PyroGenesis downplays impact of US-Canada tariffs on business

MONTREAL - PyroGenesis Inc. (TSX: PYR), a company specializing in all-electric plasma processes and sustainable solutions, with a current market capitalization of $75.2 million, has stated that the newly announced tariffs between the U.S. and Canada are unlikely to harm its financial performance. In response to investor queries, the company highlighted that many of its key systems, including the Drosrite™ aluminum metal dross recovery systems, are manufactured in the United States, thus circumventing the direct effects of potential tariffs on Canadian products. According to InvestingPro analysis, the company has been operating with moderate debt levels, though current financial metrics indicate short-term liquidity challenges.

The bulk of PyroGenesis’s components for other systems are produced in countries not targeted by U.S. tariffs. Furthermore, the company’s customer base extends beyond the United States, with significant clientele in Europe, Canada, and the Middle East. PyroGenesis also noted that the majority of its contracts are denominated in U.S. dollars or euros, which may shield the company from currency fluctuations due to the majority international client base.

As of February 12, 2025, PyroGenesis reported a backlog of contracts worth $58 million, with 84% denominated in U.S. dollars, 4% in euros, and the remaining 12% in Canadian dollars. This backlog indicates the company’s continued business operations in spite of the tariff situation. The company’s overall financial health score from InvestingPro is currently rated as ’Weak’, with a current ratio of 0.6, suggesting potential challenges in meeting short-term obligations.

PyroGenesis positions itself as a leader in offering technology solutions across three verticals: Commodity Security & Optimization, Energy Transition and Emission Reduction, and Waste Remediation. These solutions are designed to align with economic drivers crucial to global heavy industry.

The company prides itself on its advanced plasma technologies that have been adopted by industry leaders across various markets, including iron ore pelletization, aluminum, waste management, and additive manufacturing. With its team of engineers, scientists, and technicians based in Montreal and extensive manufacturing facilities, PyroGenesis maintains a competitive edge through ongoing technology development and commercialization.

The company’s operations are ISO 9001:2015 and AS9100D certified, with its shares publicly traded on the Toronto Stock Exchange, the OTCQX in the U.S., and the Frankfurt Stock Exchange in Germany.

It is important to note that this information is based on a press release statement, and forward-looking statements within it are not guarantees of future performance but are based on current expectations. PyroGenesis advises that these statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.

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