PyroGenesis Inc. announced Q2 2025 financial results, with $3 million in revenue, a 23.6% decrease from Q2 2024. The gross margin improved to 56%, a 27-point increase. The company’s net loss was $2.9 million, with a Modified EBITDA loss of $2.1 million.

The company operates in three main business verticals: Energy Transition & Emission Reduction, Commodity Security & Optimization, and Waste Remediation. In July, Pyro Green-Gas completed a $9.3 million coke-oven gas valorization and hydrogen production project for Tata Steel, improving production efficiency and environmental outcomes.

In the Commodity Security & Optimization vertical, PyroGenesis successfully produced fumed silica in their Fumed Silica Reactor pilot plant. Independent analysis confirmed the material produced was fumed silica and had greater than anticipated yields. The company received accelerated sample requests from potential clients, highlighting the project’s economic potential. PyroGenesis has made advancements in its plasma-based process for producing fumed silica directly from quartz, with recent material samples passing test protocols for a leading supplier in June. They also achieved approved supplier status with Boeing for titanium metal powder produced by their NexGen plasma atomization process in May.

In July, PyroGenesis signed a contract worth €379,000 with a major environmental services company in Europe to develop a solution for the plastic waste problem. This marks the third project with the client, following previous work related to renewable natural gas production and biogas infrastructure.

Financially, PyroGenesis recorded a revenue of $3.0 million in Q2 2025, down from $3.9 million in Q2 2024. This decrease was attributed to lower sales in areas such as DROSRITE™ and torch-related products and services. Overall revenue for the six-month period ending June 30, 2025, was $6.0 million, down from $7.4 million in the same period in 2024. During the six-month period ended June 30, 2025, PyroGenesis reported various revenue changes, such as decreases in PUREVAP™ and DROSRITE™ sales, but an increase in SPARC™ sales and biogas upgrading and pollution controls revenue. The company expects to recognize $51.1 million in future revenue from backlog contracts, excluding one affected by the Companies Creditor Arrangement Act.

In Q2 2025, PyroGenesis saw a decrease in cost of sales and services to $1.3 million, resulting in a gross profit of $1.7 million, representing 56% of revenue. The improved cost structure and operational efficiencies contributed to the margin expansion. Employee compensation costs remained stable, and direct material costs were reduced.

For the six-month period ended June 30, 2025, costs of sales and services totaled $3.5 million, with reductions in direct material costs and employee compensation. Subcontracting expenses slightly increased, and manufacturing overhead costs saw a modest decline. Investment tax credits remained consistent. The amortization of intangible assets decreased compared to the prior year. Management expects costs to align with revenue. Selling, General and Administrative Expenses for Q2 2025 totaled $3.6 million, up $3.4 million from the same period in 2024. Employee compensation and share-based compensation decreased, but office and general expenses rose. SG&A expenses for the six-month period ending June 30, 2025, were $7.3 million, an increase of $2.6 million from 2024.

Research and Development Costs for Q2 2025 were $0.4 million, up $0.2 million from Q2 2024. For the six-month period ending June 30, 2025, R&D costs were $0.7 million, a $0.2 million increase from the previous year. These expenses also include R&D expenditures from client-funded projects eligible for tax credits.

