Northstar Clean Technologies (ROOF) Q2 2025 earnings summary

Executive summary

• First commercial facility constructed, commissioned, and ramping up, producing high-quality asphalt products and demonstrating technological innovation with pelletization.

• Received a second Canadian patent for proprietary asphalt reprocessing technology, extending protection until 2042 and strengthening competitive position in waste-to-value industry.

• Focus remains on achieving Emissions Reduction Alberta (ERA) production targets and developing a robust financial framework for expansion.

• Expansion plans for Hamilton and a U.S. site are progressing, with permitting, funding strategies, and a non-binding LOI from EDC for up to C$12.5 million per U.S. facility underway.

• Completed Milestone 2 under the ERA agreement, securing $3.9 million in funding for Calgary Facility construction progress.

Financial highlights

• No product revenues generated in Q2 2025; comprehensive loss was $3.13 million, up from $1.38 million year-over-year, due to increased personnel and operational preparation costs.

• CapEx totaled $1.95 million in Q2 2025, down from $4.1 million prior year, as Calgary facility construction neared completion.

• Net cash used in operating activities was $918,205 for Q2 2025 and $3.26 million for the first half of 2025.

• Working capital deficit of $1.7 million at quarter-end, with $1.5 million due to convertible debentures maturing within 12 months.

• $3.6 million raised post-quarter in an oversubscribed private placement to bridge to operational cash flow.

Outlook and guidance

• Targeting ERA commissioning milestone and 80 t/day operational throughput by year-end, with plans to ramp to full capacity (150 t/day) and eventually 24/7 operation.

• Expansion to Hamilton and a U.S. site advancing, with focus on permitting, feedstock, and offtake agreements.

• Continuous improvement and lessons from Calgary to drive efficiency and cost savings in future facilities.