Advancement and completion of major projects drive Q1 revenue.
Backlog of $43.1 million.
MONTREAL, May 07, 2026 (GLOBE NEWSWIRE) -- PyroGenesis Inc. ("PyroGenesis" or the "Company") (TSX:PYR) (OTCQX:PYRGF) (FRA: 8PY1), a leader in ultra-high temperature processes and engineering innovation, and a plasma-based technology provider to heavy industry & defense, today announces its financial and operating results for the first quarter ended March 31, 2026.
"PyroGenesis closed the first quarter with a 63 percent year-over-year revenue increase, delivering the second strongest first quarter in our history and underscoring the resilience of our business model despite fluctuating market and geopolitical conditions," said P. Peter Pascali, President and CEO of PyroGenesis Inc. "Our diversified product and technology portfolio provided revenue streams from a variety of different project types and project phases during Q1. Operational and process streamlining efforts contributed to the completion of major projects and advancement on others, which led directly to increased revenue. As our revenues can fluctuate quarter to quarter based on project phases and client timelines, I'm encouraged by the strong start to 2026 from both operational and financial standpoints."
Mr. Pascali continued, "Our strong revenue results aside, we also registered some important activity during Q1. We announced an ongoing supply agreement with a U.S. client for our titanium powder and signed an agreement with a U.S. defense contractor to jointly pursue chemical weapon destruction contracts in Syria. We also made vital progress on our fumed silica production system, first with independent verification that established benchmarks for key commercial product grade levels have been met, and second, toward potential customer agreements."
"Finally, successful results were released with data derived from a live furnace trial conducted by PyroGenesis and its clients Rio Tinto and Alcoa, which confirmed that our plasma torches provide significant reductions and/or cost savings compared to natural gas burners in aluminum casthouse furnaces. This major customer study verified that plasma improves furnace thermal performance, leading to significant energy savings, shorter melting times, and reduced dross generation, all without compromising metal quality. Overall, Q1 was a very solid quarter for the company across execution, new developments, and continued innovation."
KEY Q1 2026 FINANCIAL HIGHLIGHTS
Revenue of $4.9 million, up 63% vs. Q1 2025
Gross margin of 32%, a 5-point improvement vs. 27% in Q1 2025
Net loss of $1.0 million compared to a loss of $4.26 million in the same period a year ago
Modified EBITDA loss of $358,856 vs. loss of $2.96 million in the same period a year ago
Revenue (Order) Backlog of $43.1 million of signed and/or awarded contracts as at May 7th, 2026, of which 86% is in U.S. dollars
POST QUARTER-END EVENTS
Post quarter-end, in April [news release dated April 9, 2026], the Company announced a contract toward a titanium powder supply and distribution agreement with an Asian materials company. The initial contract is for the supply of three "cut" sizes, ranging from fine to coarse. The client is a materials company supplying the Asian electronics market (specifically cell phone parts). The contract will allow the client to perform final testing and analysis of titanium powder across three different particle sizes: 20-63µm, 53-106µm, and 53-150µm. Once this process is complete, and assuming all regulatory and trade agreements are certified, the client has indicated it will require multiple tonnes of PyroGenesis' titanium powder per year, with final volumes to be determined. Separately, the client is negotiating to be the official supplier of PyroGenesis' titanium powder to the Asian Electronics, Medical, and Aerospace industries.
Q1 2026 PRODUCTION AND SALES HIGHLIGHTS
Energy Transition
In January [news release dated January 27, 2026], the Company confirmed successful delivery of the 4.5 MW plasma torch that was produced for a U.S. aeronautics and defense client. The delivery was part of the contract valued at approximately $4.13 million with a U.S. corporation who regularly serves as a prime contractor for the U.S. government as well as for public and private customers.
In February [news release dated February 26, 2026], the Company confirmed the successful results from a primary test campaign with a leading battery recycler, as follow-up to a project announced December 11, 2025. This project was to test PyroGenesis' high-temperature plasma as part of the client's material recovery and new battery production process.
In March [news release dated March 6, 2026], the Company confirmed the successful completion of the plasma torch system built for its client Constellium, and that the delivery and installation phase had been commenced as a result. This announcement was a follow-up to a project previously announced August 5, 2025, where Constellium signed an industrial implementation contract for the purchase of plasma torch technology and related peripheral components for use in a Constellium aluminum remelting furnace.
