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PyroGenesis Canada (TSE:PYR)
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PyroGenesis Canada (PYR) AI Stock Analysis

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TSE:PYR

PyroGenesis Canada

(TSX:PYR)

Rating:41Neutral
Price Target:
C$0.50
▲(21.95%Upside)
The overall stock score of PyroGenesis is primarily influenced by its poor financial performance, which reflects significant operational and solvency challenges. Technical analysis also suggests a bearish trend, further impacting the score. While corporate events are positive, they are not weighted in this context. The stock's valuation is unattractive due to negative earnings, contributing to the low overall score.

PyroGenesis Canada (PYR) vs. iShares MSCI Canada ETF (EWC)

PyroGenesis Canada Business Overview & Revenue Model

Company DescriptionPyroGenesis Canada Inc. is a high-tech company that designs, develops, manufactures, and commercializes advanced plasma processes and sustainable solutions. Operating within the environmental, defense, and metallurgical sectors, the company's core products include plasma torches, waste-to-energy systems, and plasma atomization technology for the production of high-purity metal powders used in 3D printing. PyroGenesis is headquartered in Montreal, Canada, and is recognized for its innovative solutions that address environmental challenges and improve industrial processes.
How the Company Makes MoneyPyroGenesis Canada generates revenue through the sale of its proprietary plasma-based technologies and systems. Key revenue streams include the manufacturing and selling of plasma torches, which are used for industrial applications such as waste treatment and metallurgical processes. Additionally, the company earns income from its waste-to-energy systems, which convert waste into usable energy, and from its plasma atomization process, which produces high-quality metal powders for the additive manufacturing and 3D printing industries. Significant partnerships with companies in the defense, aerospace, and environmental sectors also contribute to its earnings, as these collaborations often involve contracts for custom solutions and services.

PyroGenesis Canada Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2024)
|
% Change Since: -14.58%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, improved gross margins, and a record backlog, indicating positive company momentum. However, there were some challenges in specific segments such as the U.S. Navy system and PUREVAP sales. Overall, the sentiment leans positive due to the strong financial performance and major contract wins.
Q3-2024 Updates
Positive Updates
Revenue Growth
The company exited Q3 2024 with revenues just over $4 million, representing a 9% year-over-year increase. This marks the third consecutive quarter of year-over-year growth.
Improved Gross Margin
Gross margin for the quarter was 42%, a 13-point improvement over the previous quarter and a 12-point increase from the same period a year ago.
Record Backlog
Backlog reached an all-time high of $54.9 million, nearly doubling previous levels and marking a significant achievement for the company.
Major Contract Win
Secured a $27 million contract for a 20-megawatt plasma torch system, one of the most powerful torches ever produced commercially.
Cost Reduction
SG&A expenses decreased by $2.6 million due to reduced credit loss, share-based expenses, and cost-cutting in professional services.
Negative Updates
Decreased Navy System Revenue
Revenue from the U.S. Navy system decreased by $0.7 million compared to Q3 2023 due to the current stage of the project.
PUREVAP Sales Decline
PUREVAP related sales were $0.2 million, down from $0.4 million in Q3 2023, due to project completion.
Comprehensive Loss
Comprehensive loss for the quarter was $3.9 million, although this was a favorable improvement compared to the previous year.
Company Guidance
During the PyroGenesis Q3 2024 earnings call, the company highlighted several key metrics reflecting its financial and operational progress. The company reported a quarterly revenue of just over $4 million, marking a 9% year-over-year increase and the third consecutive quarter of growth. This growth was accompanied by a robust gross margin of 42%, a significant improvement from the previous quarter's 29% and the same period last year's 30%. The company's backlog reached a record high of $54.9 million, nearly doubling from previous levels and indicating strong future revenue potential. Additionally, the company has been successful in cost-cutting measures, reducing its selling, general, and administrative expenses by $2.6 million year-over-year. The modified EBITDA loss also improved, narrowing to $3 million from a $6 million loss in the prior year. These results underscore PyroGenesis' strategic focus on diversifying its product offerings and improving operational efficiencies amid challenging economic conditions.

