PyroGenesis Canada Inc. (TSX:PYR, OTCQX:PYRGF) has entered 2024 positioned strongly as a company with deep experience in decarbonization as this trend matures.
The company designs, develops, manufactures, and commercializes advanced plasma processes and sustainable solutions aimed at reducing greenhouse gas emissions and addressing environmental pollutants.
As of April 1, 2024, revenue expected to be recognized related to its backlog of signed and/or awarded contracts over the next three years is $28.8 million.
For the quarter ended December 31, 2023, the company reported revenue was $3 million. Revenue for the year was $6.7 million.
In 4Q, the company increased its gross profit to $0.7 million or 23% of revenue compared to $0.5 million or 15% of revenue in the year-ago quarter, attributed to a reduction in manufacturing overhead and employee compensation.
Its net loss for the quarter was $9.8 million, down from $10.9 million for the same period a year earlier due to a $1 million decrease in selling, general and administrative expenses, among other factors.
PyroGenesis CEO P. Peter Pascali highlighted that the company has moved "front-of-mind" for several current and potential heavy industry customers.
“This, along with our continued focus on cost optimization, our strong backlog of almost $29 million, negligible debt, the recent commercialization of our titanium metal powder production system, and a very robust sales pipeline, feeds my optimism for the future,” he said.
“As I have mentioned in the past, our revenue will fluctuate quarter to quarter, but our commitment will not. We are positioning ourselves to become a leader in heavy industry decarbonization technology solutions for many years to come.”
The CEO noted that during 2023 the company dealt with many of the issues associated with the growth and adoption of clean technology in a cautious economic environment.
“We navigated cash management challenges brought about by higher costs associated with commercializing our technologies, continued inflationary pressures on material and labour costs, longer sales cycles for system sales caused by the uncertain economic environment we are all facing, and multiple requests from potential customers to help them in their investigation of using plasma as a solution to their many problems,” Pascali said.
“As much of this type of work is new-use proof-of-concept, profit margins are negligible, and timelines imprecise.”
The company also narrowed its full-year net loss from $32.2 million in 2022 to $28.5 million.