In March [news release dated March 19, 2026], the Company announced that Rio Tinto and Alcoa were presenting, at the annual conference of The Minerals, Metals & Materials Society, data that confirms that PyroGenesis' patented plasma torches provide significant reductions and/or cost savings in key operational metrics when compared to natural gas burners. The data was derived from a live furnace trial conducted by PyroGenesis and its clients Rio Tinto and Alcoa. Overall, the results show that plasma improves furnace thermal performance, leading to significant energy savings and shorter melting times, and reduces dross generation (i.e. aluminum loss), all without compromising metal quality.
Materials Production
In January [news release dated January 22, 2026], the Company announced a second titanium powder order under the existing powder supply agreement with a U.S. minerals and metal technology company, which was first announced on December 15, 2025. The second contract was for the supply of one tonne of "off cut" titanium powder produced by PyroGenesis' NexGen plasma atomization system.
The Company previously noted in earlier Outlooks that the Company's client HPQ Polvere (a wholly owned subsidiary of HPQ Silicon Inc.), had announced the successful completion of commissioning of the Fumed Silica Reactor (FSR) pilot plant that PyroGenesis has been designing, engineering, and constructing to convert quartz into fumed silica in a single and eco-friendly step. At that time, the pilot plant had commenced pre-commercial production tests of fumed silica, and was steadily working on improving the output to meet various commercial grades.Subsequently, in February [news release dated February 3, 2026], PyroGenesis announced independent verification of its fumed silica meeting commercial grade 150 after samples from its most recent tests were sent for analysis.
In February [news release dated February 12, 2026], the Company announced a non-binding memorandum of understanding toward a potential joint venture for a commercial fumed silica plant, through its client HPQ Silicon Inc. (and its subsidiary HPQ Silica Polvere Inc.). The purpose of the joint venture is to operate a 1,000 tonne per year fumed silica production plant.Subsequently, in February [news release dated February 19, 2026], PyroGenesis confirmed successful third-party verification of its fumed silica, a key requirement for the proposed joint venture to proceed to next steps of the negotiation phase.
In February [news release dated February 23, 2026], the Company announced its first titanium powder order with a scientific aerospace research organization based in Europe, for the supply of coarse cut titanium powder in particle size 45-106µm.
Post quarter-end, in April [news release dated April 9, 2026], the Company announced a contract toward a titanium powder supply and distribution agreement with an Asian materials company. The initial contract is for the supply of three "cut" sizes, ranging from fine to coarse. The customer is a materials company supplying the Asian electronics market (specifically cell phone parts). The contract will allow the Client to perform final testing and analysis of titanium powder across three different particle sizes: 20-63µm, 53-106µm, and 53-150µm. Once this process is complete, and assuming all regulatory and trade agreements are certified, the Client has indicated it will require multiple tonnes of PyroGenesis' titanium powder per year, with final volumes to be determined. Separately, the Client is negotiating to be the official supplier of PyroGenesis' titanium powder to the Asian Electronics, Medical, and Aerospace industries.
Waste Processing
In January [news release dated January 6, 2026], the Company announced it had signed an agreement with the national security and defense division of a U.S. multinational engineering infrastructure corporation, to jointly pursue contracts for the safe destruction of chemical weapons in Syria. Under this agreement, and if these pursuits are successful, PyroGenesis would provide its PACWADS technology (which uses high temperature electric plasma to eliminate a variety of dangerous biological warfare agents and chemicals, including sarin, mustard gas, soman, VX, and others), associated auxiliary systems, and various engineering, training, operational, and after-sale services, to various locations where required in conjunction with its defense partner, the Syrian government, and organizations related to the prohibition and remediation of chemical weapons.
In March [news release dated March 23, 2026], the Company announced that its plasma-based SPARC system was officially unveiled at the launch of New Zealand's national refrigerant destruction facility. The facility is the first of its type in the Southern Hemisphere and will use PyroGenesis' patented all-electric steam plasma arc ("SPARC") system to safely destroy up to 100,000 kg/yr of hazardous end-of-life synthetic refrigerants, such as CFCs, HFCs, and HCFCs. These gases have a combined Global Warming Potential of 220 million kilograms of carbon dioxide equivalent (CO2e). Their destruction ends the potential for harm.
