Purecycle Technologies Holdings Corp's 2026 Q2 Call: Thailand Financing Timeline Shifts, Production Ramp Timing Contradict Earlier Outlines

Date of Call: Aug 6, 2026

Financials Results

• Revenue: $4.5M, up substantially from a year ago

Guidance:

• Ironton breakeven remains the second half target.
• Commercial ramp expected to be second half weighted, driven by regulatory deadlines (Jan 2027) and supply chain readiness.
• Full-year project spend increased to $45M-$50M from prior $39M-$45M range, driven by engineering and long-lead equipment for Antwerp and Thailand.
• Second half project spend of $10M-$12M is contingent on project gating and Thailand financing timing.
• Thailand facility expected operational in 2028, with groundbreaking in second half of 2026.
• New Jersey demand estimated at roughly 20M lbs annually for QSR cold cup lids.

Business Commentary:

Operational Progress and Turnaround:

• PureCycle Technologies completed its turnaround ahead of schedule and below budget, executing over 170 site projects, and set a new daily throughput record of 12,000 pounds per hour in June.
• The turnaround focused on improving reliability and expanding plant capacity, which were key to enhancing operational efficiency.

Commercial and Revenue Growth:

• The company reported revenue of approximately $4.5 million, marking a substantial increase from the previous year, with seven new customer conversions.
• Revenue growth was driven by new customer acquisitions and the expansion into various applications, including the first Procter & Gamble application entering commercial production.

Regulatory and Market Developments:

• New Jersey approved PureFive as recycled content, a crucial regulatory milestone expected to accelerate demand, with an estimated annual demand in New Jersey alone for QSR applications being 20 million pounds.
• Regulatory approvals are pivotal as they set clear deadlines for brands to comply with recycled content requirements, thereby driving market demand.

International Expansion and Project Progress:

• Thailand received Board of Investment approval, and the company expects to break ground in the second half of 2026, with the facility expected to be operational by 2028.
• The progress in Thailand is supported by detailed design confirmation and key long lead equipment orders, with a focus on leveraging Ironton's compounding capabilities for market readiness.

Compounding and Supply Chain Integration:

• PureCycle brought compounding in-house, which is now running and producing customer-specified products, enhancing quality control and supply chain reliability.
• This integration allows for precise formulation control and de-risks the supply chain, providing flexibility and improving customer satisfaction by meeting exact specifications.

Sentiment Analysis:

Overall Tone: Positive

• Call highlights 'real progress on all fronts' and sets up a 'second half ramp.' Management states 'confidence in the second half ramp and the path through Ironton breakeven has increased.' They note operational improvements (turnaround ahead of schedule/budget, new throughput record), commercial progress (revenue growth for sixth consecutive quarter, first P&G application in commercial production), regulatory acceleration (New Jersey approval driving qualification pace), and strong pipeline (42 brands, 15 converters, 28 applications).

Q&A:

• Question from Anandon Sheppard (Cantor): Could you give a full picture of Thailand's status on engineering, long lead equipment, and financing steps to financial close?
  Response: Detailed design is confirmed, key long-lead equipment is ordered, team on ground, BOI approval with FastPass received; break ground expected in second half 2026, operational in 2028. Financing discussions are for binding terms, targeting close by year-end.

• Question from Anandon Sheppard (Cantor): What's driving the P&G relationship cadence, and how much of the second half ramp is already in motion?
  Response: Cadence is driven by trust in compounding and ability to deliver quality; other large customers are also accelerating timelines post-New Jersey approval. A lot of the ramp activity is already underway behind the public announcements.

• Question from Hassan Ahmed (Alembic Global Advisors): What do Q3 production levels and demand ramp forecasts look like?
  Response: Production will follow commercial ramp; the second half ramp is in play as planned, driven by regulatory deadlines. The $40M-$50M and $25M-$50M demand ramps are underway, with branded sales progressing.

• Question from Luke Persons (Craig-Hallum Capital Group): Are international expansion timelines contingent on Ironton milestones?
  Response: To a certain extent, they are tied but with low hurdles; the Thailand project is on track, and samples from Ironton are accelerating demand and adoption in those regions.

