PyroGenesis Announces Fourth Quarter and Full Year 2024 Results

Quarterly Revenue of $4.22 Million, Up 40% Year-Over-Year.Quarterly Net Income of $145,320.Full Year Revenue of $15.7 Million, Up 27% Year-Over-Year.Backlog of $54.4 Million, with 87% in U.S. Dollars.

Revenue Growth Expected to Continue as 2025 Opens with Major Global Energy Transition Clients in Aluminum, Aerospace, and Steelmaking

MONTREAL, March 31, 2025 (GLOBE NEWSWIRE) -- PyroGenesis Inc. ("PyroGenesis") (http://pyrogenesis.com) (TSX:PYR) (OTCQX:PYRGF) (FRA:8PY1), a high-tech company that designs, develops, manufactures and commercializes all-electric plasma processes and sustainable solutions to support heavy industry in their energy transition, emission reduction, commodity security, and waste remediation efforts, today announces its financial and operating results for the fourth quarter and full year ended December 31, 2024.

"On the back of a stronger fourth quarter, PyroGenesis enters fiscal 2025 with continued confidence," said P. Peter Pascali, President and CEO of PyroGenesis. "The combination of expanding interest for electricity-based power and heating technology in heavy industry processes, increasing demand for key materials such as recycled aluminum where our various technologies provide important melting and heating solutions, and the rising need for commodities such as titanium metal powder, various silica-based substances, and renewable natural gas that the Company's technologies produce, means the opportunities in front of us are much larger than those behind us. With every quarter's revenue growth in 2024 beating the previous years' quarters, and with a $50 million plus backlog of contracts to produce, we are determined to move the company to the next plateau during 2025."

"Like many other companies in the current economic climate, we have experienced cash flow constraints in recent periods," commented Mr. Pascali. "With a solid backlog in place and continued interest from existing and new customers, we believe we are well-positioned for continued improvements in the upcoming fiscal quarters."

"We have started 2025 with a lineup of important energy transition projects with global industry leaders that are the result of years of technology development and relationship building," added Mr. Pascali. "The groundwork we have laid over the past few years with major power advances in our plasma torches and system/performance improvements across multiple business lines, has led to the growing competitiveness seen in 2024 and expected for 2025 and beyond. We are committed to making PyroGenesis not just the go-to supplier of ultra-high temperature technology to the world's leading companies, but also to be an essential part of the final mile of industrial energy grid infrastructure during the coming period of major grid expansion and widespread changes to the industrial energy mix."

KEY Q4 2024 FINANCIAL HIGHLIGHTS

Revenue of $4.22 million, up 40% vs. Q4 2023, the 4th straight quarter of year-over-year growth

Gross margin of 41.3%, an 18-point improvement year-over-year

Net income of $145,320, compared to a loss of $9.8 million in the same period a year ago

Revenue (Order) Backlog of $54.4 million of signed and/or awarded contracts as at March 31st, 2025, of which 87% is in U.S. dollars

Modified EBITDA $1.8 million vs. a loss of $7.9 million during the same period a year ago

KEY FULL YEAR 2024 FINANCIAL HIGHLIGHTS

Revenue of $15.7 million, up 27% vs. FY 2023

Gross margin of 34%, a 6-point improvement year-over-year vs FY 2023

Net loss of $6.7 million, a 77% improvement vs. $28.5 million loss in FY 2023

Modified EBITDA loss of $1.9 million, a 92% improvement vs. $24.4 million loss the previous year

SUBSEQUENT EVENTS

Post quarter end, in February 2025 [news release dated February 24, 2025], the Company announced it was the winner of a previously announced tendered bid process and was awarded a contract for approximately $2,400,000 with Norsk Hydro ASA, a Norway-based aluminum and renewable energy company founded in 1905 that is one of the largest aluminum producers in the world and often considered one of the most respected and influential leaders in heavy industry, with 32,000 employees across operations in 42 countries. The company posted 2024 revenues of US$18.3 billion. Hydro intends to replace fossil fuel burners with PyroGenesis' plasma torches to test melt aluminum in the R&D casthouse at Sunndal Norway (the largest and most modern primary aluminum plant in Europe). Hydro's stated eventual goal is to eliminate the use of fossil fuels across the entire aluminum value chain. The project is expected to commence in the near term, with initial payment also expected during Q2 2025.

