CHAR Technologies (YES) Q2 2025 earnings summary

Executive summary

• Achieved significant progress on the Thorold Renewable Energy Facility, with commercial biocarbon production targeted for Q4 2025 and a new strategic partnership with BMI Group to accelerate commercialization and expand project pipeline.

• Completed the divestiture of consulting operations to focus on core Build-Own-Operate (BOO) projects, streamlining operations and improving financial performance.

• Launched a U.S.-based high-temperature pyrolysis (HTP) demonstration project for PFAS destruction, marking entry into the U.S. market and expanding commercial opportunities.

• Secured over C$19 million in funding commitments, including government grants and strategic investments from partners like ArcelorMittal and BMI Group.

• Advanced multiple projects in Ontario and Québec, including Lake Nipigon and Saint-Félicien, with strong government and industry support.

Financial highlights

• Revenue from continuing operations for the quarter ended March 31, 2025 was $726,968, up from $708,760 in the same quarter last year.

• Gross profit increased to $269,997 from $3,331 year-over-year, driven by higher-margin feasibility studies.

• Net loss from continuing operations narrowed to $1,547,308 (loss per share $0.01) from $2,244,352 (loss per share $0.02) in the prior year quarter.

• Grant income of $298,244 recognized in the quarter, compared to nil in the same period last year.

• Cash balance as of March 31, 2025 was $1,206,403, up from $948,689 at September 30, 2024.

Outlook and guidance

• Commercial biocarbon production at Thorold facility targeted for Q4 2025, with BMI Group partnership supporting construction and commissioning.

• Ongoing expansion of project pipeline, including new facilities in Espanola, Ontario and continued development in Lake Nipigon and Saint-Félicien.

• Extended testing of HTP system for PFAS destruction in the U.S. through December 2025, with potential for broader adoption.

• Management anticipates sufficient funding for operations through fiscal 2025, with continued focus on securing project-level financing.