NanoXplore (TSE:GRA) Releases Earnings Results

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

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 Stock Down 1.4%

GRA stock traded down C$0.02 during midday trading on Thursday, reaching C$1.44. 91,124 shares of the company’s stock traded hands, compared to its average volume of 175,129. The company has a market cap of C$261.34 million, a price-to-earnings ratio of -20.57 and a beta of -0.47. The firm’s fifty day moving average price is C$1.38 and its 200-day moving average price is C$1.78. The company has a quick ratio of 2.01, a current ratio of 2.58 and a debt-to-equity ratio of 42.69. NanoXplore has a 52 week low of C$1.06 and a 52 week high of C$2.86.

Wall Street Analysts Forecast Growth

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

About NanoXplore

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.