PyroGenesis Canada Financial Statement Overview

Summary
PyroGenesis Canada is facing significant financial challenges. The income statement reveals negative net income and declining revenue trends. The balance sheet shows negative stockholders' equity and high financial leverage, indicating potential solvency risks. The cash flow statement highlights operational cash burn and dependency on external financing, reflecting challenges in generating cash from core operations.
Income Statement
35
Negative
The income statement reveals significant challenges, with negative net income and declining revenue trends. The gross profit margin has compressed significantly from prior years, indicating cost pressures or inefficiencies. There has been a noticeable revenue decline from 2021 to 2024, with a notable drop in 2022. EBIT and EBITDA margins remain negative, further highlighting operational struggles. Overall, the company is facing ongoing profitability issues and lacks revenue growth momentum.
Balance Sheet
20
Very Negative
The balance sheet shows a concerning financial position with negative stockholders' equity, indicating potential solvency risks. The debt-to-equity ratio cannot be calculated due to negative equity, but the high level of total debt relative to assets is worrying. The equity ratio is negative, highlighting a significant reliance on debt financing. Overall, the balance sheet reflects high financial leverage and potential risks related to the company's capital structure.
Cash Flow
30
Negative
The cash flow statement indicates ongoing operational cash flow deficits, reflecting challenges in generating cash from core operations. The free cash flow remains negative, although there has been some improvement in the latest year. The operating cash flow to net income ratio is not meaningful due to consistent net losses. While financing activities have historically provided a cash influx, the reliance on external financing highlights potential sustainability concerns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.65M12.35M19.01M31.07M17.78M
Gross Profit5.30M3.44M8.14M12.43M10.30M
EBITDA-5.99M-25.57M-29.55M-36.80M42.68M
Net Income-6.67M-28.50M-32.17M-38.43M41.77M
Balance Sheet
Total Assets29.20M28.44M47.67M69.77M74.53M
Cash, Cash Equivalents and Short-Term Investments2.98M1.80M3.45M12.20M18.10M
Total Debt9.01M9.20M6.92M7.22M3.10M
Total Liabilities32.66M31.26M30.80M29.00M15.11M
Stockholders Equity-3.46M-2.83M16.87M40.77M59.42M
Cash Flow
Free Cash Flow-2.45M-12.12M-11.82M-19.86M-1.63M
Operating Cash Flow-2.10M-12.05M-11.13M-18.11M-814.99K
Investing Cash Flow1.66M3.05M-368.18K2.72M4.93M
Financing Cash Flow1.52M7.37M2.64M9.47M13.98M

PyroGenesis Canada Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.41
Price Trends
50DMA
0.47
Negative
100DMA
0.48
Negative
200DMA
0.57
Negative
Market Momentum
MACD
-0.01
Positive
RSI
34.13
Neutral
STOCH
9.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PYR, the sentiment is Negative. The current price of 0.41 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.47, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 34.13 is Neutral, neither overbought nor oversold. The STOCH value of 9.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PYR.

PyroGenesis Canada Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
C$6.54B7.732.76%2.57%6.48%-23.55%
60
Neutral
C$17.42M24.904.15%0.89%
59
Neutral
C$20.38M-7.92%-12.65%-838.74%
58
Neutral
$857.52M-37.81%-29.66%-67.02%
49
Neutral
C$66.14M-1898.77%408.78%-20.74%
42
Neutral
C$11.00M-525.98%-24.60%-11.26%
41
Neutral
C$76.80M-5701.32%14.45%76.75%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PYR
PyroGenesis Canada
0.41
-0.47
-53.41%
TSE:BLDP
Ballard Power Systems
2.91
-0.20
-6.43%
TSE:TLA
Titan Logix
0.61
-0.01
-1.61%
TSE:REKO
Reko International
3.70
-0.09
-2.37%
TSE:DYA
dynaCERT
0.13
-0.07
-35.00%
TSE:NXH
Next Hydrogen Solutions Inc
0.48
-0.04
-7.69%

