Canada's PyroGenesis Q4 gross margin drops, revenue falls on fewer large project milestones

Overview

• Canadian plasma technology provider's Q4 revenue fell 21% yr/yr amid timing-sensitive project milestones

• Gross margin dropped to 17% from 41% in Q4 2024 due to higher material costs

• Company ended Q4 with C$47.8 mln backlog in signed contracts, mostly in US dollars

Outlook

• PyroGenesis has a contract backlog of $47.8 mln, mostly in USD, as of March 31, 2026

• Company expects to recognize backlog revenue over a maximum period of about 3 yrs

• PyroGenesis says operational progress provides visibility into 2026 deliveries and milestones

Result Drivers

• PROJECT TIMING - Q4 revenue decline mainly due to fewer large project milestones and completions compared to prior year, especially in DROSRITE™, PUREVAP™, and US Navy support services

• HIGHER MATERIAL COSTS - Gross margin fell due to increased direct material consumption as torch system projects advanced through late-stage fabrication and shipment preparation

• TORCH AND SPARC™ GROWTH - Torch-related products and SPARC™ sales rose, reflecting progress in fabrication, shipment, and installation activities

Company press release: ID:nGNXTLmbx

Key Details

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