NanoXplore (GRA) Q3 2025 earnings summary

Executive summary

• Q3 revenue declined to CAD 30.4 million, down 10% year-over-year, mainly due to lower progress and tooling revenues and reduced volumes from top customers, reflecting broader economic uncertainty in the commercial vehicle market, partially offset by FX gains.

• Adjusted EBITDA improved to CAD 1.4 million from CAD 572,000 last year, reflecting higher other income, R&D grants, tax credits, and reduced operational expenses.

• Net loss narrowed to CAD 1.75 million from CAD 3.09 million in Q3-2024.

• Progress in graphene powder commercialization and U.S. expansion, with equipment arrival expected by May-June and incremental revenues anticipated by August-September.

• Management expects stronger customer activity and new program launches in the next fiscal year.

Financial highlights

• Q3 total revenues: CAD 30.4 million (down from CAD 33.9 million year-over-year).

• Adjusted gross margin: 22.4% (up 150 bps year-over-year).

• Adjusted EBITDA: CAD 1.4 million (vs. CAD 572,000 last year).

• Cash and equivalents: CAD 20.7 million; total liquidity: CAD 30.7 million at March 31.

• Long-term debt decreased by CAD 1.4 million to CAD 4.94 million since June 30, 2024.

Outlook and guidance

• Fiscal 2025 sales expected to be flat year-over-year at approximately CAD 130 million due to delayed program launches and soft commercial vehicle market.

• Anticipated incremental revenue of at least CAD 15 million in fiscal 2026 from new and delayed programs and graphene powder sales.

• CapEx to remain at CAD 4–5 million for the next two quarters, then decrease to below CAD 1 million per quarter.

• Management expects commercialization of graphene powder and new program launches in the near term.

• Stronger customer activity anticipated at the start of the new fiscal year, despite low Q4 activity.