Toronto, Ontario--(Newsfile Corp. - February 18, 2026) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company"), a Canadian critical minerals company advancing lithium and rare earth projects vital to North America's supply chain security, today announced that Lorin Crenshaw, Chief Financial Officer, will present at the Red Cloud Securities 2026 Pre-PDAC Mining Showcase in Toronto, Ontario.The presentation is scheduled for Friday, February 27, 2026, at 10:00 a.m. ET in the Ken ...

Financial Data and Key Metrics Changes - Q4 revenue was $1.2 billion, with adjusted EBITDA of $232 million, exceeding guidance [5][13] - Full year 2025 revenue totaled $4.6 billion, up 5% year-over-year, driven by 14% growth in aerospace and defense [5][13] - Adjusted EBITDA for 2025 exceeded $859 million, up 18% year-over-year, with adjusted EPS at $3.24, a 32% increase from 2024 [5][14] - Adjusted free cash flow totaled $380 million, up 53% from 2024, representing 124% of free cash flow returned to shareholders [5][14] Business Line Data and Key Metrics Changes - Aerospace and defense revenue represented 68% of total revenue in 2025, up from 62% in 2024, with jet engine sales growing 21% year-over-year [8][13] - Specialty energy business delivered 9% year-over-year growth in Q4, supported by multi-year customer commitments [8][9] - Adjusted EBITDA margins for the full year 2025 were 18.7%, a 200 basis point increase from 2024, with HPMC margins at 23.6% and AA&S margins at 16.3% [15] Market Data and Key Metrics Changes - Strong demand in aerospace and defense markets, with commercial aerospace demand accelerating and next-generation engines gaining market share [6][8] - Defense revenue grew 14% year-over-year, with missile sales up 127% due to sustained demand for specific alloys [8][39] - The company anticipates continued growth in defense spending, with a projected mid-teen growth rate for 2026 [22][39] Company Strategy and Development Direction - The company is focused on proprietary products and long-term agreements to secure pricing and expand market share [9][10] - Capital discipline and operational execution are central to the strategy, with a targeted capital investment of $220 million-$240 million for 2026 [10][19] - The company aims to prioritize aerospace and defense while strategically reducing capacity in industrial, medical, and electronics sectors [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer demand and operational execution, guiding for $1 billion of adjusted EBITDA in 2026, a 16% increase year-over-year [6][17] - The company expects continued margin expansion, with full-year consolidated margins projected to be around 20% in 2026 [23] - Management highlighted the importance of differentiated capabilities and strong customer partnerships in driving future growth [25] Other Important Information - The company has no significant debt repayments planned for 2026 and has repurchased about $1 billion of shares since 2022 [20] - The backlog remains just under one year of revenue, with expectations for it to increase as lead times for materials extend [70] Q&A Session Summary Question: Capacity expansion with customer support - Management explained that customer agreements ensure access to differentiated materials, allowing flexibility in capacity allocation [29][30] Question: Airframe growth visibility - Management noted that airframe inventories are normalizing, with modest improvements in order rates expected in the second half of 2026 [32] Question: Breakdown of defense revenue - Management provided insights into defense revenue, indicating naval and missile segments are key growth drivers, with missile spending expected to increase significantly [38][39] Question: 2027 guidance update - Management expressed confidence in the 2027 guidance, indicating a bias towards the top end of the EBITDA margin percentage [44] Question: Share gains opportunities - Management highlighted opportunities for share gains in defense, jet engines, and specialty energy, driven by customer demand and operational capabilities [48] Question: Pricing outlook for exotic alloys - Management indicated that pricing assumptions for 2026 are based on current market conditions, with significant movements in specialty alloys considered [56] Question: Headcount plans for 2026 - Management stated that headcount will remain stable, with some open positions to support new capacity, leveraging the existing experienced workforce [90] Question: Isothermal forging growth - Management confirmed that isothermal forging is in high demand, with lead times extending and continued growth expected from all major engine OEMs [94]

