5N Plus Q2 2025 presentation: Revenue jumps 28% as margins expand

5N Plus Inc . (TSX:VNP) delivered robust financial results for the second quarter of 2025, continuing its strong performance from the first quarter with significant growth across all key metrics. The specialty semiconductor and performance materials manufacturer reported a 28% increase in revenue and a 79% surge in adjusted EBITDA, while simultaneously reducing its debt position.

Quarterly Performance Highlights

5N Plus reported Q2 2025 revenue of $95.3 million, a 28% increase compared to $74.6 million in the same period last year. This marks a sequential improvement from the $88.9 million reported in Q1 2025, demonstrating continued momentum in the company’s growth trajectory.

As shown in the following chart of quarterly revenue performance:

The company’s adjusted EBITDA saw an even more impressive gain, jumping 79% to $24.1 million from $13.5 million in Q2 2024. This resulted in an adjusted EBITDA margin of 25.3%, showing significant improvement in profitability. The adjusted gross margin increased by 41% to $33.0 million, representing 34.6% of sales compared to 31.3% in the prior year period.

The following chart illustrates the company’s EBITDA performance:

Net earnings reached $15.2 million, more than tripling from the $4.8 million reported in Q2 2024. This substantial improvement reflects the company’s successful focus on higher-margin products and operational efficiency.

Detailed Financial Analysis

5N Plus continues to strengthen its financial position, with net debt decreasing to $74.3 million as of June 30, 2025, compared to $100.1 million at the end of December 2024. The net-debt-to-EBITDA ratio improved to 1.09x, indicating a healthier balance sheet and increased financial flexibility.

The company’s backlog remains strong at $310.0 million, representing 297 days of annualized revenue, an increase from 268 days in the previous quarter. This robust backlog provides good visibility for future revenue streams and suggests continued strong demand for the company’s products.

The backlog trend is illustrated in the following chart:

The growth in bookings was balanced across both business segments. Bookings for Specialty Semiconductors increased by 36 days, from 113 days in Q1 2025 to 149 days in Q2 2025, while bookings for Performance Materials increased by 40 days, from 68 days in Q1 2025 to 108 days in Q2 2025.

Revenue growth was primarily driven by the terrestrial renewable energy and space solar power sectors within the Specialty Semiconductors segment, as well as favorable pricing from bismuth-based products in the Performance Materials segment.

The detailed breakdown of the company’s adjusted gross margin shows consistent improvement:

The company’s debt reduction progress is evident in the following table:

Forward-Looking Statements

With a strong first half of 2025, 5N Plus appears well-positioned to continue its growth trajectory. The company’s focus on high-margin, value-added materials has yielded positive results, as evidenced by the expanding gross margins and EBITDA growth.

The strong backlog of 297 days provides good revenue visibility for the coming quarters, while the improved debt position gives the company greater financial flexibility for potential strategic investments or further debt reduction.

Based on the company’s Q1 2025 earnings call, where management maintained its full-year adjusted EBITDA guidance and anticipated strong Q2 performance, these Q2 results appear to be in line with or exceeding those expectations. The company’s stock has performed well since the Q1 results, with the share price increasing from $6.62 after Q1 earnings to a recent close of $12.47, reflecting investor confidence in the company’s strategy and execution.

The financial highlights presented in the Q2 2025 results demonstrate the company’s continued operational success:

With these strong results, 5N Plus continues to demonstrate its ability to execute on its strategy of focusing on higher-margin products while maintaining a disciplined approach to financial management. The company’s performance in both the Specialty Semiconductors and Performance Materials segments indicates balanced growth across its business lines, positioning it well for continued success in the second half of 2025.

Full presentation:

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