Key Highlights

● Second-quarter revenue rose 28% to $122.4 million, taking first-half sales to $240.3 million.

● Adjusted EBITDA grew 10% to $26.6 million, slower than revenue growth.

● Adjusted gross margin fell to 30.3% from 34.6% on higher metal and chemical costs.

● Backlog was $420.0 million and net debt fell to $23.7 million.

Latest verified development: second-quarter results

5N Plus Inc. (OTC:FPLSF), a Montreal-based producer of specialty semiconductors and performance materials listed on the Toronto Stock Exchange (TSX: VNP) and quoted over the counter in the United States, reported second-quarter 2026 results on 3 August 2026. All figures below are in U.S. dollars.

Revenue rose 28% to $122.4 million from $95.3 million a year earlier, taking the first-half total to $240.3 million. Net earnings were $19.7 million, compared with $15.2 million in the second quarter of 2025, roughly 16% of revenue.

Profit growth lagged sales growth

Adjusted EBITDA, a non-GAAP measure, increased 10% to $26.6 million from $24.1 million. Year to date it stands at $55.8 million. Because revenue grew faster than adjusted EBITDA, the implied margin fell to about 21.7% of revenue this quarter from about 25.3% a year earlier.

Subtracting the second quarter from the year-to-date figures gives implied first-quarter revenue of about $117.9 million and adjusted EBITDA of about $29.2 million. On that basis, adjusted EBITDA declined sequentially even as revenue increased, and the first-half margin works out at roughly 23.2%. These are derived from reported totals rather than quoted directly by the company.

The company's adjusted gross margin was $37.0 million, or 30.3% of sales, down from 34.6%. The release attributes the decline to higher metal input and chemical costs. Management also said input and operating costs are expected to keep rising and that margins in its Performance Materials business will normalise.

Backlog and balance sheet

Backlog was $420.0 million at the end of the quarter, equivalent to 313 days of annualised revenue. That is 23 days lower than the previous quarter but 16 days higher than a year earlier, so order cover has eased sequentially while remaining above the prior-year level.

Net debt fell to $23.7 million at 30 June 2026 from $50.3 million at 31 December 2025, a net-debt-to-EBITDA ratio of 0.21 times. A lightly geared balance sheet gives the company flexibility.

Guidance and what it implies

The company reaffirmed full-year 2026 adjusted EBITDA guidance of $100 million to $105 million. With $55.8 million already booked in the first half, the range implies roughly $44 million to $49 million in the second half. That is below the first-half run rate and consistent with management's warning about rising costs.

The reaffirmation, rather than a raise, means the profit outlook was not lifted despite 28% revenue growth, which fits the margin compression described above. Adjusted measures also exclude items defined in the company's own reconciliation, so they differ from GAAP results.

Chief executive Richard Perron said the teams had executed effectively and maintained strong customer deliveries during the second quarter as well.

Input costs, backlog and EBITDA delivery

Backlog covered 313 days of annualised revenue, 23 days fewer than the previous quarter, while management expected input costs to keep rising.