Core Insights - Noble Mineral Exploration Inc. has signed a drill contract for the Thomas Rare Earth property near Timmins, Ontario, indicating a strategic move to explore rare earth elements in response to geopolitical interests [1][6]. Group 1: Project Overview - The Thomas Carbonatite is identified as a magnetic feature resembling a classic carbonatite, which is a primary source of rare earth elements, niobium, zirconium, and phosphate oxide [1][2]. - The magnetic structure has never been drilled and does not outcrop on the surface, making this drilling initiative significant for confirming the existence of a carbonatite and testing for economic mineralization [3]. Group 2: Exploration Funding - Noble has received a grant from the Ontario Junior Exploration Program, providing a 50% rebate on exploration programs up to $200,000 for a total exploration budget of $400,000 [4]. Group 3: Company Background - Noble Mineral Exploration Inc. is a junior exploration company based in Canada, holding mineral and exploration rights in approximately 70,000 hectares in Northern Ontario and 24,000 hectares in Quebec, with plans for joint venture exploration programs [7]. - The company has various interests in other projects, including Project 81, which hosts drill-ready targets for gold, nickel-cobalt, and base metals [9].

Core Insights - Dalaroo Metals has made significant discoveries at its Blue Lagoon project in Greenland, revealing a district-scale system rich in critical minerals such as zirconium, hafnium, and rare earth elements (REEs) across a 2.7km strike [1] - The initial exploration has shown all 113 samples to have anomalous values, indicating a promising new critical metals district [1] Zirconium and Hafnium Findings - The project has identified concentrations exceeding 2% zirconium oxide and 40 parts per million (ppm) hafnium oxide across the entire 2.7km strike, suggesting a well-mineralised target area [2] - Hafnium is essential for next-generation microchips and semiconductors due to its high dielectric constant, which allows it to store significantly more electrical charge than traditional silicon dioxide-based semiconductors [2] Hafnium Oxide Properties - Hafnium oxide has a dielectric constant approximately six times higher than silicon dioxide, leading to a more than 1,000-fold reduction in electron leakage through transistors compared to silicon dioxide [3] - The current indicative sale price for high-purity hafnium oxide is A$16,297/kg (approximately $10,924.3/kg), reflecting its advanced chemical properties and growing demand in high-tech applications [3] Rare Earth Elements (REEs) Results - The Blue Lagoon project has returned high-grade REE results, with elevated magnet rare earth oxides (REOs) encountered at the surface, particularly enriched in dysprosium and terbium [4] - The sampling has shown low uranium levels, with a maximum reading of 25ppm triuranium octoxide, which is below the 100ppm uranium threshold required for permitting in Greenland [4][5] Exploration Potential - The scale and consistency of rare earth, niobium, and zirconium anomalism over a ~2.7km strike, combined with low uranium and thorium levels, confirm a robust and regionally extensive critical minerals system [6] - Initial surface sampling results demonstrate grades comparable with early-stage results from globally recognized alkaline-hosted rare earth systems in Greenland, indicating a fertile mineral system with potential for further exploration [7]

Core Viewpoint - Critical Metals is experiencing significant volatility in its stock price despite reporting positive exploration results, indicating challenges in valuation and investor confidence [1][6]. Group 1: Company Developments - Critical Metals has discovered minable quantities of rare-earth elements such as yttrium, cerium, gallium, hafnium, zirconium, niobium, and tantalum at its Tanbreez Rare Earth Project in Greenland [1][3]. - The company plans to prepare a revised Mineral Resource Estimate and advance mine planning studies based on these findings, suggesting the deposits could represent a world-class critical minerals resource [3]. Group 2: Financial Overview - Critical Metals has a market capitalization of $1.1 billion, yet it generates less than $1 million in annual revenue and operates at a loss, with approximately $7.3 million in cash and a negative free cash flow of twice that amount annually [5][6]. - The stock has shown a significant price range over the past year, fluctuating between $1.23 and $32.15, highlighting its volatility [5]. Group 3: Investor Sentiment - The lack of clear financial metrics regarding development costs, timelines, and expected production volumes leaves investors with uncertainty, making it difficult to assess the stock's true value [3][6]. - The stock is characterized as a momentum play, attracting traders but posing challenges for serious investors who may find it hard to justify an investment [6].

