PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) said that during the second quarter, it continued to expand into new markets as it reached commercialization goals for its plasma torch technology, all while maintaining a healthy 37% gross margin.
Highlights from 2Q include the company’s subsidiary Pyro Green-Gas successfully completing an integrated cold test for its hydrogen extraction technology as part of a $9.3 million project with a top steel producer.
Further, in May the company received its first commercial by-the-ton order for titanium metal powder to be used in industrial 3D printing, and in June, it signed two contracts with Quebec-based Aluminerie Alouette for projects to valorize residue streams from primary aluminum smelters.
“Despite a relatively flat quarter and the continued fluctuations in our quarterly revenues that we had previously acknowledged as possible, we remain confident in our long-term strategy,” PyroGenesis CEO P. Peter Pascali said in a statement.
“Our backlog of signed and/or awarded contracts remains strong, at $33.9 million. Our 37% gross margin is fully in line with the industrial machinery and components industry and well ahead of the gross margins for the industries we serve, such as aluminum, iron and steel, and even aerospace and defence.”
For the quarter, which ended June 30, 2023, the company narrowed its comprehensive loss to $6.3 million from $13 million in the same quarter last year
The decrease was attributed to a decrease in the cost of sales and services, decreased selling, general, and administrative expenses, and a decrease in research and development expenses, among other factors.
It reported revenue of $3 million, compared to revenue of $5.8 million in the year-ago quarter.
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