. They have a revenue backlog of $51.6 million and a modified EBITDA loss of $1.89 million. The results of August testing show a 3X increase in surface area measurement to 136 m2/g, meeting commercial grade requirements. Carbon impurity has been eliminated, now measured at 0%.

In July, PyroGenesis secured a $600,000 contract for advanced waste management and completed a $9.3 million coke-oven gas valorization project for Tata Steel.

PyroGenesis recently announced a non-brokered private placement, including two unit groups, with the first one closing at $4,199,999. President/CEO subscribed for the majority. Repricing and extension of warrants was also announced. In Q3 2025, revenue decreased by $0.8 million due to completion of projects and reduced project activity in Torch-related and SPARC™ sales. Biogas upgrading revenue increased by $0.3 million. For the nine-month period, revenue fluctuated by $2.2 million with decreases in PUREVAP™ and DROSRITE™ sales, offset by a $2.3 million increase in biogas upgrading revenue.

Cost of sales and services in Q3 2025 rose to $2.5 million, driven by higher subcontracting and direct materials costs. Gross profit was $0.8 million, down from $1.7 million in Q3 2024, due to increased costs. For the nine-month period, cost of sales decreased to $6.0 million, largely due to lower direct materials costs, resulting in a gross profit of $3.2 million.

As of November 11, 2025, future revenue expected from backlog contracts is $51.6 million, with 81% in US dollars. The revenue will be recognized over a period of approximately 3 years. The Company’s financial performance was impacted by completion of projects, reduced project activity, and increased biogas upgrading revenue. The increase in gross margin was due to reduced total costs, lower production volumes, and efficiency gains, offset by higher subcontracting expenses. Selling, General and Administrative expenses totaled $2.6 million in Q3 2025, down from $5.0 million in 2024. Research and Development costs were $0.2 million in Q3 2025, comparable to 2024. Net financial expense for Q3 2025 was $0.2 million, down from $0.3 million in 2024. The company’s financial income increased year-to-date due to favorable non-cash revaluation adjustments and reduced financing costs, shifting from a gain position in 2025 compared to net interest and accretion expenses in the prior year.

Strategic investments in Q3, 2025 resulted in a loss of $0.02 million, contrasting with a gain of $0.005 million in Q3, 2024, showing a variation of $0.03 million. For the nine-month period ending September 30, 2025, strategic investments incurred a loss of $2.1 million, a substantial increase from the $0.2 million loss in the prior year.

The company reported a comprehensive loss of $2.5 million for Q3, 2025, an improvement from the $3.9 million net loss in the same period in 2024. The comprehensive loss for the nine-month period ending September 30, 2025, totaled $10.0 million, reflecting an increased loss of $3.1 million year over year.

As of September 30, 2025, the company had cash of $0.1 million and a net working capital deficiency of $15.3 million. With cash, liquidity position, and access to capital markets, the company expects to finance its operations for the foreseeable future.

The company’s term loan balance at September 30, 2025, was $0.3 million, decreasing by $0.05 million since December 31, 2024. The average interest expense on other term loans and convertible debentures is approximately 10%.

PyroGenesis develops technology for high temperature processes in heavy industry and defense, aiming to improve operational efficiencies, product quality, output, cost, emissions, logistics, and safety environments. Its strategy aligns with industry trends towards electrification, carbon reduction, waste reduction, and critical minerals availability.

PyroGenesis targets heavy industries like aluminum, steelmaking, and aeronautics with technology-based solutions to navigate increasing demand, regulations, and material availability challenges. Growing interest from defense and military industries has led to identifying them as unique target markets for the company. PyroGenesis attracts interest in waste destruction, high temperature propulsion, and titanium metal powders. The company focuses on attracting influential customers while controlling expenses for profitable growth. Key Performance Indicators include industry depth, new industry engagement, customer depth, and studies undertaken for new customer acquisition. PyroGenesis aims for ongoing recurring revenue and diversification in revenue mix for growth. Cost controls and efficiencies are prioritized for optimized labor and financial resources. The company targets $3-$5 million in cost optimization for 2025. PyroGenesis focuses on cost optimization without sacrificing revenues or market competitiveness. The company continues enhancing sales, marketing, and R&D efforts to align with industrial changes in energy transition, electrification, and greenhouse gas reduction. Macroeconomic conditions, such as interest rate fluctuations and potential recessions, pose challenges but PyroGenesis believes in the demand for its solutions. The company is unaffected by military conflicts in Russia, Belarus, and Ukraine but monitors global economic uncertainty and supply chain disruptions. PyroGenesis anticipates variability in quarterly revenue due to macroeconomic conditions but remains confident in its diverse customer base and solution set. The company’s efforts to reduce costs through sourcing high-quality, cost-competitive suppliers further strengthen its position. PyroGenesis anticipates the completion of upcoming milestones to validate its strategies, including payments for outstanding major receivables and various energy transition projects, such as plasma torches for cement-related processes and aluminum remelting furnaces. PyroGenesis is conducting plasma torch tests with Client B, a major iron ore producer, and Client C in the steel industry for decarbonization initiatives. The company’s titanium metal powder is now approved by a global aerospace leader. Discussions are ongoing for lithium battery material recovery and waste processing projects. Further announcements are expected soon. PyroGenesis is finalizing a contract for a 4.5 MW plasma torch for a U.S. government prime contractor in aeronautics and defense. A 20 MW plasma torch contract was also signed, representing one of the most powerful commercially available. Additionally, the company is working on plasma-based glass recycling and metal manufacturing solutions.

In materials production, PyroGenesis developed PozPyro, a cement additive that enhances concrete strength. Compressive strength tests showed significant improvements over fly ash and even surpassed Portland Cement. A potential contract for a pilot plant is estimated at $15-20 million. The company is also exploring plasma torch applications in steel manufacturing, brickmaking, steelmaking, alumina calcination, and with a global chemical firm. PyroGenesis has started constructing their pilot plant and is in negotiations to integrate plasma torches into the facility. The company is also in talks with potential customers for silicon, nano-silicon, and silica production, including a major automaker and a US battery manufacturer. Discussions are ongoing for waste processing solutions, such as plasma torches for hazardous waste destruction and tunnel boring. The company is also working on a plasma waste-to-energy system with a European consortium, although the project is currently on hold due to funding issues. Additionally, PyroGenesis is in discussions with a European entity for plasma torches in waste-to-energy initiatives. PyroGenesis has issued a statement cautioning investors about forward-looking statements, emphasizing the uncertainties and risks involved. Factors that could impact results include risks outlined in PyroGenesis’ annual information form and other filings with regulatory authorities. Investors are advised to carefully consider these risks and not rely solely on the statements provided. PyroGenesis will update as required by law. Contact [email protected] for more information.

Read more at GlobeNewswire: PyroGenesis Announces Third Quarter 2025 Results