PyroGenesis Canada ((TSE:PYR)) has held its Q3 earnings call. Read on for the main highlights of the call.
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During the recent earnings call, PyroGenesis Canada presented a mixed outlook, highlighting both achievements and challenges. The company expressed optimism with a strong backlog and significant project completions, particularly in the fumed silica reactor and Tata Steel project. However, these positives were tempered by a decline in revenue and gross margin, alongside specific hurdles in torch sales and titanium metal powders.
Strong Backlog
PyroGenesis reported a robust backlog of $51.6 million, indicating a strong order book. This backlog is expected to translate into revenue over the next three years, providing a solid foundation for future growth.
Contract with Constellium
The company announced a new contract with Constellium for plasma torch technology. This marks the beginning of the Phase 2 industrial implementation portion of their collaboration agreement, showcasing PyroGenesis’ continued innovation in plasma technology.
Fumed Silica Reactor Progress
Significant advancements were made in the fumed silica reactor pilot plant. Improvements in the quality, purity, and consistency of the material bring the project closer to commercialization, highlighting PyroGenesis’ commitment to innovation.
Completion of Tata Steel Project
PyroGenesis successfully completed a $9.3 million coke oven gas valorization and hydrogen production project for Tata Steel, which is now in continuous operation. This project underscores the company’s capability in executing large-scale industrial projects.
Decrease in Operating Expenses
The company reported a significant decrease in SG&A expenses, with major reductions in employee compensation and professional fees. This reflects PyroGenesis’ efforts to streamline operations and improve efficiency.
Revenue Decrease
PyroGenesis recorded a revenue of $3.25 million for Q3 2025, marking an 18.7% decrease year-over-year. This decline highlights the challenges the company faces in maintaining its revenue growth trajectory.
Reduced Gross Margin
The gross margin for the quarter fell to 24%, down from 42% a year ago. This reduction was attributed to the current stages of projects and increased material costs, posing a challenge to profitability.
Reduced Torch Sales
Torch sales decreased by $0.6 million due to reduced project activity and the completion of significant projects in the prior year. This decline reflects the cyclical nature of project-based sales.
Challenges in Titanium Metal Powders
The company faced delays in certification for fine cut powder and changes in technical specifications, which have slowed progress with certain clients. These challenges highlight the complexities involved in the titanium metal powders market.
Forward-Looking Guidance
Looking ahead, PyroGenesis provided insights into its strategic direction and financial performance. Despite the revenue decrease, the company remains optimistic with a strong backlog of $51.6 million, indicating a positive future revenue outlook. The company is focusing on innovation across its business verticals, particularly in plasma torch technology and fumed silica production, to drive growth.
In summary, PyroGenesis Canada’s earnings call reflected a mixed sentiment, balancing strong project completions and a solid backlog with revenue and margin challenges. The company remains committed to leveraging its expertise in ultra-high temperature processes to navigate these challenges and drive future growth.