Q4 2025 PureCycle Technologies Inc Earnings Call

February 26, 2026

Time, all participants are listening only mode at the speaker's presentation. There will be a question and answer session to ask a question during the session. You'll need to press star 1 on your telephone, you will then hear automated message. Advising, your hand is raised to withdraw your question. Please press star 1 again, please. Advise that today's conference is being recorded on night and the conference over to your first Speaker today. Eric Dina Telly director investment relations. Please go ahead.

Thank You, Marvin. Welcome to Pure cycle Technologies, fourth quarter, 2025 corporate update conference call. I am Eric Denali director of investor relations for pure cycle and joining me on this call today are Dustin Olson. Our chief executive officer, our incoming Chief Financial Officer Donald Carpenter

Our retiring CFO Jaime Vasquez will also be joining the call.

This evening, we will be highlighting our corporate development through the fourth quarter 2025.

the presentation will be going through on this call and also be found on the investor table at our website at pure recycle.com

Many of the statements made today will be made will be forward looking and are based on Management's beliefs and assumptions, and information currently available to management at this time.

Operator: Good day, and thank you for standing by. Welcome to the PureCycle Technologies Q4 2025 Corporate Update. At this time, all participants are on listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'd like to hand the conference over to your first speaker today, Eric DeNatale, Director of Investor Relations. Please go ahead.

The statements are subject to known and unknown risks, and uncertainties many, of which may be beyond our control. Including those that forth in our Safe, Harbor, provisions, and forward-looking statements, that can be found at the end of our fourth quarter, 2025 corporate update. Press release filed this afternoon, as well as in other reports on file with the SEC. That provides further details about the risks related to our business. Additionally please note that the company's actual results.

name is different materially from those anticipated and except as required by law, we undertake no obligation to update any forward-looking statements,

Eric DeNatale: Thank you, Marvin. Welcome to PureCycle Technologies' Q4 2025 Corporate Update Conference Call. I am Eric DeNatale, Director of Investor Relations for PureCycle, and joining me on the call today are Dustin Olson, our Chief Executive Officer, our incoming Chief Financial Officer, Donald Carpenter. Our retiring CFO, Jaime Vasquez, will also be joining the call. This evening, we'll be highlighting our corporate developments for the Q4 of 2025. The presentation we'll be going through on this call can also be found on the investor tab at our website at purecycle.com. Many of the statements made today will be forward-looking and are based on management's beliefs and assumptions and information currently available to management at this time.

Our remarks today may also include preliminary non-gaap estimates and our subjects to risk and uncertainties, including among other things changes in connection with quarter, end and year-end adjustments.

Any variation between pure Cycles actual results in the preliminary financial data set forth. Herein may be materials. You're welcome to follow along with our slide deck or joining us by phone. You can access it at any time at pure cycle.com.

We are excited to share updates from the previous quarter with you with that. I will turn it over to Dustin Olsen pure cycle, pure Cycles, chief executive officer,

Thank you, Eric.

Eric DeNatale: The statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those set forth in our safe harbor provisions and forward-looking statements that can be found at the end of our Q4 2025 corporate update press release filed this afternoon, as well as in other reports on file with the SEC that provides further details about the risks related to our business. Additionally, please note that the company's actual results may differ materially from those anticipated, and except as required by law, we undertake no obligation to update any forward-looking statements. Our remarks today may also include preliminary non-GAAP estimates and are subject to risks and uncertainties, including, among other things, changes in connection with quarter-end and year-end adjustments. Any variation between PureCycle's actual results and the preliminary financial data set forth herein may be material.

Fourth quarter was another period of progress for pure cycle. We ramped our operations in Denver and ironson advanced our customer Pipeline and made, meaningful progress on our growth plan in in Thailand.

As we announced in the press release effect of March 1st, Donald Carpenter will be stepping into the CFO role. I want to first thing Jamie for his service. The last couple of years with him well in his retirement and now turn it over to him for a couple of words. Jamie

Thank you Dustin. I appreciate the opportunity and the time that pure cycle has provided me, this is a company with a great Mission and talented people that should allow the company to accomplish that mission.

And with Donald stepping into the CFO role, there will be continuity among the Finance and Accounting teams.

Donald's time at pure cycle combined with his depth of knowledge. Finance knowledge should allow him along with the senior management team to help. Continue. Moving the company forward.

Eric DeNatale: You're welcome to follow along with our slide deck, or if joining us by phone, you can access it at any time at purecycle.com. We are excited to share updates from the previous quarter with you. With that, I will turn it over to Dustin Olson, PureCycle's Chief Executive Officer.

To you, Dustin, Donald, and the rest of the pure cycle team, I wish you the best as you continue to commercialize and grow pure cycle.

Back to you, Dustin.

Dustin Olson: Thank you, Eric. Q4 was another period of progress for PureCycle. We ramped our operations in Denver and Ironton, advanced our customer pipeline, and made meaningful progress on our growth plan in Thailand. As we announced in the press release, effective March 1, Donald Carpenter will be stepping into the CFO role. I want to first thank Jamie for his service the last couple of years, wish him well in his retirement, and now turn it over to him for a couple of words. Jamie?

Donald would you like to say a couple words? Yeah. Thank you. Thank you. Dustin and thank you Jamie. And thanks, especially for all of the support and opportunities. You gave me to grow into this role over the past 2 years.

I share your thoughts on the jury cycle team and I am incredibly fortunate to have such an exceptional group supporting me through the transition.

I am so excited for the future of this technology and our company.

Jaime Vasquez: Thank you, Dustin. I appreciate the opportunity and the time that PureCycle has provided me. This is a company with a great mission and talented people that should allow the company to accomplish that mission. With Donald stepping into the CFO role, there will be continuity among the finance and accounting teams. Donald's time at PureCycle, combined with his depth of knowledge, finance knowledge, should allow him, along with the senior management team, to help continue moving the company forward. To you, Dustin, Donald, and the rest of the PureCycle team, I wish you the best as you continue to commercialize and grow PureCycle. Back to you, Dustin.

While the role is new the mission I committed to 4 years ago Remains the Same and I truly believe our company has an amazing solution to help end the threat of plastic waste to our environment, both safely and responsibly with that. Jamie, I wish you the best in retirement and I'll turn it back over to you Dustin.

All right. Thanks a lot D. I wish you both the best and very excited about the the path forward. Uh, additional to this announcement. We previously announced we added 2, distinguished board members to our team, Dr. Siri, who serves as an independent director and chairman of the audit committee at the Bangkok Bank and pre previously, served as the Thailand's minister of energy and chairman of IRP.

See and most recently, Valerie Mars, who retired as senior vice president and head of the corporate development at Mars Incorporated. We're very fortunate to have both of them.

Dustin Olson: Donald Carpenter, would you like to say a couple words? Yes. Thank you. Thank you, Dustin Olson, thank you, Jaime Vasquez, and thanks especially for all of the support and opportunities you gave me to grow into this role over the past 2 years. I share your thoughts on the PureCycle team. I am incredibly fortunate to have such an exceptional group supporting me through the transition. I am so excited for the future of this technology and our company. While the role is new, the mission I committed to 4 years ago remains the same. I truly believe our company has an amazing solution to help end the threat of plastic waste to our environment, both safely and responsibly. With that, Jaime Vasquez, I wish you the best in retirement, and I'll turn it back over to you, Dustin Olson. All right. Thanks a lot, Donald Carpenter.

Now to the business highlights in the quarter. Before I get into the details, I want to frame where we are. We are producing high quality food, grade recycled polypropylene at scale. Something no 1 else in the world can do we qualified our materials and flexible packaging rappers. Stand up pouches closures. Thermoform containers.

Grown to over 170 active projects.

The market continues to struggle integrating large amounts of post-consumer recycled polypropylene content into consumer products.

Dustin Olson: I wish you both the best, and I'm very excited about the path forward. Additional to this announcement, we previously announced we added two distinguished board members to our team, Dr. Siri, who serves as the Independent Director and Chairman of the Audit Committee at the Bangkok Bank, and previously served as Thailand's Minister of Energy and Chairman of IRPC. Most recently, Valerie Mars, who retired as Senior Vice President and Head of the Corporate Development at Mars, Incorporated. We're very fortunate to have both of them. Now to the business highlights in the quarter. Before I get into the details, I want to frame where we are. We are producing high-quality, food-grade recycled polypropylene at scale, something no one else in the world can do. We've qualified our materials in flexible packaging, wrappers, stand-up pouches, closures, thermoform containers, bumpers, and numerous fiber applications.

Recycle content is new especially in the FDA space and companies are challenging decades old processes to make them work for this emerging space.

PCT is helping them.

As our brand continues to rise and other brands. Get more familiar with our products.

We dramatically reduce the adoption challenges.

When a brand puts our material into food grade package on a retail shelf, they're doing something that's never been done before at PCT scale at PCT quality and with PCT flexibility.

And while customers are extremely excited about our product and how the simplifies their lives, the adoption process which includes things like lab pilot and Industrial scale qualifications.

Lots of Trials, regulatory reviews, packaging Design, Line, validation, supply chain. Insurance is internal approvals. It still takes time.

Dustin Olson: Branded pricing is on track with prior guidance, and our pipeline has grown to over 170 active projects. The market continues to struggle integrating large amounts of post-consumer recycled polypropylene content into consumer products. Recycled content is new, especially in the FDA space, and companies are challenging decades-old processes to make them work for this emerging space. PCT is helping them. As our brand continues to rise and other brands get more familiar with our product, we dramatically reduce the adoption challenges. When a brand puts our material in the food-grade package on a retail shelf, they're doing something that's never been done before, at PCT scale, at PCT quality, and with PCT flexibility.

But here's what I want you to take away from this call the underlying demand is very strong and growing. It's clear to me that the Recycled content and consumer products is coming. The regulatory. Environment is naturally moving and pure Cycles Direction and probably the most important thing of all

Consumers, continue to Value sustainability. And it is driving their buying behaviors.

the question is not whether Brands will buy recycled PP at scale, but when

and we are positioned to be the premier Global supplier.

PCT is helping them.

As our brand continues to rise and other brands, get more familiar with our product.

2026 is about converting our technical success into accelerated commercial Revenue, growth quarter over quarter and I'll walk you through exactly where we stand on that.

We dramatically reduce the adoption challenges.

Dustin Olson: While customers are extremely excited about our product and how it simplifies their lives, the adoption process, which includes things like lab, pilot, and industrial scale qualifications, lots of trials, regulatory reviews, packaging design, line validation, supply chain insurances, internal approvals, it still takes time. Here's what I want you to take away from this call. The underlying demand is very strong and growing. It's clear to me that the recycled content in consumer products is coming. The regulatory environment is naturally moving in PureCycle's direction. Probably the most important thing of all, consumers continue to value sustainability, and it is driving their buying behaviors. The question is not whether brands will buy recycled PP at scale, but when. We are positioned to be the premier global supplier.

When a brand puts our material into food-grade packaging on a retail shelf, they're doing something that's never been done before at PCT scale, at PCT quality, and with PCT flexibility.

in the fourth quarter, we successfully added a third shift in Denver, which had previously been a constraint on production as a result Denver processed, 44% more feed versus third quarter, ramping to 14 million pounds,

And while customers are extremely excited about our product and how it simplifies their lives, the adoption process—which includes things like lab pilot and industrial-scale qualifications—does take time.

A 35% increase over. Its prior quarterly. Hi, we are actively buying from more than 15 different feed suppliers including most of the large players in the market and have reduced procurement costs by 6 cents per pound over the last 12 months.

Lots of Trials, regulatory reviews, packaging Design, Line, validation, supply chain. Insurance is internal approvals. It still takes time.

Denver has fundamentally improved. Our feed stock flexibility and cost structure. And I have never felt better about our ability to reliably and economically Supply Ironton as we ramp to full rates.

But here's what I want you to take away from this call the underlying demand is very strong and growing. It's clear to me that the Recycled content and consumer products is coming. The regulatory. Environment is naturally moving in pure Cycles Direction and probably the most important thing of all

Arrington also successfully ran production in the fourth quarter with the production of 7.5 million pounds. We not only hit a quarterly record for production but also new Daily records as well.

Consumers, continue to Value sustainability. And it is driving their buying behaviors.

Dustin Olson: 2026 is about converting our technical success into accelerated commercial revenue growth quarter-over-quarter, and I'll walk you through exactly where we stand on that. In Q4, we successfully added a third shift to Denver, which had previously been a constraint on production. As a result, Denver processed 44% more feed versus Q3, ramping to 14 million pounds, a 35% increase over its prior quarterly high. We are actively buying from more than 15 different feed suppliers, including most of the largest players in the market, and have reduced procurement costs by $0.06 per pound over the last 12 months. Denver has fundamentally improved our feedstock flexibility and cost structure, and I have never felt better about our ability to reliably and economically supply Ironton as we ramp to full rates.

This doesn't tell the whole story as we continue to manage production levels ahead of the commercial ramp. We are routinely running errands, and with higher reliability, and at higher water marks.

The question is not whether brands will buy recycled PP at scale, but when—and we are positioned to be the premier global supplier. 2026 is about converting our technical success into accelerated commercial revenue growth, quarter over quarter, and I'll walk you through exactly where we stand on that.

In the last few quarters, I've spoken about how we ran successful rate tests in both 12,500 and 14,000 pounds per hour.

We have a lot of data from those tests, which we've analyzed and see, some very specific improvements that should allow us to push towards name plate, capacity in 26.

previously been a constraint on production as a result Denver processed, 44% more feed versus third quarter, ramping to 14 million pounds,

The original design for iron and contemplated an annual maintenance outage.

We didn't take 1 last year, but plan on taking 1 between mid April and mid May this year.

A 35% increase over. Its prior quarterly. Hi, we are actively buying from more than 15 different feed suppliers, including most of the largest players in the market and have reduced procurement costs by 6 cents per pound over the last 12 months.

There are lots of standard maintenance activities that are expected to occur, spanning inspections cleaning repairs and improvements. I expect this outage to have really positive outcomes for pure cycle.

If you look back at every planned outage we've had at Ironton the reliability top-end rate and quality has always improved on the other side.

Denver has fundamentally improved. Our feed stock flexibility and cost structure and I have never felt better about our ability to reliably and economically Supply Ironton as we rant to full rates.

Dustin Olson: Ironton also successfully ramped production in Q4 with a production of 7.5 million pounds. We not only hit a quarterly record for production, but also new daily records as well. This doesn't tell the whole story, as we continue to manage production levels ahead of the commercial ramp. We are routinely running Ironton with higher reliability and at higher watermarks. In the last few quarters, I've spoken about how we ran successful rate tests at both 12,500 and 14,000 pounds per hour. We have a lot of data from those tests, which we've analyzed and see some very specific improvements that should allow us to push towards nameplate capacity in 2026. The original design for Ironton contemplated an annual maintenance outage. We didn't take one last year, but plan on taking one between mid-April and mid-May this year.

It is our expectation that the same will be true. This 1

We always incorporate the Lessons Learned into our procedures and activities, but outages give you the unique.

