PureCycle (PCT) Q2 FY26 earnings call: guidance and Q&A

Update on Thailand project's engineering, long-lead equipment, next steps to groundbreaking, and the status of financing.

Dustin Olson confirmed detailed design, ordered long-lead equipment, team on ground, BOI approval with FastPass, and expected groundbreaking in 2H FY26 for 2028 operations. Donald Carpenter added that binding terms for financing are being negotiated, tracking to year-end close.

“The one new capability worth noting is that with the compounding running in Ironton, we're actually now putting real samples in the hands of prospective customers in Thailand.”

asked by Anand Balaji · answered by Dustin Olson

Inquire about the drivers behind the expanding P&G relationship and whether similar behavior is observed from other large, unnamed brands, seeking insight into the second-half ramp's underlying momentum.

Dustin Olson stated the cadence is driven by trust and compounding, with P&G's demanding standards validating quality. He confirmed similar behavior from other large, unnamed companies, citing a major food manufacturer pulling timelines forward and QSR cold cup work moving rapidly from conversation to shipments. He emphasized that announcements often lag the actual activity driving the ramp.

“A lot of the ramp is already in motion. You just see it publicly as the last step. When a product hits the shelves, like Procter & Gamble shows you the full pattern.”

asked by Anand Balaji · answered by Dustin Olson

Asked for Q3 production outlook given Q2's planned outage and the 12,000 lbs/hour record, and an update on previous demand ramp-up forecasts ($40M-$50M and $25M-$50M for New Jersey).

Dustin Olson reiterated the second-half weighted ramp due to regulatory clock (Jan '27) and supply chain readiness (compounding). He confirmed confidence in the ramp and Ironton breakeven (40-50% utilization). He stated the demand ramps are underway, driven by branded sales and regulatory deadlines. Production will follow commercial demand.

“All year long, we've said that the ramp would be in the second half weighted for basically two reasons: the regulatory clock with requirements starting in January '27 and then supply chain readiness.”

asked by Hassan Ahmed · answered by Dustin Olson

Sought confirmation on the $25M-$50M New Jersey opportunity and whether individual P&G applications (Downy, Tide, Vicks) could be multi-million pound opportunities in the near term.

Dustin Olson confirmed New Jersey was a 'real accelerant,' leading to an influx of requests and fast-tracking into QSR cold cup programs, with 17 active trials tied to New Jersey compliance. He reiterated the $25M-$50M term still holds, with QSR cups alone representing a 20M lbs/year bucket. He implicitly agreed that P&G applications could be multi-million pound opportunities, emphasizing the 'walk before you run' progression.

“New Jersey was a real qualification for us. I would say that in the past, when you're working through the demand ramp and forecasting where you're going to go, you have a sense for what is holding up some of the qualifications.”

asked by Hassan Ahmed · answered by Dustin Olson

Asked if new project timelines (Thailand, Antwerp) are contingent on Ironton's commercial and operational milestones or if they are independent.

Dustin Olson stated they are 'to a certain extent' tied, with 'pretty low hurdles' on the commercial side from Ironton needed for Thailand, which are not expected to impact overall ramp timing. He noted that Ironton samples are already being used to accelerate adoption in Asia and Europe, potentially creating short-term incremental demand for Ironton.

“To a certain extent, they're tied. I mean, there's a few qualifications that we're going to need to make on the commercial side to keep moving forward with Thailand, but these are pretty low hurdles that we don't expect to impact our overall ramp timing.”

asked by Luke Persons · answered by Dustin Olson

Inquired about how pricing for compounded product trends relative to PureCycle's base product and if a significant premium to virgin resin can still be commanded.

Dustin Olson explained that the PCT material component of compounded product maintains pricing consistent with past guidance. The additional service (one-pellet solution, reduced operational/supply chain headaches) commands a premium. The virgin component and additives in the compound offer a value proposition, allowing for tailored PCR content and specifications, which customers are willing to pay for.

“When we sell a compounded product, there's a component of that sale that is PCT material. And when you look at the pricing range that we see for that product, it's still consistent with the guidance that we've given in the past.”

asked by Luke Persons · answered by Dustin Olson

Asked to confirm math on 5M lbs feedstock to 4.5M lbs product (90% yield) and 12,000 lbs/hour production rate implying 85% utilization.

Dustin Olson confirmed the 90% yield math was correct, clarifying the 0.5M lbs delta was co-product. He clarified that 12,000 lbs/hour was a rate touched to test limitations, not a routine operating rate, and that routine production would follow commercial demand.

“That math is right. A couple of clarifications. One, on the 5 million down to 4.5 million, the delta there represents co-product 1 and co-product 2 applications.”

asked by Gerard Sweeney · answered by Dustin Olson

Asked if management has a high degree of confidence that the plant can handle accelerating volume of orders.

Dustin Olson expressed increasing confidence, acknowledging the difficulty of bringing new technology to market but highlighting the team's capability to overcome constraints. He emphasized the technology's effectiveness in meeting demanding brand qualifications and its continuous improvement across all operational aspects.

“More and more every day. Look, Gerry, I mean, you've been in the story for a long time. And so you've seen, let's say, all the twists and turns with bringing this technology to the market. I mean, it's hard, okay?”

asked by Gerard Sweeney · answered by Dustin Olson