PyroGenesis Canada Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
PyroGenesis Completes Major Hydrogen Project for Tata Steel
Positive
Jul 15, 2025

PyroGenesis Inc. has successfully completed a $9.3 million coke-oven gas valorization and hydrogen production project for Tata Steel, enhancing the steel industry’s sustainability efforts. The project, which involves purifying coke-oven gas and producing high-purity hydrogen, is operational at Tata Steel’s Kalinganagar facility, contributing to improved production efficiency and environmental outcomes. This achievement positions PyroGenesis as a key player in providing solutions for the steel industry’s energy transition and emissions reduction, with potential for broader adoption across the global steel market.

Product-Related AnnouncementsBusiness Operations and Strategy
PyroGenesis Enhances Fumed Silica Production for Market Expansion
Positive
Jul 8, 2025

PyroGenesis has announced significant improvements in the quality, purity, and consistency of fumed silica production through its FSR project, verified by a leading global supplier. These advancements, including a reduction in impurities and increased surface area, enhance the material’s viability for various applications, marking a crucial step towards commercializing the process and targeting specific market segments.

Shareholder MeetingsBusiness Operations and Strategy
PyroGenesis Announces Successful Shareholder Meeting Results
Positive
Jun 27, 2025

PyroGenesis Inc. announced the results of its annual shareholder meeting, where approximately 38% of the issued and outstanding common shares were represented. All nominees for the board of directors were elected, and Raymond Chabot Grant Thornton LLP was reappointed as the auditor. This announcement reinforces PyroGenesis’s stable governance structure and commitment to its strategic goals, potentially impacting its market positioning positively.

Product-Related AnnouncementsBusiness Operations and Strategy
PyroGenesis Achieves Milestone with Successful Fumed Silica Sample Verification
Positive
Jun 12, 2025

PyroGenesis has confirmed that its fumed silica samples, produced by the Fumed Silica Reactor pilot plant for HPQ Silica Polvere Inc., have passed testing by a leading global supplier. This successful verification marks a significant step in the scale-up process from lab to pilot production, emphasizing the company’s commitment to optimizing the Fumed Silica Reactor for future production. The development of fumed silica aligns with PyroGenesis’ focus on commodity security and optimization, enhancing the availability of critical minerals and supporting the energy transition and emission reduction efforts.

Private Placements and FinancingBusiness Operations and Strategy
PyroGenesis Extends Warrant Expiry to Boost Financial Flexibility
Positive
Jun 9, 2025

PyroGenesis Inc. announced an extension to the term of up to 1,581,250 common share purchase warrants, which will now expire on November 18, 2025, instead of July 22, 2025. This extension, approved by the Toronto Stock Exchange, allows holders more time to exercise their warrants, with proceeds aimed at general corporate purposes, potentially enhancing the company’s financial flexibility and market positioning.

Product-Related AnnouncementsBusiness Operations and Strategy
PyroGenesis Secures Boeing Supplier Status for Titanium Powder
Positive
May 29, 2025

PyroGenesis Canada has achieved approved supplier status with Boeing for its NexGen™ titanium metal powder, marking a significant milestone in its additive manufacturing operations. This qualification enhances PyroGenesis’ industry positioning by aligning with Boeing’s high standards, potentially expanding its market reach and reinforcing its commitment to producing high-quality metal powders for critical applications.

Product-Related AnnouncementsBusiness Operations and Strategy
PyroGenesis Sees Increased Demand for Fumed Silica Samples
Positive
May 28, 2025

PyroGenesis has received accelerated requests for its fumed silica samples, indicating growing industry interest in its innovative plasma-based production process. This development aligns with the company’s commitment to providing sustainable alternatives in the global fumed silica market, which is used in a wide range of everyday products.