Iron also successfully ran production in the fourth quarter with the production of 7.5 million pounds. We not only hit a quarterly record for production but also new Daily records as well.

opportunity to make changes that are not possible when the

This doesn't tell the whole story as we continue to manage production levels ahead of the commercial ramp, we are routinely running irons, and with higher reliability, and at higher water marks.

Reliability matters to our customers. As we've demonstrated consistent product quality and uptime. We've seen those conversations evolved several of our largest pipeline opportunities are now moving toward multi-year Supply agreements.

In the last few quarters, I've spoken about how we ran successful rate tests at both 12,500 and 14,000 pounds per hour.

Which is a direct reflection of the confidence that they have in our operating performance.

Phase 1 of our on-site compounding started up last quarter.

This enables CPT.

We have a lot of data from those tests, which we've analyzed and see, some very specific improvements that should allow us. To push towards named play capacity in 26.

Compounded on-site.

The original design for Ironton contemplated an annual maintenance outage.

And sold to the market. This project allowed us to reduce carbon footprint and cost to produce and improve our final sales price.

We're very excited about this Edition.

Dustin Olson: There are lots of standard maintenance activities that are expected to occur, spanning inspections, cleaning, repairs, and improvements. I expect this outage to have really positive outcomes for PureCycle. If you look back at every plant outage we've had at Ironton, the reliability, top-end rate, and quality has always improved on the other side. It is our expectation that the same will be true this one. We always incorporate the lessons learned into our procedures and activities, but outages give you the unique opportunity to make changes that are not possible when the plant is running. Reliability matters to our customers. As we've demonstrated consistent product quality and uptime, we've seen those conversations evolve. Several of our largest pipeline opportunities are now moving toward multi-year supply agreements... which is a direct reflection of the confidence that they have in our operating performance.

And Phase 2 should be mechanically complete in March, and commissioning will continue in parallel with the planned outage.

We didn't take one last year, but plan on taking one between mid-April and mid-May this year. There are lots of standard maintenance activities that are expected to occur, spanning inspections, cleaning, repairs, and improvements. I expect this outage to have really positive outcomes for PureCycle.

Phase 2.

Coincides with the demand planning for these grades and Commercial off-take profiles.

If you look back at every planned outage we've had at Ironton the reliability top-end rate and quality has always improved on the other side.

It is our expectation that the same will be true. This 1

Producing compounds for Bopp film, which is used in flexible Packaging.

We always incorporate the Lessons Learned into our procedures and activities but outages give you the unique opportunity to make changes that are not possible when the plant is running.

And thermoform applications, which is used in things like coffee Lids, 2 of the highest value. Fastest growing segments in our pipeline.

Having this capability on site, complements existing, third-party compounding assets, improves, turnaround times, for customer trials and gives us direct control over the formulations.

Which is a direct reflection of the confidence that they have in our operating performance.

Dustin Olson: Phase one of our on-site compounding started up last quarter. This enables CP2 to be compounded on-site and sold to the market. This project allowed us to reduce carbon footprint, the cost to produce, and improve our final sales price. We're very excited about this addition. Phase two should be mechanically complete in March, and commissioning will continue in parallel with the planned outage. Phase two coincides with the demand planning for these grades in commercial offtake profiles. The phase two on-site compounding line will be primarily focused on producing compounds for BOPP film, which is used in flexible packaging, and thermoformed applications, which is used in things like coffee lids, two of the highest value, fastest-growing segments in our pipeline. Having this capability on-site complements existing third-party compounding assets, improves turnaround times for customer trials, and gives us direct control over the formulations.

We have built and will continue to build inventory ahead of the outage and a cross, the plan application launches, and we expect to ship while Ironton is engaged in turnaround.

Phase 1 of our on-site compounding started up last quarter.

This enables cp2 to be compounded on-site.

On the other side of this outage irons in should be, well positioned to serve the expected ramp to much higher levels of production and sales later in 26.

turning to the commercial update, we booked 2.7 million dollars of revenues before

And sold to the market. This project allowed us to reduce carbon footprint, lower the cost to produce, and improve our final sales price. We're very excited about this edition.

And Phase 2 should be mechanically complete in March, and commissioning will continue in parallel with the planned outage.

Our fourth consecutive quarter of sequential Revenue growth, we are actively shipping to 11 customers. Roughly half of the brand in and half are unbranded with additional conversion expected to begin in early March.

Phase 2.

Coincides with the demand planning for these grades and Commercial off-take profiles.

While 2025 had real commercial delays relative to our original projections, the technical progress was substantial and the setup for 26 is strong.

The Phase 2 on-site compounding line will be primarily focused on producing compounds through BOP films, which is used in flexible packaging.

And thermoform applications, which is used in things like coffee lids, to the highest value. Fastest growing segments in our pipeline.

On the positive side 2025 was a year of real technical success. We qualified our material across food grade applications that no mechanical recycler can touch flexible film packaging, wrappers stand-up pouches closures, therapy for containers. Fiber, qualification delays are frustrating and noisy.

But they only impact, the short term, the real long-term value is created through the application technical successes.

Having this capability onsite complements the existing third-party compounding assets, improves turnaround times for customer trials, and gives us direct control over the formulations.

Dustin Olson: We have built and will continue to build inventory ahead of the outage and across the planned application launches, and we expect to ship while Ironton is engaged in the turnaround. On the other side of this outage, Ironton should be well-positioned to service the expected ramp to much higher levels of production and sales later in 2026. Turning to the commercial update. We booked $2.7 million in revenue in Q4, our fourth consecutive quarter of sequential revenue growth. We are actively shipping to 11 customers, roughly half of the branded and half are unbranded, with additional conversion expected to begin in early March. While 2025 had real commercial delays relative to our original projections, the technical progress was substantial, and the setup for 2026 is strong. On the positive side, 2025 was a year of real technical success.

We have built, and we'll continue to build, inventory ahead of the outage and across the planned application launches, and we expect to ship while Ironton is engaged in the turnaround.

The other big positive was that branded margins continue to be in line with our previous guidance while branded sales have a longer sales cycle than non-branded sales. Branded sales, are the core Focus for this company and where we see the most value in the market.

On the other side of this outage iron team should be well, positioned to service the expected ramp to much higher levels of production and sales later in 26.

Co-product sales have been positive for us and we've begun Moni to monetize both co-product 1 and co-product 2 and are seeing prices in the 2530 Cent per pound range.

Turning to the commercial update, we booked 2.7 million of revenues before our fourth consecutive quarter of sequential Revenue growth. We are actively shipping to 11 customers. Roughly half of the Brandon and half are unbranded with additional conversions. Expected to begin in early March.

While 2025 had real commercial, delays relative to our original projections.

The technical progress was substantial and the setup for 26 is strong.

Fiber technical successes provided, a lot of confidence to the market early on, but the adoption was slow to fragmented due to fragmented demands and extremely long sales. We've deep, prioritized it in the near term and it while it does remain a real market for us. We're not we're not going to concentrate our resources there today.

Dustin Olson: We qualified our material across food-grade applications that no mechanical recycler can touch. Flexible film packaging, wrappers, stand-up pouches, closures, thermal containers, and fiber. Qualification delays are frustrating and noisy, they only impact the short term. The real long-term value is created through the application's technical successes. The other big positive was that branded margins continued to be in line with our previous guidance. While branded sales have a longer sales cycle than non-branded sales, branded sales are the core focus for this company and where we see the most value in the market. Co-product sales have been positive for us, and we've begun to monetize both co-product 1 and co-product 2, and are seeing prices in the $0.25 to $0.30 per pound range.

On the positive side 2025 was a year of real technical success. We qualified our material across food grade applications that no mechanical recycler can touch flexible film, packaging, wrappers stand-up pouches closures. 34 containers fiber, qualification delays are frustrating and noisy.

But they only impact, the short term, the real long-term value is created through the application technical successes.

The regulatory landscape has been broadly positive. Our material is accepted in Oregon, Colorado, California, Washington, and, and Europe. New Jersey has been slower. We partnered with the D on how our dissolution technology fits within the recycling framework, which has delayed some approvals. The good news is New, Jersey has excluded chemical Recycling and iscc plus mass balance credits which positions us us as the only supplier at scale for food grade, recycle content under the mandates.

Company and where we see the most value in the market.

Large cpgs are lobbying the D on our behalf and our relationship with them is strong. I personally respect the position in New Jersey Department of Environmental Protection is taken and will continue to partner with them as they integrate the legislation into action.

Cooperate sales have been positive for us and we've begun monitor to monetize both co-product 1 and co-product 2 and are seeing prices in the 25-, 30 Cent per pound range.

Dustin Olson: Fiber technical successes provided a lot of confidence to the market early on. The adoption was slow to fragmented due to fragmented demands and extremely long sales cycles. We've deprioritized it in the near term. While it does remain a real market for us, we're not going to concentrate our resources there today. The regulatory landscape has been broadly positive. Our material is accepted in Oregon, Colorado, California, Washington, and Europe. New Jersey has been slower. We partnered with the DEP on how our dissolution technology fits within the recycling framework, which has delayed some approvals. The good news is, New Jersey has excluded chemical recycling and ISCC plus mass balance credits, which positions us as the only supplier at scale for food-grade recycled content under the mandates.

Fiber technical successes provided, a lot of confidence to the market early on, but the adoption was slow to fragmented due to fragmented demands, and extremely long sales Cycles.

2025 was a challenging year for many of our customers, terrorist uncertainty, inflation. Hangovers, commodity spikes, and converter consolidations, forced them to redirect their focus on cost savings and reorienting, their supply chains domestically

We've deep prioritized it in the near term and it while it does remain a real market for us. We're not we're not going to concentrate our resources there today.

Which linked it approval timelines across the board. We think those headwinds are largely behind them. The key public message from senior brand. Leadership is clear. 2026 is about reinvigorating, organic growth and investing in Innovative Packaging.

That's directly relevant to us.

It's been publicly reported that multiple Fortune, 100 cpgs announced significant increases in R&D spending with a focus on product superiority, premium, positioning and sustainable, packaging, formats. After a year of playing defense, these brands are now playing offense. That's directly relevant to us because offensive Brands, invest in differentiated Packaging.

Dustin Olson: Large CPGs are lobbying the DEP on our behalf, and our relationship with them is strong. I personally respect the position that New Jersey Department of Environmental Protection has taken and will continue to partner with them as they integrate the legislation into action. 2025 was a challenging year for many of our customers. Tariff uncertainty, inflation hangovers, commodity spikes, and converter consolidations forced them to redirect their focus on cost savings and reorienting their supply chains domestically, which lengthened approval timelines across the board. We think those headwinds are largely behind them. The key public message from senior brand leadership is clear: 2026 is about reinvigorating organic growth and investing in innovative packaging. That's directly relevant to us. It's been publicly reported that multiple Fortune 100 CPGs announced significant increases in R&D spending, with a focus on product superiority, premium positioning, and sustainable packaging formats.

The regulatory landscape has been broadly positive. Our material is accepted in Oregon, Colorado, California, Washington, and Europe. New Jersey has been slower. We partnered with the D on how our dissolution technology fits within the recycling framework, which has delayed some approvals. The good news is New Jersey has excluded chemical recycling and ISCC Plus mass balance credits, which positions us as the only supplier at scale for food-grade recycled content under the mandates.

And food grade recycled content is a differentiator.

despite the commercial progress of Revenue ramp has been delayed relative to where we projected earlier in 2025,

Large cpgs are lobbing, the D on our behalf. And our relationship with them is strong. I personally respect the position in New Jersey Department of Environmental Protection is taken and will continue to partner with them and say, integrate, the legislation into action.

Last quarter, we mentioned 40 to 50 million pounds of run rate demand that we are actively shipping or expected to ship in the near future.

2025 was a challenging year for many of our customers, Tara uncertainty, inflation. Hangovers, commodity spikes and converter consolidations, forced them to redirect their focus on cost savings and reorienting, their supply chains domestically

That number still stands. New Jersey has delayed some of our ramp. We estimate that we estimate that applications representing 15 to 30 million pounds of near-term. Demand will be required will require that approval.

Which lengthened approval timelines across the board.

New Jersey applications overall represent about 300 million pounds of per year of demand.

We think those headwinds are largely behind them. The key public message from senior brand. Leadership is clear. 2026 is about reinvigorating, organic growth and investing in Innovative Packaging.

The fact that key Brands and converters have sent letters to New Jersey on our behalf.

That's directly relevant to us.

Speaks to their desire to move forward. Once this is resolved.

The good news is, we've been able to shift to other applications that don't require New Jersey approval. And we have line of sight on applications that can contribute to 2026 Revenue.

Dustin Olson: After a year of playing defense, these brands are now playing offense. That's directly relevant to us because offensive brands invest in differentiated packaging, and food-grade recycled content is a differentiator. Despite the commercial progress, the revenue ramp has been delayed relative to what we projected earlier in 2025. Last quarter, we mentioned 40 to 50 million pounds of run rate demand that we are actively shipping or expected to ship in the near future. That number still stands. New Jersey has delayed some of our ramp. We estimate that applications representing 15 to 30 million pounds of near-term demand will require that approval. New Jersey applications overall represent about 300 million pounds of, per year of demand.

in addition to the 40 to 50 million that we mentioned last quarter, we've added another 20 to 25 pounds of full round, full ramp

the earliest that these could be converted.

And food grade recycled content is a differentiator.

The the earliest of these could convert, as soon as next month and 1 of the most near-term opportunities represents roughly 10 million pounds of annual demand.

Despite the commercial progress, the revenue ramp has been delayed relative to where we projected earlier in 2025. Last quarter, we mentioned 40 to 50 million pounds of run rate demand that we are actively shipping or expected to ship in the near future.

Dustin Olson: While this has been frustrating, the demand is still there, and the fact that key brands and converters have sent letters to New Jersey on our behalf speaks to their desire to move forward once this is resolved. The good news is we've been able to shift to other applications that don't require New Jersey approval, and we have line of sight on applications that can contribute to 2026 revenue. In addition to the $40 to $50 million that we mentioned last quarter, we've added another 20 to 25 lbs at full ramp. The earliest of these could convert as soon as next month, and one of the most near-term opportunities represents roughly 10 million lbs of annual demand.

New Jersey applications overall represent about 300 million pounds per year of demand.

The pipeline continues to be strong growing from roughly a 100 projects, a year ago to greater than 170 today. And a lot of this recent bill is a result of our success in film where this continue where we continue to see large high-value opportunities. I'd like to also highlight that we've been successfully qualifying pouch applications stand-up pouches are 1 of the most exciting trends that Innovative packaging. Right now, they're lighter more efficient, and actively taking shape from rigid. Containers taking share from rigid containers, and cardboard boxes.

While this has been frustrating, the demand is still there and the the fact that key Brands and converters have sent letters to New Jersey on our behalf.

Speaks to their desire to move forward. Once this is resolved.

Brands are investing heavily in flexible, packaging, formats. And our ability to produce food grade. Recycle poly, brookling film for pouches puts us in the right.

Right at the center of its trend.

The op film.

The good news is, we've been able to shift to other applications that don't require New Jersey approval. And we have line of sight on applications that can contribute to 2026 revenue.

