NanoXplore (GRA) Q2 2025 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth to CAD 33.1 million, driven by increased tooling revenue, positive FX impact, and manufacturing efficiency initiatives.

• Adjusted gross margin improved to 21.3%, reflecting productivity gains, favorable product mix, and higher sales of graphene-enhanced products.

• Adjusted EBITDA reached CAD 1.1 million, reversing a prior year loss, with strong performance in Advanced Materials.

• Navigated macroeconomic uncertainty and tariff risks, with US manufacturing expansion underway to mitigate impacts.

• Net loss widened to CAD 2.89 million due to higher SG&A and R&D expenses.

Financial highlights

• Q2 revenue rose 14% year-over-year to CAD 33.1 million, mainly from increased tooling revenue for new customer programs.

• Adjusted gross margin improved to 21.3%, up 190 basis points year-over-year.

• Adjusted EBITDA reached CAD 1.1 million, reversing a loss of CAD 93,000 in the prior year.

• Ended the quarter with CAD 21 million in cash and total liquidity of CAD 31 million.

• Long-term debt decreased by CAD 893,900 to CAD 5.45 million since June 30, 2024.

Outlook and guidance

• Fiscal 2025 revenue guidance maintained at CAD 140–155 million, but expectations are for the lower end due to flat medium-duty truck demand and supply chain delays.

• Commercial rollout of graphene powder for drilling fluid and insulation foam customers expected in the second half of calendar 2025, with initial volumes in the hundreds of tons.

• CapEx expected at CAD 2–3 million in Q3 and CAD 4–5 million in the following two quarters, then reducing.

• US site selected, with production expected to begin in late summer, contributing to future sales.

• Large-scale dry-processed graphene pilot plant in Montreal planned for production by end of 2025.