Key Highlights

  • 5N Plus reported second-quarter 2026 Revenue of USD 122.4 million, up 28 per cent, with adjusted EBITDA of USD 26.6 million, up 10 per cent.
  • Adjusted EBITDA Margin fell to 21.7 per cent from 25.3 per cent, and order Backlog was USD 420.0 million.
  • The company reaffirmed full-year 2026 adjusted EBITDA guidance of USD 100 million to USD 105 million.

Higher sales, thinner margins

5N Plus Inc. (OTC:FPLSF), the Montreal-based producer of specialty semiconductors and performance materials, reported second-quarter 2026 results on 3 August 2026. Its shares trade in the United States over the counter as FPLSF, with the primary listing in Toronto under VNP. All figures below are in US dollars, as stated in the company's release. The company reports through two segments, Specialty Semiconductors and Performance Materials. Management discussed the results on a conference call on 4 August 2026.

Revenue rose 28 per cent to USD 122.4 million, from USD 95.3 million a year earlier. Adjusted EBITDA increased by a more modest 10 per cent to USD 26.6 million, so the adjusted EBITDA margin fell to 21.7 per cent from 25.3 per cent. Adjusted gross margin also contracted, from 34.6 per cent to 30.3 per cent. In absolute terms, adjusted gross margin still rose from USD 33.0 million to USD 37.0 million. Unadjusted EBITDA was USD 32.9 million for the quarter and USD 64.8 million for the half. Adjusted figures are company-defined measures.

Earnings and the first half

Net Earnings were USD 19.7 million, or USD 0.22 per diluted share, compared with USD 15.2 million, or USD 0.17, in the second quarter of 2025. Bottom-line growth therefore outpaced adjusted EBITDA growth in the period, although the release does not break out the drivers in detail.

For the first six months, revenue was USD 240.3 million against USD 184.2 million, adjusted EBITDA reached USD 55.8 million against USD 44.9 million, and net earnings were USD 37.4 million against USD 24.8 million. Chief executive Richard Perron said the results demonstrate Demand across the company's strategic end markets.

Backlog, Balance Sheet and guidance

Order backlog stood at USD 420.0 million at 30 June 2026. That is 16 days higher than a year earlier but 23 days lower than the previous quarter, a sequential easing that is worth monitoring.

Net Debt fell to USD 23.7 million from USD 50.3 million at the end of 2025, representing 0.21 times EBITDA. Cash was USD 55.4 million against total debt, excluding Lease liabilities, of USD 79.0 million.

The company reaffirmed full-year 2026 adjusted EBITDA guidance of USD 100 million to USD 105 million. That is a management forecast, not a reported result. First-half adjusted EBITDA of USD 55.8 million is a little over half the lower end of that range, which leaves the second half needing to deliver roughly USD 44 million to USD 49 million to reach it. Management also said it expects higher input and operating costs and a normalisation in Performance Materials margins.

What to watch

Three questions stand out. First, whether margins stabilise as revenue growth continues, given that the company itself flags cost pressure. Second, whether backlog resumes growth after the sequential dip. Third, how the Performance Materials segment behaves as margins normalise, since the release gives no segment-level revenue or profit figures. Over-the-counter quotes can be thinly traded and may differ from Toronto prices.