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Introduction & Market Context
PureCycle Technologies (NASDAQ:PCT) presented its second quarter 2025 corporate update on August 7, 2025, outlining ambitious expansion plans fueled by a significant capital raise. The recycled polypropylene producer’s stock closed at $12.35, down 5% on the day of the presentation, though the share price has nearly doubled from around $7 following the company’s Q1 earnings report when it announced its first-ever revenues.
The presentation highlighted PureCycle’s progress in transitioning from development to commercial operations, with a focus on scaling production capacity globally while securing new customer agreements. The company continues to position itself in the sustainable plastics market, targeting a wide range of applications from packaging to automotive components.
Quarterly Performance Highlights
PureCycle reported continued operational improvements at its flagship Ironton, Ohio facility during Q2 2025. The company produced 3.4 million pounds of recycled resin in the quarter, with production running for 65 consecutive days before a planned outage in June. The facility achieved an 87% onstream time in April and May, showing progress from the 90% reported for April alone in the Q1 earnings call.
As shown in the following chart of manufacturing performance, PureCycle has made significant strides toward reaching nameplate capacity:
A notable achievement came on August 1, when the company completed a rate test at 14,000 pounds per hour, nearly reaching the facility’s nameplate capacity, using 100% food-grade curbside feedstock. This represents a crucial milestone as the company works toward its previously stated goal of reaching breakeven at the Ironton facility by Q3 2025.
Expansion Strategy
PureCycle unveiled an ambitious capacity expansion roadmap targeting 1 billion pounds of installed capacity by the end of 2029, which the company projects could generate approximately $600 million in annual EBITDA by 2030.
The detailed expansion timeline shows a phased approach across multiple facilities:
The company’s international expansion is centered on two key projects in Thailand and Belgium. The Rayong, Thailand facility is being developed with local partner IRPC and is expected to be operational by Q3 2027, while the Antwerp, Belgium plant is projected to come online by Q3 2028.
The following slide details the economics of these international facilities:
Notably, the Thailand facility is expected to achieve significantly better economics than the Ironton plant, with projected EBITDA of $0.65-0.75 per pound compared to $0.50-0.60 per pound for the Antwerp facility. The company attributes these improvements to design optimizations and economies of scale, with Thailand representing a 40% reduction in unit costs compared to Ironton.
Commercial Progress
PureCycle reported substantial progress in customer engagement and market development. The company’s sales pipeline continues to grow across multiple market segments, with 17 post-trial negotiations representing approximately 80 million pounds of potential annual production volume.
The following chart illustrates the company’s commercial pipeline development:
A significant commercial milestone was the agreement with Emerald Carpets for approximately 5 million pounds of fiber sales. This partnership highlights PureCycle’s circular economy approach, as the company plans to recycle used trade show carpets into purified fiber-grade resin.
The company also announced plans to integrate compounding operations at its Ironton facility by the end of 2025, adding approximately 100 million pounds of annual compounding capacity. This vertical integration is expected to eliminate approximately $4 million in annualized third-party costs currently associated with compounding.
Financial Position
PureCycle significantly strengthened its financial position in Q2 2025, raising approximately $300 million through the issuance of Series B convertible perpetual preferred stock in June. This capital raise, along with $10.5 million in net proceeds from bond sales, boosted the company’s total cash position to $298 million as of June 30, 2025, up from $37.5 million at the end of Q1.
The improved liquidity position provides PureCycle with the capital needed to fund its expansion plans, particularly the development of its Thailand facility, which the company expects will require less than $150 million in total cash outlay to become operational with a 130 million pound production line.
Forward-Looking Statements
PureCycle’s presentation outlined an optimistic growth trajectory, with the company targeting approximately 1 billion pounds of installed capacity and $600 million in annual EBITDA by 2030. The company is engaging with global banks for potential project financing to support its expansion plans beyond the recently raised capital.
The company’s commercial pipeline represents a serviceable obtainable market (SOM) of 0.8 billion pounds within a serviceable addressable market (SAM) of 4.7 billion pounds, providing significant runway for growth if the company can successfully scale operations and convert its pipeline into firm orders.
While PureCycle has made notable progress in operations and commercial development, investors should consider that the company is still in the early stages of commercialization. The stock’s volatility – having risen from around $7 after Q1 results to the current $12.35 despite the 5% drop on presentation day – reflects both the opportunity and risk inherent in the company’s ambitious growth plans.
As PureCycle works to optimize its Ironton operations and expand globally, execution of its capacity expansion timeline and continued commercial traction will be critical factors for investors to monitor in evaluating the company’s progress toward its long-term financial targets.
Full presentation:
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