NanoXplore Q4 Earnings Call Highlights

Key Points Fourth-quarter revenue rose 7% to CAD 33.9 million , while revenue excluding tooling increased 17% and product gross margin improved to 23%. However, adjusted EBITDA fell to CAD 1.9 million, pressured by higher raw-material costs and the timing of customer price increases. NanoXplore ended fiscal 2026 with CAD 25 million in cash, CAD 30 million in total liquidity and its first positive quarterly cash flow excluding financing or unusually high tooling repayments. Management expects to collect approximately CAD 8 million in tooling-related receivables during fiscal 2027. Management forecasts fiscal 2027 revenue of CAD 130 million–CAD 140 million and positive free cash flow, supported by Club Car, recovering solutions volumes and graphene commercialization. A preliminary fiscal 2028 outlook of CAD 160 million–CAD 170 million includes expected Volvo launches, though two Volvo programs were delayed to fiscal 2028. MarketBeat previews the top five stocks to own by October 1st . NanoXplore TSE: GRA reported fourth-quarter fiscal 2026 revenue of CAD 33.9 million, up 7% from a year earlier, as recovery in PACCAR and Volvo program volumes and new business offset comparisons affected by unusually high tooling revenue in the prior-year period. Chief Financial Officer Pedro Azevedo said revenue excluding tooling increased CAD 4.5 million, or 17% year over year, driven by new programs and recovering volumes. Product gross margin, excluding tooling, rose to 23.0% from 20.6% in the comparable quarter. Total adjusted gross margin declined to 22.5% from 24.7%, however, reflecting the mix effect of tooling revenues. Get NanoXplore alerts: Sign Up Adjusted EBITDA was CAD 1.9 million, down CAD 565,000 from a year earlier. Excluding tooling, adjusted EBITDA increased CAD 1.3 million year over year, Azevedo said. Higher raw-material costs associated with the U.S.-Iran conflict weighed on margins during the quarter, as customer price increases only partially offset the effects because of a timing lag. Fiscal-Year Results and Cash Position For fiscal 2026, NanoXplore recorded revenue of CAD 117.3 million, compared with CAD 129 million in the previous year, while adjusted EBITDA was CAD 1.93 million versus CAD 6.1 million. Azevedo attributed the year-over-year declines primarily to a weaker first quarter and more normalized tooling revenue during fiscal 2026. The company ended June 30 with CAD 25 million in cash and cash equivalents and CAD 11.5 million in short- and long-term debt. Including unused availability on its revolving credit facility, total liquidity was CAD 30 million. Quarterly cash flow was positive CAD 650,000, marking the company’s first positive cash-flow quarter excluding periods that benefited from financing activity or elevated tooling repayments, according to Azevedo. Operating cash flow was CAD 3.6 million, aided by EBITDA and lower working capital. The company said working capital remained elevated because of CAD 8 million in tooling invoices and unbillable tooling receivables, which it expects to collect during fiscal 2027. NanoXplore also received a CAD 720,000 refund in July after receiving approval in June for a claim related to tariffs paid on imported equipment. The amount was recorded as an accrued receivable and a reduction in the carrying value of equipment. Fiscal 2027 Outlook Management forecast first-quarter fiscal 2027 revenue of CAD 30.5 million to CAD 31 million, representing growth of about 32% from the prior-year quarter. For the full year, NanoXplore projected revenue of CAD 130 million to CAD 140 million, or growth of 11% to 20%, and said it expects to generate positive free cash flow. The outlook includes a full-year contribution from Club Car business, continued recovery in the company’s solutions ope...