5N Plus Inc. Reports 2025 First Quarter Financial Results
- 37% revenue growth to a record
$88.9 million - 77% Adjusted EBITDA1 growth to
$20.8 million - 51% increase in Adjusted gross margin1 to
$30.4 million - Adjusted gross margin of 34.2% as a percentage of sales
"Our outstanding first quarter performance reflects strong demand and accelerated purchasing by customers in strategic sectors. Positive momentum entering the year resulted in 5N+ generating record revenue growth in the first quarter compared to the same period last year, coupled with impressive 77% growth in Adjusted EBITDA and continued margin expansion. Both of our segments contributed to our operational and financial performance, with strong demand from the strategic terrestrial renewable energy and space solar power sectors under Specialty Semiconductors, as well as for bismuth-based products under Performance Materials," said
"In an environment of ongoing global trade volatility, our customers are acting decisively to secure the advanced materials they require from reliable partners, and we are their trusted choice. This reinforces our unique and global standing as the ideal partner with the right technical expertise, footprint and sourcing capabilities to supply critical materials to critical industries. This is further supported by our increased operational agility and manufacturing capacity, following investments made in the last few years. We continue to actively explore opportunities to increase our production capacity, including through external growth, to capture more demand in the future and solidify our leadership in our key end markets," concluded Mr. Jacques.
Financial Highlights
- Revenue in Q1 2025 increased by 37% to
$88.9 million , compared to$65.0 million in Q1 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 products sales under Performance Materials. - Adjusted EBITDA in Q1 2025 increased by 77% to
$20.8 million , compared to$11.7 million in Q1 2024, driven by higher volume in the terrestrial renewable energy and space solar power sectors, and better prices over inflation. - Adjusted gross margin increased by 51% to
$30.4 million in Q1 2025, favourably impacted by the same factors as above. Adjusted gross margin as a percentage of sales was 34.2% in Q1 2025, compared to 30.9% in Q1 2024. - Net earnings in Q1 2025 were
$9.6 million , compared to$2.5 million in Q1 2024. - Backlog1 stood at
$260.9 million , representing 268 days of annualized revenue as atMarch 31, 2025 , 58 days lower than at the end of last year, primarily due to the timing of contract signings and renewals under Performance Materials net of the revenue realized during the quarter. - Net debt2 was
$92.3 million as atMarch 31, 2025 , compared to$100.1 million as atDecember 31, 2024 , reflecting an increase in cash. The Company's net debt to EBITDA ratio1 stood at 1.60x as atMarch 31, 2025 .
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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
Taking into account its performance year-to-date, and based on under-contract and anticipated near-term demand primarily under Specialty Semiconductors, management's Adjusted EBITDA guidance for 2025 remains unchanged in the range of
The Company remains committed to its long-term objectives and the execution of its strategic initiatives. It will continue to leverage its strategic positioning and competitive advantages to navigate any potential headwinds that result from the evolving macroeconomic environment. The Company also continues to actively explore opportunities to increase its production capacity to meet strong demand in its strategic sectors over the coming years.
Conference Call
5N+ will host a conference call on
To participate in the conference call:
-
Toronto area: 1-289-819-1299 -
Montreal area: 1-514-400-3794 - Toll‐Free: 1-800-990-4777
- Enter access code: 55753
A replay of the conference call will be available two hours after the event and until
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
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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. |
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
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.
INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
For the three-month periods ended
(in thousands of
|
|
|
2025 |
2024 |
|
|
|
$ |
$ |
|
Revenue |
|
88,888 |
65,019 |
|
Cost of sales |
|
61,892 |
48,020 |
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Selling, general and administrative expenses |
|
8,560 |
7,317 |
|
Other expenses (income), net |
|
3,325 |
2,250 |
|
|
|
73,777 |
57,587 |
|
Operating earnings |
|
15,111 |
7,432 |
|
|
|
|
|
|
Financial expense |
|
|
|
|
Interest on long-term debt |
|
2,004 |
1,795 |
|
Imputed interest and other interest expense |
|
713 |
411 |
|
Foreign exchange gain |
|
(714) |
(387) |
|
|
|
2,003 |
1,819 |
|
Earnings before income taxes |
|
13,108 |
5,613 |
|
Income tax expense |
|
|
|
|
Current |
|
3,371 |
2,514 |
|
Deferred |
|
164 |
592 |
|
|
|
3,535 |
3,106 |
|
Net earnings |
|
9,573 |
2,507 |
|
|
|
|
|
|
Basic earnings per share |
|
0.11 |
0.03 |
|
Diluted earnings per share |
|
0.11 |
0.03 |
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Net earnings are completely attributable to equity holders of |
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of
|
|
|
2025 |
2024 |
|
|
|
$ |
$ |
|
Assets |
|
|
|
|
Current |
|
|
|
|
Cash |
|
30,524 |
22,142 |
|
Accounts receivable |
|
58,724 |
42,172 |
|
Inventories |
|
135,526 |
137,823 |
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Income tax receivable |
|
1,900 |
1,811 |
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Derivative financial assets |
|
- |
6,978 |
|
Other current assets |
|
6,028 |
6,469 |
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Total current assets |
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232,702 |
217,395 |
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Property, plant and equipment |
|
89,420 |
85,995 |
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Right-of-use assets |
|
28,604 |
28,583 |
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Intangible assets |
|
23,049 |
22,929 |
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|
|
11,103 |
10,665 |
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Deferred tax assets |
|
6,867 |
7,358 |
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Other assets |
|
4,221 |
3,982 |
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Total non-current assets |
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163,264 |
159,512 |
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Total assets |
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395,966 |
376,907 |
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|
|
|
|
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Liabilities |
|
|
|
|
Current |
|
|
|
|
Trade and accrued liabilities |
|
39,534 |
42,116 |
|
Income tax payable |
|
6,834 |
5,207 |
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Derivative financial liabilities |
|
3,524 |
- |
|
Current portion of deferred revenue |
|
13,782 |
11,206 |
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Current portion of lease liabilities |
|
1,997 |
1,952 |
|
Total current liabilities |
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65,671 |
60,481 |
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Long-term debt |
|
122,779 |
122,203 |
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Deferred tax liabilities |
|
5,843 |
5,737 |
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Employee benefit plan obligations |
|
12,441 |
12,624 |
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Lease liabilities |
|
27,607 |
27,450 |
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Deferred revenue |
|
9,432 |
8,688 |
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Other liabilities |
|
735 |
706 |
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Total non-current liabilities |
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178,837 |
177,408 |
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Total liabilities |
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244,508 |
237,889 |
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|
|
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Equity |
|
151,458 |
139,018 |
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Total liabilities and equity |
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395,966 |
376,907 |
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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 revenues to the increase or decrease in backlog for the period considered, divided by annualized year revenues. 5N+ uses backlog to provide an indication of expected future revenues in days, and bookings to determine its ability to sustain and increase its revenues.
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:
|
(in thousands of |
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Q1 2025 |
Q1 2024 |
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$ |
$ |
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Net earnings |
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9,573 |
2,507 |
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Interest on long-term debt, imputed interest and other interest expense |
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2,717 |
2,206 |
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Income tax expense |
|
|
3,535 |
3,106 |
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Depreciation and amortization |
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4,128 |
3,945 |
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EBITDA |
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19,953 |
11,764 |
EBITDA margin is defined as EBITDA divided by revenues.
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 revenues.
Adjusted EBITDA and Adjusted EBITDA margin are reconciled to the most comparable IFRS measure:
|
(in thousands of |
|
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Q1 2025 |
Q1 2024 |
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|
|
$ |
$ |
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Revenues |
|
|
88,888 |
65,019 |
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Operating expenses |
|
|
(73,777) |
(57,587) |
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Operating earnings |
|
|
15,111 |
7,432 |
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Share-based compensation expense |
|
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1,393 |
360 |
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ERP implementation costs |
|
|
160 |
- |
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Depreciation and amortization |
|
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4,128 |
3,945 |
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Adjusted EBITDA |
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20,792 |
11,737 |
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Adjusted EBITDA margin |
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23.4 % |
18.1 % |
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 revenues by dividing the adjusted gross margin value by the total revenue.
Adjusted gross margin is reconciled to the most comparable IFRS measure:
|
(in thousands of |
|
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Q1 2025 |
Q1 2024 |
|
|
|
|
$ |
$ |
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Total revenue |
|
|
88,888 |
65,019 |
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Cost of sales |
|
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(61,892) |
(48,020) |
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Gross margin |
|
|
26,996 |
16,999 |
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Depreciation included in cost of sales |
|
|
3,403 |
3,076 |
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Adjusted gross margin |
|
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30,399 |
20,075 |
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Adjusted gross margin percentage |
|
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34.2 % |
30.9 % |
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:
|
(in thousands of |
As at |
As at |
|
|
$ |
$ |
|
Bank indebtedness |
- |
- |
|
Long-term debt including current portion |
122,779 |
122,203 |
|
Lease liabilities including current portion |
29,604 |
29,402 |
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Subtotal Debt |
152,383 |
151,605 |
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Lease liabilities including current portion |
(29,604) |
(29,402) |
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Total Debt |
122,779 |
122,203 |
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Cash |
(30,524) |
(22,142) |
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Net Debt |
92,255 |
100,061 |
SOURCE
