NanoXplore (GRA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached CAD 33.7 million, up 16% year-over-year, driven by higher product sales, FX gains, and increased tooling revenue from new and expanded programs.

• Gross margin expanded to 20.9%, continuing a nine-quarter trend of improvement due to higher activity, favorable product mix, and manufacturing efficiencies.

• Adjusted EBITDA was CAD 1.12 million, a turnaround from a loss of CAD 488,000 last year; excluding VoltaXplore, Adjusted EBITDA was CAD 1.5 million.

• Net loss narrowed to CAD 2.7 million from CAD 3.7 million in Q1 2024.

• Management expects continued growth in graphene applications, focusing on direct powder sales for higher margins.

Financial highlights

• Operating cash flow was negative CAD 2.3 million, a CAD 500,000 improvement year-over-year.

• Cash and equivalents stood at CAD 21.3 million, with total liquidity of CAD 31.6 million including unused credit lines.

• CapEx for Q1 was CAD 3.1 million, mainly for U.S. and Canadian plant expansions.

• Cash flows from financing activities were positive CAD 300,000, including CAD 2.3 million from equipment leasing.

• Long-term debt at CAD 5.9 million, down CAD 0.5 million sequentially.

Outlook and guidance

• Fiscal 2025 revenue guidance is CAD 140–155 million, implying 8–19% growth, with the range reflecting customer demand uncertainty.

• Gross margin is expected to expand by 100–200 basis points for the full year, depending on sales mix and volume.

• CapEx is projected at CAD 3–4 million per quarter for the next three quarters, excluding battery materials initiatives.

• U.S. and Canadian expansions will drive incremental revenue starting late fiscal Q4 2025, with full capacity utilization expected by 2026–2027.

• Expansion of manufacturing capacity planned to meet growing demand for graphene-enhanced materials.