5N Plus Inc. Reports 2025 Second Quarter Financial Results and Increases Annual Guidance

Cision Canada

2 hours ago

32% year-over-year revenue growth to a ten year-high of $184.2 million for the first half of 2025
Record Q2 2025 Adjusted gross margin 1 of $33.0 million and of 34.6% as a percentage of sales 1
Record Q2 2025 Adjusted EBITDA 1 of $24.1 million, representing 79% year-over-year growth
Net-debt-to-EBITDA ratio 1 of 1.09x as at June 30, 2025
2025 Adjusted EBITDA guidance increased to a range of $65-$70 million, up from $55-$60 million
MONTREAL, Aug. 4, 2025 /CNW/ - 5N Plus Inc. (TSX: VNP) ("5N+" or "the Company"), a leading global producer of specialty semiconductors and performance materials, today announced its financial results for the three-month period ended June 30, 2025 ("Q2 2025"). All amounts in this press release are expressed in U.S. dollars unless otherwise stated.
"Our performance this quarter and year to date marks several new all-time highs for 5N+, including record quarterly Adjusted gross margin, and record quarterly and first-half Adjusted EBITDA. In addition, we generated our strongest first-half revenues in a decade. In a volatile business environment where customers are seeking dependable partners, 5N+ stands out for reliability, technical expertise and product quality, further supported by our diversified global sourcing and manufacturing capabilities which are of strategic importance to our customers," said Gervais Jacques, President and CEO, 5N+.
"Building on our record results to date and amid accelerating demand in our strategic sectors, 2025 is shaping up to be a landmark year for 5N+. Within Specialty Semiconductors, we continue to capitalize on, and to anticipate, further demand momentum from the renewable energy and space power markets, while in Performance Materials our bismuth-based products are delivering exceptional margins," added Mr. Jacques.
"As we head into the second half of the year, we are not only well-positioned to deliver on our now increased Adjusted EBITDA guidance ambitions for 2025, but to build on this momentum going into 2026. Thanks to our competitive advantages and expanded capacity, we will continue to solidify our status as the strategic partner of choice outside of China, able to capture growing demand for our high-purity advanced materials in an evolving geopolitical landscape," concluded Mr. Jacques.
Financial Highlights
Revenue in Q2 2025 increased by 28% to $95.3 million, compared to $74.6 million in Q2 2024. The increase is primarily attributable to higher sales in the terrestrial renewable energy and space solar power sectors under Specialty Semiconductors, and higher bismuth-based product pricing under Performance Materials.
Adjusted EBITDA in Q2 2025 increased by 79% to $24.1 million, compared to $13.5 million in Q2 2024, driven by higher volumes in the terrestrial renewable energy and space solar power sectors, and better prices over inflation for both solar power and bismuth-based products.
Adjusted gross margin increased by 41% to $33.0 million in Q2 2025, favourably impacted by the same factors as above. Adjusted gross margin as a percentage of sales was 34.6% in Q2 2025, compared to 31.3% in Q2 2024.
Net earnings in Q2 2025 were $15.2 million, compared to $4.8 million in Q2 2024.
Backlog 1 stood at $310.0 million, representing 297 days of annualized revenue as at June 30, 2025, 29 days higher than in the previous quarter.
Net debt 1 was $74.3 million as at June 30, 2025, compared to $100.1 million as at December 31, 2024, reflecting an increase in cash. The Company's net-debt-to-EBITDA ratio stood at 1.09x as at June 30, 2025.
______________________________
1 These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. See Non-IFRS Measures for more information.
Outlook
Through the second half of 2025, 5N+ anticipates demand under Specialty Semiconductors from the terrestrial renewable energy and space solar power markets to accelerate, as customers look to secure advanced materials from trusted and reliable partners. Under Performance Materials, consistent with historical trends, volumes through the second half of 2025 are expected to be slightly lower than compared to the first half of 2025, with margins continuing to benefit from the Company's strategic global footprint and sourcing capabilities in the current volatile business environment.