Core Insights - Energy Fuels Inc. and Astron Limited have received a non-binding and conditional Letter of Support from Export Finance Australia for up to A$80 million in senior debt project financing for the Donald Rare Earth and Mineral Sands Project, which has a total funding requirement of A$520 million [1][12]. Project Financing - The Donald Project aims for a 50% debt-to-equity gearing ratio and is collaborating with other Export Credit Agencies and senior lenders to finalize the financing syndicate [1][3]. - The Letter of Support is contingent upon satisfactory completion of due diligence, including financial, technical, environmental, and social assessments [2]. Project Overview - The Donald Project is one of Australia's most advanced critical mineral projects, targeting the production of rare earth elements (REEs) to be processed at Energy Fuels' facility in the U.S. [4]. - Production is expected to commence as early as the second half of 2027, pending project financing and a positive final investment decision (FID) [4]. Production Capacity - Phase 1 of the Donald Project is projected to produce an average of 7.2 thousand tonnes per annum of Rare Earth Element Concentrate (REEC), including up to 1,000 tonnes of Neodymium-Praseodymium oxides, 92 tonnes of Dysprosium oxide, and 16 tonnes of Terbium oxides annually [6]. - The White Mesa Mill in Utah has the capacity to process all of the Phase 1 REEC production and produce separated rare earth oxides [6]. Market Impact - The heavy rare earths produced from the Donald Project are expected to meet approximately one-third of U.S. demand for Dysprosium and a quarter of U.S. demand for Terbium, which are critical for clean energy, defense, and advanced manufacturing industries [7]. Broader Financing Strategy - The financing strategy includes advanced engagement with government agencies and commercial banks to secure the remaining debt financing [9]. - A staged equity investment of up to A$183 million from Energy Fuels is planned, with A$45 million expected prior to FID and A$138 million post-FID [10]. Project Significance - The Donald Project features a total mineral resource of 1.81 billion tonnes and is expected to be a globally significant source of critical minerals, supporting technologies vital to clean energy and advanced manufacturing [14].

Core Points - Avalon Advanced Materials Inc. has canceled its special meeting of shareholders originally scheduled for October 7, 2025, due to not meeting quorum requirements [1][2] - The matter intended for discussion at the meeting, the adoption of a shareholder rights plan, will be addressed at a later date [2] - Proxies submitted for the canceled meeting will not be valid for any future meetings regarding the shareholder rights plan [2] Company Overview - Avalon Advanced Materials Inc. is a Canadian critical minerals company focused on developing strategic assets to support secure domestic supply chains and long-term economic growth [4] - The company is working on vertically integrating the Ontario lithium supply chain through the development of Lake Superior Lithium Inc., which will be Ontario's first midstream lithium hydroxide processing facility [4] - Avalon is advancing the Separation Rapids Lithium Project and continuing exploration at its Snowbank lithium and Lilypad lithium-cesium deposits [4] - The company is also progressing the Nechalacho Rare Earths and Zirconium Project, which contains various critical minerals used in advanced technologies [4]

