REC Silicon (RECSI) Q1 2026 earnings summary

Executive summary

• EBITDA from continuing operations was negative $3.8 million for Q1 2026, with revenues of $19.5 million, reflecting a 4.7% decrease in silicon gas sales volume compared to Q4 2025.

• Cost reduction initiatives at Butte improved EBITDA by $0.5 million sequentially, despite a 3.1% revenue decline.

• Cash balance at March 31, 2026, was $5.2 million, a decrease of $2.1 million during the quarter.

• Market outlook is highly dependent on completion of a new capital project and specific applications, with ongoing market volatility and project delays.

• Major equity raise and $10 million short-term loan improved liquidity, but material uncertainty remains regarding the ability to continue as a going concern without further financing.

Financial highlights

• Revenues for Q1 2026 were $19.5 million, down from $21.4 million in Q1 2025 and $20.1 million in Q4 2025.

• Group EBITDA was negative $3.8 million, with Butte segment contributing $2.2 million and Moses Lake segment at negative $2.4 million.

• EBITDA margin for Q1 2026 was -19.6%, and EBIT margin was -36.4%.

• Cash balance at quarter end was $5.2 million.

• Nominal net debt rose to $496.3 million, up from the previous quarter.

Outlook and guidance

• Q2 volumes are expected to remain consistent with recent trends, with shipment target for Q2 2026 at 500–550 MT.

• Market conditions expected to remain challenging in H1 2026, with gradual improvement possible in H2 2026.

• Continued focus on cost control, revenue growth, and operational fundamentals.

• Additional financing will be required to meet debt service and operating cash flow needs for the year.

• Ongoing cost reduction and supply chain stability expected; refinancing discussions underway for $450 million term loans maturing in 2026.