• Question from Gerry Sweeney (Roth Capital): Regarding compounded product pricing, are you still able to demand a significant premium to virgin resin?
  Response: Compounded product pricing remains consistent with past guidance; customers pay a premium for the one-pellet solution and tailored specifications, which de-risks their supply chain and simplifies operations.

Contradiction Point 1

Thailand Project Financing Timeline

Timeline for financial close shifted from ongoing discussions to imminent binding terms.

Anandon Sheppard (Cantor) - Anandon Sheppard (Cantor)

2026Q2: On financing, they are discussing binding terms and believe they can meet negotiated requirements... targeting financial close by year-end. - Dustin Olson(CEO)

What is the current status of the Thailand project in terms of engineering, long lead equipment, timeline to groundbreaking, and financing process? - Anand Balaji (Cantor Fitzgerald & Co., Research Division)

2025Q4: A comprehensive data room is prepared, and collaborative meetings are ongoing with a large Thai bank... Progress on site design and cost estimates is positive. - Donald Carpenter(CFO) & Dustin Olson(CEO)

Contradiction Point 2

Production Ramp Forecast and Timing

The characterization of production ramp timing and confidence appears to have shifted.

Hassan Ahmed (Alembic Global Advisors) - Hassan Ahmed (Alembic Global Advisors)

2026Q2: The annual ramp remains weighted to the second half... The $40M-$50M and $25M-$50M ramp forecasts are underway. - Dustin Olson(CEO)

What are Q3 production levels and how do they align with the previous demand ramp forecasts ($40M-$50M in Q2/Q3 and $25M-$50M from New Jersey)? - James Schram (TD Cowen)

2026Q1: The ramp is customer-driven. Q1 and Q2 are expected to be similar, with Q3 and Q4 seeing a meaningful ramp in volume and revenue. - Dustin Olson(CEO)

Contradiction Point 3

Commercial Ramp Confidence & Timeline

Confidence level shifted from high conviction based on technical success to a forward-looking ramp dependent on demand signals.

Hassan Ahmed (Alembic Global Advisors) - Hassan Ahmed (Alembic Global Advisors)

2026Q2: The annual ramp remains weighted to the second half, driven by the 2027 regulatory deadline and now-proved supply chain readiness. - Dustin Olson(CEO)

What are Q3 production levels and the current status of the previous demand ramp forecasts ($40M-$50M in Q2/Q3 and $25M-$50M from New Jersey)? - Hassan Ahmed (Alembic Global Advisors)

2025Q4: Conviction is very high. The ramp is based on strong technical successes in film, pouches, and wrappers, which open new opportunities... The delay in 2025 was due to customer distractions. - Dustin Olson(CEO)

Contradiction Point 4

Thailand Project Timeline and Milestones

Contradictory statements on the project's commercial readiness and dependency on Ironton.

Luke Persons (Craig-Hallum Capital Group) - Luke Persons (Craig-Hallum Capital Group)

2026Q2: There is some low-level commercial qualification tie-in for Thailand, but it is not expected to impact the overall ramp timing. The projects are largely independent. - Dustin Olson(CEO)

How should we assess the international expansion (Thailand, Antwerp) timeline comparisons to the Ironton ramp, and are they contingent on Ironton milestones? - Hassan Ahmed (Alembic Global Advisors)

20251107-2025 Q3: The process is in its early stages ('tip of the iceberg'). There is strong willingness among Asian waste handlers to partner... The unit economics for feedstock procurement look very positive, though final economics are still being finalized. - Dustin Olson(CEO)

Contradiction Point 5

Nature and Composition of the 40-50M lbs Annual Demand Run Rate

Inconsistency on whether the 40-50M lbs figure includes new, unannounced P&G programs.

Anandon Sheppard (Cantor) - Anandon Sheppard (Cantor)

2026Q2: The $40M-$50M and $25M-$50M ramp forecasts are underway... A lot of the ramp is already in motion, with announcements often lagging activity. - Dustin Olson(CEO)

What is driving the broadening P&G relationship (Downy, Tide, Vicks), are similar trends observed with other large brands, and how much of the second-half ramp is already in motion? - Jeffrey Grampp (Northland Capital Markets)

20251107-2025 Q3: The 40-50 million pound annual run rate is based on the currently qualified projects (green lines) plus Procter & Gamble. This volume represents a strong foundation for future plants. - Dustin Olson(CEO)