NanoXplore (GRA) Q2 2026 earnings summary

Executive summary

• Q2-2026 saw sequential improvements in revenue, gross margin, and adjusted EBITDA, reflecting a rebound in operating performance and stronger fundamentals.

• The decision was made not to proceed with the CAD 100 million ($100 million) CSPG project, reallocating capital to lower-risk, higher-return opportunities and core operations.

• The dry process graphene platform was completed on schedule and budget, with the first commercial module expected operational by April, expanding addressable markets and cost leadership.

• Successful launches with Club Car and a new contract award from Volvo Trucks strengthen long-term revenue visibility and support future growth.

• Strategic collaboration with Chevron Phillips Chemical (CPChem) is advancing, with new product launches and field testing underway.

Financial highlights

• Q2 revenues were CAD 27.6 million ($27.6M), down 17% year-over-year, mainly due to lower volumes from the two largest customers and reduced tooling revenue.

• Adjusted gross margin rose slightly to 21.5% from 21.3% last year, despite lower revenues, driven by higher-margin powder sales and the Club Car program.

• Adjusted EBITDA was CAD 224,000 ($224K), a decrease of CAD 880,000 year-over-year.

• Ended the quarter with CAD 30.1 million ($30.1M) in cash and CAD 14.6 million in debt; total liquidity was CAD 40.1 million ($40.1M).

• Net loss of $3.8M compared to a $2.9M loss in Q2-2025.

Outlook and guidance

• Revenue guidance for fiscal 2026 is CAD 115 million to CAD 120 million, with sequential quarterly growth expected after a Q1 trough.

• Gross margins are expected to gradually improve to 22–23% over the next few quarters as volumes recover and product mix shifts.

• CapEx is projected at CAD 4–5 million in Q3, then to decrease to under CAD 1 million per quarter thereafter.

• Management expects continued sequential financial improvement, driven by new customer momentum and stabilized volumes from key accounts.

• Gradual volume improvement is anticipated in the second half of the year, with industry recovery and new contracts contributing.