Based on its financial performance year to date, coupled with anticipated demand under Specialty Semiconductors and better than anticipated performance under Performance Materials, Adjusted EBITDA guidance for 2025 has been revised upwards from a range of $55 to $60 million, last updated on February 25, 2025, to a range of $65 to $70 million.
Looking ahead, the Company will continue to remain prudent in an evolving geopolitical environment, including with regards to its impact on operating costs. As a preferred supplier of ultra-high-purity, high-quality products with a strong supply chain providing customers with a key strategic advantage, 5N+ is well-positioned to continue solidifying its leadership in key end markets through the end of 2025 and going into 2026.
Conference Call
5N+ will host a conference call on Tuesday, August 5, 2025, at 8:00 a.m. Eastern Daylight Time to discuss its 2025 second quarter financial results. All interested parties are invited to participate in the live broadcast on the Company's website at www.5nplus.com.
To participate in the conference call:
A replay of the conference call will be available two hours after the event and until August 12, 2025. To access the recording, please dial 1-888-660-6345 and enter access code 94154.
About 5N+
5N+ is a leading global producer of specialty semiconductors and performance materials. The Company's ultra–pure materials often form the core element of its customers' products. These customers rely on 5N+'s products to enable performance and sustainability in their own products. 5N+ deploys a range of proprietary and proven technologies to develop and manufacture its products. The Company's products enable various applications in several key industries, including renewable energy, security, space, pharmaceutical, medical imaging and industrial. Headquartered in Montréal, Quebec, 5N+ operates R&D, manufacturing and commercial centers in strategically located facilities around the world including Europe, North America and Asia.
Forward–Looking Statements
Certain statements in this press release may be forward–looking within the meaning of applicable securities laws. Such forward–looking statements are based on a number of estimates and assumptions that the Company believes are reasonable when made, including that 5N+ will be able to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners, that 5N+ will continue to operate its business in the normal course, that 5N+ will be able to implement its growth strategy, that 5N+ will be able to successfully and timely complete the realization of its backlog, that 5N+ will not suffer any supply chain challenges or any material disruption in the supply of raw materials on competitive terms, that 5N+ will be able to generate new sales, produce, deliver, and sell its expected product volumes at the expected prices and control its costs, as well as other factors believed to be appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict and may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward–looking statements. A description of the risks affecting the Company's business and activities appears under the heading "Risk and Uncertainties" of 5N+'s 2024 MD&A dated February 25, 2025 and note 10 of the unaudited condensed interim consolidated financial statements for the three and six-month periods ended June 30, 2025 and June 30, 2024 available on SEDAR+ at www.sedarplus.ca.
Forward–looking statements can generally be identified by the use of terms such as "may", "should", "would", "believe", "expect", the negative of these terms, variations of them or any similar terms. No assurance can be given that any events anticipated by the forward–looking statements in this press release will transpire or occur, or if any of them do so, what benefits that 5N+ will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N+.
The forward–looking statements contained in this press release is made as of the date hereof and the Company has no obligation to publicly update such forward–looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward–looking statements. Forward-looking statements are presented in this press release for the purpose of assisting investors and others in understanding certain key elements of the Company's expected financial results, as well as the Company's objectives, strategic priorities and outlook, and in obtaining a better understanding of the Company's anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Three months
Six months
2025
2024
2025
2024
$
$
$
$
Revenue
95,311
74,580
184,199
139,599
Cost of sales
65,888
54,385
127,780
102,405
Selling, general and administrative expenses
7,699
8,717
16,259
16,034
Other expenses (income), net
2,251
2,329
5,576
4,579
75,838
65,431
149,615
123,018
Operating earnings
19,473
9,149
34,584
16,581
Financial expense
Interest on long-term debt
2,002
2,146
4,006
3,941
Imputed interest and other interest expense
351
(272)
1,064
139
Foreign exchange (gain) loss
(97)
2
(811)
(385)
2,256
1,876
4,259
3,695
Earnings before income taxes
17,217
7,273
30,325
12,886
Income tax expense (recovery)
Current
4,706
2,177
8,077
4,691
Deferred
(2,716)
307
(2,552)
899
1,990
2,484
5,525
5,590
Net earnings
15,227
4,789
24,800
7,296
Basic earnings per share
0.17
0.05
0.28
0.08
Diluted earnings per share
0.17
0.05
0.28
0.08
Net earnings are completely attributable to equity holders of 5N Plus Inc.
