Summary of PureCycle Technologies Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: Approximately $4.5 million, a significant increase from the previous year.

Operating Loss: Improved to $41.3 million from $45.6 million year-over-year.

Net Loss: $142.2 million, slightly better than $144.2 million a year ago.

Adjusted EBITDA: Negative $31.7 million, compared to negative $27.8 million, reflecting lower non-cash add-backs.

Production: Produced approximately 4.5 million pounds of PureFive, down from the prior quarter due to a planned turnaround.

Liquidity: Total liquidity increased to $236.9 million, including $165.2 million in cash and cash equivalents.

2Strategic Updates and Business Highlights

Operational Improvements: Completed a major turnaround ahead of schedule and below budget, executing over 170 projects to enhance reliability and throughput.

New Records: Set a new daily throughput record of 12,000 pounds per hour in June.

Commercial Developments: First Procter & Gamble application entered commercial production; significant progress with quick-service restaurants (QSRs) and other major brands.

Regulatory Approvals: New Jersey approved PureFive as recycled content, accelerating qualification processes with customers.

International Expansion: Received Board of Investment approval for the Thailand facility, with plans to break ground in the second half of 2026.

3Forward Guidance and Outlook

Breakeven Target: Aiming for Ironton breakeven at 40-50% utilization in the second half of 2026.

Demand Forecast: Anticipating a ramp-up in demand driven by regulatory deadlines in January 2027, with expected sales of $40 million to $50 million outside New Jersey and $25 million to $50 million within New Jersey.

Production Expectations: Production levels are expected to rise in Q3 and Q4 as commercial activities ramp up.

4Bad News, Challenges, or Points of Concern

Net Loss: Despite improvements, the net loss remains substantial, indicating ongoing financial challenges.

Adjusted EBITDA: Continued negative adjusted EBITDA reflects ongoing operational costs and challenges in scaling production.

Market Fragmentation: The market's structure requires numerous qualifications for various SKUs, which could slow down the ramp-up process.

Regulatory Risks: While regulatory approvals are progressing, compliance with evolving regulations remains a potential risk.

5Notable Q&A Insights

Thailand Project: Groundbreaking is expected in the second half of 2026, with financing discussions progressing towards a close by year-end.

P&G Relationship: The cadence of new applications with Procter & Gamble is accelerating, with confidence that other large brands will follow suit.

Production vs. Demand: Production levels are expected to increase in line with commercial demand, particularly as brands rush to meet regulatory deadlines.

Compounding Product Pricing: Pricing for compounded products remains strong, allowing for a premium over virgin resin, which enhances the value proposition for customers. Overall, PureCycle Technologies demonstrated operational progress and strategic advancements in Q2 2026, setting the stage for a potentially strong second half of the year, despite ongoing financial losses and market challenges.