5N Plus Inc.

Revenue increased 28% year over year to $122.4 million in Q2 2026, and first-half revenue reached $240.3 million, up 30% year over year. Adjusted gross margin was $37 million, or 30.3% of sales, versus $33 million, or 34.6% of sales, in Q2 2025. Adjusted EBITDA rose 10% to $26.6 million in the quarter, and net earnings were $19.7 million, or $0.22 per share, versus $15.2 million, or $0.17 per share a year ago. Specialty Semiconductors revenue increased 25% to $89.2 million, while Performance Materials revenue increased 38% to $33.2 million. Net debt was $23.7 million at quarter-end versus $50.3 million at the end of 2025, and net debt to adjusted EBITDA improved to 0.21x. Management reaffirmed 2026 full-year adjusted EBITDA guidance of $100 million to $105 million and said margins face additional near-term pressure from higher metal and chemical costs, with recovery expected over at least 2 quarters and in only partial fashion.

Richard Perron said the quarter showed strong demand across strategic end markets despite a more challenging operating environment, and he repeatedly emphasized the resilience of the business. He framed the issues in the quarter — unplanned maintenance, higher input costs, and temporary inefficiencies — as transitory rather than structural, and said the company is focused on operational excellence, maintenance improvements, and capacity expansion. He also highlighted long-term demand trends in renewable energy, space, security, and advanced technologies, saying customers increasingly value secure Western supply chains.

Alban Fournier highlighted the core financials: revenue of $122.4 million, adjusted gross margin of $37 million at 30.3% of sales, adjusted EBITDA of $26.6 million, and net earnings of $19.7 million, or $0.22 per share. He said the gross margin decline from 34.6% a year ago was driven by higher metal input costs, temporary operational inefficiencies tied to the ramp-up, and higher chemical costs. He also noted year-to-date operating cash flow was affected by working capital growth, CapEx was $16.6 million year to date, net debt fell to $23.7 million, and leverage improved to 0.21x, while reaffirming the $100 million to $105 million EBITDA guide.

Analysts focused on the split between margin pressure from higher metal costs versus unplanned maintenance, and management said the two were roughly equal contributors to the Q2 gross margin decline. They also asked whether the equipment issues would affect H2 shipments, and management said no delivery impact is expected and that most issues are being addressed with contingency plans, better staffing, and preventive maintenance. Other questions covered the lag on metal cost pass-through, where management said recovery should occur with at least a 2-quarter delay and only partially, and whether AZUR demand is tied to data centers or VLEO; management said those opportunities are still early and not yet meaningful.