PureCycle Technologies, Inc. Q3 FY2025 earnings call

• Board changes: Welcomed Dr. Siri Jirapongphan, former Chairman of IRPC and independent director of Bangkok Bank; thanked Jeff Feeler for his service and noted Dan Gibson joining the Board 3 months ago. - Operational performance: Steady improvement with ramp-up activities at Denver and Ironton. Q3 was one of the highest production quarters, with Denver adding a second shift in Q3 and planning a third in Q4, and Ironton's compounding expansion on track. - Commercial progress: Scheduled to ship material to P&G's converter in Q4 for products on shelves in early 2026; making progress with other P&G applications; made strides with QSRs, including shipping to a top 5 QSR group in Q4 and ramping in 2026; technical progress in numerous applications, narrowing focus to high-value ones. - International projects: Thailand project with key feedstock LOIs signed; Antwerp permitting process on schedule, and proposal to EU Innovation Fund accepted, expecting up to EUR 40 million grant by end of Q1; Gen 2 purification design work expected to be completed in first half of 2026.

Denver: In Q3, Denver processed 9.4 million pounds of feedstock, and in October, it processed 4.4 million pounds. The company plans to add a third shift in Q4, bringing Denver's capacity to approximately 100 million pounds annually. Ironton: In Q3, Ironton produced 7.2 million pounds, with September being the highest month at 3.3 million pounds, a new record. The 100 million pound compounding expansion at Ironton is on track for mechanical completion in December. Co-Product 2 has been installed on-site and operational commissioning has started. The company has found markets for approximately 20% to 30% of the non-polypropylene co-products, resulting in a net 20% reduction in feedstock costs.

• Operations: Expect to run facilities at 60% to 70% rates for next 3 to 6 months and then ramp to near nameplate in second half of the year. - Projects: Thailand project with key feedstock LOIs signed; Antwerp facility permitting progressing as planned, with construction expected to commence; EU Innovation Fund grant of up to EUR 40 million expected by end of Q1; Gen 2 purification line design work to be completed in early 2026; debt financing efforts in Thailand making good progress towards financial close.

• Actual results may differ materially from anticipated. - Known and unknown risks and uncertainties beyond control, including market, regulatory, and technical aspects. For example, brand adoption cycles, supply chain complexity, and regulatory changes that may impact business.

Q: Can you give details as to where the interest from QSRs is coming from?

A: Sustainability is important to these companies, seeing the circularity opportunity with PureCycle's process where their material can be transformed back into products they need. When QSRs see their product in the bales at Denver and transformed back into things like coffee lids, it resonates.

Q: Regarding the Co-Product 2, is the plan to sell what you separate from the feedstock to the market although you utilize any of it in your compounding operations?

A: Both. While compounding Co-Product 2 into pellet form for customers, there are opportunities to sell Co-Product 2 and it creates synergy with compounding capacity, leading to higher revenue from Co-Product sales and lower net feedstock costs to Ironton.

Q: Could you expand on some potential customers having to buy credits and the value PCT provides?

A: ISCC credits are valued at $0.75 to $0.80 per pound, but PCT offers a plastic to plastic solution which is better for brands, less regulatory and litigation risk, and fills the gap where ISCC material is limited.

Q: Was curious about the timing of applications awaiting brand approval and the ramp look?

A: Feel good about the conversations, brands are deliberate and ramp in stages, but their needs and interest are real. Converting these brands will materially impact the 40 to 50 million pounds run rate and will build long-term relationships.

Q: Is Co-Product monetization feasible across future projects?

A: Yes, both prep and purification Co-Products are applicable, and the ecosystem being built creates optionality for value creation and reducing yield loss.