PureCycle Technologies, Inc. Q4 FY2025 earnings call

• Dustin Olson mentioned ramping operations in Denver and Ironton, advancing customer pipeline, and progress in Thailand. Donald Carpenter stepping into CFO role. Added 2 distinguished board members. Denver processed more feed, Ironton ramped production. Phase I of on-site compounding started. Qualified materials in various applications. Branded margins in line with guidance. Regulatory landscape broadly positive. Thailand project has strong progress with feedstock supply, commercial conversations, BOI application, etc. Gen 2 purification design initial findings encouraging with cost efficiency. - Donald Carpenter talked about revenue goal, warrant extensions, capital structure, operations cash burn, project-related spend for Q1 2026 and full year 2026, financing prospects including Thailand and Antwerp projects.

In the fourth quarter, Denver processed 44% more feed versus the third quarter, ramping to 14 million pounds, a 35% increase over its prior quarterly high. Ironton successfully ramped production with 7.5 million pounds, hitting quarterly and daily records. Phase I of on-site compounding started up, enabling CP2 to be compounded on site. Co-product sales are positive with prices in the $0.25 to $0.30 per pound range. Revenue in Q4 was $2.7 million, with 40 million to 50 million pounds of run rate demand actively shipping or expected to ship, and an additional 20 million to 25 million pounds added at full ramp. Pipeline grew to over 170 active projects.

• For Q1 2026, total project-related spend expected to be $19 million to $20 million, with $7 million to $8 million for Ironton-related projects and $11 million to $13 million spread across growth projects. Q1 2026 debt service expected to be approximately $11.1 million. - For full year 2026, total project-related spend expected to be $39 million to $45 million, with $14 million to $16 million for R&D including planned shutdown in Q2 and on-site compounding project completion. - Expect improvement in revenue as Q2 product launches begin converting staged inventory.

Q: Hassan Ahmed asked about conviction in commercial ramp, New Jersey time lines, and Gen 2 design assumptions.

A: Dustin Olson said high conviction in commercial ramp, New Jersey process is methodical but progress is being made, Gen 2 design has scalable technology with high yield and lower operating costs per pound.

Q: Anand Balaji asked about Thailand debt financing update and promising verticals.

A: Donald Carpenter said progress on Thailand project with data room open and critical agreements in place, Dustin Olson said short term focused on closures and injection molder projects, long term on thermoforming and film.

Q: Gerard Sweeney asked about brands' confidence and path forward.

A: Dustin Olson said Ironton reliability and product testing are building brands' confidence, and previous tests speed up additional opportunities.

Q: Jeffrey Campbell asked about BOPP technical capabilities, regulatory requirements, circularity, and demand for PCT's recycled PP.

A: Dustin Olson confirmed PCT's BOPP technical capabilities, regulations have nuances, circularity concept is there but not legislated yet, demand for PCT's recycled PP grows due to premium product and differentiated technology.

Q: Luke Persons asked about Gen 2 site timeline and customer capacity prioritization.

A: Dustin Olson said Gen 2 site decision involves finishing technology and cost work, and they are evaluating customer capacity prioritization with contract flexibility.