Pyrogenesis Canada (PYR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached CAD 4.9 million, up 63% year-over-year, marking the best quarter since 2022 and the second-best Q1 in company history.

• Major project completions, operational streamlining, and advancements in product and technology portfolio drove revenue growth, with a backlog of CAD 43.1 million as of May 7, 2026.

• Key operational highlights include new supply agreements for titanium powder, progress on fumed silica production, and successful plasma torch trials with major clients.

• Net comprehensive loss narrowed to CAD 1 million from CAD 4.4 million year-over-year, reflecting improved margins and cost controls.

• New executive appointment: Jean Maher joined as VP of Legal Affairs and Corporate Secretary in April.

Financial highlights

• Gross margin improved to 32% from 27% in Q1 2025, reflecting higher revenue and favorable project mix.

• Gross profit was CAD 1.6 million; cost of sales rose to CAD 3.3 million due to higher material and subcontracting costs.

• SG&A expenses decreased to CAD 2.2 million from CAD 3.7 million, aided by a CAD 0.9 million credit loss recovery and cost controls.

• EBITDA loss was CAD 0.5 million, a CAD 3.2 million improvement; Modified EBITDA loss was CAD 0.3 million, improving by CAD 2.7 million.

• Net finance expenses decreased to CAD 0.2 million due to lower interest on convertible instruments and lease liabilities.

Outlook and guidance

• Backlog stands at CAD 43.1 million, with over 85% in foreign currency, expected to convert to revenue over the next three years.

• No specific revenue or net income guidance for 2026 due to early market adoption stage.

• Management remains focused on converting technological progress into improved financial performance while maintaining flexibility amid macroeconomic challenges.

• Ongoing cost optimization programs have yielded recurring annual savings exceeding CAD 2 million.

• Near-term milestones expected in plasma torch, fumed silica, and titanium powder projects.