5N PLUS INC.
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of United States dollars) (unaudited)
June 30
2025
December 31
2024
$
$
Assets
Current
Cash
48,624
22,142
Accounts receivable
58,485
42,172
Inventories
142,960
137,823
Income tax receivable
850
1,811
Derivative financial assets
3,131
6,978
Other current assets
5,895
6,469
Total current assets
259,945
217,395
Property, plant and equipment
93,584
85,995
Right-of-use assets
29,373
28,583
Intangible assets
24,213
22,929
Goodwill
12,032
10,665
Deferred tax assets
9,439
7,358
Other assets
3,350
3,982
Total non-current assets
171,991
159,512
Total assets
431,936
376,907
Liabilities
Current
Trade and accrued liabilities
50,916
42,116
Income tax payable
10,733
5,207
Current portion of deferred revenue
13,834
11,206
Current portion of lease liabilities
2,115
1,952
Total current liabilities
77,598
60,481
Long-term debt
122,961
122,203
Deferred tax liabilities
6,216
5,737
Employee benefit plan obligations
13,272
12,624
Lease liabilities
28,856
27,450
Deferred revenue
10,103
8,688
Other liabilities
797
706
Total non-current liabilities
182,205
177,408
Total liabilities
259,803
237,889
Equity
172,133
139,018
Total liabilities and equity
431,936
376,907
Non–IFRS Measures
Backlog represents the expected orders the Company has received, but has not yet executed, and that are expected to translate into sales within the next twelve months, expressed in dollars and estimated in number of days not to exceed 365 days. Bookings represent orders received during the period considered, expressed in number of days, and calculated by adding revenue to the increase or decrease in backlog for the period considered, divided by annualized year revenue. 5N+ uses backlog to provide an indication of expected future revenue in days, and bookings to determine its ability to sustain and increase its revenue.
EBITDA means net earnings (loss) before interest expenses, income tax expense (recovery), depreciation and amortization. 5N+ uses EBITDA because it believes it is a meaningful measure of the operating performance of its ongoing business, without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.
EBITDA is reconciled to the most comparable IFRS measure:
EBITDA margin is defined as EBITDA divided by revenue.
Adjusted EBITDA means operating earnings (loss) as defined before the effect of impairment of inventories, share-based compensation expense (recovery), ERP implementation costs, loss (gain) on disposal of property, plant and equipment, loss (gain) on remeasurement of financial instrument, impairment (reversal of impairment) of non-current assets, litigation and restructuring costs (income), and depreciation and amortization. 5N+ uses Adjusted EBITDA because it believes it is a meaningful measure of the operating performance of its ongoing business without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.
Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.
Adjusted EBITDA and Adjusted EBITDA margin are reconciled to the most comparable IFRS measure:
Adjusted gross margin is a measure used to monitor the sales contribution after paying cost of sales, excluding depreciation and inventory impairment charges. 5N+ also expressed this measure in percentage of revenue by dividing the adjusted gross margin value by the total revenue.
Adjusted gross margin is reconciled to the most comparable IFRS measure:
Net debt is calculated as total debt less cash. Any introduced IFRS 16 reporting measures in reference to lease liabilities are excluded from the calculation. 5N+ uses this measure as an indicator of its overall financial position.
The net debt to EBITDA ratio is defined as net debt divided by the trailing 12 months EBITDA.
Total debt and Net debt are reconciled to the most comparable IFRS measure:
SOURCE 5N Plus Inc.