Financial Data and Key Metrics Changes - The company reported a strong first quarter with EBITDA exceeding the midpoint by $20 million, achieving a margin of 22.4% [77][89] - The company anticipates margin expansion opportunities, targeting 24% for the year and aiming for 30% in the HPMC segment [89] Business Line Data and Key Metrics Changes - Aerospace and Defense (A&D) now accounts for approximately 65% of total revenue, with energy, medical, and electronics contributing to about 80% [3][25] - Jet engines represent about 37% of revenues, with sales up 35% in Q1, and the aftermarket is expected to remain between 30% to 50% of jet engine revenues [5][21] Market Data and Key Metrics Changes - The company is experiencing strong demand across various markets, including aerospace, defense, and energy, with significant growth opportunities identified [25][26] - The company has secured a new five-year contract worth $1 billion with Airbus, bringing it to parity with Boeing [20][41] Company Strategy and Development Direction - The company has exited low-margin and commodity businesses, focusing on advanced materials and forgings to support growth in aerospace and defense [2][4] - The company is investing in new technologies, including a patent-pending nickel melting process aimed at eliminating defects, which will enhance its competitive position [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory in aerospace and defense, citing strong demand and the potential for continued growth in MRO activities [18][21] - The company is well-positioned to meet future demand, with plans to increase capacity and improve productivity [8][25] Other Important Information - The company is one of only two suppliers for certain advanced materials, which provides a competitive advantage in the market [25][60] - The company has established long-term agreements with customers that extend to 2040, allowing for flexibility in pricing and material fluctuations [55][58] Q&A Session Summary Question: How do you see the year unfolding in Q2 and beyond? - Management anticipates continued strong performance in Q2, with evaluations for full-year guidance to occur after the second quarter [78][84] Question: What is the impact of tariffs on the business? - The tariff impact is minimal from a cost standpoint, with effective pass-through mechanisms in place [81][84] Question: What are the capital investment priorities for the next few years? - The company is focusing on titanium and nickel investments, as well as increasing production capacity for zirconium and hafnium [95][96] Question: How does the company plan for capacity needs in the long term? - The company engages in discussions with customers to align capital investments with anticipated demand, typically planning for a five-year horizon [66][70]

Core Viewpoint - Energy Fuels Inc. (UUUU) and Uranium Energy (UEC) are positioned to benefit from the U.S. push for domestic nuclear energy, despite facing challenges from a 25% decline in uranium prices over the past year [1][2][25]. Industry Overview - The long-term outlook for uranium remains strong due to the increasing demand for clean energy, with the U.S. consuming 47 million pounds of uranium annually [2]. - Both companies are expected to face revenue pressure in 2025 due to lower uranium prices, but they are ramping up capabilities to meet anticipated domestic demand [25]. Company Analysis: Energy Fuels Inc. (UUUU) - UUUU has been a leading U.S. producer of natural uranium concentrate, accounting for two-thirds of domestic output since 2017 [4]. - The company aims to establish its White Mesa Mill as a critical minerals hub, producing uranium, vanadium, rare earth elements (REEs), and potential radioisotopes [4][6]. - UUUU's acquisition of Base Resources Limited in October 2024 enhances its potential as a key producer of titanium and zirconium minerals [5]. - The company is currently producing from three uranium mines, with expected ore production for 2025 between 730,000 and 1,170,000 pounds [7]. - UUUU reported revenues of $78 million in 2024, a 106% year-over-year increase, with uranium revenues rising 9% [8]. - The Zacks Consensus Estimate for UUUU's 2025 revenues is $72.3 million, indicating a 7.5% year-over-year drop, with an expected loss of 21 cents per share [16]. Company Analysis: Uranium Energy (UEC) - UEC is the largest and fastest-growing supplier of uranium in the U.S., with a combined licensed production capacity of 12.1 million pounds [9]. - The company has made significant acquisitions, including Rio Tinto's uranium mining projects, enhancing its production capabilities [11][12]. - UEC reported revenues of $49.8 million in the second quarter of fiscal 2025, selling 600,000 pounds of uranium at $82.92 per pound [15]. - The Zacks Consensus Estimate for UEC's 2025 revenues is $89.8 million, a substantial improvement from the previous year, but with an expected loss of 10 cents per share [18]. Valuation and Performance - Year-to-date price performances for both companies have been poor, with UUUU shares declining 7.8% and UEC shares falling 19.9% [21]. - UUUU is trading at a forward price-to-sales multiple of 9.02, while UEC's forward sales multiple is at 25.73 [22]. - UUUU appears more attractive from a valuation standpoint and has better price performance compared to UEC [26].