Product-Related AnnouncementsBusiness Operations and Strategy
PyroGenesis Achieves Milestone in Fumed Silica Production
Positive
May 21, 2025

PyroGenesis has confirmed the successful production of fumed silica at a pilot scale, exceeding expectations in yield. This milestone, achieved through their Fumed Silica Reactor, aligns with the company’s strategic goals and enhances its market positioning by potentially improving the economics of the project. The focus will now shift to optimizing product purity and achieving a production target of 50 tonnes per year, which could have significant implications for stakeholders in terms of market fit and commercial viability.

Product-Related AnnouncementsBusiness Operations and Strategy
PyroGenesis Achieves Milestone in Fumed Silica Production
Positive
May 15, 2025

PyroGenesis has successfully collected material from its Fumed Silica Reactor pilot plant’s baghouse, which has been sent for third-party analysis. This marks a significant milestone in validating the scale-up from lab to pilot plant, potentially confirming the reactor’s ability to produce high-quality fumed silica, a widely used industrial material.

Business Operations and StrategyFinancial Disclosures
PyroGenesis Reports Q1 2025 Results Amid Strong Project Backlog
Neutral
May 14, 2025

PyroGenesis Canada announced its financial results for the first quarter of 2025, highlighting a strong project backlog and ongoing customer collaborations in energy transition and emission reduction. Despite a 14% decline in revenue compared to Q1 2024, the company improved its gross margin by 5.3 points and reduced its net loss slightly. PyroGenesis is optimistic about future quarters due to cost optimization measures and a significant revenue backlog. The company also secured a $2.5 million contract for a waste-to-energy project, showcasing its commitment to sustainable solutions.

Product-Related AnnouncementsBusiness Operations and Strategy
PyroGenesis Advances Sustainable Fumed Silica Production
Positive
May 13, 2025

PyroGenesis has provided an update on its Fumed Silica Reactor project, developed for HPQ Silica Polvere Inc., highlighting the potential advantages over traditional methods. The new process aims to produce fumed silica more efficiently by using an all-electric plasma technique, potentially reducing costs, CO2 emissions, and energy usage while eliminating the need for hazardous chemicals and simplifying logistics.

Private Placements and FinancingBusiness Operations and Strategy
PyroGenesis Secures Initial $2.385M Loan Tranche for Growth
Positive
May 12, 2025

PyroGenesis Inc. has successfully closed the first tranche of a non-brokered loan, receiving $2,385,000 from its President and CEO, P. Peter Pascali. This funding will be used for working capital and general corporate purposes, potentially enhancing the company’s operational capabilities and market positioning. The loan agreement includes the possibility of additional tranches, totaling up to $5,750,000, which could further support PyroGenesis’ strategic initiatives.

Business Operations and StrategyFinancial Disclosures
PyroGenesis Announces Q1 2025 Financial Results Conference Call
Neutral
May 9, 2025

PyroGenesis Inc. has announced a conference call scheduled for May 14, 2025, to discuss its financial results for the first quarter of 2025 and provide updates on its business progress. This announcement reflects PyroGenesis’s ongoing commitment to transparency and engagement with stakeholders, as it continues to leverage its advanced plasma technologies to maintain a competitive edge in the industry.

Private Placements and FinancingBusiness Operations and Strategy
PyroGenesis Secures $5.75 Million Loan to Enhance Operations
Positive
May 5, 2025

PyroGenesis Inc. announced the completion of a non-brokered private placement involving a loan of up to $5,750,000 from its President and CEO, P. Peter Pascali. The loan, which includes share purchase warrants, is intended to support the company’s working capital and general corporate purposes. This financial move is expected to bolster PyroGenesis’ operational capabilities and market positioning as it continues to focus on sustainable solutions for heavy industries.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025