And thermoform applications Remain the core targets for our compounding operations.

in addition to the 40 to 50 million that we mentioned last quarter, we've added another 20 to 25 pounds at full round, full ramp

And we focused our commercial teams on brands with the highest growth potential.

the earliest that these could be converted.

The the earliest of these could convert, as soon as next month and 1 of the most near-term opportunities represents roughly 10 million pounds of annual demand.

Dustin Olson: The pipeline continues to be strong, growing from roughly 100 projects a year ago to greater than 170 today. A lot of this recent build is a result of our success in film, where we continue to see large, high-value opportunities. I'd like to also highlight that we've been successfully qualifying pouch applications. Stand-up pouches are one of the most exciting trends in innovative packaging right now. They're lighter, more efficient, and actively taking share from rigid containers and cardboard boxes. Brands are investing heavily in flexible packaging formats. Our ability to produce food-grade recycled polypropylene film for pouches puts us right at the center of this trend.

Here are some examples of the end markets that were actively engaged. We spoke about qsr coffee Lids, last quarter and the interest continues to be strong and is growing. We continue to make progress with our first qsr Coffee, Lid project, good product fit, excellent trials and good relationship building between the end brand and converter.

We're also in discussions with 4 additional Brands, following our recent quarterly announcement about Coffee, Lid and innovation.

But these same customers also manage a growing cold. Beverage category that is taking market, share brands are launching more products in this High, incremental margin category.

The pipeline continues to be strong, growing from roughly 100 projects a year ago to greater than 170 today. And a lot of this recent build is a result of our success in film, where we continue to see large, high-value opportunities. I'd like to also highlight that we've been successfully qualifying pouch applications. Stand-up pouches are one of the most exciting trends in innovative packaging.

Additionally brands are also transitioning to PP in 12 states that have already passed single-use polystyrene bands.

Right now, they're lighter more efficient, and actively taking shape from rigid, container taking, share, from rigid containers, and cardboard boxes.

Brands are investing heavily in flexible, packaging, formats. And our ability to produce food grade, recycle polypropylene film for pouches puts us in the right.

Right at the center of this trend.

This will give us additional tailing to our product in the beverage containers. The net result of the 300 is north of 300 million pounds of additional Tam in North America and is growing in the high high single digits each year.

Dustin Olson: BOPP film and thermoformed applications remain the core targets for our compounding operations, and we focused our commercial teams on brands with the highest growth potential. Here are some examples of the end markets that we're actively engaged. We spoke about QSR coffee lids last quarter, and the interest continues to be strong and is growing. We've continued to make progress with our first QSR coffee lid project. Good product fit, excellent trials, and good relationship building between the end brand and converter. We're also in discussions with four additional brands following our recent quarterly announcement about coffee lid innovation. These same customers also manage a growing cold beverage category that is taking market share. Brands are launching more products in this high incremental margin category. Additionally, brands are also transitioning to PP in 12 states that have already passed single-use polystyrene bans.

The op film.

And thermoform applications Remain the core targets for our compounding operations.

Beyond cold beverages, Premium Pet Food is 130 million pound polypropylene market for Bopp film Packaging.

And we focused our commercial teams on brands with the highest growth potential.

To make progress with our first qsr Coffee, Lid project, good product fit, excellent trials and good relationship building between the end brand and converter.

Growing 4.6% annually, as pet owners trade up to higher quality Brands, jerky and meat sticks represent 40 million pounds of Bopp film demand growing 6 to 7% with protein snacking Trends dermocosmetics think carevet and skin. Cuticles is a 55 million pound Market growing at 79% as clinical skin care Brands, shift to VP packaging for recyclability.

We're also in discussions with 4 additional Brands, following our recent quarterly announcement about coffee lit innovation.

And household goods, things like storage bins kitchen utensils. Laundry baskets is a 700 pound polypropylene Market where Walmart?

But these same customers also manage a growing cold. Beverage category that is taking market, share brands are launching more products in this High, incremental margin category.

And Target sustainably sustainability, mandates are creating demand for recycled content?

Dustin Olson: This will give us additional tailwind to our product in the beverage containers. The net result of the 300 is north of 300 million pounds of additional TAM in North America. It's growing in the high, high single digits each year. Beyond cold beverages, premium pet food is a 130 million pound polypropylene market for BOPP film packaging, growing 4.6% annually as pet owners trade up to higher quality brands. Jerky and meat sticks represent 40 million pounds of BOPP film demand, growing 6% to 7% with protein snacking trends. Dermacosmetics, think CeraVe and SkinCeuticals, is a 55 million-pound market growing at 7% to 9% as clinical skincare brands shift to PP packaging for recyclability.

Additionally brands are also transitioning to PP in 12 states that have already passed single-use polystyrene bands. This will give us additional tailing to our product in the beverage containers.

From a base of only 3.3 to 5% penetration today, that segment alone has 150 million pounds, of addressable pounds for recycled polypropylene, growing at 8 to 12%.

As the mandates ramp.

These aren't hypothetical markets.

The net result of the 300 is north of 300 million pounds of additional Tam in North America and is growing in the high high single digits each year.

These are specific applications where we are engaged with brands in our Pipeline and we're growth trajectory works on our favor.

Beyond cold beverages, premium pet food is a 130 million pound polypropylene market for BOPP film packaging.

Let me take a moment on the regulatory landscape because I think it's important to frame this in concrete terms.

Every epr and PCR mandate that's been passed in New Jersey, California Washington, Oregon, Colorado, and Europe translates directly into pounds of required. Recycle content.

These aren't voluntary targets, they're law.

Dustin Olson: In household goods, things like storage bins, kitchen utensils, laundry baskets, is a 700-pound polypropylene market where Walmart and Target sustainability mandates are creating demand for recycled content from a base of only 3.3% to 5% penetration today. That segment alone has 150 million pounds of addressable pounds for recycled polypropylene, growing at 8% to 12% as the mandates ramp. These aren't hypothetical markets. These are specific applications where we are engaged with brands in our pipeline and where growth trajectory works in our favor. Let me take a moment on the regulatory landscape because I think it's important to frame this in concrete terms. Every EPR and PCR mandate that's been passed in New Jersey, California, Washington, Oregon, Colorado, and Europe translates directly into pounds of required recycled content. These aren't voluntary targets. They're law.

Growing 4.6% annually, as pet owners trade up to higher quality Brands, jerky and meat sticks represent 40 million pounds of bopd film demand growing 6 to 7% with protein snacking, Trends dermocosmetics think carevet and skin. Cuticles is a 55 million pound Market growing at 79%. As clinical skin care Brands, shift VP packaging for recyclability.

New Jersey requires 10% recycled content today, 27 and 20%, and 27, and 30%. In 2030, California sb54 requires 25%, Source reduction by 2032 with a stair-step approach, requiring 10% by 27, 20% by 2030.

And household goods, things like storage bins kitchen utensils. Laundry. Baskets is a 700 pound polypropylene Market where Walmart and Target sustainably sustainability. Mandates, are creating demand for recycled content.

From a base of only 3.3% to 5% penetration today, that segment alone has 150 million pounds of addressable pounds for recycled polypropylene, growing at 8% to 12%.

As the mandates ramp.

These aren't hypothetical markets.

Content across numerous States, effectively clearing the regulatory path for Brands to count on pure cycle material toward their targeted, man, mandated targets.

The eu's packaging and packaging waste regulation.

These are specific applications where we are engaged with brands in our Pipeline and where growth trajectory Works in our favor.

Requires 10% resupply content by 2032.

Let me take a moment on the regulatory landscape because I think it's important to frame this in concrete terms.

Every epr and PCR mandate that's been passed in New Jersey, California Washington, Oregon, Colorado, and Europe translates directly into pounds of required. Recycle content.

when you add it all up, there are literally hundreds of millions of mandated volume coming online over the next 5 to 7 years and for food grade polypropylene applications or the only Global solution emerging at scale,

Dustin Olson: New Jersey requires 10% recycled content today, 20% in 2070, and 30% in 2030. California SB 54 requires 25% source reduction by 2032, with a stairstep approach requiring 10% by 2027, 20% by 2030. We have received post-consumer resin certification from the Association of Plastic Recyclers, or APR, which is the standard that most state regulators reference for recycled content compliance. That certification allows our material to be categorized as recycled content across numerous states, effectively clearing the regulatory path for brands to count on PureCycle material toward their targeted mandated targets. The EU's Packaging and Packaging Waste Regulation requires 10% recycled content by 2032.

These aren't voluntary targets, they're law.

the regulatory framework laying the groundwork for the future.

There's a lot of really strong progress, progress in rayon Thailand project.

I was in Thailand for a week in January and had many meetings with government officials commercial, off-take Partners feed stock suppliers, local banks as well as irpc our and our very strong local team.

A few key developments are worth calling out first.

We see a supply of feed stock well, in excess of our needs.

We have already signed 9 Lois with regional feedback, suppliers, 6, domestic, and 3 across southeast Asia, that even at a minimum annual levels exceed, our needs for the first purification line.

We have received post-consumer resin certification from the association of plastic recyclers or APR, which is the standard that most State Regulators referenced for recycled content compliance, that certification allows our material to be categorized as recycled content across numerous States, effectively clearing the regulatory path for Brands to count on pure cycle material toward their targeted, man, mandated targets.

We are working to expand our feed stock Network in Thailand, but we're also finding feed and abundance across Southeast Asia.

The eu's packaging and packaging waste regulation.

Kailand, generates approximately 2.5 million tons of plastic waste annually.

Requires 10%, recyclable content by 2032.

Dustin Olson: When you add it all up, there are literally hundreds of millions of mandated volume coming online over the next five to seven years, and for food-grade polypropylene applications, we're the only global solution emerging at scale. The regulatory framework laying the groundwork for the future. There's a lot of really strong progress in Rayong Thailand project. I was in Thailand for a week in January and had many meetings with government officials, commercial offtake partners, feedstock suppliers, local banks, as well as IRPC, and our very strong local team. A few key developments are worth calling out. First, we see a supply of feedstock well in excess of our needs. We have already signed nine LOIs with regional feedstock suppliers, six domestic and three across Southeast Asia. That, even at a minimum annual level, exceed our needs for the first purification line.

Of which an estimated 4, 400 to 450,000, tons of mismanaged with about 70% of that leaking into the ocean. Each year, making Thailand the sixth largest source of ocean plastic,

Sergeant 6 largest source for ocean, plastic global.

the regulatory framework laying the groundwork for the future.

There's a lot of really strong progress, progress in rayon Thailand projects.

We're finding a lot of willingness from the government and the commercial sector to partner with us to solve this challenge.

I was in Thailand for a week in January and had many meetings with government officials, commercial off-take partners, feedstock suppliers, local banks, as well as IRPC, and our very strong local teams.

A few key developments are worth calling out first.

The commercial conversations have also been very favorable. Our original assumption was that all product would be exported to North America and Europe. And while we still expect to directly export significant quantities of strong significant quantities, a strong dialogue is evolving with domestic packaging companies including a major film, producer that sees our material as a way to grow their export business,

As well as Fortune 100 cpgs with manufacturing operations in Thailand.

Dustin Olson: We are working to expand our feedstock network in Thailand. We're also finding feed in abundance across Southeast Asia. Thailand generates approximately 2.5 million tons of plastic waste annually, of which an estimated 400,000 to 450,000 tons is mismanaged. With about 70% of that leaking into the ocean each year, making Thailand the 6th-largest source for ocean plastic globally. We're finding a lot of willingness from the government and the commercial sector to partner with us to solve this challenge. The commercial conversations have also been very favorable. Our original assumption was that all product would be exported to North America and Europe.

We see a supply of feed stock, well, in excess of our needs. We have already signed 9 Lois with regional feedback, suppliers, 6, domestic, and 3 across southeast Asia, that, even at a minimum annual levels exceed, our needs for the first purification line.

We are working to expand our feed stock Network in Thailand, but we're also finding feed and abundance across Southeast Asia.

We see key markets in automotive, flexible and rigid, packaging appliances and fast growing, hygiene markets and expect to sign multiple Louis with domestic customers during 2026.

Thailand generates, approximately 2.5 million tons of plastic waste annually of which an estimated 4 to 4, 400 to 450,000 tons of mismanaged.

We had multiple meetings with the board of investment or Boi and submitted our applications to them. If successful, we would reap many benefits, including an 8-year 100% tax holiday followed by 5 years of tax holiday at 50%.

With about 70% of that leaking into the ocean. Each year, making Thailand the sixth largest source of ocean plastic,

This equates to roughly 100 million dollars of avoided, cash taxes.

We also had many good meetings with local banks and our other banking Partners in Thailand, which Donald to touch on later.

We're finding a lot of willingness from the government and the commercial sector to partner with us to solve this challenge.

Dustin Olson: While we still expect to directly export significant quantities of significant quantities, a strong dialogue is evolving with domestic packaging companies, including a major film producer that sees our material as a way to grow their export business, as well as Fortune 100 CPGs with manufacturing operations in Thailand. We see key markets in automotive, flexible and rigid packaging, appliances, and fast-growing hygiene market, and expect to sign multiple LOIs with domestic customers during 2026. We had multiple meetings with the Board of Investment, or BOI, and submitted our application to them. If successful, we would reap many benefits, including an 8-year, 100% tax holiday, followed by 5 years of tax holiday at 50%. This equates to roughly $100 million of avoided cash taxes.

The relationship with irpc is solid and they have helped us build a remarkably strong domestic team in Thailand. We hosted a community Forum with over 250 residents to explain the project.

Which was very well received. We have been purchasing equipment.

And expect the great ground in the second half of 2026 with project completion. Still expected in 2027.

The commercial conversations have also been very favorable. Our original assumption was that all product would be exported to North America and Europe. And while we still expect to directly export significant quantities, a strong dialogue is evolving with domestic packaging companies, including a major film producer that sees our material as a way to grow their export business.

Our aunts were Belgian project. Also continues to move forward for plan. We expect permits in the second half of 26.

As well as Fortune 100 cpgs with manufacturing operations in Thailand.

With construction, still scheduled to begin by 1 Q 27 and mechanical completion by the end of 2028.

We see key markets in automotive, flexible and rigid, packaging appliances and fast growing, hygiene markets and expect to sign multiple Louis with domestic customers during 2026.

We had multiple meetings with the board of investment or Boi and submitted our application.

Global brand discussions are accelerating as the Thailand and enter projects. Advanced many of the Fortune 100 cpgs, we're working with have operations across all, 3 of these regions.

we last, we mentioned last quarter that

Successful. We would reap many benefits, including an 8-year 100% tax holiday, followed by 5 years of tax holiday at 50%.

our initial engineering work for for Gen 2 purification design, the first part of 2026,

Dustin Olson: We also had many good meetings with local banks and our other banking partners in Thailand, which Donald will touch on later. The relationship with IRPC is solid, and they have helped us build a remarkably strong domestic team in Thailand. We hosted a community forum with over 250 residents to explain the project, which was very well received. We have been purchasing equipment. We expect to break ground in the second half of 2026, with project completion still expected in 2027. Our Antwerp, Belgium, project also continues to move forward per plan. We expect permits in the second half of 2026, with construction still scheduled to begin by Q1 2027, and mechanical completion by the end of 2028. Global brand discussions are accelerating as the Thailand and Antwerp projects advance.

