PyroGenesis Inc. (PYR-T) anticipates generating $15 million in revenue for financial year 2024, its best result since 2022. Q4 2024 revenue of approximately $4 million is also expected, its highest quarterly revenue since Q3 2022.

“This momentum, which we have been tracking and communicating to our readers, since our revenue low of Q1 2023, continues to provide evidence that our long-term strategy is paying off,” Peter Pascali, president and CEO of PyroGenesis, said in a company guidance.

“Combined with our revenue backlog of signed contracts in excess of $58 million, and major energy transition trials with industry leaders underway, we are confident that 2025 will maintain this trend.”

The Montreal-based company develops plasma torches that are used in waste disposal, chemicals destruction and metal recovery. As its products are powered by electricity rather than fossil fuels, the technology is designed to lower the greenhouse gas emissions from heavy industry.

Its Q4 2024 and full year earnings will be published on or before March 31.

PyroGenesis’s Q3 2024 results

In its Q3 2024 financials, PyroGenesis reported revenue of $4 million driven largely by its plasma torch-related products and services, refrigerant destruction, and biogas upgrading and pollution controls.

A comprehensive loss of $3.9 million was recorded for the quarter, which was less than the $6.3-million comprehensive loss in Q3 2023. PyroGenesis attributed the improvement to higher gross profit, a decrease in selling, general and administrative expenses, and less spending on research and development, among other reasons.

For the nine-month period ended Sept. 30, 2024, the company’s revenue was $11.4 million, a 23 per cent improvement from the same period in 2023, but 27 per cent worse than 2022.

Comprehensive loss for same period was $6.9 million, an improvement from $18.7 million in 2023 and $21.2 million in 2022.

Similar reasons for the improvement in Q3 2023 were given for nine-month period.

PyroGenesis announced a “landmark” contract in October 2024 for a three-year deal valued at approximately $27 million with an existing U.S. client to provide technology and test services for defence, aeronautics, and space exploration applications.

The contract is for development of a 20-megawatt plasma torch system said to be one of the most powerful, if not the most powerful, product of its kind produced commercially, PyroGenesis said.

“Beyond its use in military and aeronautics, plasma torches of this power level position us well to expand our capabilities into other industries requiring appreciably higher power level technology, such as glass, cement, petrochemical, and metal and mineral heating, as well as melting industries – a requirement that is becoming more common as global energy transition measures, and the demand for unique high power heat applications, accelerate,” Pascali said.

The company’s latest deals and tech development

Since Q3 2024, PyroGenesis unveiled other deals.

Its subsidiary Pyro Green-Gas Inc. signed a second contract with a biofuel facility owned by Quebec company Varennes Carbon Recycling, growing the size of the contract to $3.6 million.

The company inked a contract with a steelmaker said to be one of the world’s largest to explore the use of PyroGenesis’ plasma torches in the client’s electric arc furnace. Compared to the traditional blast furnace method, the electric arc furnace could slash the carbon dioxide from steelmaking by at least 75 per cent, PyroGenesis said.

On the technology front, PyroGenesis announced in December the plasma torches can destroy perfluoroalkyl and polyfluoroalkyl substances (PFAS). Referred to as “forever chemicals”, PFAS are commonly found in products that are resistant to water and grease. Research has suggested exposure to PFAS contribute to higher risk of cancer, raising cholesterol levels, and weakening the body’s immune response.

PyroGenesis supplied a one-megawatt plasma torch to a client that has treated over 300 tonnes of materials contaminated with PFAS, the company said. 

Responding to concerns about U.S. tariffs on Canadian exports, Pascali said he is "confident that any imposed tariffs will have little to no direct negative impact on PyroGenesis.” Most of its systems are manufactured outside Canada and the majority of its current and prospective clients are outside the U.S., he explained.

Pascali voiced optimism for the policies of U.S. President Donald Trump, noting the promises to lower corporate taxes, cut red tape and increase energy production, which will create opportunities for PyroGenesis in the U.S.