Post quarter end, in January 2025 [news release dated January 27, 2025], the Company that its subsidiary, Pyro Green-Gas Inc. had signed a contract totaling US$1.74 million (approx. CA$2.5 million) with one of the world's largest integrated environmental services companies as part of a large urban waste-to-energy project. The multi-national, multi-billion-dollar revenue client provides services to public utilities in dozens of countries worldwide. The contract is for the engineering, design, and delivery of components related to gas "flaring", that provides for the safe and environmentally friendly removal of peripheral emissions considered unworthy of processing during the production of renewable natural gas ("RNG"). The technology will be installed at a large US-based organic waste-to-RNG facility, which was built to produce pipeline-quality natural gas that can be added to the natural gas supply for a major U.S. metropolitan area.

Q4 2024 PRODUCTION AND SALES HIGHLIGHTS

Q4 2024 continued the positive revenue growth trend that began in Q2 2023. Q4 2024 marks the 7th straight quarter of revenue improvement compared to the low revenue mark of Q1 2023, with six of those seven quarters, including this Q4 2024, surpassing the previous quarter's revenues.

The Company operates primarily within three business verticals that align with economic drivers that are key to global heavy industry:

1. Energy Transition & Emission Reduction:

fuel switching, utilizing the Company's electric-powered plasma torches and biogas upgrading technology to help heavy industry reduce fossil fuel use and greenhouse gas emissions,

2. Commodity Security & Optimization:

recovery of viable metals, and optimization of production methods/processes geared to increase output, maximize raw material usage, and improve the availability of critical minerals,

3. Waste Remediation:

safe destruction of hazardous materials, and the recovery and valorization of underlying substances such as chemicals and minerals.

The information below represents highlights from the past quarter for each of the Company's main business verticals.

Energy Transition & Emission Reduction

In October, [news release dated October 21, 2024], the Company announced a contract valued at approximately $27 million for the development of a plasma torch system powered at 20 megawatts, from an existing U.S. client which provides technology and test services geared to solving critical defense, military, aeronautics, and space exploration challenges. The client, which previously ordered a 4.5MW plasma torch system from PyroGenesis in August 2023 [news release dated August 1, 2023], regularly serves as a prime contractor for the U.S. government. A plasma torch at this 20 megawatts power level, based on PyroGenesis' own research, represents one of the most powerful (if not the most powerful) plasma torches ever produced commercially. The project was expected to start within 30 days of the news release, with an estimated duration of 3 years

In November, [news release dated November 19, 2024], the Company announced a contract with one of the three largest steelmakers in the world to assess the applicability of PyroGenesis' full electric plasma torches for use in the customer's electric arc furnace steelmaking and casting process. The client had previously been referred to as Client C and is one of the world's largest companies in both steelmaking and iron ore pelletization.

Waste Remediation

In October [news release dated October 10, 2025], the Company announced a purchase order of approximately $1,015,000 from Newport News Shipbuilding, for after-sales component production related to the US Navy aircraft carrier contract.

In December [news release dated December 3, 2024, the Company announced the successful completion of a contract for the delivery, commissioning, and operation of its plasma torch system to destroy harmful Perfluoroalkyl and Polyfluoroalkyl Substances ("PFAS"). PFAS are widely known as "forever chemicals" due to a strong molecular bond that resists degradation and have been connected to worldwide health issues. The project is funded by the U.S. Department of Defense, which is seeking various PFAS-remediation technologies as part of its broader environmental clean-up mandate. Under the previously announced contract, PyroGenesis received $2.25 million and supplied a 1MW (one megawatt) plasma torch system with related peripherals. At the time of the news release, PyroGenesis had completed the commissioning of the system and had been able to operate it at full capacity, with more than 300 tonnes of PFAS-contaminated materials having been successfully treated at the client's facility using PyroGenesis' plasma system.

Q4 2024 FINANCIAL HIGHLIGHTS

Through the majority of fiscal 2024, the Company actively monitored its selling, general and administrative expenses in order to maximize savings and reduce expenses. This active attention to cost optimization resulted in over $3 million of cost reductions realized mainly from a change in the director's and officers' insurance, a reduction in professional fees, consulting and other expenses, along with adjustments to staffing and optimal use of employees. These are savings we will benefit from every year, going forward.

In October [news release dated October 31, 2024], the Company provided an update on the Repriced Warrants. As a result of the repricing, 1,457,500 of the Repriced Warrants have been exercised, for total proceeds to the Company of $1,093,125.

In November [news release dated November 26, 2024], the company received a payment of approximately $2,800,000, representing a portion of an outstanding receivable under PyroGenesis' existing $25,000,000 Drosrite contract with Raidan Oil and Gas Services Company.

