PureCycle Technologies, Inc. Q3 FY2025 earnings call

• Board changes: Welcomed Dr. Siri Jirapongphan, thanked Jeff Feeler for his service. - Operational progress: Ramping Denver and Ironton; Q3 was a high production quarter. Denver added a second shift and plans a third. Ironton's compounding expansion on track. - Commercial updates: Scheduled to ship material to P&G's converter in Q4 for early 2026 shelf availability. Progress with QSRs, including a PO to ship to a top 5 global QSR in Q4. - Co-product optimization: Found markets for 20%-30% of non-polypropylene co-products, resulting in ~20% reduction in feedstock costs. - Technical progress: 17 applications in later stages before commercialization, with progress in thermoform, BOPP, and fiber applications. Regulatory wins with 7 states passing EPR regulations and more states implementing recycled content mandates.

Denver: In Q3, processed 9.4 million pounds of feedstock. Added a second shift during Q3 and plans to add a third in Q4, aiming for approximately 100 million pounds annually. Ironton: Produced 7.2 million pounds in Q3, with September at 3.3 million pounds (a new record). The compounding expansion at Ironton is on track, expected to reduce supply chain complexity, improve product offering, lower costs, and widen the market.

• Expect to ship material to P&G's converter in Q4 2025 for early 2026 shelf availability. - Plan to add a third shift in Denver in the near future. - Ironton's 100 million pound compounding expansion on track for mechanical completion in December. - Expect final grant approval of up to EUR 40 million from the EU Innovation Fund by end of Q1 2026. - Expect to complete Gen 2 purification design work in the first half of 2026. - Anticipate ramping facility rates to 60%-70% for 3-6 months then to near nameplate in the second half of the year.

• Forward-looking statements subject to known and unknown risks and uncertainties, including those beyond control. - Regulatory uncertainties, such as changing dynamics in states and Europe. - Consumer spending and petrochemical environment challenges. - Delays in commercial rollout due to mergers among global converters and regulatory dynamics in states.

Q: Can you give details on the interest from QSRs?

A: Sustainability is important to QSRs; seeing their material processed in Denver resonates. PureCycle offers a plastic-to-plastic solution, which is appealing.

Q: Regarding Co-Product 2, is the plan to sell it?

A: Both selling and utilizing in compounding operations. Co-Product 2 can be compounded into sellable pellets and sold, with potential to reduce feedstock costs.

Q: Expand on ISCC credits and PCT's value?

A: ISCC credits are a plastic-to-fuel solution, inferior to PCT's plastic-to-plastic solution. PCT offers less regulatory and litigation risk.

Q: EIF grant process and impact on European growth?

A: EIF grant is a result of team's efforts, showing confidence in bringing technology to scale. Helps reduce CapEx for European projects.

Q: Thailand feedstock letters and costs?

A: Strong willingness to partner in Thailand. Economics look positive, though final economics are being nailed down.

Q: Brand approval timing and ramp?

A: Conversations are positive; brands are deliberate but interest is real. Converting these will materially impact volume.

Q: Co-Product monetization in future projects?

A: Feasible across continents. Purification Co-Products are directly applicable, and prep Co-Products may be applicable on a case-by-case basis.

Q: Financial impact of 4Q shipments and inventory?

A: Shipments in 4Q are happening, but timing of ramp is tricky. Inventory may build as sales ramp, but exact timing is uncertain.

Q: REACH certification and VW partnership?

A: REACH enables shipping to Europe. VW partnership shows successful development of recycled product for automotive, a complex application.