PyroGenesis Canada (TSX: PYR) reported second-quarter 2026 revenue of $4.425 million, a 47.11% year-over-year increase from $3.008 million in the prior-year period. The Montreal-based plasma technology provider narrowed its net loss per share to $(0.01), a significant improvement from the $(0.02) loss recorded in the same quarter last year. This 50% reduction in per-share losses underscores improved operational efficiency despite higher subcontracting costs that pressured gross margins.

The revenue growth was driven by strong execution across key product lines. SPARC refrigerant destruction sales rose by $0.7 million to $1.1 million, reflecting progress in commissioning and onsite support. Torch-related products and services contributed an additional $0.4 million increase, reaching $1.6 million, while DROSRITE dross recovery sales grew by $0.5 million to $0.6 million due to higher spare parts orders. Development and support activities for the U.S. Navy also saw a $0.3 million increase. These gains were partially offset by a $0.2 million decline in biogas upgrading and pollution controls revenue, attributed to timing differences in project milestones.

Gross margin stood at 32%, down from 56% in Q2 2025, primarily due to higher subcontracting costs which increased by $1.1 million as the company utilized more external resources for project execution. However, selling, general, and administrative (SG&A) expenses decreased by $0.5 million to $3.1 million, reflecting continued cost control measures and lower employee compensation. Modified EBITDA loss improved significantly to $0.5 million from a $2.1 million loss in the prior-year quarter. The company maintains a robust backlog of $40.0 million, 88% of which is in U.S. dollars, positioning it to sustain momentum into the second half of the year.

Operational Highlights and Strategic Developments

Beyond financial metrics, PyroGenesis advanced several strategic initiatives during the quarter. In April, the company announced a titanium powder supply agreement with an Asian materials company targeting the electronics market, marking the second such agreement in consecutive quarters. This underscores growing interest in PyroGenesis’ metal powders for additive manufacturing. Additionally, the company successfully produced battery-grade carbon black and hydrogen from natural gas using its proprietary plasma torch system, achieving quality levels above battery-grade requirements.

In May, PyroGenesis secured a binding contract to acquire its Turcot Manufacturing Facility for $3.1 million following an out-of-court settlement. The company believes the property’s market value exceeds the purchase price and is assessing options for its future use. The acquisition provides greater control over manufacturing operations and potential cost savings.

What the Numbers Show

The divergence between revenue growth and margin contraction highlights the transitional nature of PyroGenesis’ current project mix. While top-line growth was robust, the reliance on subcontracting for execution pressured gross margins. However, the significant reduction in SG&A expenses demonstrates effective operational discipline. The improvement in modified EBITDA suggests that core operational efficiencies are beginning to offset the higher variable costs associated with scaling up project delivery. The substantial backlog provides visibility into future revenue, mitigating some of the volatility typically associated with project-based businesses.

PyroGenesis Inc. shareholders approved all resolutions at its annual and special meeting held on June 23, 2026, including amendments to the Long Term Incentive Plan (LTIP) that increase the share reserve limit from 10% to 15% of issued and outstanding shares. Approximately 34.18% of the issued and outstanding common shares were represented at the virtual meeting.

Director Elections

All nine nominees for election to the board were elected. Dr. Virendra Jha received the highest support with 99.80% of votes cast, while P. Peter Pascali received 99.31%. The detailed voting results for the directors are as follows:

Auditor Appointment

Shareholders ratified the appointment of Raymond Chabot Grant Thornton LLP as the company's auditor. The resolution received 99.79% of votes cast, with 70,553,494 votes for and 145,257 votes withheld.

Long Term Incentive Plan Approvals

Shareholders approved three resolutions related to the LTIP. The renewal of unallocated awards for three years was approved with 98.52% of votes in favor. Grants made since June 21, 2025, were ratified with 98.39% support. The amendment to increase the LTIP limit from 10% to 15% of issued and outstanding shares was approved with 97.68% of votes in favor.

Final voting results are available under PyroGenesis' profile on SEDAR+ at www.sedarplus.ca .