5N Plus (VNP) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 28% year-over-year to $122.4 million, with YTD revenue at $240.3 million, driven by strong demand in strategic end markets and higher volumes in Specialty Semiconductors and Performance Materials.

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

• Profitability remained robust, though margins contracted due to higher input and chemical costs and temporary operational inefficiencies.

• Equipment downtime and suboptimal operations were temporary, with no expected impact on H2 deliveries.

Financial highlights

• Q2 2026 revenue was $122.4 million, up from $95.3 million in Q2 2025; H1 revenue reached $240.3 million, up 30% year-over-year.

• Adjusted gross margin in Q2 2026 was $37.0 million (30.3% of sales), up 12% year-over-year, but margin percentage declined from 34.6% last year due to higher input costs.

• Adjusted EBITDA for Q2 was $26.6 million, up 10% year-over-year; net earnings were $19.7 million ($0.22/share), up from $15.2 million ($0.17/share).

• Net debt at quarter-end was $23.7 million, down from $50.3 million at 2025 year-end; net debt/adjusted EBITDA ratio improved to 0.21x.

• Backlog at June 30, 2026 stood at $420.0 million, representing 313 days of annualized revenue.

Outlook and guidance

• 2026 full-year adjusted EBITDA guidance reaffirmed at $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 anticipated over at least two quarters.

• Company expects continued complex operating environment with rising input and operating costs.

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

• Backlog in Specialty Semiconductors remains at maximum (365 days), with 2026 and 2027 sold out and planning underway for 2028 and beyond.