Pyrogenesis Canada (PYR) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached CAD 4.22 million (USD $4.22M), up 40% year-over-year, with net income of CAD 145,000, marking a turnaround from a $9.8M loss in Q4 2023 and four consecutive quarters of growth.

• Full-year 2024 revenue was CAD 15.65 million (USD $15.7M), a 27% increase year-over-year, with a net loss of $6.7M, a 77% improvement from FY 2023.

• Backlog as of March 31, 2025, stood at $54.4 million, with 87% in U.S. dollars, reflecting robust sales and supporting growth into 2025.

• Major contracts included a $27M plasma torch system for a U.S. defense contractor, $2.4M with Norsk Hydro, and $1.74M for a waste-to-energy project.

Financial highlights

• Q4 gross margin was 41.3%, up from 23% in Q4 2023; full-year gross margin improved to 34% from 28% in 2023.

• Q4 modified EBITDA was $1.8M, a $9.7M improvement year-over-year; full-year modified EBITDA loss was $1.9M, improved from a $24.4M loss in 2023.

• SG&A expenses dropped to $1.3M in Q4 from $9.4M a year ago, mainly due to lower credit loss provisions and absence of goodwill impairment.

• Over $3M in annual cost reductions achieved in 2024, with a further $2M identified for 2025.

• Cash at year-end was $3.0M, with a net working capital deficiency of $9.2M; term loan balance reduced to $309K.

Outlook and guidance

• Management expects continued improvements, supported by a strong backlog, ongoing customer interest, and energy transition projects in aluminum, aerospace, and steelmaking.

• No specific revenue or net income guidance for 2025 due to early market adoption stage.

• Focus remains on innovation, efficiency, cost optimization, expanding recurring revenue, and broadening the customer base globally.

• Significant near-term milestones include plasma torch projects with GE Vernova, Norsk Hydro, and ongoing trials with major aluminum and steel clients.