In December [news release dated December 19, 2024], the company announced an agreement with HPQ Silicon Inc. to resolve an outstanding liability of $4,941,440 owed to PyroGenesis, using a debt-to-equity conversion. Under the agreement, the outstanding liability will be converted into 17,968,873 units at a price of $0.275 per unit. Each unit will be comprised of one common share of HPQ and one common share price warrant. Each warrant will entitle PyroGenesis to acquire one common share of HPQ at a price of $0.285 until the date that is two years following the effective date of this transaction. Upon issuance of the units to PyroGenesis, the outstanding liability shall be deemed fully satisfied.

Post quarter end, in January 2025 [news release dated January 20, 2025], the Company received a payment of approximately $1,850,000, representing a portion of an outstanding receivable under PyroGenesis' existing $25,000,000 Drosrite contract with Raidan Oil and Gas Services Company.

Post quarter end, in January 2025 [news release dated January 21, 2025], the Company received a payment of approximately $1,040,000 under PyroGenesis' existing $4,100,000 contract with a U.S. aeronautics and defense client for a 4.5MW plasma torch

Q4 2024 OPERATIONAL HIGHLIGHTS

In November [news release dated November 12, 2024], the Company announced a corporate name and address change. PyroGenesis' corporate name was changed from PyroGenesis Canada Inc. to PyroGenesis Inc. Simultaneously, the French version of its name was changed from PyroGènese Canada Inc. to PyroGènese Inc."This change to our name is a subtle but indicative change," noted Mr. Pascali. "With sales across 21 countries and counting, this name change is part of an initiative to better express in all areas of communication that we are an internationally focused company with global reach."This name change did not involve any restructuring, change of control, or other corporate reorganization. This decision solely pertains to a more inclusive and internationally resonant brand image. The name change did not affect trading of the Company's shares, which continued to trade on the TSX under the symbol PYR and through the OTCQX under the symbol PYRGF, with no change to the stock symbols.Additionally, the Company announced that it had recently moved its headquarters to a larger office location in downtown Montreal. The move comes as a result of the Company having outgrown its previous headquarters after more than 30 years in Montreal's historic Griffintown neighbourhood. The new office location resides in the heart of downtown near Montreal Central Station, the Queen Elizabeth Hotel, and the Bell Centre arena (home of the Montreal Canadiens), and provides more modern amenities and a smarter office layout, while also providing easier access for employees and customers that use public transit. PyroGenesis' new corporate headquarters address are located at 1100 René-Lévesque Boulevard West, Montréal, Québec, Suite 1825, H3B 4N4. Phone numbers will remain the same, with 514-937-0002 the main line.

In November [news release dated November 20, 2025], the Company provided post-election comments and analysis in response to investor questions about the impact from the incoming Trump administration. In summary, PyroGenesis stated that it is positive about the potential economic impact the U.S. election outcome may have on the company. The potential benefits from President-Elect Donald Trump's campaign promises, in particular the commitments to (i) lower corporate taxation to stimulate business growth, (ii) reduce regulatory burdens and bureaucracy to accelerate project approvals, (iii) expand the energy sector to, in the campaign's own words, "unleash energy production from all sources, including nuclear", (iv) "to immediately slash inflation and power American homes, cars, and factories with reliable, abundant, and affordable Energy", are numerous and prescient, as America commits to a future of advanced manufacturing leadership, energy self-sufficiency, and supply chain protection."The expectation is that the newly-elected administration's initiatives will speed up capital projects, stir innovation, increase overall capacity of the energy grid, and lower energy costs. This could be highly beneficial to companies like ours that supply heavy industry with the high-temperature electricity-based solutions needed to modernize, optimize, and compete," said P. Peter Pascali, President and CEO of PyroGenesis

FINANCIAL SUMMARY

1. Revenues

PyroGenesis recorded revenue of $4.2 million in the fourth quarter of 2024 ("Q4, 2024"), representing an increase of $1.2 million when compared to $3.0 million recorded in the fourth quarter of 2023 ("Q4, 2023"). Revenue for fiscal 2024 was $15.7 million, an increase of $3.3 million over revenue of $12.3 million compared to fiscal 2023.

