PureCycle Technologies, Inc. Q2 FY2025 earnings call

• Second quarter marked shift towards growth with successful $300 million capital raise in late June and announcement of global growth plans in Asia, Europe, and U.S. aiming for ~1 billion pounds installed capacity by 2030. • Commercial progress: 17 customer applications in post-trial discussions, first major commercial agreement with Emerald for ~5 million pounds of purified resin starting in Q3. First successful trial in film earlier than expected with additional trials planned. • Ironton facility progress: onstream times approaching 90% in April and May, 65 consecutive days of pellet production, rate tests at 14,000 pounds per hour. • Growth projects: Thailand, Antwerp, and Gen 2 facilities with progress in selecting EPCm partners, permitting, and design work. • In-house compounding operations at Ironton initiated to increase capacity for film, thermoforming, and injection molding applications. • Received Green Circle's Recycled Content Certification for nearly 30 grades of resin and co-products.

No specific product segment financial performance data with absolute terms and revenue contribution % provided in the transcript.

• Anticipated commercial ramp in Q3 and Q4 with increasing visibility on 2026 demand. • Expectation of Ironton exiting Q3 at ~$4 million per month revenue, corporate breakeven in Q4 to Q1. • Growth plans to have ~1 billion pounds installed capacity by 2030, providing ~$600 million run rate EBITDA.

• Risks related to business, including those set forth in safe harbor provisions and forward-looking statements, changes in quarter-end and year-end adjustments, and material differences between actual results and preliminary estimates.

Q: Can you give more detail on growth plans since last update?

A: Talked about Thailand, Antwerp, and Gen 2 facilities, progress in site selection, infrastructure, and team. Thailand is an integrated polypropylene producer with good infrastructure and team, Antwerp is in recycling universe with permitting, and Gen 2 has cost structure focus.

Q: Granularity on 17 post-trial applications, gating items, likelihood of success?

A: Tech works, customers in late-stage discussions, conversion to sales happening. First take is tech works, customers approving from trial, now in further conversations, and different lanes provide flexibility.

Q: Commercialization, parceling production, picking customers, pricing?

A: Specialty product, technical success, choosing segments to maximize margin. In-house compounding helps meet customer needs, and there are high-valued customers in each segment willing to pay high prices.

Q: Customer diversification, servicing select few or lower volume contracts?

A: Customers moving fast, segments with margin, automotive regulation coming. Some segments have deeper margin, and all segments have potential customers.

Q: Gen 2 facilities, scaling challenges, execution?

A: Learned from Ironton, deep process understanding, reliability improved, R&D in Durham. Confident in scaling, and Gen 2 has cost structure focus.

Q: 2H ramp, EBITDA breakeven targets?

A: Q3 and Q4 ramp, Q3 exit ~$4M/month, corporate breakeven Q4-Q1. Expect Q3 revenue increase and corporate breakeven in that time frame.

Q: Orders in Q3, pushback from customers?

A: Discussions on compounding recipe, bureaucracy, comfort level, progress on back office. Pushback is due to bureaucracy and comfort level, but funnel is filling fast.

Q: Circular supply with Emerald, feedstock competition?

A: Circular opportunity with Emerald, feedstock plus pricing model, differential product quality. PureCycle's product quality allows passing feedstock swings to customers.

Q: Narrowing markets for best optionality, Thailand exclusivity with P&G?

A: Funnel progressing, Ironton proving multiple lanes. Thailand gives P&G exclusivity in SE Asia due to license agreement, providing long-term exclusivity in the region.