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

PyroGenesis

31/03/2026 04:55

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
C$3.30 mln
Q4 Gross Margin
17.00%


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)