"This quarter introduced new opportunities while reinforcing the broadening appeal of some of our mainstay technologies," said P. Peter Pascali, President and CEO of PyroGenesis Inc. "The $1.2 million contract secured in September with a cement industry customer is an example of new sectors we view as emerging focal points for plasma innovation. Our fumed silica reactor, a project with a legacy client, HPQ Silicon Inc., made major strides as well, tripling material surface area performance from Q2 to Q3, a critical leap toward commercial readiness. Other legacy technologies provided new agreements in Europe, for tackling plastic waste, and launching the industrial implementation phase of our energy transition collaboration with Constellium, both of which highlight the growing strength of these two strategic verticals."
"We've stated many times that our revenues can fluctuate quarter to quarter based on project phases as we continue to push forward. We continue to evolve our market strategy to adapt to changing dynamics, to better showcase our capabilities, and to tell our story with greater clarity. The recent reframing of our three business verticals to be more reflective of both the evolution of our solution set and the changing business environment, will help position us for even greater success as the runway ahead of us continues to expand."
Mr. Pascali continued, "Centering our company on innovation is the correct strategy. Being a small cap company in the industrial technology sector presents its challenges, but we firmly believe that this innovation-first approach drives the bold decisions that led us to develop advanced technologies that have a long future ahead, from producing titanium powder and fumed silica, to creating hyper-powered plasma torches for demanding industrial and aerospace applications, to designing systems that safely eliminate a growing range of hazardous materials to protect both people and the environment. These are breakthrough technologies that are built on more than 34 years of research effort, and we are not stopping. For Q4, buoyed by our recent financing, we are focused on delivering a strong finish to the year and setting the stage for 2026."
KEY Q3 2025 FINANCIAL HIGHLIGHTS
Revenue of $3.25 million, down 18.7% vs Q3 2024
Gross margin of 24%, vs 42% in Q3 2024
Revenue (Order) Backlog of $51.6 million of signed and/or awarded contracts as at November 11th, 2025, of which 81% is in U.S. dollars
Net loss of $2.25 million
Modified EBITDA loss of $1.89 million
Q3 2025 PRODUCTION AND SALES HIGHLIGHTS
Energy Transition [formerly Energy Transition & Emission Reduction]
In August [news release dated August 5, 2025], the Company announced the signing of a contract with Constellium, one of the world's largest aluminum transformation and recycling companies, for the purchase of plasma torch technology and related peripheral components to be implemented in an aluminum remelting furnace. This contract marked the launch of Phase 2 of the project, industrial implementation, as part of the two companies' collaboration agreement of April 2024, that outlined Constellium's stated plan to use PyroGenesis plasma torches and associated processes as potential replacement heating sources for aluminum remelting furnaces in Constellium's aluminum cast houses.
In September [news release dated September 2, 2025], the Company announced a $1.2 million contract with a European cement industry customer for the supply of a plasma torch system for use in a calcination furnace.
Materials Production [formerly Commodity Security & Optimization]
In July [news release dated July 8, 2025], the Company announced improved fumed silica quality, purity, and consistency across multiple production cycles of its fumed silica reactor (FSR) pilot plant. These results were verified by a leading global fumed silica manufacturer, who had previously requested, tested, and verified first stage material samples produced in the FSR pilot plant under the terms of a letter of intent. PyroGenesis has been engaged to develop and build the FSR pilot plant for HPQ Polvere Inc., a subsidiary of PyroGenesis' client HPQ Silicon Inc. PyroGenesis has: (i) a 50% interest in Polvere, and (ii) an exclusive arrangement to be the sole supplier of equipment relating to any commercialization of this new process.
In July [news release dated July 28, 2025], the Company announced that confirmation from a third-party Scanning Electron Microscopy (SEM) analysis, of the previously announced (on July 8, 2025) results of Phase 1 Test #5 material from the Fumed Silica Reactor (FSR), further validates recently announced key technical metrics for fumed silica samples generated by the pilot scale plant.
In July [news release dated July 31, 2025], the Company announced receipt of a contract for titanium metal powder produced by PyroGenesis' NexGen™ plasma atomization process, from a European engineering and material science firm specializing in the additive manufacturing industry. The client previously received and tested samples of PyroGenesis' metal powder. The contract marks the first commercial order with this customer. The order is for a Ti64 "coarse" cut titanium metal powder.
In September [news release dated September 4, 2025], the Company announced that the August performance trials and modifications of its fumed silica reactor pilot plant resulted in a 3X increase in material surface area, and significant progress across a number of essential product parameters, bringing the system closer to commercial readiness. The results were provided by a third-party, a global manufacturer of fumed silica, who conducted analysis on fumed silica sample material submitted by PyroGenesis after the latest series of FSR operational tests. The results of August testing (test series #6) reflect: (i) A 3X increase in surface area measurement vs previous test*, to 136 m2/g, up from the 44 m2/g surface area of previously announced test 5, and a 5X increase from test 4 (26 m2/g); (ii) Surface area of 136 m2/g now meets the requirement for commercial grades 90 (75-105 m2/g) and 130 (105-155 m2/g), and enters the lower range of grade 150 fumed silica products which have a surface area range of 135-165 m2/g.(iii) Total elimination of carbon impurity, now measured at 0%, down from 0.32% in test 5 and 2.32% in test 4.
