PureCycle Technologies (PCT) Q4 2024 earnings summary

Executive summary

• Achieved significant operational and commercial progress, including the launch of the Denver, PA sorting facility and commercialization of the Ironton facility, with first major purchase order from Drake Extrusion and the launch of the Run It Back product line with Churchill Container.

• Expanded customer trials across multiple segments, with over 29 trials underway and more than 20 at industrial scale, supported by a growing commercial team.

• Amended license agreement with Procter & Gamble, securing North American exclusivity and expanding global collaboration, with industrial trials for five applications.

• Achieved stable production at Ironton, reaching 12,500 lbs/hour (88% of nameplate) and nearly 70% onstream time in December.

• Raised $33 million in February 2025 from institutional investors, supporting liquidity and growth initiatives.

Financial highlights

• Ended Q4 with just under $16 million in unrestricted cash and $25.8 million in restricted cash; total cash at year-end was $41.5 million.

• Raised $33 million in February 2025 from institutional investors via private placement.

• Q4 cash expenses totaled $68 million, including $36 million for equipment; adjusted cash expense was $27 million.

• Major cash uses included $9.3 million for Ironton operations, $41.4 million for growth projects, and $5 million for SOPA Revenue Bond interest.

• Holds $118 million in revenue bonds, expected to be sold in 2025 to further enhance liquidity.

Outlook and guidance

• Confident in ability to sell out Ironton capacity in the near term, driven by strong customer demand and successful trials.

• Expecting third-party PCR certification for 7.2 million lbs of inventory by end of Q1, unlocking additional sales.

• Final qualification for initial applications with P&G brands expected in Q2 2025, with first production anticipated in Q2 or Q3 2025.

• Augusta project remains on track, with site preparation underway and improved financing outlook due to Ironton’s success.

• Global expansion plans progressing, with long-lead equipment purchased for two 130 million lbs lines and strong interest in Europe and Asia.