PyroGenesis Canada, Inc., Montreal, Québec, Canada, has announced its financial and operational results for the second quarter ending June 30, 2022. The company recorded revenue of $5,847,180 in Q2 2022, a decrease of 29% compared with $8,280,572 (which includes $3.3 million sale of intellectual properties) from Q2 2021. Revenue for the first half year was $10,053,943, a decrease of 31% year on year.
“Our backlog remains above $35M, a significant level and our pipeline continues to expand. Despite gross reported revenue continuing to be impacted by delayed client and contract decisions related to ongoing international and regional logistical and resourcing headwinds, our margins are at a level that puts us among industrial technology and manufacturing industry leaders,” stated P Peter Pascali, CEO and chair of PyroGenesis. “The 43% quarterly gross margin illustrates the combined strength of the company’s production process and the strategy and care taken with contract negotiations.”
Pascali continued, “Our trailing twelve-month (TTM) gross margin is a very healthy 32.4% despite the inclusion of the unusually low Q4 2021 gross margin of 18% that was seen as a result of the cost and resource synchronisation process for Air Science Technologies acquisition (now Pyro Green-Gas). Both this quarter’s gross margin, and our TTM, are well above those of many of our contemporaries including the high-profit industries we primarily serve: the aluminium industry at 22.7%, iron and steel at 31.5%, and aerospace and defence at 22.8%.”
PyroGenesis’ NexGen™ facility was announced to have produced and delivered two separate 100 kg orders for titanium powders to Aubert & Duval – the first two commercial batch orders for the system after months of testing and sample size production.
These orders were both noted as an important commercial milestone, as well as further validation of the company’s process and ability to supply high-quality powder to the Additive Manufacturing industry using its NexGen plasma atomisation process.
Of note, a major tier-one global aerospace company has already entered into an agreement with the PyroGenesis to formally qualify its metal powder, at considerable expense to the global aerospace company, with a view towards having the company become a supplier. Under this agreement, the client has been performing an in-depth qualification process with PyroGenesis – a procedure typically required before a company can become an approved supplier.
There are additional major top-tier aerospace companies and OEMs, in both Europe and North America, awaiting powders from this new production line, and we are currently in the process of supplying sample powders to them for analysis.
The company anticipates that such developments will continue and will translate into significant improvements in contributions to revenue by this segment in the mid-long term.
What was anticipated by the company to be a major growth first half has adjusted to a modest stage-setting for the second half of the year and into 2023, as existing and prospective customers moved back their planning and decision-making in the quarter to accommodate interruptions.
However, in parallel, during the last quarter the PyroGenesis marked corporate milestones – achievements that are considered major advancements for both the company itself and its customers’ industries, and which are anticipated to provide potentially large sales bursts through to and beyond 2023.
These achievements include producing and delivering plasma torches for in-factory use within an iron ore pelletisation furnace – a major upstream step in the steelmaking process – and the movement from sample size to commercial-scale batch production of titanium metal powder production for Additive Manufacturing, from the company’s plasma atomisation system.