PyroGenesis Canada Inc.

Revenue for Q2 was $4.4 million, up from $3.0 million in Q2 2025, and first-half revenue was $9.3 million versus $6.0 million last year, an increase of over 55%. Gross profit was $1.4 million in Q2 versus $1.7 million last year, with gross margin at 32% for Q2 and year to date. Comprehensive loss improved to $1.1 million from $3.1 million in Q2 2025, and first-half comprehensive loss improved to $2.2 million from $7.5 million. EBITDA improved to a loss of $600 thousand from a loss of $3.6 million, while modified EBITDA improved to a loss of $500 thousand from a loss of $2.1 million. Backlog was $40 million as of August 6, with 88% denominated in U.S. dollars and expected to be recognized over approximately the next 3 years. Management did not provide explicit next-quarter or full-year revenue guidance, but said it is focused on executing backlog, advancing commercial opportunities, and carrying momentum into Q3.

The CEO commentary emphasized momentum across a diversified technology portfolio and said the company has removed millions of dollars from its recurring cost base over recent years. Management framed the quarter as a continuation of a strong start to 2026, noting the second quarter was the best since 2022 and that the company had already surpassed revenue for the first three quarters of 2025. The tone was optimistic but measured, with repeated references to execution, operational efficiency, and further cost-streamlining opportunities.

The CFO said the first half of 2026 showed both operational and financial progress, with revenue up 55% and SG&A down 27% versus the prior year. He broke down the revenue growth by platform: Spark up $700 thousand, Torch Systems up $400 thousand, DROSRITE up $500 thousand, and U.S. Navy development and support up $300 thousand, partly offset by lower biogas upgrading and pollution control revenue. He said gross margin was 32% in Q2 and year to date, SG&A was $3.1 million in Q2 and $5.4 million for the first half, and the company posted lower losses across comprehensive loss, EBITDA, and modified EBITDA. He also noted backlog of $40 million, 88% in U.S. dollars, expected to be recognized over about 3 years, and said finance costs were in line with expectations after the absence of a $1 million one-time finance income recognized in 2025.

This was a prepared remarks call with no analyst Q&A. Management proactively addressed likely investor concerns by stressing that revenue will continue to fluctuate based on project milestones, fabrication, delivery, commissioning, and percentage-of-completion accounting. They also explained that the Q2 margin comparison was affected by a one-time subcontracting adjustment in the prior year and that the current period did not include a similar benefit.