PureCycle Technologies, Inc. Q1 FY2025 earnings call

• Significant progress in Q1 2025 with first reported revenues. - Operational improvements at Ironton, achieving nearly 90% onstream time in April, a major improvement from prior periods. - Over 30 active trials, with 24 in the industrial stage and representing over 300 million pounds of potential product sales. - Introduced compounding strategy with two brands: PureFive Ultra (flagship near virgin) and PureFive Choice (blends for specific applications). - Success in film market with Bruckner, accelerating film sales plans for the second half of 2025. - Progress in fiber and other applications, with trials converting to purchase orders and continued discussions with large auto OEMs.

Ironton produced 4.3 million pounds of resin in the quarter and had approximately 14 million pounds of inventory. The company reported its first revenues in history. No detailed absolute revenue breakdown by product segments with contribution % provided.

• Confidence in converting trials, ramping revenues, and selling out Ironton production by year-end. - Increased confidence in generating EBITDA and cash flow due to improved operations and commercial progress. - Plans to scale technology for higher capacity, reducing CapEx and OpEx, with growth in future lines based on learnings from Ironton.

• Risks related to forward-looking statements, including known and unknown risks and uncertainties beyond control, as per SEC filings. - Potential material differences between actual results and preliminary estimates.

Q: Andres Sheppard asks about inventory strategy.

A: Dustin Olson explains the company held back inventory to sell for higher values in the second half of 2025 as customer trials and pricing were progressing faster than expected.

Q: Andres Sheppard asks about growth plans.

A: Dustin Olson talks about scaling technology based on learnings from Ironton to build much larger plants, lowering OpEx and CapEx per pound, and the plan to build plants more cost-effectively in regions with demand.

Q: Hassan Ahmed asks about trial momentum.

A: Dustin Olson discusses continued trial progress, optionality from qualifying product in multiple applications, and 2025 being a transformative year with progress in customer trials.

Q: Hassan Ahmed asks about BOPP film opportunity.

A: Dustin Olson explains Bruckner's key role in the BOPP film market as a premier equipment supplier, and the film market's need for a sustainable solution which PureCycle's product addresses.

Q: Thomas Boyes asks about pricing structure.

A: Dustin Olson states feedstock plus pricing is gaining traction due to supply-demand imbalance and the specialty nature of the product.

Q: Thomas Boyes asks about liquidity.

A: Dustin and Jaime discuss cash burn improving with sales of inventory and revenue bonds, and expectation of reduced cash burn in the second half of 2025 with breakeven at Ironton expected in Q3 and corporate breakeven in early 2026.

Q: Eric Stine asks about trial progress.

A: Dustin Olson talks about trials progressing, some commercializing in Q2, and compounding's role in enabling quicker qualifications and providing flexibility.

Q: Gerry Sweeney asks about Augusta and Gen 1.

A: Dustin Olson mentions Gen 1 design is an improvement to Ironton, with long lead equipment bought for the activity and excitement about accelerating the project once funded.

Q: Amer Tiwana asks about nameplate capacity.

A: Dustin Olson says the plant is near 90% of nameplate capacity, with ramping rates driven by customer demand, and 87% onstream time achieved in April.