5N Plus (VNP) investor relations material

Executive summary

• Q2 2026 revenue rose 28% year-over-year to $122.4 million, with first-half revenue at $240.3 million, driven by higher volumes in renewable energy, bismuth-based products, and Specialty Semiconductors.

• Adjusted EBITDA for Q2 2026 increased 10% to $26.6 million, with YTD Adjusted EBITDA at $55.8 million and margin at 21.7%.

• Net earnings for Q2 2026 were $19.7 million ($0.22/share), up from $15.2 million ($0.17/share) in Q2 2025.

• Operational challenges included higher input and chemical costs, unplanned equipment maintenance, and integration of new equipment and employees, but these are being addressed.

• The business remains focused on disciplined execution, capacity expansion, and maintaining financial flexibility.

Financial highlights

• Q2 2026 revenue: $122.4 million, up 28% year-over-year; H1 revenue: $240.3 million, up 30%.

• Adjusted gross margin in Q2: $37.0 million (30.3% of sales), up 12% year-over-year, but margin percentage declined from 34.6% due to higher input costs.

• Adjusted EBITDA in Q2: $26.6 million, up 10%; H1 adjusted EBITDA: $55.8 million.

• Net earnings: $19.7 million ($0.22/share) vs. $15.2 million ($0.17/share) in Q2 2025.

• Net debt at end of June: $23.7 million, down from $50.3 million at end of 2025; net debt/adjusted EBITDA ratio improved to 0.21x.

Outlook and guidance

• Reaffirmed 2026 full-year adjusted EBITDA guidance of $100–$105 million, reflecting confidence in continued revenue growth and higher gross margin dollars in H2.

• Margins expected to remain under pressure in the near term due to higher metal and chemical costs, with partial recovery expected over at least two quarters.

• Backlog at June 30, 2026 stood at $420.0 million, representing 313 days of annualized revenue; Specialty Semiconductors backlog at maximum 365 days, with 2026 and 2027 sold out.

• Bookings for both Specialty Semiconductors and Performance Materials declined sequentially.

• Focus remains on productivity initiatives and capacity expansion to drive efficiency and scale.