NanoXplore (TSE:GRA) Posts Quarterly Earnings Results

NanoXplore (TSE:GRA) released its earnings results on Tuesday. The company reported C($0.02) EPS for the quarter, FiscalAI reports. NanoXplore had a negative return on equity of 10.72% and a negative net margin of 10.09%. The business had revenue of C$31.81 million during the quarter.

Here are the key takeaways from NanoXplore’s conference call:

• Q1 results improved significantly: revenue rose 36% year over year to CAD 31.8 million, adjusted gross margin increased to 21.7% from 17.3%, and adjusted EBITDA turned positive at CAD 714,000. The company ended the quarter with CAD 23.5 million in cash and CAD 28.5 million in total liquidity.
• Management reiterated fiscal 2027 revenue guidance of CAD 130 million to CAD 140 million and expects to be free-cash-flow positive for the full year. It sees revenue rising to CAD 35 million–CAD 37 million per quarter in the second half, supported by insulating foam sales and other business activity.
• Insulating foam moved into commercial supply: NanoXplore began shipments under an initial 40-ton masterbatch order and expects volumes to exceed 500 tons this fiscal year, with a roughly 1,000-ton annual run rate targeted in the customer’s first full production year. Management estimated CAD 2 million–CAD 5 million of revenue from newer initiatives before fiscal year-end, while noting the ramp-up is still underway.
• Higher material costs continue to weigh on gross margin as a percentage of sales; the company said it passes those increases through to customers at cost, protecting gross margin dollars but pressuring the percentage. Management expects margins to improve in coming quarters, but that outlook depends partly on the timing of cost pass-throughs and a higher contribution from graphene-enhanced products.

NanoXplore Trading Down 0.7%

GRA traded down C$0.01 during trading on Thursday, reaching C$1.45. The company had a trading volume of 90,023 shares, compared to its average volume of 175,129. The firm’s 50-day simple moving average is C$1.38 and its 200 day simple moving average is C$1.78. The company has a debt-to-equity ratio of 42.69, a quick ratio of 2.01 and a current ratio of 2.58. The company has a market cap of C$263.16 million, a price-to-earnings ratio of -20.71 and a beta of -0.47. NanoXplore has a 12-month low of C$1.06 and a 12-month high of C$2.86.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on GRA shares. Royal Bank Of Canada lifted their price target on shares of NanoXplore from C$1.75 to C$2.00 and gave the stock a “sector perform” rating in a research report on Wednesday. National Bank Financial cut their price objective on NanoXplore from C$2.80 to C$2.20 and set a “sector perform” rating for the company in a research report on Thursday, September 17th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of C$2.73.

NanoXplore Company Profile

NanoXplore is a graphene company and the largest manufacturer and supplier of high-volume graphene powder for use in multiple end markets with up to 5,000 tonnes of annual production capacity. The Corporation also provides standard and custom graphene-enhanced plastic and composite products to customers in the recreational vehicle, transportation, packaging, electronics, and other industrial sectors, and manufactures silicon-graphene-enhanced Li-ion batteries for the energy storage, industrial, and defense markets.