NanoXplore (TSE:GRA) Releases Quarterly Earnings Results

NanoXplore (TSE:GRA) posted its quarterly earnings data on Tuesday. The company reported C($0.02) earnings per share for the quarter, FiscalAI reports. The firm had revenue of C$31.81 million for the quarter. NanoXplore had a negative return on equity of 10.72% and a negative net margin of 10.09%.

Here are the key takeaways from NanoXplore’s conference call:

• Q1 results improved significantly: revenue rose 36% year over year to CAD 31.8 million, adjusted gross margin increased to 21.7% from 17.3%, and adjusted EBITDA turned positive at CAD 714,000. The company ended the quarter with CAD 23.5 million in cash and CAD 28.5 million in total liquidity.
• Management reiterated fiscal 2027 revenue guidance of CAD 130 million to CAD 140 million and expects to be free-cash-flow positive for the full year. It sees revenue rising to CAD 35 million–CAD 37 million per quarter in the second half, supported by insulating foam sales and other business activity.
• Insulating foam moved into commercial supply: NanoXplore began shipments under an initial 40-ton masterbatch order and expects volumes to exceed 500 tons this fiscal year, with a roughly 1,000-ton annual run rate targeted in the customer’s first full production year. Management estimated CAD 2 million–CAD 5 million of revenue from newer initiatives before fiscal year-end, while noting the ramp-up is still underway.
• Higher material costs continue to weigh on gross margin as a percentage of sales; the company said it passes those increases through to customers at cost, protecting gross margin dollars but pressuring the percentage. Management expects margins to improve in coming quarters, but that outlook depends partly on the timing of cost pass-throughs and a higher contribution from graphene-enhanced products.

NanoXplore Price Performance

Shares of TSE:GRA traded down C$0.03 during trading on Thursday, hitting C$1.43. 91,424 shares of the company were exchanged, compared to its average volume of 175,129. NanoXplore has a 1-year low of C$1.06 and a 1-year high of C$2.86. The company has a market capitalization of C$259.53 million, a P/E ratio of -20.43 and a beta of -0.47. The company has a quick ratio of 2.01, a current ratio of 2.58 and a debt-to-equity ratio of 42.69. The business’s 50 day moving average is C$1.38 and its 200-day moving average is C$1.78.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on GRA shares. Royal Bank Of Canada boosted their target price on shares of NanoXplore from C$1.75 to C$2.00 and gave the company a “sector perform” rating in a research report on Wednesday. National Bank Financial reduced their price target on shares of NanoXplore from C$2.80 to C$2.20 and set a “sector perform” rating on the stock in a research report on Thursday, September 17th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, NanoXplore presently has a consensus rating of “Hold” and a consensus price target of C$2.73.

NanoXplore Company Profile

NanoXplore is a graphene company and the largest manufacturer and supplier of high-volume graphene powder for use in multiple end markets with up to 5,000 tonnes of annual production capacity. The Corporation also provides standard and custom graphene-enhanced plastic and composite products to customers in the recreational vehicle, transportation, packaging, electronics, and other industrial sectors, and manufactures silicon-graphene-enhanced Li-ion batteries for the energy storage, industrial, and defense markets.