This equates to roughly $100 million of avoided cash taxes.

We also had many good meetings with local banks and our other banking Partners in Thailand, which Donald will touch on later.

while there is still work to be done here. The initial findings are very encouraging first, we see no technological constraints, on building the higher end of this capacity scale than what we discussed previously.

The relationship with PC is solid.

Or closer to the 500 million pounds of capacity that we mentioned in the range.

This is important because costs do not scale linearly

And they have helped us build a remarkably strong domestic team in Thailand. We hosted a community Forum with over 250 residents to explain the project.

Which was very well received. We have been purchasing equipment.

and in fact, the initial design analysis suggests that the incremental cost difference between the 500 and 300 million pounds is relatively minimal.

Uh, and expect a great ground in the second half of 2026 with project completion. Still expected in 2027.

Our aunts were Belgian project. Also continues to move forward per plan. We expect permits in the second half of 26.

Approach a dollar per pound for expansions. This is a really big deal.

With construction, still scheduled to begin by 1 Q 27 and mechanical completion by the end of 2028.

Dustin Olson: Many of the Fortune 100 CPGs we're working with have operations across all three of these regions. We mentioned last quarter that we expected to complete our initial engineering work for Gen 2 purification design the first part of 2026. While there is still work to be done here, the initial findings are very encouraging. First, we see no technological constraints on building the higher end of this capacity scale than what we discussed previously, or closer to the 500 million pounds of capacity that we mentioned in the range. This is important because costs do not scale linearly, and in fact, the initial design analysis suggests that the incremental cost difference between the 500 and 300 million pounds is relatively minimal.

Global brand discussions are accelerating as the Thailand and Answer projects advance. Many of the Fortune 100 CPGs we're working with have operations across all three of these regions.

This cuts down the capital intensity of our business. Meaningfully improves future, irrs and puts us back in the ballpark for what it costs to build. Virgin polypropylene than what we estimated in the business plan.

we last, we mentioned last quarter that

Last summer associated with our Capital rates.

Scale.

Lead our initial engineering work for for Gen 2 purification design. The first part of 2026,

Also benefits us on the production cost side. And while it's too early to give definite definitive numbers, we see a clear line of sight to Gen 2, cash costs, to be below virgin on purpose, PP production lines.

While there is still work to be done here, the initial findings are very encouraging. First, we see no technological constraints on building the higher end of this capacity scale than what we discussed previously.

While the majority of our Focus today is on selling out and ramping ironington.

Or closer to the 500 million pounds of capacity that we mentioned in the range.

This is important because costs do not scale linearly

In executing our Thailand expansion, this news on Gen 2 is incredibly important to the long-term value of pure cycle.

And, in fact, the initial design analysis suggests that the incremental cost difference between the £500 million and £300 million is relatively minimal.

Dustin Olson: As a result, the initial look indicates greenfield costs on the Gen 2 lines approaching $1.50 per pound of capacity, and for brownfield sites, should approach $1 per pound for expansions. This is a really big deal. This cuts down the capital intensity of our business, meaningfully improves future IRRs, and puts us back in the ballpark for what it costs to build virgin polypropylene lines. It is also a lower CapEx intensity than what we estimated in the business plan last summer associated with our capital raise. Scale also benefits us on the production cost side, and while it's too early to give definitive numbers, we see a clear line of sight to Gen 2 cash costs to be below virgin on-purpose PP production lines.

We've known for years that our process consumes significantly less energy than virgin production. But now we are seeing the cost efficiency translate into a permanent cost and return advantage in the market.

A market that I remind you represents 200 billion pounds per year of annual demand.

And the market that is expected to continue to outgrow GDP for the foreseeable future.

As a result, the initial look indicates Greenfield costs on the Gen 2 lines approaching $1.50 per pound of capacity. And and for Brownfield sites should approach a dollar per pound for expansions. This is a really big deal.

look, I I know the commercial ramp has been slower than we projected

But I'd ask you to look at our history.

Every time that we've said, we've solved that. We every time that we that we said we'd solve a technical problem, we have

This cuts down the capital intensity of our business, meaningfully improves future IRRs, and puts us back in the ballpark for what it costs to build virgin polypropylene lines. It is also a lower capex intensity than what we estimated in the business plan.

Last summer associated with our Capital rates.

Scale.

Every time that we've taken a planned outage, the plant came back better. The challenges that we face today are principally out of commercial. Adoption timing. Not commercial demand. Not technology, not operations, not feed stock.

And now we have the product, the production and the pipeline.

Dustin Olson: While the majority of our focus today is on selling out and ramping Ironton and executing our Thailand expansion, this news on Gen 2 is incredibly important to the long-term value of PureCycle. We've known for years that our process consumes significantly less energy than virgin production, but now we are seeing the cost efficiency translate into a permanent cost and return advantage in the market. A market that I remind you, represents 200 billion pounds per year of annual demand, and a market that is expected to continue to outgrow GDP for the foreseeable future. Look, I know the commercial ramp has been slower than we projected, but I'd ask you to look at our history. Every time that we've said we'd solve a technical problem, we have.

Also benefits us on the production cost side. And while it's too early to give definite, in definitive numbers, we see a clear line of sight, to Gen 2, cash costs, to be below virgin on purpose, PP production lines.

While the majority of our Focus today is on selling out and ramping Ironton.

The the conversion is happening. It's a matter of when not if when I take a step back every year during my tenure has had its own theme.

2023 was about completing Ironton.

In executing our Thailand expansion, this news on Gen 2 is incredibly important to the long-term value of PureCycle.

2024 was about making the plant work. 2025 was about technically qualifying, our product, especially in the high-value parts of the market.

In 2026, we'll be about the commercial ramp and selling out the plan.

A market that I remind you represents 200 billion pounds per year of annual demand.

And a market that is expected to continue to outgrow GDP for the foreseeable future.

Our future is bright. We have a strong Foundation supported by Tech and teams that know how to build the market opportunity. Continues to grow in front of us and the company is ready to lead.

look, I I know the commercial ramp has been slower than we projected

But I'd ask you to look at our history.

With that, I'll turn it over. Now, to our new CFO, Donald Carpenter for the financial presentation.

Thank you, Dustin.

Dustin Olson: Every time that we've taken a planned outage, the plant came back better. The challenges that we face today are principally out of commercial adoption timing, not commercial demand, not technology, not operations, not feedstock. Now we have the product, the production, and the pipeline. The conversion is happening, it's a matter of when, not if. When I take a step back, every year during my tenure has had its own theme. 2023 was about completing Ironton. 2024 was about making the plant work. 2025 was about technically qualifying our products, especially in the high-value parts of the market. In 2026, will be about the commercial ramp and selling out the plant. Our future is bright. We have a strong foundation, supported by tech and teams that know how to build.

Every time that we've said, we've solved that. We every time that we that we said we'd solve a technical problem, we have

Our Revenue goal is unchanged, reach arms and break. Even then corporate Break, Even Revenue, ramp has been delayed by customer adoption timing, but we built and staged inventory for product launches later, in the year,

Core operations costs across ironson Denver and corporate remain largely in line with prior guidance. I'll put more specifics around that on the next slide.

The conversion is happening. It's a matter of when, not if. When I take a step back, every year during my tenure has had its own theme.

2023 was about completing Ironton. 2024 was about making the plant work. 2025 was about technically qualifying our products, especially in the high-value parts of the market.

In 2026 will be about the commercial ramp and selling out the plant.

Dustin Olson: The market opportunity continues to grow in front of us, and the company is ready to lead. With that, I'll turn it over now to our new CFO, Donald Carpenter, for the financial presentation. Thank you, Dustin. Our revenue goal is unchanged. Reach Ironton breakeven, then corporate breakeven. Revenue ramp has been delayed by customer adoption timing, but we've built and staged inventory for product launches later in the year. Core operations costs across Ironton, Denver, and corporate remain largely in line with prior guidance. I'll put more specifics around that on the next slide. On warrants, we have two series of warrants that were extended: the Series A, which represents $15.7 million of potential shares, and the public and private warrants that represent $5.7 million potential shares.

Our future is bright and the strong Foundation supported by Tech and teams that know how to build.

The market opportunity continues to grow in front of us and the company is ready to lead with that. I'll turn it over. Now to our new CFO, Donald Carpenter for the financial presentation,

Thank you, Dustin.

On warrants, we have 2 Series of warrants that were extended the series a which represents 15.7 million of potential shares and the public and private warrants, that represent 5.7 million potential shares. We have obtained agreement with a series, a warrant holders to extend through March 17th 2027 and a reduced Redemption. Price of $14.38 per share representing approximately 205 million of potential, precedes, the public and private warrants have been extended for 3 months, with further details in the 8K files. A day, these represent approximately 68 million of potential proceeds on capital structure during Q4, we repaid 20.3 million of high-cost equipment, Finance, debt, and retired 9.8 million of principal on the irons and bonds.

We continue to spend on projects across ironson Thailand, and TWRP, and our Gen 2 development.

On operations.

And previously said, ongoing operational and corporate cash Burns were in the range of 8, to 9 million per month. And this was prior to significant feed stock and tree processing costs,

Core operations costs across ironington Denver and corporate remain largely in line with prior guidance. I'll put more specifics around that on the next slide.

Now, that we're incurring more of these costs as irons. And ramps were still trimming within that range with 24.5 million of operational, and corporate costs for the quarter.

Dustin Olson: We have obtained agreement with the Series A warrant holders to extend through 17 March 2027, at a reduced redemption price of $14.38 per share, representing approximately $205 million of potential proceeds. The public and private warrants have been extended for 3 months, with further details in the 8-K filed today. These represent approximately $68 million of potential proceeds. On capital structure, during Q4, we repaid $20.3 million of high-cost equipment finance debt and retired $9.8 million of principal on the Ironton bonds. We continue to spend on projects across Ironton, Thailand, Antwerp, and our Gen 2 development. On operations, we previously said ongoing operational and corporate cash burn were in the range of $8 to 9 million per month. This was prior to significant feedstock and tree processing costs.

The incremental production related costs have been offset by managing discretionary Spin and capitalizing on efficiencies elsewhere in the organization.

Revenue timing, reflects the customer adoption delays. I mentioned we currently expect improvements as Q2 product launches begin. Converting our staged inventory.

On warrants, we have 2 Series of warrants that were extended the series, a which represents 15.7 million of potential shares and the public and private warrants, that represent 5.7 million potential shares. We have obtained agreement with a series, a warrant holders to extend through March, 17th 2027 at a reduced Redemption. Price of $14.38 per share representing approximately 205 million of potential proceeds,

The Debt Service line includes the non-recurring equipment lease payoff and bond. Retirement. I referenced on the prior slide.

The public and private warrants have been extended for three months, with further details in the AK file today.

These represent approximately 68 million of potential proceeds.

Primarily related to the on-site compounding project.

On capital structure. During Q4 we repay 20.3 million of high-cost equipment. Finance, debt, and retired 9.8 million of principal on the irons and bonds.

The remaining 11 to 13 million is sp across our growth projects.

We continue to spend on projects across Ironton and Thailand, and to work on our Gen 2 development.

Dustin Olson: Now that we're incurring more of these costs as Ironton ramps, we're still trending within that range, with $24.5 million of operational and corporate costs for the quarter. The incremental production-related costs have been offset by managing discretionary spend and capitalizing on efficiencies elsewhere in the organization. Revenue timing reflects the customer adoption delays I mentioned. We currently expect improvement as Q2 product launches begin converting our staged inventory. The debt service line includes the non-recurring equipment lease payoff and bond retirement I referenced on the prior slide. Looking ahead, for Q1 2026, we expect total project-related spend of $19 to 20 million, with $7 to 8 million for Ironton-related projects, primarily related to the on-site compounding project. The remaining $11 to 13 million is spread across our growth projects.

On operations. And previously said, ongoing operational and corporate cash Burns were in the range of 8 to 9 million per month. And this was prior to significant feed stock and tree processing costs,

For full year, 2026 total project related spend, is expected to be 39 to 45 million with 14 to 16 million for irony, which includes costs of our planned shutdown and Q2 and completion of our on-site compounding project. The balance is our growth projects, a majority of which remains discretionary

Now that we're incurring more of these costs as iron and ramps. We're still trending within that range with 24.5 million of operational and corporate costs for the quarter.

Q1 2026 deck service is expected to be approximately 11.1 million, which includes our semiannual convertible bond, interest payment, and some equipment, leasing payments.

The incremental production related costs have been offset by managing discretionary spend and capitalizing on efficiencies elsewhere in the organization.

Revenue timing, reflects the customer adoption delays. I mentioned we currently expect Improvement as Q2 product launches begin. Converting our staged inventory.

The Debt Service line includes the non-recurring equipment lease payoff and bond. Retirement. I referenced on the prior slide.

Looking ahead for q1 2026, we expect total project related spend of 19 to 20 million with 7 to 8 million for irons and related projects primarily related to the on-site compounding project.

Regarding financing. We are excited about our prospects for project Finance, given the progress we're making with both arms and production and our future commercial ramps. Our first area of focus is on securing local financing for our Thailand project. The project data room is open with a large Thai, Bank critical site agreements with irpc are in place. The EPC and contractor is advancing through final design and cost estimates in parallel. We are advancing discussions for our Anor project and finding a lot of synergies between the 2 efforts and work continues to be a strong project as evidenced by our recent success. Securing the 40 million euro eif, grants

Dustin Olson: For full year 2026, total project-related spend is expected to be $39 to $45 million, with $14 to $16 million for Ironton, which includes costs of our planned shutdown in Q2 and completion of our on-site compounding project. The balance is spread across our growth projects, a majority of which remains discretionary. Q1 2026 debt service is expected to be approximately $11.1 million, which includes our semi-annual convertible bond interest payment and some equipment leasing payments. Regarding financing, we are excited about our prospects for project finance, given the progress we're making with both Ironton production and our future commercial ramp. Our first area of focus is on securing local financing for our Thailand project. The project data room is open with a large Thai bank. Critical side agreements with IRPC are in place. The EPCM contractor is advancing through final design and cost estimates.

the remaining 11:13 million is spre across our growth projects,

Additionally, we have approximately 75 million of revenue, bonds that we will look for opportunities to monetize.

The war extensions preserve approximately, 273 million of potential proceeds and together with the revenue bonds and project financing, I've described give us multiple paths to fund the business through the ramp.

With that, I'll turn it to the operators for Q&A.

Q1 2026 deck service is expected to be approximately 11.1 million, which includes our semiannual convertible bond, interest payments, and some equipment, leasing payments.

Thank you at this time. We'll conduct the question and answer session. As a reminder, to press the question, you'll need to press star 1 on your telephone and wait for your name to be announced to withdraw your question. Please, press star 1 1, again please, stand by while we compile the Q&A roster.