Waste Processing [formerly Waste Remediation]
In July [news release dated July 2, 2025], the Company announced a $600,000 contract with one of the world's largest integrated environmental services companies, for the engineering and testing of an advanced waste management solution targeting both non-recyclable plastics and other forms of hazardous liquid waste, using PyroGenesis' plasma gasification technology as the platform.
In July [news release dated July 15, 2025], the Company announced the completion of a previously announced $9.3 million coke-oven gas valorization and hydrogen production project, for Tata Steel, one of the world's largest diversified steel producers. The systems developed by PyroGenesis' subsidiary Pyro Green-Gas are in continuous 24 hr./day operation at the Tata steel facility in Kalinganagar India, and newly reformed hydrogen produced by the system is being reused by other applications at the facility.
Q3 Financial Highlights
Post quarter-end, in October [news release dated October 1, 2025], the Company announced a non-brokered private placement in two unit groups. The first unit group comprised the issuance and sale of 6,666,665 units at a price of $0.63 per unit, for aggregate gross proceeds of $4,199,999. Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of $0.28 for a period of forty-eight (48) months following the closing date. It was expected that the Company's President and CEO, P. Peter Pascali, would subscribe for the majority, if not all, of this Unit group. The Second Unit Group was expected to comprise the issuance and sale of 4,000,000 units at a price of $0.20 per unit, for approximate gross proceeds of $800,000. Each warrant under this group entitles the holder to purchase one common share at a price of $0.40 for a period of twenty-four (24) months following the closing date. The closings of both Unit Groups are expected to occur in up to three (3) tranches each.
Subsequently, post quarter-end, in October [news release dated October 16, 2025], the Company announced the closing of the first trance of the first unit group of the non-brokered private placement. The Company's President and CEO, P. Peter Pascali, directly subscribed for the entire first tranche, representing an investment of approximately $3,500,000, through the acquisition of 5,555,556 Units at a price of $0.63 per Unit.
Subsequently, post quarter-end, in October [news release dated October 29, 2025], the Company announced the closing of the first trance of the second unit group of the non-brokered private placement, by issuing and selling an aggregate of 4,110,000 units of the Company at a price of $0.20 per Unit, for gross proceeds of approximately $822,000 to the Company.
Post quarter-end, in October [news release dated October 17, 2025], the Company announced the repricing and extension of up to 1,581,250 common share purchase warrants, from an exercise price of $1.20 per share and a expiration date of November 18, 2025, to an exercise price of $0.63 per share and an expiration date of July 17, 2026.The news terms also included an acceleration clause whereby if at any time before the July 17, 2026 expiry date, the closing price of the Company's common shares on the Toronto Stock Exchange was greater than $0.80 (such amount being 127% of $0.63) over any 3 consecutive trading days, the Company will be entitled, within 15 days of the occurrence of such event, to accelerate the expiry date of the Warrants to the date that is 30 days following the date that notice of such acceleration is provided.
FINANCIAL SUMMARY
1. RevenuesPyroGenesis recorded revenue of $3.2 million in the third quarter of 2025 ("Q3, 2025"), representing a decrease of $0.8 million compared with $4.0 million recorded in the third quarter of 2024 ("Q3, 2024"). Revenue for the nine-month period ended September 30, 2025, was $9.2 million, a decrease of $2.2 million over revenue of $11.4 million in the same period of 2024.
Revenues recorded in the three and nine-months ended September 30, 2025, were generated primarily from:
Three months ended September 30
Variation
Nine months ended September 30
Variation
2025
2024
2025 vs 2024
2025
2024
2025 vs 2024
High purity metallurgical grade silicon & solar grade silicon from quartz (PUREVAP™)
94,874
221,627
(126,753
)
390,978
717,861
(326,883
)
Aluminium and zinc dross recovery (DROSRITE™)
441,451
503,230
(61,779
)
735,425
1,493,918
(758,493
)
Development and support related to systems supplied to the U.S. Navy
234,094
344,540
(110,446
)
598,035
1,626,149
(1,028,114
)
Torch-related sales
753,852
1,310,709
(556,857
)
2,509,213
4,979,766
(2,470,553
)
Refrigerant destruction (SPARC™)
587,922
705,027
(117,105
)
1,197,830
956,918
240,912
Biogas upgrading and pollution controls
1,027,519
691,941
335,578
3,219,863
899,950
2,319,913
Other sales and services
109,828
225,615
(115,787
)
593,378
753,621
(160,243
)
Revenue
3,249,540
4,002,689
(753,149
)
9,244,722
11,428,183
(2,183,461
