PyroGenesis Announces Third Quarter 2025 Results

Core Insights - PyroGenesis Inc. reported its Q3 2025 financial results, highlighting a decrease in revenue and gross margin, while emphasizing ongoing innovation and strategic partnerships in various sectors [1][2][5]. Financial Highlights - Revenue for Q3 2025 was $3.25 million, down 18.7% compared to Q3 2024, with a gross margin of 24%, down from 42% in the same period last year [5][10]. - The company recorded a net loss of $2.25 million and a modified EBITDA loss of $1.89 million [5][10]. - As of November 11, 2025, the revenue backlog stood at $51.6 million, with 81% in U.S. dollars [5][12]. Production and Sales Highlights - A $1.2 million contract was secured with a European cement industry customer for a plasma torch system [5][10]. - The fumed silica reactor project with HPQ Silicon Inc. achieved a threefold increase in material surface area performance from Q2 to Q3 2025, indicating progress towards commercial readiness [2][4]. - The company also announced a contract with Constellium for plasma torch technology in aluminum remelting, marking the launch of Phase 2 of their collaboration [5][10]. Cost of Sales and Gross Profit - Cost of sales totaled $2.5 million in Q3 2025, an increase from $2.3 million in Q3 2024, primarily due to higher subcontracting costs [14][15]. - Gross profit for Q3 2025 was $0.8 million, representing 24% of revenue, a decline from $1.7 million or 42% of revenue in Q3 2024 [16][20]. Selling, General and Administrative Expenses - SG&A expenses decreased to $2.6 million in Q3 2025 from $5.0 million in Q3 2024, largely due to a reduction in expected credit loss and bad debt [23][24]. - Employee compensation and professional fees also saw declines, reflecting cost control measures [23][24]. Research and Development Costs - R&D costs for Q3 2025 were $0.2 million, consistent with Q3 2024, while nine-month R&D costs increased to $0.9 million, up by $0.2 million compared to the prior year [27][28]. Strategic Investments and Market Outlook - The company experienced a loss of $2.1 million in the fair market value of strategic investments during the nine-month period ended September 30, 2025, compared to a loss of $0.2 million in the same period in 2024 [35]. - The company is focused on expanding its market strategy to adapt to changing dynamics and enhance its innovation-first approach [2][42]. Business Line Developments - The company is engaged in various projects, including plasma torch tests in aluminum remelting and calcination processes, indicating a strong pipeline of potential contracts [69][72]. - Ongoing discussions with major industry players for the use of plasma technology in various applications highlight the growing interest in the company's solutions [71][74].