PCT

• Operational Improvements

  • Completed the planned Ironton plant turnaround ahead of schedule and under budget, executing over 170 site improvement projects targeting reliability, throughput, and product quality
  • Key structural fixes resolved two major sources of past unplanned downtime: the CP2 system and mechanical bottleneck/seal issues, with inspections showing minimal system fouling from waste plastic, confirming long-term technology viability
  • Successfully tested Ironton process conditions to match future plant designs for the upcoming Thailand and Antwerp facilities, providing validated design data ahead of new construction
  • Set a new daily throughput record in June, demonstrating stable production at 12,000 pounds per hour
  • On-site compounding, brought in-house after mechanical completion, is currently running 24/5, with plans to move to 24/7 operation in Q4 2026, eliminating third-party reliability risks, improving quality control, enabling custom specification matching, and allowing bulk rail delivery
  • Achieved ISO 9001 quality management system certification, a key requirement for large branded customer commitments
  • Feedstock supply is steady, with declining delivered costs and a diversified base of over 15 domestic suppliers

• Commercial Progress

  • Added seven new customer conversions, including the company's first building and construction application, with the first Procter & Gamble (P&G) application (Downy detergent caps) entering commercial production; Tide caps are scheduled for Q3 retail production, and Zix ZQL Pure Z child-resistant lids are targeted for Q4
  • Gained New Jersey regulatory approval for Pure 5 as food-grade recycled content, the final approval many customers were waiting for, accelerating qualification programs for major food service and quick service restaurant (QSR) brands
  • Successfully demonstrated production of white cavitated BOPP film for premium pet food and meat packaging with converter Inovia Films, and achieved the highest Cospitox purity grade for the dermacosmetics category, nearing first commercial shipments to a major global cosmetics brand
  • Post-quarter, shipped product to all three major converters serving the QSR clear cold cup market, with qualification programs underway at two large QSR chains; estimated annual demand for QSR applications in New Jersey alone is approximately 20 million pounds
  • Cleveland Kitchen deli containers featuring 25% PureCycle recycled polypropylene launched commercially at a major big box retailer, driving new inbound engagement from additional brands and converters
  • Current commercial pipeline includes 42 brands, 15 converters, 28 applications, and 37 programs, with at least one stage of qualification advancement in Q2 2026 and Q3 to date

• Regulatory and Global Growth

  • New Jersey granted a one-year conditional approval with a clear path to permanent status, with conditions limited to standard documentation that PureCycle is already actively supplying; unlike mass-balance credit-based recycled content claims (excluded by New Jersey and California rules), PureCycle's product physically contains recycled material, making it one of the few compliant large-scale suppliers for food-grade recycled polypropylene
  • Announced a strategic partnership with Mitsui and RM Focello to enter the Japanese flexible packaging market following Japan's approval of physically recycled food-contact polypropylene
  • For the Thailand facility: detailed design is finalized, key long-lead equipment has been ordered, Board of Investment (BOI) approval including FastPass investment acceleration was secured in Q2, 7 feedstock letters of intent (covering full plant requirements) and 14 sales letters of intent have been signed, with groundbreaking targeted for H2 2026 and commercial operation expected in 2028
  • Permitting for the Antwerp, Belgium facility remains on schedule

• Achieving Ironton plant site-level breakeven (at 40-50% utilization) remains the targeted H2 2026 milestone, and management confidence in this target has increased following the successful completion of the turnaround and acceleration of commercial qualification programs
  • Full year 2026 project spend is now guided to $45-50 million, an upward revision from the prior range of $39-45 million, driven by incremental engineering, permitting, and long-lead equipment costs for the Antwerp and Thailand projects
  • H2 2026 project spend is expected to be $10-12 million, contingent on project gating decisions and the timing of Thailand project financing
  • On-site compounding at Ironton is on track to transition to 24/7 operation in Q4 2026, in line with prior guidance
  • The previously guided 40-50 million pound non-New Jersey demand ramp and 25-50 million pound New Jersey demand ramp remain unchanged, with both ramps currently underway
  • Financial close for Thailand project financing is targeted for the end of 2026