Q1 Financial Highlights
In March [news release dated March 9, 2026], the Company announced a non-brokered private placement (the "Placement") consisting of the issuance and sale of up to 1,851,852 units of the Company (the "Units") at a price of $0.54 per Unit, for gross proceeds of up to approximately $1,000,000 in a "best-effort" placement. Mr. P. Peter Pascali, the President and CEO of PyroGenesis, was expected to subscribe for Units equal to approximately $400,000 under the Placement. Each Unit in the Placement consists of one common share of PyroGenesis (a "Common Share") and one-half of a Common Share purchase warrant (each whole such common share purchase warrant, a "Warrant") of the Company. Each Warrant entitles the holder thereof to purchase one Common Share at a price of $0.70 for a period of 36 months following the closing date of the Private Placement.Subsequently, in March [news release dated March 11, 2026], PyroGenesis announced oversubscription of the non-brokered private placement and that it was not accepting any further requests for participation. The Company estimated the final subscription amounts to be between $1,700,000 and $1,900,000.Subsequently, in March [news release dated March 26, 2026], PyroGenesis announced closing of the non-brokered private placement in an oversubscribed capacity. The private placement sold 3,654,537 units (the "Units") at a price of $0.54 per Unit, for gross proceeds of $1,973,450.
Q1 Operational Highlights
Post quarter-end, in April [news release dated April 28, 2026], the Company announced the appointment of Jean Mayer as Vice-President, Legal Affairs and Corporate Secretary. Mr. Mayer brings more than 25 years of business and legal experience, including advising public companies on corporate governance, securities law, and commercial matters. He has served as general counsel, has held senior executive positions, and has acted as a director with various public and international companies in the mining, cleantech and renewable energy sectors.
FINANCIAL SUMMARY
1. Revenues
PyroGenesis recorded revenue of $4.9 million in the first quarter of 2026 ("Q1, 2026"), representing an increase of $1.9 million compared with $3.0 million recorded in the first quarter of 2025 ("Q1, 2025"). Revenues recorded in the three-months ended March 31, 2026, were generated primarily from:
Three months ended March 31
Variation
2026
2025
2026 vs 2025
High purity metallurgical grade silicon & solar grade silicon from quartz (PUREVAP™)
35,124
159,830
(124,706
)
Aluminium and zinc dross recovery (DROSRITE™)
275,429
168,740
106,689
Development and support related to systems supplied to the U.S. Navy
283,271
217,867
65,404
Torch-related sales
2,103,990
530,267
1,573,723
Refrigerant destruction (SPARC™)
1,549,129
276,784
1,272,345
Biogas upgrading and pollution controls
529,540
1,412,461
(882,921
)
Other sales and services
96,080
221,586
(125,506
)
Revenue
4,872,563
2,987,535
1,885,028
Q1, 2026 revenues increased by $1.9 million, mainly as a result of:
PUREVAP™ related sales decreased by $0.1 million, reflecting the completion of project activities in February 2026 and limited revenue recognition as projects concluded. Activities during the period focused on development and validation, including sample validation and ongoing commercialization discussions,
DROSRITE™ related sales increased by $0.1 million, driven by incremental project activity and the progression of contracts through final-stage milestones,
Torch-related products and services increased by $1.6 million, primarily driven by the advancement of fabrication, delivery activities, and progress toward installation and commissioning on active contracts, including onsite support,
SPARC™ related sales increased by $1.3 million, reflecting significant progress in delivery, installation, and commissioning activities, including increased onsite execution,
Biogas upgrading and pollution controls related sales decreased by $0.9 million, reflecting fewer milestone achievements compared to the prior-year period, which included completion of larger project phases, and,
Other sales and services decreased by $0.1 million, reflecting normal variability in non-core activities.
Overall, revenue growth in Q1 2026 reflects increased execution across key product lines, particularly torch systems and SPARC™, partially offset by lower contributions from biogas projects and completion of the development-stage activity within PUREVAP™. Consistent with prior periods, revenue variability remains closely linked to the timing of project milestones, fabrication progress, and on-site installation and commissioning activities.
As of May 7, 2026, revenue expected to be recognized in the future related to backlog of signed and/or awarded contracts is $43.1 million,1 of which 86% is in US dollars. Revenue will be recognized as the Company satisfies its performance obligations under long-term contracts, which are expected to occur over a maximum period of approximately ...
