PureCycle posted $4.2M Q2 revenue, missing the $5.1M consensus, as the Ironton plant ran at a fraction of capacity. Shares fell 8.4% after hours.
PureCycle Technologies reported second-quarter revenue of $4.2 million, missing the $5.1 million consensus estimate. The Orlando-based plastics recycler produced 3,100 tons of recycled polypropylene at its Ironton, Ohio plant during the quarter, up from 2,200 tons in the first quarter but still well below the facility's 107,000-ton annual nameplate capacity.
CEO Dustin Olson acknowledged the shortfall on the earnings call. "We are making progress, but we are not where we want to be on throughput," he said. Olson said the company is working through equipment bottlenecks in the extrusion and pelletizing stages.
The company ended June with $287 million in cash and equivalents, down from $312 million at the end of the first quarter. CFO Donald Carpenter attributed the decline to capital spending at Ironton and early construction work on a second plant in Augusta, Georgia.
PureCycle reaffirmed its full-year 2026 production guidance of 18,000 to 22,000 tons. Cantor Fitzgerald analyst Anand Balaji asked whether that target implies a significant second-half acceleration given the first-half run rate of roughly 5,300 tons. Olson responded that the company expects "meaningful improvement" in the back half after completing planned maintenance and resolving equipment issues.
Shares fell 8.4% in after-hours trading following the release. The stock has lost about a third of its value over the past 12 months as PureCycle has repeatedly pushed back its production timeline.
The company's solvent-based purification process removes contaminants from polypropylene waste. PureCycle has attracted interest from consumer goods companies including Procter & Gamble and L'Oreal. Olson said the company remains in discussions with potential offtake partners and expects to announce additional agreements in the coming quarters. He also noted that PureCycle is exploring technology licensing as an additional revenue stream.
PureCycle plans to provide a more detailed update on its production outlook when it reports third-quarter results in November.
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