PureCycle Technologies is a single-core business focused on production of recycled polypropylene, with no distinct product segments formally reported in this call. Total reported revenue for Q2 2026 was approximately $4.5 million, growing substantially year-over-year and marking the sixth consecutive quarter of revenue growth. Q2 2026 production of Pure 5 was approximately 4.5 million pounds, a decrease from the prior quarter aligned with the planned plant turnaround. 5 million pounds of feedstock was processed in the quarter, with a 90% yield to finished product and coproduct. Operating loss for the quarter improved 4.3 million year-over-year to $41.3 million from $45.6 million. Adjusted EBITDA was negative $31.7 million, compared to negative $27.8 million in the prior year quarter, with the difference driven by lower non-cash charges. Core monthly operations spending declined 8% year-over-year to $8.3 million per month, within the previously guided 8-9 million range.

• All forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, including risks related to project execution, commercial qualification timelines, regulatory changes, and financing, detailed in SEC filings
  • Commercial qualification of new applications follows a multi-quarter timeline, and volume ramps depend on customer deadlines that are outside of PureCycle's control
  • New Jersey's approval is currently conditional, requiring submission of additional documentation to secure permanent approval, though management does not view this as a meaningful hurdle
  • Planned growth capital spending for international projects is partially contingent on securing third-party project financing, with closing subject to negotiation of definitive agreements and satisfying closing conditions
  • Core technology is still being incrementally improved, and unforeseen operational issues could impact throughput, reliability, or product quality
  • Demand growth is heavily dependent on the implementation of regulatory recycled content mandates, which could be delayed or modified by policy changes

Q: Can you provide an update on the current status of the Thailand project, including engineering, long-lead equipment, pre-groundbreak progress, and the timeline for financing close? / A: Detailed design is confirmed, key long-lead equipment is ordered, and a local project team is in place. BOI FastPass approval has accelerated permitting, with groundbreaking targeted for H2 2026 and operations starting in 2028. In-house compounding at Ironton now allows PureCycle to provide product samples to prospective Thai customers, advancing commercial development. Financing discussions are progressing on binding terms, with the process on track to reach financial close by the end of 2026.

Q: What is driving the steady expansion of the P&G relationship, and are you seeing similar activity from other large unnamed brands ahead of the H2 2026 ramp? / A: The cadence of new P&G applications stems from built trust in PureCycle's product quality, compounding capabilities, and consistent delivery. Once P&G's strict qualification standards are met for one application, subsequent approvals move much faster. This same pattern is already occurring with other large consumer brands: one major global food manufacturer pulled its qualification timeline forward in Q2, and QSR programs moved from discussion to shipments in weeks after the New Jersey approval. 37 total programs have advanced at least one qualification stage, with most activity happening before public announcements.

Q: Can you confirm Q3 production expectations and confirm the prior demand ramp forecasts still hold after Q2's turnaround-related production decline? / A: Production was intentionally lower in Q2 due to the planned outage and design testing for future facilities, which was completed successfully. The 40-50 million pound non-New Jersey and 25-50 million pound New Jersey demand ramps remain fully on track, with brands accelerating qualification after the New Jersey approval to meet the January 2027 mandate. Production will follow commercial demand, so ramping commercial activity in Q3 and Q4 will drive matching production increases. Ironton breakeven at 40-50% utilization remains the H2 2026 target, with higher management confidence now that key preconditions have been met.

Q: Is the timeline for international expansion contingent on hitting operational and commercial milestones at Ironton, and how do the two effort interact? / A: International projects have only very low-barrier commercial contingencies that are not expected to impact timeline. Short-term, international customer development actually creates incremental demand that can be served by Ironton before the new Thailand and Antwerp plants come online, replacing that supply once the new facilities are operational. Management is confident in the project team, capital plan, and execution timeline for international expansion.

Q: Is the 90% feedstock yield and 12,000 pound per hour throughput cited during prepared remarks accurate, and is the plant capable of supporting accelerating order volume? / A: The math is correct: 5 million pounds of feedstock processed to 4.5 million pounds of product and salable coproduct. 12,000 pounds per hour is a sustained throughput rate the plant achieved in testing after the turnaround, not yet routine daily operation, but it confirms the plant is capable of reaching that volume as demand grows. The core technology is validated and continues to improve incrementally, with the team consistently resolving past constraints and meeting the strict requirements of large branded customers, so the plant can handle accelerating volume as orders come in.