And our first question comes from the line of assignment of Olympic Global advisor. Open

Dustin Olson: In parallel, we are advancing discussions for our Antwerp project and finding a lot of synergies between the two efforts. Antwerp continues to be a strong project, as evidenced by our recent success securing the EUR 40 million EIF grant. Additionally, we have approximately $75 million of revenue bonds that we will look for opportunities to monetize. The warrant extensions preserve approximately $273 million of potential proceeds, and together with the revenue, bonds, and project financing I've described, give us multiple paths to fund the business through the ramp. With that, I'll turn it to the operators for Q&A.

Regarding financing. We are excited about our prospects for project Finance. Given the progress we're making with both arms and production and our future commercial ramp. Our first area of focus is on securing local financing for our Thailand project. The project data room is open with a large Thai, Bank critical site agreements with irpc are in place. The epcm. Contractor is advancing through final design and cost estimates in parallel. We are advancing discussions for our Anor project and finding a lot of synergies between the 2 efforts and work continues to be a strong project as evidenced by our recent success. Securing the 40 million euro eif, grants

Additionally, we have a proximately 75 million of revenue, bonds that we will look for opportunities to monetize.

Dustin, um, you know, I know you guys gave a lot of details in there. Clearly are a lot of moving parts around, um, the commercial progress and ramp, um, you know, just wanted to dig a bit deeper into that, um, you know, maybe we can start off with the basic, uh, sort of question that the 40 to 50 million ramp that you're talking about for q23. Um, and then, you know, their on after um sort of uh, you know, an incremental 20 to 25 million ramps, how much of that is, you know, for lack of a better way of putting it forecasted versus contracted. Um,

The WAR extensions preserve approximately $273 million of potential proceeds. And together with the revenue bonds and project financing, I will describe, give us multiple paths to fund the business through the ramp.

With that, I'll turn it to the operators for Q&A.

You know, I just, you know, any further details around your conviction level and the shape of that ramp would be appreciated.

Operator: Thank you. At this time, we'll conduct a question and answer session. As a reminder, to ask the question, you'll need to press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Hassan Ahmed of Alembic Global Advisors. Your line is now open.

Yeah, that's fine. Well, it's nice to talk to you again. Thanks for the question. I I look at the end of the day, we have very strong conviction on our commercial ramp uh, these things that we're doing right now are very hard. Um, it's alluded recyclers for decades.

Your name to be announced to withdraw your question. Please, press star 1 1. Again please, stand by while we compile the Q&A roster.

In our first question comes from the line of assignment of Olympic Global advisor. Lifestyle open

Hassan Ahmed: Afternoon, Dustin. You know, I know you guys gave a lot of details in there. Clearly, are a lot of moving parts around the commercial progress and ramp. You know, just wanted to dig a bit deeper into that. You know, maybe we can start off with a basic sort of question: the $40 to 50 million ramp that you're talking about for Q2/Q3, and then, you know, thereon after, sort of, you know, an incremental $20 to 25 million ramp. How much of that is, you know, for lack of a better way of putting it, forecasted versus contracted? You know, I just, you know, any further details around your conviction level and the shape of that ramp would be appreciated?

Um, we have a new technology with a new product and quite frankly just takes time to educate the market on capabilities, and every time we have a technical success, it opens up the aperture for us to do more and more.

You know, we we've talked about the difficulty with predicting the specific timing. We know it's coming and we know it'll be osmotic, but uh it's not fully in our control.

We see things like the number of customers shipping to it increases. We see the revenue continuing to increase. Uh, we see the size of trial volumes continuing to increase at the end of the day. You know, this this thing that we're building is really a relationship between us and the customer and, you know, we had to get the certifications, we have to show the LCA, we've got to do the trials. Uh, we've got to prove that ironson can be reliable enough to give them the security of Supply that they need.

Dustin Olson: Yeah, Hassan, well, it's nice to talk to you again. Thanks for the question. Look, at the end of the day, we have very strong conviction on our commercial ramp. These things that we're doing right now are very hard. It's eluded recyclers for decades. We have a new technology with a new product, and quite frankly, it just takes time to educate the market on our capabilities. Every time we have a technical success, it opens up the aperture for us to do more and more. We've talked about the difficulty with predicting the specific timing. We know it's coming, and we know it'll be asymptotic, but it's not fully in our control. We see things like the number of customers shipping to it increases. We see the revenue continuing to increase.

Okay, and Dustin, um, you know, I know you guys gave a lot of details in there. Clearly, there are a lot of moving parts around, um, the commercial progress and ramp. Um, you know, just wanted to dig a bit deeper into that. Um, you know, maybe we can start off with a basic, uh, sort of question—the $40 to $50 million ramp that you're talking about for Q2, Q3. Um, and then, you know, thereon after, um, sort of, uh, you know, an incremental $20 to $25 million ramp—how much of that is, you know, for lack of a better way of putting it, forecasted versus contracted? Um, you know, I just, you know, any further details around your conviction level and the shape of that ramp would be appreciated.

We have a new technology with a new product, and quite frankly, it just takes time to educate the market on capabilities. Every time we have a technical success, it opens up the aperture for us to do more and more.

Um, we continue to see the technical successes mount with the film pouches rappers, Etc. This this thing that we did with Tappan. Um Hassan is is really important. I mean if if you if you do any research on cpgs you'll find that there's a major consumer Trend to move, move out of boxes and move into pouches and we're going to be

I, I believe we're going to be the only recycled company that can serve that market.

Now we we've talked about the difficulty with predicting the specific timing. Uh, we know it's coming and we know it'll be as in product, but uh, it's not fully in our control.

The market was challenging last year.

Okay. I mean like,

Dustin Olson: We see the size of trial volumes continuing to increase. At the end of the day, you know, this thing that we're building is really a relationship between us and the customer, and, you know, we had to get the certifications, we have to show the LCA, we've got to do the trials, we've got to prove that Ironton can be reliable enough to give them the security and supply that they need. We've got line of sight in these applications. The volumes that you talked about are very good. We are in active discussions for both single year as well as multi-year contracts for those 40 to 50, as well as 20 to 30. We continue to see the technical successes mount with the film, pouches, wrappers, et cetera.

Back at 2025 objectively. You see massive distractions for everybody for every company.

We see things like the number of customers shipping to it increases. We see the revenue continuing to increase. Uh, we see the size of trial volumes continuing to increase at the end of the day. You know, this this thing that we're building is really a relationship between us and the customer and, you know, we had to get the certifications, we have to show the LCA, we've got to do the trials. Uh, we've got to prove that Ironton can be reliable enough to give them the security of Supply that they need.

The The Hangover on on inflation the tariffs, um, you know, make America healthy again, focus on protein. I mean, all these things were real and and it just diverted the focus of the cpgs to something different. Instead of coming up with the cool new design for packaging, they were worried about reshoring. Let's say, production in the US versus China

Uh, we've got line of sight in these applications. The, the volumes that you talked about are, are very good. We are an active discussion, uh, for uh, both single year as well as multi-year contracts for those 40 to 50, as well as 20 to 30.

and, you know, I I think that

Dustin Olson: This thing that we did with TOPPAN, Hassan, is really important. I mean, if you do any research on CPGs, you'll find that there's a major consumer trend to move out of boxes and move into pouches, and I believe we're gonna be the only recycled company that can serve that market. The market was challenging last year. Okay? I mean, like, you know, 2025, I think it's always easy to look in hindsight, because we'd all agree to that. I think when you look back at 2025 objectively, you see massive distractions for everybody, for every company. The hangover on inflation, the tariffs, you know, Make America Healthy Again, focus on protein.

2025 was a bit of a wake-up and a reset, but but now what you hear is a cpgs are like dialing in to growth in 26

I believe we're going to be the only recycled company that can serve that market.

Um, they're talking about how can they differentiate? There's only 2 things you can do. I mean, you can change the formulation of what they're selling. That takes a lot of effort, a lot of work, but you can also change the packaging and you can mark it better and you can put more effort there and that's what we're seeing.

The market was challenging last year.

I think from a practical perspective, it's on.

Okay. I mean like,

like,

Last quarter. We we showed this packing tape.

The 2025, I think I think it it's always easier to look in in hindsight. I think that we would all agree to that. I think when you look back at 2025 objectively you see massive distractions for everybody for every company.

Okay, and it it's it's a huge technical success after the call, we got multiple inbounds from other tape. Producers that are interested in that product.

Dustin Olson: I mean, all these things were real, and it just diverted the focus of the CPGs to something different. Instead of coming up with a cool new design for packaging, they were worried about reshoring, let's say, production in the US versus China. You know, I think that 2025 was a bit of a wake-up and a reset, but now what you hear is the CPGs are like dialing into growth in 2026. They're talking about how can they differentiate? There's only a few things you can do. I mean, you can change the formulation of what they're selling. That takes a lot of effort, a lot of work, but you can also change the packaging, and you can market better, and you can put more effort there, and that's what we're seeing.

We showed The Coffee Lid, Innovation. And now we have 4 new Coffee Lid companies in the pipeline.

Uh, we talked about Tappan this time and I suspect, we're going to get a lot of inbounds for the stand-up pouches because everybody wants them.

And no 1's. Been able to solve the film rapper issue. It's a single-use plastic with no recycle Supply and no recyclability until pure cycle.

and, you know, I I think that

2025 was a bit of a wake up and a reset, but, but now, what you hear is a cpgs are like dialing in to growth in 26.

So we have products on the shelves. Right now, we're continuing to grow the pipeline. The applications are getting better. And our and our team is just is doing a really good job of getting customers excited about our products. So you ask I think the core question was how much conviction?

Do we have about our commercial ramp? And it's, it's, it's very high.

Um, they're talking about how can they differentiate? There are only a few things you can do. I mean, you can change the formulation of what they're selling. That takes a lot of effort, a lot of work, but you can also change the packaging, and you can market it better and you can put more effort there, and that's what we're seeing.

Dustin Olson: I think from a practical perspective, Hassan, like, last quarter, we showed this packing tape, okay? It's a huge technical success. After the call, we got multiple inbounds from other tape producers that are interested in that product. We showed the coffee lid innovation. Now we have four new coffee lid companies in the pipeline. We talked about TOPPAN this time. I suspect we're gonna get a lot of inbounds for the stand-up pouches because everybody wants them. No one's been able to solve the film wrapper issue. It's a single-use plastic with no recycled supply and no recyclability until PureCycle. We have products on the shelves right now. We're continuing to grow the pipeline. The applications are getting better. Our team is just doing a really good job of getting customers excited about our products.

I think from a practical perspective, it's on.

like,

Last quarter. We we showed this packing tape.

Okay, we are very very excited about the next few quarters. And we're pure cycle is going to go because this work that we're doing right now, quite frankly sets the foundation for every new commercial activity that we do going forward, both in Thailand and answer and our Gen 2 facilities down the road.

Okay, and it it's it's a huge technical success after the call, we got multiple inbounds from other tape. Producers that are interested in that product.

We showed The Coffee Lid, innovation.

And now we have 4 new Coffee Lid companies in the pipeline.

That's a great question. Hassan, thank you on District very helpful and just to wrap up on the commercialization side. And then I have a follow-up. I mean, the New Jersey opportunity looks quite large, right? Um, I mean, I was just wondering if you could give more details around the timelines associated with that, I mean, you know, this could be a pretty large opportunity for you guys, and it seems fairly imminent.

Uh, we talked about Tappan this time and I suspect, we're going to get a lot of inbounds for the stand-up pouches because everybody wants them.

yeah, I think like I I think you have to take a step back

And no one's been able to solve.

doing a really good job.

Um, they're being extremely thoughtful.

Issue. It's a single-use plastic with no recycle Supply and no recyclability until pure cycle.

Digging into the details of of the space. If, if you, if you think about it,

And you reset 5 years ago, the terminology used 5 years ago was completely different than the terminology used today.

Dustin Olson: You ask, I think the core question was, how much conviction do we have about our commercial ramp? It's very high, okay? We are very, very excited about the next few quarters and where PureCycle is gonna go because this work that we're doing right now, quite frankly, sets the foundation for every new commercial activity that we do going forward, both in Thailand, Antwerp, and our Gen 2 facilities down the road. That's a great question, Hassan. Thank you.

And for a regular gathering information. It's it's a lot of work to

Our our team is just is doing a really good job of getting customers excited about our products. So you ask I think the core question was how much conviction?

Do we have about our commercial ramp? And it's, it's, it's very high.

Okay, we are very very excited about the next few quarters. And we're pure cycle is going to go because this work that we're doing right now, quite frankly sets the foundation for every new commercial activity that we do going forward both in time and answer and our Gen 2 facilities down the road.

Hassan Ahmed: Understood. Very helpful. Just to wrap up on the commercialization side, then I have a follow-up. I mean, the New Jersey opportunity looks quite large, right? I mean, I was just wondering if you could give more details around the timelines associated with that. I mean, you know, this could be a pretty large opportunity for you guys, it seems fairly imminent.

Tease out all of the nuances associated with how to regulate a certain thing. What we know for a fact is that chemical recycling in the majority of these, uh, regions is out. They don't like the idea of plastic to fuel. They don't like the idea of ifcc plus credits and they love the idea of plastic to Plastic Solutions. And you know, when you're interpreting the law written by regulators and trying to put it into practice, it takes a lot of Education by us to the New Jersey Department of Environmental Protection as an example, and we've been doing it

Dustin Olson: Yeah, I think, like I think you have to take a step back. First of all, I think New Jersey is doing a really good job. They're being extremely thoughtful. They're digging into the details of the space. If, if you, if you think about it, and you reset five years ago, the terminology used five years ago is completely different than the terminology used today. For a regulator, gathering information, it's a lot of work to tease out all of the nuances associated with how to regulate a certain thing. What we know for a fact is that chemical recycling in the majority of these regions is out. They don't like the idea of plastic to fuel, they don't like the idea of ISCC Plus credits, and they love the idea of plastic-to-plastic solutions.

The process is painstakingly slow, and we understand that, but we're making really good progress. I think we have a very good relationship with New Jersey. We have active dialogues with them. We meet face to face, um, and and I think it's really a, it's really about progressing, the education for the topic, broadly,

Um, they're being extremely thoughtful, they're digging into the details of of the space. If, if you, if you think about it,

you know, in many ways, pure cycle in New Jersey are kind of at the point of the spear,

And you reset 5 years ago, the terminology used 5 years ago was completely different than the terminology used today.

uh we are leading the industry in terms of where we're going on recycler content on our abilities, to do things and New Jersey, you know, came out early and

And for a regulator gathering information. It's it's a lot of work to

led in many ways um the Recycled content, right? You know, legislation

Dustin Olson: You know, when you're interpreting the law written by regulators and trying to put it into practice, it takes a lot of education by us to the New Jersey Department of Environmental Protection, as an example, and we've been doing it. The process is painstakingly slow, we understand that, but we're making really good progress. I think we have a very good relationship with New Jersey. We have active dialogues with them. We meet face-to-face. I think it's really about progressing the education for this topic broadly. You know, in many ways, PureCycle and New Jersey are kind of at the point of the spear. We are leading the industry in terms of where we're going on recycled content, on our ability to do things.

The same place. And when that happens, you're right, there's a lot of demand that's out there, ready to go,

The process is painstakingly slow.

and we'll get the New Jersey and then we'll start working with those customers to get our product qualified in and ramping up in the 2026.