Finance Expenses (income) for Q2 2025 saw a net financial income of $0.8 million, a favorable variance of $1.1 million from Q2 2024. Interest accretion expenses decreased, but new financing costs were incurred. For the six-month period ending June 30, 2025, net financial income was $0.5 million, a favorable variance of $1.0 million from the previous year. Interest accretion on convertible instruments declined significantly. Lease liability interest decreased slightly as current leases approach maturity, with $0.02 million interest and $0.04 million accretion on a new loan. Strategic investments resulted in a $1.4 million loss in Q2, 2025. Comprehensive loss for the quarter was $3.1 million, influenced by lower revenue recognition and SG&A expenses. Liquidity at June 30, 2025, was $1.2 million with access to capital markets to finance operations. PyroGenesis provides technology solutions to heavy industry, focusing on ultra-high temperature processes amidst increasing support for environmental technologies and infrastructure projects. Industry and government are strategizing to secure critical minerals for increased demand. PyroGenesis expands focus to support heavy industry goals. The company’s technology solutions cater to various industries facing demand, regulations, and material challenges. PyroGenesis aims for profitable growth by commercializing offerings and attracting influential customers. Key Performance Indicators monitor organizational performance and market engagement, targeting recurring revenue and cost efficiencies. The company prioritizes project viability and budget clarity amidst inflation pressures. The Company is focusing on cost optimization for 2025, building on $3 million in savings from 2024. Identified areas include patent expenses, insurance, and workforce optimization, aiming for $3-5 million in total savings. Sales and marketing efforts align with energy transition trends. Macroeconomic uncertainty may impact future operations, but PyroGenesis remains confident in the need for its solutions. The ongoing military conflicts in the Middle East and Eastern Europe create global economic uncertainty, but the Company is not directly impacted. Broad-based threats to global supply chains increase interest in PyroGenesis’ solutions, particularly within the minerals and metals industries. Upcoming milestones include payments for outstanding receivables and developments in energy transition projects such as plasma torch applications in cement production, metal manufacturing, and glass recycling. PyroGenesis has initiated testing to optimize parameters for producing high-quality spherical glass particles for glass bed applications, with promising early results. Commercial potential includes building a reactor-based system on-site for the customer. Plasma torches are being used in aluminum remelting furnaces with Constellium, with a contract signed for industrial implementation by Q1 2026. Discussions are ongoing with other clients for similar contracts in various industries. The company is also in talks with a European global leader in mineral production to replace gas burners in cement production calcination processes. Live furnace tests using plasma as a heat source are ongoing with major aluminum companies, with discussions for similar tests with other companies underway. Client B is conducting live tests using PyroGenesis plasma torch systems in iron ore pelletization furnaces. Client C is assessing the applicability of PyroGenesis’ electric plasma torches for steelmaking processes. The company’s titanium metal powder has been approved by Boeing for use in additive manufacturing, leading to potential metal powder contracts. PyroGenesis is working on a fumed silica reactor project and is in negotiations for waste remediation systems, including chemical weapons destruction, municipal waste gasification, and radioactive waste destruction. They have also secured a contract for their Plasma Resource Recovery System for plastic pyrolysis and are in discussions for the SPARC refrigerant waste destruction system with a US-based distributor. The Company is finalizing negotiations with a Canadian entity for a plasma-based furnace to melt and valorize recycled glass, valued at $2 million. Discussions continue for a potential start and scope of the project, with a decision expected soon.

Negotiations are ongoing with a Middle Eastern customer for the SPARC system to safely destroy hazardous refrigerants. PyroGenesis may enter a profit-sharing co-venture with the customer. Due diligence is being conducted, and a memorandum of understanding is being finalized.

The Company is discussing the potential sale of plasma torches to an American entity for carbon black production. Talks are also underway with a global leader in technology for the sale of high-temperature plasma torches for use in cement production and alumina calcination in the aluminum industry.

PyroGenesis is in discussions with a European entity for a plasma torch system for carbon black and hydrogen production. Drosrite aluminum dross processing systems are being considered by various aluminum manufacturers, with a North American company advancing negotiations for a system.

The Company is exploring the sale of titanium metal powder to companies in North America and Europe. Additionally, PyroGenesis’ green cement additive, PozPyro, is showing promising results in enhancing concrete strength, with a potential pilot plant contract valued at $15-20 million.

In the long term, PyroGenesis is in initial discussions with a European steel construction conglomerate for the use of plasma torches in steel manufacturing process steps. They are also exploring the use of plasma torches in high-temperature brickmaking with a European company. PyroGenesis is in talks with a global engineering firm for using plasma torches in high-temperature steel furnaces in Japanese plants. Discussions are also underway with a North American battery material recycler for material recovery from end-of-life lithium batteries. The company is in advanced talks with potential customers for producing silicon, nano-silicon, and silica.

Additionally, PyroGenesis is in early-stage discussions with a North American hazardous waste facility for a plasma torch system sale. The company is also in negotiations with EarthGrid for the purchase of plasma torch systems for tunnel boring. PyroGenesis is working on a 2-stage contract for a plasma waste-to-energy system with a European consortium.

Furthermore, PyroGenesis has been in discussions with a European entity for supplying plasma torches for waste-to-energy plants. The entity aims to establish 300 plants producing 1 million tons of hydrogen over the next few years. Projects not mentioned in the updates are not considered at risk, and further information can be found on SEDAR or the company’s website. PyroGenesis specializes in advanced plasma processes and sustainable solutions. PyroGenesis, a company based in Montreal, has developed advanced plasma technologies adopted by industry leaders in iron ore pelletization, aluminum, waste management, and additive manufacturing. The company’s operations are ISO certified and publicly traded on the TSX, OTCQX, and Frankfurt Stock Exchange. For more information, visit their website.

The press release contains forward-looking statements about PyroGenesis’ future performance and operations. These statements are based on opinions, assumptions, and estimates subject to uncertainties and risks. Factors that could affect actual results include those listed in PyroGenesis’ filings with securities commissions. The company does not guarantee the accuracy of these statements and will update as necessary.

Read more at GlobeNewswire: PyroGenesis Announces Second Quarter 2025 Results