Northstar Clean Technologies (ROOF) Q2 2026 earnings summary

Executive summary

• Transitioned from commissioning to commercial operations at Empower Calgary, achieving ERA Milestone 4 and recognizing first asphalt product sales revenue in Q2 2026.

• Processing rates at Empower Calgary exceeded 100 tons per day in June, peaking at 162 tons per day in July.

• Upgrades and maintenance were completed ahead of schedule in July and August, improving reliability and throughput.

• Awarded a new US patent for proprietary asphalt shingle reprocessing technology in August 2026, with additional patents pending.

• Expansion plans for Baltimore and Hamilton remain on track for construction in the second half of 2027.

Financial highlights

• Q2 2026 revenue was CAD 209,000 (USD 208,873), including CAD 35,000 from first asphalt product sales, up 46.5% year-over-year.

• Gross profit for Q2 was CAD 54,000, down from CAD 84,000 in Q1 and from $194,780 in Q2 2025, mainly due to lower tipping fees and new cost of sales.

• Comprehensive loss for Q2 was approximately CAD 3 million, including a non-cash fair value gain of CAD 2 million on a derivative liability.

• Cash and cash equivalents at quarter-end were CAD 6.2 million, up from $2 million a year earlier but down from CAD 12.7 million in Q1, reflecting working capital normalization, operations, capex, and debt payments.

• Closed final tranche of US$10 million private placement in April 2026.

Outlook and guidance

• Expect increased reliability, yield, throughput, and product delivery following recent upgrades, with a target of over 100 tons per day sustained production.

• Q4 2026 upgrade is the final step toward profitability, with equipment ordered and work scheduled.

• Anticipate profitability in 2027 as operational improvements and revenue growth continue.

• Additional revenues expected in Q3 and Q4 as production and sales ramp up.

• Ongoing optimization and learnings from Calgary ramp-up to inform future facility engineering.