And we understand that, but we're making really good progress. I think we have a very good relationship with New Jersey. We have active dialogues with them. We meet face to face, um, and, and I think it's really a, it's really about progressing, the education for this topic. Broadly, you know, in many ways, pure cycle in New Jersey are kind of at the point of the spear,

Very helpful, definitely. And just as a follow-up. Um, you know, the, the Gen 2 design work. Um, obviously seems very impressive, um, just trying to get a better sense of what sort of key assumptions are behind achieving. Subversion uh, sort of cash costs, you know, maybe in terms of assumptions around energy, scale yields, Etc.

Dustin Olson: New Jersey, you know, came out early and led in many ways, the recycled content rate, you know, legislation. I think that as these things get clarified and move forward, I think that it's going to provide a lot of clarity for our customers, but quite frankly, a lot of clarity for other regulators as well. Since then, though other regulators have come in, and like I mentioned, the APR certification is a really big deal. That means that we are considered recycled content in many other regions, and at the end of the day, we think that New Jersey will get to the same place. When that happens, you're right, there's a lot of demand that's out there ready to go.

Uh, we are leading the industry in terms of where we're going on recycled content, on our ability to do things. And New Jersey, you know, came out early and

Yeah, no, that's good. So so first of all,

you know, we have

LED in LED, in many ways um the Recycled content, right? You know, legislation

the pleasure of operating a new technology at commercial scale in irons and successfully. And and I've mentioned this on a couple of calls that the technology in many ways is doing more with certain steps than what we expected.

Dustin Olson: We'll get to New Jersey, and then we'll start working with those customers to get our product qualified in and ramping up into 2026. Very helpful, Dustin. Just as a follow-up, you know, the Gen 2 design work obviously seems very impressive. Just trying to get a better sense of what sort of key assumptions are behind achieving subvirgin sort of cash costs, you know, maybe in terms of assumptions around energy, scale, yields, et cetera. Yeah, no, that's good. First of all, you know, we have the pleasure of operating a new technology at commercial scale in Ironton successfully. I've mentioned this on a couple of calls that the technology, in many ways, is doing more with certain steps than what we expected.

And so I think that as these things get clarified and and move forward, I think that it's going to provide a lot of clarity for our customers. But but quite frankly a lot of clarity for other Regulators as well since then no other Regulators have come in and like, like I mentioned the, the APR certification is a really big deal. That means that we are considered recycled content in many other regions. And it's at the end of the day, we think that, uh, New Jersey will get to the same place and when that happens, you're right, there's a lot of demand that's out there, ready to go,

And we've been able to take those learnings and leverage it into our Durham research facility uh and really get down to the fundamentals of the technology and understand how we can scale it. And in some ways Hassan there are pieces of equipment in the Gen 2 design that you only need to make a little bit bigger.

And we'll get the New Jersey and then we'll start working with those customers to get our product qualified and and ramping up into 2026.

And then another part of the process you need to add parallel trains. But the the, the long result of this study indicates that, you know, our technology is very scalable.

And when you do that then you're going to end up scaling costs reducing the capex per pound. Uh and also and I'll speak to this in a second. The operational cost per pound. Also drops pretty dramatically.

Yeah, no, that's good. So so first of all,

you know, we have

Um on the on the op cost, you know? And and and maybe assumptions on yields, I'll remind you that our technology is a plastic to plastic solution.

And so we have 100% or nearly 100% yield recovery on polypropylene.

Dustin Olson: We've been able to take those learnings and leverage it into our Durham research facility and really get down to the fundamentals of the technology and understand how we can scale it. In some ways, Hassan, there are pieces of equipment in the Gen 2 design that you only need to make a little bit bigger, and then in other parts of the process, you need to add parallel trains. The long result of this study indicates that, you know, our technology is very scalable. When you do that, then you're gonna end up scaling costs, reducing the CapEx per pound, and also, I'll speak to this in a second, the operational cost per pound also drops pretty dramatically.

The pleasure of operating a new technology at commercial scale in Ironton successfully. And and I mentioned this on a couple of calls that the technology in many ways is doing more with certain steps than what we expected.

Our goal is to remove everything that's not polypropylene out of the screens and create co-product 1 and co-product 2 and so our yield is very high.

And our yield doesn't change as you scale. That's an enormous benefit that we have over other Technologies.

The same is true for operating costs. The, the reality is that

And we've been able to take those learnings and leverage it into our Durham research facility, uh, and really get down to the fundamentals of the technology and understand how we can scale it. And, and in some ways Hassan, there are pieces of equipment in the Gen 2 design.

Many of the steps of our process require the same amount of people.

That you only need to make a little bit bigger.

And then another part of the process, you need to add parallel trains.

Um, only incrementally, more energy and incrementally More Steam.

But the the the long result of this study indicates that, you know, our technology is very scalable.

To operate. And therefore when you when you look at the overall dollars per pound, that it's going to cost to run this facility. The the the operating costs just get divided by a much bigger number and and that number is going to drop significantly.

So what we're talking about Feed plus,

And when you do that, then you're going to end up scaling costs, reducing the CapEx per pound. Uh, and also—and I'll speak to this in a second—the operational cost per pound also drops pretty dramatically.

Dustin Olson: On the op costs, you know, and maybe the assumptions on yields, I'll remind you that our technology is a plastic-to-plastic solution. We have 100% or nearly 100% yield recovery on polypropylene. Our goal is to remove everything that's not polypropylene out of the streams and create co-product 1 and co-product 2. Our yield is very high, and our yield doesn't change as you scale. That's an enormous benefit that we have over other technologies. The same is true for operating costs. The reality is that many of the steps of our process require the same amount of people, only incrementally more energy and incrementally more steam to operate.

I'll remind you that our, our technology is a plastic to plastic solution.

A 35 Cent per pound number for Ironton and Feed plus a much lower number on our Gen 2 facility now we haven't we're not releasing yet. What we think that number will be but if you if you're talking about feed,

And so we have 100% or nearly 100%.

Recovery on polypropylene.

Our goal is to remove everything that's not polypropylene out of the screens and create co-product 1 and co-product 2 and so our yield is very high.

At 5 to 10 cents per pound and then yield adjusted to 15 cents per pound. And, you know, you start adding, you know, smaller numbers than 35 on top of that. Uh, you very quickly get to numbers that are below the bergeon costs to produce probably probably and think about that his song. I mean,

You know, down the road.

And our yield doesn't change as you scale. That's an enormous benefit that we have over other Technologies.

People polypropylene is is a growing Market.

The same is true for operating costs. The, the reality is that

It's it's a great polymer and people are going to use more and more of this as we go into the future and so

Many of the steps of our process require the same amount of people.

As that happens. And people need to build new polypropylene facilities. What are they going to build?

Um, only incrementally, more energy and incrementally More Steam.

Dustin Olson: Therefore, when you look at the overall dollars per pound that it's gonna cost to run this facility, the operating costs just get divided by a much bigger number, and that number is gonna drop significantly. What we're talking about feed plus a $0.35 per pound number for Ironton and feed plus a much lower number on our Gen 2 facility. We're not releasing yet what we think that number will be, but if you're talking about feed at $0.05 to $0.10 per pound, and then yield adjusted to $0.15 per pound, and you know, you start adding, you know, smaller numbers than 35 on top of that, you very quickly get to numbers that are below the virgin costs for these polypropylene.

Are they going to build a traditional virgin polypropylene facility? Or are they going to lean into a technology that is improving at Ironton? And they can scale the big numbers that could potentially give them bigger margins than what they would have on the Virgin side. We're, we're very excited about where the stakes are.

Super helpful. Dustin, thank you so much, for all the details. Thank you so much.

So, what we're talking about, Feed Plus,

Thank you. 1 moment for our next question.

our next question comes from the line of Andre Shepard of Cantor, Fitzgerald, your line is not open

A a 35 Cent per pound number for Ironton and Feed plus a much lower number on our Gen 2 facility now we haven't we're not releasing yet. What we think that number will be but if you if you're talking about feed,

Dustin Olson: Think about that, Hassan, I mean, you know, down the road, polypropylene is a growing market. It's a great polymer, and people are gonna use more and more of this as we go into the future. As that happens and people need to build new polypropylene facilities, what are they gonna build? Are they gonna build a traditional virgin polypropylene facility, or are they gonna lean into a technology that's been proven at Ironton, and they can scale to big numbers that could potentially give them bigger margins than what they would have on the virgin side? We're very excited about where this takes PureCycle. Super helpful, Dustin. Thank you so much for all the details. Thank you, Hassan.

Hey guys. Uh, this is a nandon for Andre's. Congrats on the quarter and thanks for taking our questions and Donald congrats on the promotion to CFO. It sounds like you're making good progress on the Thailand, debt financing with data room now open. So I was wondering if you could give us an update on the latest developments there and and how do you see that project progressing?

At 5 to 10 cents per pound and then yield adjusted to 15 cents per pound. And, you know, you start adding, you know, smaller numbers than 35 on top of that. Uh, you very quickly get to numbers that are below the Virgin costs to produce probably probably and think about that Hassan. I mean,

You know, down the road.

People, polypropylene is a growing market.

Yeah, thanks for. Thank you for the kind words. I'm I'm really excited about the opportunity and I'm also really excited about this particular project.

It's it's a great polymer and people are going to use more and more of this as we go into the future and so

As that happens, and people need to build new polypropylene facilities, what are they going to build?

Team have been working collaboratively, we're meeting frequently and we're working through this project together.

Are they going to build a traditional virgin polypropylene facility? Or are they going to lean into a technology that's been proven at Ironton? And they can scale to big numbers that could potentially give them bigger margins than what they would have on the virgin side. We're very excited about where the stakes are.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Andres Sheppard of Cantor Fitzgerald. Your line is now open.

Super helpful. Dustin, thank you so much for all the details. Thank you so much.

Thank you. 1 moment for our next question.

our next question comes in the line of Andre Shepherd of Cantor Fitzgerald, your lines is not open,

There's a significant amount of documentation that goes into a project financing of this scale and the critical agreements with our irpc are in place. And I'm really pleased with the progress on the site design and initial cost estimates thus far. Both teams are really excited and working hard on this. It serves a really critical need for Thailand and it's a strategic growth location for Pure Cycles. I've been involved in several projects financing over my career and I'm really proud of the first book we put forward with the bank.

[Analyst] (Cantor Fitzgerald): Hey, guys, this is Ananda for Andres. Congrats on the quarter, and thanks for taking our questions. Donald, congrats on the promotion to CFO. It sounds like you're making good progress on the Thailand debt financing with data room now open. I was wondering if you could give us an update on the latest developments there, and then how do you see that project progressing?

Anand Balaji: Hey, guys, this is Ananda for Andres. Congrats on the quarter, and thanks for taking our questions. Donald, congrats on the promotion to CFO. It sounds like you're making good progress on the Thailand debt financing with data room now open. I was wondering if you could give us an update on the latest developments there, and then how do you see that project progressing?

And uh, just to follow on on that. I mean, Donald Donald brings a lot of really good project Finance experience and I think that's going to really set us. Nice set us up nicely for both Thailand and and work and everything that we do in the future. But I'd like to get back to a point that he made about Thailand. I mean, I mean think about this,

Hey guys. Uh, this is a nandon for Andre's. Congrats on the quarter and thanks for taking our questions and Donald congrats on the promotion to CFO it. Uh, sounds like you're making good progress on the Thailand, debt financing with data room now open. So I was wondering if you could give us an update on the latest developments there and and how do you see that project progressing?

Dustin Olson: Yeah, thanks. Thank you for the kind words. I'm really excited about the opportunity, and I'm also really excited about this particular project. We've made a ton of progress so far. We've put together a comprehensive data room, and our team and the banks' team have been working collaboratively. We're meeting frequently, and we're working through this project together. There's a significant amount of documentation that goes into a project financing of this scale, and the critical agreements with our IRPC are in place, and I'm really pleased with the progress on the site design and initial cost estimates thus far. Both teams are really excited and working hard on this. It serves a really critical need for Thailand, and it's a strategic growth location for PureCycle.

Yeah, thanks for. Thank you for the kind words. I'm I'm really excited about the opportunity and I'm also really excited about this particular project.

Pure cycle could come into Thailand. When, when pure cycle comes into Thailand, we will fundamentally change their performance on plastic waste that that is such a compelling story, not not only for us because it's a great market and it's a great location and we've got this great tax holiday and all these things we talked about

We've made a ton of progress so far, we've put together a comprehensive data room, and our team. And the banks team have been working collaboratively. We're meeting frequently, and we're working through this project together.

But it's exciting for Thailand too because you know Thailand think about Thailand's core industry. It's tourism.

Think about how negatively tourism can be impacted by plastic waste. I mean in a way there are a lot of existential benefits to Thailand by adopting a technology like ours and we couldn't be more excited to get going there and get this project up and running. It's a great question or not.

Dustin Olson: I've been involved in several project financings over my career, and I'm really proud of the first book we've put forward with the bank. Hey, Ananda, just to follow on that, I mean, Donald brings a lot of really good project finance experience, and I think that's gonna really set us up nicely for both Thailand and Antwerp and everything that we do in the future. I'd like to get back to a point that he made about Thailand. I mean, think about this: PureCycle could come into Thailand. When PureCycle comes into Thailand, we will fundamentally change their performance on plastic waste.

There's a significant amount of documentation that goes into a project financing of this scale, and the critical agreements with our EPC are in place. I'm really pleased with the progress on the site design and initial cost estimates thus far. Both teams are really excited and working hard on this. It serves a really critical need for Thailand, and it's a strategic growth location for PureCycle. I've been involved in several project financings over my career, and I'm really proud of the first book we put forward with the bank.

Gotcha. Thanks for all that color and maybe as a follow-up, you know, on the call on the presentation, there was lots of great macro commentary on the 10th beverages or cosmetics and so I was wondering which verticals you see as the most promising with respect to your customer pipeline, whether it's Automotive, or snack bar, wrappers and, and what should investors be focusing on here.

And uh, just to follow on on that. I mean, doc Donald brings a lot of really good project Finance experience and I think that's going to really set us. Nice set us up nicely for both Thailand and Anor and everything that we do in the future. But I'd like to get back to a point that he made about Thailand. I mean, I mean think about this,

Dustin Olson: That is such a compelling story, not only for us because it's a great market and it's a great location and we've got this great tax holiday and all these things we talked about. It's exciting for Thailand too, because, you know, think about Thailand's core industry, it's tourism. Think about how negatively tourism can be impacted by plastic waste. I mean, in a way, there are a lot of existential benefits to Thailand by adopting a technology like ours, and we couldn't be more excited to get going there and get this project up and running. It's a great question, Adnan.

Pure cycle could come into Thailand. When, when pure cycle comes in to Thailand, we will fundamentally change their performance on plastic waste that that is such a compelling story, not not only for us because it's a great market and it's a great location and we've got this great tax holiday and all these things we talked about

But it’s exciting for Thailand too, because—you know, Thailand, think about Thailand’s core industry. It’s tourism.

