5N Plus (VNP) investor relations material

Executive summary

• Achieved record quarterly and first half adjusted EBITDA, gross margin, and highest first half revenues in a decade, driven by strong demand in specialty semiconductors, performance materials, and favorable bismuth-based product pricing.

• Q2 2025 revenue rose 28% year-over-year to $95.3 million, with net earnings reaching $15.2 million, up from $4.8 million in Q2 2024.

• Backlog grew to $310 million, representing 297 days of annualized revenue, up 29 days sequentially, signaling strong expected sales.

• Expanded supply agreement with First Solar increases semiconductor compound supply volumes by 33% for 2025-2026 and 25% for 2027-2028.

• Investments in Germany and Montreal plants enable meeting increased demand with minimal additional capital.

Financial highlights

• Q2 consolidated revenue rose 28% year-over-year to $95.3M; year-to-date revenue up 32% to $184.2M, marking a ten-year high.

• Adjusted EBITDA increased 79% to $24.1M in Q2; year-to-date adjusted EBITDA up 78% to $44.9M.

• Adjusted gross margin up 41% to $33M (34.6% of sales); year-to-date adjusted gross margin at $63.4M.

• Net earnings in Q2 2025 reached $15.2M; basic and diluted EPS: $0.17.

• Net debt reduced to $74.3M as of June 30, 2025, from $100.1M at year-end 2024.

Outlook and guidance

• Increased adjusted EBITDA guidance for 2025 to $65M–$70M, up from $55M–$60M, reflecting higher anticipated volumes from new contracts.

• Backlog at $310M, representing 297 days of annualized revenue, up 29 days sequentially.

• Specialty Semiconductors demand expected to rise further in H2 2025, especially in renewable energy and space solar power.

• Performance Materials volumes expected to be slightly lower in H2, but margins to remain strong.

• 2026 volumes projected to be 35–45% higher than 2025 in renewables, with further 25% increase for 2027–2028.