Revenues recorded in fiscal 2024 were generated primarily from:

Q4, 2024 revenues increased by $1.2 million, mainly as a result of:

DROSRITE™ related sales increased by $1.9 million due to significant progress on the contract with the Company's Saudi customer, highlighted by the successful manufacturing and delivery of the first three systems. Contributing factors to this increase include the completion of client site trials across Europe, as well as a rise in revenue from storage, ancillary services, and transportation associated with the DROSRITE units, at the request of the client,

Support services related to systems supplied for the US Navy decreased by $0.6 million due to the current stage of the project, whereas, in the comparable period, significant advancement was made related to inspection, packaging and shipment of the equipment to our customer in order to move forward with installation and commissioning,

Torch-related products and services decreased by $0.5 million, due to the completion of the project, with the Company currently providing continuous onsite support,

SPARC™ related sales decreased by $0.2 million primarily due to the completion of fabrication of long lead items scheduled for Q1, 2025, which were largely subcontracted, and the associated timing delays in project progress,

Biogas upgrading and pollution controls related sales increased by $0.6 million specifically due to the project advancement of the Company's gas desulfurization project.

Fiscal 2024 revenues increased by $3.3 million, mainly as a result of:

PUREVAP™ related sales decreased by $0.6 million due to the ongoing phases of the project, with preparations in progress for continuous operations and the production of the first batch of material, anticipated in Q1, 2025,

DROSRITE™ related sales increased by $3.0 million due to the significant progress on ongoing projects, the completion of the European trials and the revenue generated from spare parts sales and storage services. These factors collectively contributed to the growth in revenue, reflecting accelerated project advancement and increased demand for associated products and services,

Support services related to systems supplied for the US Navy decreased by $1.1 million due to the current stage of the project, with the advancements contingent upon the client's inspections which were scheduled for Q4, 2024, and will be completed in Q1, 2025, partially offset, by the increase in awarded contracts for spare parts and engineering services from clients that are third-party suppliers of the US Navy,

Torch-related products and services increased by $1.8 million, driven by the completion and progress of the Company's key torch-related projects. This includes the successful completion of the PFAS destruction project, which confirmed that PyroGenesis' plasma torches can reduce energy requirements by up to 45%. Additionally, significant advancements were made in the 4.5MW torch system project, notably achieving the milestone of completing all major equipment. The Company also continues to provide ongoing onsite support,

SPARC™ related sales increased by $0.4 million, reflecting the steady progress achieved throughout the year. The pace is expected to accelerate with the anticipated completion of fabrication in Q1, 2025, followed by a structured ramp-up for delivery in fall 2025, and,

Other sales and services decreased by $0.3 million, which is primarily attributable to variations in project timelines, customer demand, and the timing of service contracts.

As of March 31, 2025, revenue expected to be recognized in the future related to backlog of signed and/or awarded contracts is $54.4 million,1 of which 87% 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 3 years.

1This excludes the contract with Varennes Carbon Recycling following the March 21, 2025, announcement that the company managing the project filed for protection under the Companies Creditor Arrangement Act.

2. Cost of Sales and Services and Gross Margins

Cost of sales and services were $2.5 million in Q4 2024, representing an increase of $0.2 million compared to $2.3 million in Q4 2023. The increase was primarily driven by higher employee compensation costs, which rose by $0.2 million from $0.9 million to $1.1 million, as well as an increase in subcontracting expenses, amounting to $0.3 million, up from $0.1 million, due to the use of additional external resources. Additionally, manufacturing overhead and other related costs saw a $0.2 million increase to $0.6 million, up from $0.4 million, reflecting higher indirect production expenses. However, these increases were partially offset by a $0.2 million decrease in direct material costs, which dropped from $0.7 million to $0.5 million, attributed to reduced material usage and lower prices. Furthermore, amortization of intangible assets decreased by $0.2 million due to certain assets being fully amortized.

The gross profit for Q4, 2024 was $1.7 million, or 41% of revenue, compared to a gross profit of $0.7 million, or 23% of revenue, for Q4 2023. The increase in gross margin was primarily attributable to a reduction in direct material costs and a decrease in amortization of intangible assets. These factors contributed to improved profitability during the quarter.

Cost of sales and services for fiscal 2024 were $10.4 million, compared to $8.9 million for fiscal 2023, reflecting an increase of $1.5 million and was primarily related to several factors. Employee compensation increased by $0.4 million, from $3.5 million to $3.9 million, due to higher project activity levels, which led to an expanded workforce dedicated to revenue-generating projects. Subcontracting increased by $0.2 million, from $0.3 million to $0.5 million, as a result of greater reliance on external resources and contractors, a significant increase in direct materials of $1.2 million, from $3.2 million to $4.3 million, while manufacturing overhead and other related costs increased by $0.4 million, from $1.2 million to $1.5 million, both driven by increased production activity. These increases were partially offset by a $0.7 million decrease in amortization of intangible assets, which declined from $0.9 million to $0.1 million, due to certain assets being fully amortized.

The amortization of intangible assets for Q4, 2024 was $0.02 million compared ...