Yeah, I look I think this is going to develop over time. I think short term will be heavily focused on closures and injection molded projects. Uh these are very much in our wheelhouse, we got a lot of experience in those run really. Well I think that what you'll see as we commissioned The Phase 2 of compounding at Ironton and uh get that compound and facility up and running, you're going to see a tremendous amount of benefit arise from that project into the thermoforming and film activities film and thermoforming have been very elusive for recyclers. This is very difficult to do and it's difficult to get the quality needed to make those projects. And I think that, while short term will be focused on

[Analyst] (Cantor Fitzgerald): Gotcha. Thanks for all that color. maybe as a follow-up, you know, on the call and on the presentation, there was lots of great macro commentary on the TAM, whether it's cold beverages or cosmetics. I was wondering which verticals you see as the most promising with respect to your customer pipeline, whether it's automotive or snack bar wrappers, and what should investors be focusing on here?

Anand Balaji: Gotcha. Thanks for all that color. maybe as a follow-up, you know, on the call and on the presentation, there was lots of great macro commentary on the TAM, whether it's cold beverages or cosmetics. I was wondering which verticals you see as the most promising with respect to your customer pipeline, whether it's automotive or snack bar wrappers, and what should investors be focusing on here?

On something a little different I think that we're really going to grow into this concept of thermoforming and film and I think that's going to be an extremely strong market for us because not many people can participate in it and it's 1 of the largest growing segments on the macro side.

Got it. Thank you guys for the color. I'll pass it on.

Thanks, an have a good night.

Thank you. 1 moment for our next question.

He has the most promising with respect to your customer pipeline, whether it's automotive, or snack bar wrappers, and what should investors be focusing on here.

Dustin Olson: Look, I think this is going to develop over time. I think short term, we'll be heavily focused on closures and injection molded projects. These are very much in our wheelhouse. We've got a lot of experience, and those run really well. I think that what you'll see as we commission the phase two of compounding at Ironton and get that compounding facility up and running, you're going to see a tremendous amount of benefit arise from that project into the thermoforming and film activities. Film and thermoforming have been very elusive for recyclers. It's just very difficult to do, and it's difficult to get the quality needed to make those projects.

Our next question, Crystal line of cherry Sweeney of Ross capital in line is not open. Uh good afternoon guys. Thanks for taking my call.

Thanks Jerry. Good to see you again.

Yep. Um, listen, I I when we look at everything, it sounds like and I caught some of this from the call when you're engaged with Brands and you sell them brands

Sound as though. Um, they're looking for a couple things. Obviously, 1 was reliability, which I picked up. I think I picked up on your prepared remarks and 2. You have brand, uh, testing of the product, you know?

Dustin Olson: I think that while short term, we'll be focused on something a little different. I think that we're really going to grow into this concept of thermoforming and film. I think that's going to be an extremely strong market for us, because not many people can participate in it. It's one of the largest growing segments on the macro side.

It feels as though the brands are getting more and more confident 1, they can see what's happening in Ireland or liabilities, increasing and 2 going through the brand testing. So is this sort of path forward is this an accurate assessment as to what's happening today? Yeah, I think so. I mean, I, I, I think both of the things that you just mentioned. There are very true, uh, irrington operating. Uh,

Yeah, I like I think this is going to develop over time. I think short term will be heavily focused on closures and injection molded projects. Uh these are very much in our wheelhouse, we got a lot of experience in those run really. Well I think that what you'll see as we commissioned The Phase 2 compounding at Ironton and uh get that compounded facility up and running. You're going to see a tremendous amount of benefit arise from that project into the thermoforming and film activities film and thermoforming have been very elusive for recyclers. This is very difficult to do and it's difficult to get the quality needed to make those projects. And I think that while while short term will be focused on something a little different, I think that we're really going to grow into this concept of thermoforming and film and I think that's going to be an extremely strong market for us because not many people can participate in it and it's 1 of the largest growing segments on the macro side.

[Analyst] (Cantor Fitzgerald): Got it. Thank you, guys, for the color. I'll pass it on.

Anand Balaji: Got it. Thank you, guys, for the color. I'll pass it on.

Got it. Thank you guys, but for the color, I'll pass it on.

Dustin Olson: Thanks, Adnan. Have a good night.

Thanks, and have a good night.

Operator: Thank you. One moment for our next question. Our next question comes to the line of Gerry Sweeney of ROTH Capital. Your line is now open.

Thank you. One moment for our next question.

Gerry Sweeney: Good afternoon, guys. Thanks for taking my call.

Our next question, Crystal Line of Cherry Sweeney of Ross. Capital is not open. Uh, good afternoon, guys. Thanks for taking my call.

Dustin Olson: Thanks, Gerry. Good to see you again.

Gerry Sweeney: Yep. Listen, when we look at everything, it sounds like, and I caught some of this on the call. When you're engaged with brands and you sell to brands, it sounded as though they're looking for a couple things. Obviously, one was reliability, which I picked up, I think I picked up on your prepared remarks. Two, you have brand testing of the product. You know, it feels as though the brands are getting more and more confident. One, they can see what's happening at Ironton, reliability is increasing. Two, going through the brand testing. Is this sort of path forward, is this an accurate assessment as to what's happening today?

Thanks Jerry, good to see you again.

Better and better every day, has given confidence to Brands. That's, there's no doubt about that. I mean, we, we routinely have tours out to the plant and people always leave very impressed. I think on the testing side, I think the more experience that we get testing and qualifying different products. I mean, it's very simple. It's like we have things in our hand that we can show people, okay? When we make film and we print on film, we can hand people a piece of film and say, see what we can make and then people can immediately connect to it. And I think that that reduces the, the hurdle, uh, for for, for getting started with the different applications.

Yep. Um, listen, I I when we look at everything, it sounds like and I caught some of this from the call when you're engaged with Brands and you sell them brands

sound as though. Um, they're looking for a couple things. Obviously, 1 was reliability, which I picked up. I think I picked up on your prepared remarks and 2. You have brand um, testing of the product, you know?

Um but but but we've gotten very good at answering their questions because a lot of the questions are repeat over and over and over.

Um, but but they're very methodical. I mean, a brand has built an entire lifetime

Dustin Olson: Yeah, I think so. I mean, I think both of the things that you just mentioned there are very true. Ironton operating better and better every day has given confidence to brands. There's no doubt about that. I mean, we routinely have tours out to the plant, and people always leave very impressed. I think on the testing side, the more experience that we get testing and qualifying different products... I mean, it's very simple. It's like we have things in our hand that we can show people, okay?

It feels as though the brands are getting more and more confident, 1, they can see what's happening in Ireland. And reliability is increasing and 2 going through the brand testing. So is this sort of path forward is this an accurate assessment as to what's happening today? Yeah, I think so. I mean, I, I, I think both of the things that you just mentioned. There are very true, uh, ironson operating. Uh,

Dustin Olson: When we make film and we print on film, we can hand people a piece of film and say, "See what we can make?" Then people can immediately connect to it, and I think that that reduces the hurdle for getting started with the different applications. I think both of those are very true, but I don't want to understate just the methodical nature of brands going through this process. I mean, we can't control it, but we've gotten very good at answering their questions, because a lot of the questions are repeat over and over and over. They're very methodical. I mean, a brand has built an entire lifetime building that reputation.

Building that reputation. And so, in order to make a change that brand has got to feel really good about who they're partnering with. That's why that's why we focus. So much our comments around the trust built between supplier and customer. I mean there, there's, there's relationship building, there's product quality buildings. There's, there's all these components. There's, there's 20 different steps or more that that you have to go through to get to a yes on a customer like this and and it just takes time and and, and look from an outside looking in.

And also from the inside looking in, it's very frustrating. It takes time.

Better and better every day. Has given confidence to Brands. That's there's no doubt about that. I mean, we, we routinely have 2 orders out to the plant and people always leave very impressed. I think on the testing side, I think the more experience that we get testing and qualifying different products. I mean, it's very simple. It's like we have things in our hand that we can show people, okay? When we make film and we print on film, we can hand people a piece of film and say see what we can make.

And then people can immediately connect to it. And I think that that reduces the

The hurdle, uh, for for, for getting started with the different applications.

And um, but if you lift your head up and you see the progress that you've made, you realize that you're really starting to make some pretty big strides with big brands that are excited about where you are. And and I and I and I think these are Foundation laying type things that are going to be very good for us for a long, long time.

Um, pardon me, uh, in that respect. Um,

Um, so I I I think both of those are very true but I I don't want to under understate just, uh, methodical nature of Brands going through this process. I mean, we can't control it, um, but but but we've gotten very good at answering their questions because a lot of the questions are repeat over and over and over.

Does this process really help you kind of, for lack of a better term? And cracked the code speed up additional opportunities going forward.

Uh, the answer to that is 100%. Yes.

Um, but but they're very methodical. I mean, a brand has built an entire lifetime

Dustin Olson: In order to make a change, that brand has got to feel really good about who they're partnering with. That's why we focus so much our comments around the trust built between supplier and customer. I mean, there's relationship building, there's product quality building, there's all these components. Like, there's 20 different steps or more that you have to go through to get to a yes on a customer like this. It just takes time. Look, from an outside looking in, and also from the inside looking in, it's very frustrating. It takes time. If you lift your head up and you see the progress that you've made, you realize that you're really starting to make some pretty big strides with big brands that are excited about where you are.

Building that reputation. And so, in order to make a change that brand has got to feel really good about who they're partnering with. That's why that's why we focus. So much our comments around the trust built between supplier and customer. I mean there, there's, there's relationship building, there's product quality buildings. There's, there's all these components and there's, there's 20 different steps or more, that, that you have to go through to get to a yes on a customer like this. And, and it just takes time. And, and, and look from an outside looking in.

And also, from the inside looking in, it's very frustrating. It takes time.

Dustin Olson: I think these are foundation-laying type things that are going to be very good for us for a long, long time.

Gerry Sweeney: Pardon me. In that respect, does this process really help you kind of, for lack of a better term, crack the code, speed up additional opportunities going forward?

But it doesn't eliminate the need for every single brand to go through some qualification process on their side. Sure. I mean, the the reality is that when we get into a lot of the techy stuff, like a contaminant removals and contaminant value, you know, validation and things like that, we perform very, very well and we're stacking a database that we can show customers a trend line. That says, wow, you really pass all of these different things in a good way, that that kind of data is based on history and it gives Brands immediate confidence in what you're doing. But, but then they still want to test it on their machines. And they, they still want to make sure it looks right on their, on their material. And so they're going to do, they're going to do some of their own testing, um, but but every time we do something, we proved that we can do it and then the brand gets comfortable with it. And the next brand coming in has has a bit of a shorter ramp to get started with it.

Dustin Olson: The answer to that is 100% yes. It doesn't eliminate the need for every single brand to go through some qualification process on their side.

Does this process really help you kind of for lack of a better term? Crack the Code speed up additional opportunities going forward.

Uh, the answer to that is 1 100 system. Yes.

1 more quick question. Uh, the iron 10. I'm not going to call it an outage. I'm going to call it a turnaround, so you sounds like, yeah. You have a lot of confidence in uptick in utilization, uh, post turnaround. And are there line of sights, to a couple of things that you can fix Implement that gives you confidence on that, uh, uptick

Gerry Sweeney: Sure.

Dustin Olson: I mean, the reality is that when we get into a lot of the techie stuff like contaminant removals and contaminant value, you know, validations and things like that, we perform very, very well, and we're stacking a database that we can show customers a trend line that says, Wow, you really pass all of these different things in a good way. That kind of data is based on history and it gives brands immediate confidence in what you're doing. They still want to test it on their machines, and they still want to make sure it looks right on their material, they're going to do some of their own testing.

Yeah, I mean, look, this is a very traditional turnaround. Um, you know, when we first built this company, we had an expectation. We do 1 per year for 30 days, a year actually. Last year, we didn't have to do 1, which I think both. Well, for future in terms of how often will we need to do this?

Dustin Olson: Every time we do something, we prove that we can do it, and then the brand gets comfortable with it, and the next brand coming in has a bit of a shorter ramp to get started with it.

Um look I I think we're going to do a whole lot of stuff. That's very normal, very easy. Uh and then we're going to do a few things that are very exciting. Okay. Um, you know, there, there there's anytime you run a facility for a couple of years in a row, and we've been running very steady. You know, we we obviously have our ups and downs reliability continues to improve, but like by and large is plants up and running, uh, full time and and when you do that, there's just certain pieces of equipment that you can't get to.

Trim line that says wow you really passed all of these different things in a good way, that that kind of data is based on history and it gives Brands immediate confidence in what you're doing. But, but then they still want to test it on their machines. And they, they still want to make sure it looks right on their on their material. And so they're going to do, they're going to do some of their own testing, um, but but every time we do something, we proved that we can do it and then the brand gets comfortable with it. And the next brand coming in has has a bit of a shorter ramp to get started with it.

Gerry Sweeney: One more quick question. The Ironton, I'm not going to call it an outage, I'm going to call it a turnaround. You, sounds like you have a lot of confidence in uptick in utilization, post turnaround. I mean, are there a line of sights to a couple things that you can fix, implement, that gives you confidence on that, uptick?

Uh, because it's running you have to take it out as you do it. So there's a lot of simple things like instrumentation, Replacements and instrumentation upgrades but I think the most important thing about this outage really is the data that we collected. When we did our 2 test drives we did a test run at 125. We did a test run at 14 and both of those gave us insight into constraints that we see in the facility.

Dustin Olson: Yeah, I mean, look, this is a very traditional turnaround. You know, when we first built this company, we had an expectation to do one per year for 30 days a year. Actually, last year, we didn't have to do one, which I think bodes well for the future in terms of how often will we need to do this. Look, I think we're going to do a whole lot of stuff that's very normal, very easy, and then we're going to do a few things that are very exciting, okay? You know, there's anytime you run a facility for a couple of years in a row, and we've been running very steady. Now, we obviously have our ups and downs, reliability continues to improve, but like, by and large, this plant is up and running full time.

And I, you know, we're going to attack those items. We're going to get the plant back up and running, and we're going to, we're going to push the plant to higher watermarks. And and as we do that, we'll, we'll learn more, we'll do more. We'll, we'll grow more and we'll continue building that into our operations at iron Lake.

I think I'm going to call it a turnaround, so you—sounds like, yeah. You have a lot of confidence in an uptick in utilization, uh, post-turnaround. And are there line-of-sight to a couple things that you can fix or implement that give you confidence on that uptick? Yeah, I mean, look, this is a very traditional turnaround. Um, you know, when we first built this company, we had an expectation we'd do one per year for 30 days a year, actually. Last year, we didn't have to do that, which I think bodes well for the future in terms of how often we'll need to do this.

Dustin Olson: When you do that, there's just certain pieces of equipment that you can't get to because it's running, you have to take it out as you do it. There's a lot of simple things like instrumentation replacements and instrumentation upgrades. I think the most important thing about this outage really is the data that we collected when we did our two test runs. We did a test run at 12.5, we did a test run at 14, both of those gave us insight into constraints that we see in the facility. You know, we're going to attack those items. We're going to get the plant back up and running, we're going to push the plant to higher water marks.

I I'm I'm really excited about the, the, the turnaround. As you call it, we call it that as well. I'm excited about it because every time you get to open the equipment, look inside, learn more about what your technology is doing. It's, uh, it just makes you better as a core team. And, and I'm very confident that uh, we're going to come out of this outage in a in a uh with with with a much with a much better facility than we've got right now.

Gotcha. I appreciate it. I'm losing you.

Um look I I think we're going to do a whole lot of stuff. That's very normal, very easy. Uh and then we're going to do a few things that are very exciting. Okay. Um you know there there there's anytime you run a facility for a couple years in a row and we've been running very steady. You know, we we obviously have our ups and downs reliability continues to improve, but like by and large, it's plants up and running uh full-time and and when you do that, there's just certain pieces of equipment that you can't get to.

Thank you. 1 moment for our next question.

Uh, because it's running, you have to take it out as you do it. So, there's a lot of simple things like instrumentation, replacements, and instrumentation upgrades, but I think the most important thing—

About this outage, really, is the data that we collected. When we did our two test drives, we did a test run at 125. We did a test run at 14, and both of those gave us insight into constraints that we see in the facility.

Dustin Olson: As we do that, we'll learn more, we'll do more, we'll grow more, and we'll continue building that into our operations at Ironton. I'm really excited about the turnaround, as you call it. We call it that as well. I'm excited about it because every time you get to open the equipment, look inside, learn more about what your technology is doing, it just makes you better as a core team. I'm very confident that we're going to come out of this outage in a much better facility than we've got right now.

And I, you know, we're going to attack those items. We're going to get the plant back up and running, and we're going to—we're going to push the plant to higher water marks, and as we do that, we'll learn more, we'll do more, we'll grow more, and we'll continue building that into our operations at Ironington.

Good afternoon and thanks for the wealth of details and the call today, it's much appreciated. I don't want to gild the Lily but my understanding is that there is no other DP recycling method, including chemical recycling, that is qualified for Bopp applications to recycles levels. So just to confirm when you're talking about thermoforming and the compounding capabilities that you're going to develop this year as a long-term driver, uh this is related to pcts Bopp technical capabilities, correct.

I I'm I'm really excited about the, the, the turnaround. As you call it, we call it that as well. I'm excited about it, because every time you get to open the equipment, look inside, learn more about what your technology is doing. It's uh, it just makes you better as a core team. And and I'm very confident that uh, we're going to come out of this outage and and ah with with with a much with a much better facility than we've got right now.

Gerry Sweeney: Got you. I appreciate it. I'm losing you.

Gotcha. I appreciate it. I'm losing you.

Yeah, I think that's a good way to to speak to it. I I don't want to over speak for other Technologies. I mean there's a lot of nuances when when when something like chemical recycling is is mentioned. There's you know, there's straight up incineration, there's pyrolysis there's ifcc plus credits. Those things are in a different category, because most customers prefer plastic to plastic, not a mass balance Solutions or plastic to fuel Solutions.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Jeffrey Campbell, Seaport Research Partners. Your line is now open.

Thank you. One moment for our next question.

Our next question comes from Jeffery Campbell with Cport Research Partners. Your line is now open.

Jeffrey Campbell: Good afternoon, and thanks for the wealth of details on the call today. Much appreciated. Dustin, I don't want to gild the lily, but my understanding is that there is no other PP recycling method, including chemical recycling, that is qualified for BOPP applications to PureCycle's level. Just to confirm, when you're talking about thermoforming and the compounding capabilities that you're going to develop this year-

When it comes to our ability to do PPP. I I I think we stand alone in the market right now. Okay. Um, whenever you make Bopp the simplest way to think about it is Imagine taking a, uh, a, a piece of plastic, and stretching, it really, really, really thin. So it can turn into 1 of the 7 Layers on a chip bag or uh you know 1 of the layers that covers up meat packing or something like that.

Like that, it's really thin.

If you have any contaminants in that pellet,

Dustin Olson: Yeah

Jeffrey Campbell: As a long-term driver, this is related to PCT's BOPP technical capabilities, correct?

Dustin Olson: Yeah, I think that's a good way to speak to it. I don't want to overspeak for other technologies. I mean, there's a lot of nuances when something like chemical recycling is mentioned. There's, you know, there's straight up incineration, there's pyrolysis, there's ISCC plus credits. Those things are in a different category because most customers prefer plastic to plastic, not mass balance solutions or plastic to fuel solutions. When it comes to our ability to do BOPP, I think we stand alone in the market right now, okay?

Good afternoon and thanks for the wealth of details in the call today it's much appreciated. That's, I don't want to deal with the Lily, but my understanding is that there is no other DP recycling method, including chemical recycling that is qualified for Bopp applications to recycle levels. So just to confirm when you're talking about thermoforming and the compounding capabilities that you're going to develop this year as a long-term driver, uh this is related to pcts Bopp technical capabilities, correct.

Whenever you start to stretch it, it adds blemishes, it can add like little pimples. That will look like stretch marks. It'll add problems in the operation to where it could break when they're running it. All these things are are are real concerns for Bopp producers. And as a result of that. Um, yeah. I mean, what we're finding is that because our purification technology

Yeah, I think that's a good way to to speak to it. I I don't want to over speak for other Technologies. I mean there's a lot of nuances when when when something like chemical recycling is is mentioned. There's you know there's straight up incineration, there's pyrolysis there's iscc plus credits. Those things are in a different category because most customers prefer plastic to plastic, not mass balance Solutions or plastic to fuel Solutions.

When it comes to our ability to do bopb, I, I, I think we stand alone in the market right now.

Dustin Olson: Whenever you make BOPP, the simplest way to think about it is imagine taking a piece of plastic and stretching it really, really, really thin so it can turn into one of the seven layers on a chip bag or, you know, one of the layers that covers up meat packing or something like that. It's really thin. If you have any contaminants in that pellet, whenever you start to stretch it adds blemishes. It can add, like, little pimples that will look like stretch marks. It'll add problems in the operations where it could break when they're running it. All these things are real concerns for BOPP producers.

okay, um, whenever you make Bopp the simplest way to think about it is Imagine taking a, uh, a a piece of plastic, and

Purifies at the molecular fundamental level. We're able to remove solids, Ash colors and other contaminants, to a level that just works on bopb. And and this isn't theoretical anymore, you know, a couple of quarters ago we talked about Bruckner on a small pilot line. Well, since we had the Bruckner success, we've been doing it on the industrial scale. So we've got, I think, 3 or 4 2 or 3 industrial, uh, line size success. Trials that have worked really well. And these, these are all big machines. I mean, these are like 6.3 meter machines that are making film with our product and

Stretching it really, really, really really thin. So it can turn into 1 of the 7 Layers on a chip bag or uh you know 1 of the layers that covers up meat packing or something like that. It's really thin.

And that is cool. It's super exciting and I think it's going to be the future for us.

if you have any contaminants in that pellet,

Uh, when you speak about the percentage of recycling, that states are increasingly, requiring are, are they specifically?

Dustin Olson: As a result of that, yeah, I mean, what we're finding is that because our purification technology purifies at the molecular fundamental level, we're able to remove solids, ash, colors, and other contaminants to a level that just works on BOPP. This isn't theoretical anymore. You know, a couple of quarters ago, we talked about Brückner on a small pilot line. Well, since we had the Brückner success, we've been doing it on an industrial scale. We've got, I think, 3 or 4, 2 or 3 industrial, line size success trials that have worked really well. These are on big machines. I mean, these are like 6.3 meter machines that are making film with our product, and that is cool. It's super exciting, and I think it's going to be the future for us.

Real concerns for Bopp producers. And as a result of that, um,

Yeah, I mean, what we're finding is that because our purification technology

Requiring, certain plastic types or these sort of broad statements of the amount of recycled content. They want to. However it's arrived at yeah that's a good clarification question Jeff. Um the answer is kind of both, I mean if you look at that slide we we mentioned the percentage but there's a small note below it that says those percentages apply to lots of different things. In some cases, they apply to specific categories of plastic like

PP or pee or pee. Uh, in other cases, it, it, it applies to specific types of applications, like ridges or bottles, or something like that.

Um, and so you really have to dive into the details. I will tell you that we've done a lot of research on the regulatory trust. I think we're getting smarter here. It's a very, it's a very Dynamic Market. That's very nuanced, but but we're learning more and more about it every year. And I think that the general trend is 2 things 1

Purifies at the molecular fundamental level. We're able to remove solids, Ash colors and other contaminants, to a level that just works on bopb. And and this isn't theoretical anymore, you know, a, a couple of quarters ago, we talked about Bruckner on a small pilot line. Well, since we had the Bruckner success, we've been doing it on the industrial scale. So we've got, I think, 3 or 4 2 or 3 industrial. Uh, line size success. Trials that have worked really well. And these, These are on big machines. I mean, these are like 6.3 M machines that are making film with our product and

Broadly speaking regulations fall into 2. Buckets 1 is recycled content and the other is epr.

And that is cool. It's super exciting, and I think it's going to be the future for us.

Jeffrey Campbell: Great. When you speak about the percentage of recycling that states are increasingly requiring, are they specifically requiring certain plastic types, or are these sort of broad statements of the amount of recycled content they want to have in survive that?

Uh, and 2, it's coming.

Uh, when you speak about the percentage of recycling that states are increasingly requiring, are they specifically—

Dustin Olson: Yeah, that's a good clarification question, Jeff. The answer is kind of both. I mean, if you look at that slide, we mentioned the percentage, but there's a small note below it that says those percentages apply to lots of different things. In some cases, they apply to specific categories of plastic, like PP or PE or PET. In other cases, it applies to specific types of applications, like rigids or bottles or something like that. So you really have to dive into the details. I will tell you that we've done a lot of research on the regulatory front. I think we're getting smarter here. It's a very dynamic market that's very nuanced, but we're learning more and more about it every year.

Okay, like the regulations are real and they're coming and in many ways, they're coming faster in the US. I mean everybody talks about Europe and and the ppw are is really coming in Europe for 2030. And our answer for facilities is going to be online just in time, for that, which is going to be great for Brands over there.

Requiring certain plastic types or the sort of broad statements of the amount of recycled content they want. However it's arrived at yeah that's a good clarification question Jeff. Um the answer is kind of both I mean if you look at that slide we we mentioned the percentage but there's a small note below it that says those percentages apply to lots of different things and some cases they apply to specific.

specific categories of plastic like,

Um, but actually states are leading quite a lot and and we're starting to get a lot of inbounds from customers on how to handle different regulations that are coming. The sb54 in, California is a very real thing. A lot of times, California regulates in the country moves that direction. Uh, we saw that with fuel standards, uh, you know, a decade and decade and a half ago. And, you know, we, we could see that happening here as well. And I think that we're well suited for the um,

For the future.

PP or pee or pet, uh, in other cases, it it applies to specific types of applications, like, rigids or bottles, or something like that.

the reason I asked the question is, because I wondered if aside from

popularity versus

Dustin Olson: I think that the general trend is two things: one, broadly speaking, regulations fall into two buckets. One is recycled content, and the other is EPR. Two, it's coming, okay? Like, the regulations are real, and they're coming, and in many ways, they're coming faster in the US. I mean, everybody talks about Europe, and the PPWR is really coming in Europe for 2030, and our Antwerp facility is gonna be online just in time for that, which is gonna be great for brands over there. Actually, states are leading quite a lot, and we're starting to get a lot of inbounds from customers on how to handle different regulations that are coming. The SB 54 in California is a very real thing. A lot of times, California regulates, and the country moves that direction.

Um, and so you really have to dive into the details. I will tell you that we've done a lot of research on the regulatory front. I think we're getting smarter here. It's a very, it's a very Dynamic Market. That's very nuanced, but but we're learning more and more about it every year. And I think that the general trend is 2 things 1

Broadly speaking regulations fall into 2. Buckets 1 is recycled content and the other is epr.

Uh, and 2, it's coming.

The reality of mechanical recycling that it gets recycled 5 or 10 times, then it becomes a park bench. So are you hearing any discussions of that when you're working with The Regulators? I would say that the the concept of circularity is there in principle. I would say, it's not legislated to the point just yet. Um, definitely people are looking for circularity.

A couple of things to point out on that, though.

Okay, like the regulations are real and they're coming, and in many ways, they're coming faster in the US. I mean, everybody talks about Europe, and the PPWR is really coming in Europe for 2030. And our answer for facilities is going to be online just in time for that, which is going to be great for brands over there.

Dustin Olson: We saw that with fuel standards, you know, a decade and a half ago, and, you know, we could see that happening here as well. I think that we're well suited for the future.

1, if you look at New Jersey in particular, we we bought over 10 million pounds of feed from New Jersey last year. And so I'm I'm, I think new jerseys you've thought about this too, but I'm really excited about what we're going to be able to do in New Jersey. I mean, we're actually going to take waste from that state. Be able to show them how much employee from that state convert it into something, you know, beautiful. And then let them turn it into something that a customer can buy over and over. That is New Jersey, becoming circular and and they're, and they're super excited about it as as are we?

um, the uh

Um, but actually states are leading quite a lot, and we're starting to get a lot of inbounds from customers on how to handle different regulations that are coming. The SB54 in California is a very real thing. A lot of times, California regulates and the country moves that direction. Uh, we saw that with fuel standards, you know, a decade and a decade and a half ago, and, you know, we could see that happening here as well. And I think that we're well suited for the, um,

For the future.

Jeffrey Campbell: The reason I asked the question is because I wondered, aside from different categories of plastic and so forth, is there any notion of circularity versus the reality of mechanical recycling, that it gets recycled five or 10 times, then it becomes a park patch? Are you hearing any discussions of that when you're working with the regulators?

the reason I asked the question is, because I wondered if aside from

Different categories of plastic and so forth. Is there any notion of circularity versus...

Dustin Olson: I would say that the concept of circularity is there in principle. I would say it's not legislated at this point just yet. Definitely people are looking for circularity. A couple of things to point out on that, though. One, if you look at New Jersey in particular, we bought over 10 million pounds of feed from New Jersey last year. I think New Jersey is excited about this too, but I'm really excited about what we're gonna be able to do in New Jersey. I mean, we're actually going to take waste from that state, be able to show them how much employed from that state, convert it into something, you know, beautiful, and then let them turn it into something that a customer can buy over and over.

The, the other point on, on the recycle content is that uh, with respect to the circularity is, you know, Brands definitely value that. And and so we get a lot of inbound questions about feed stocks, uh, you know, can we use this feed stock and then make it back into a product that they can buy again? There there's a lot of discussions there. It's just not at this point, it's not legislated in

The reality of mechanical recycling is that it gets recycled five or ten times, then it becomes a park bench. So are you hearing any discussions of that when you're working with the regulators? I would say that the concept of circularity is there in principle. I would say it's not legislated to that point just yet. Um, definitely people are looking for circularity.

A couple of things to point out on that, though.

Yeah. Well it's not surprising because you're the only ones that can do it. But um my last question is kind of a a 1 that I get block from investors and I just kind of wanted to give you a chance to put your 2 cents in you know we continue to see that recyclers pulling back on production and even shuttering facilities in the US and

Can you help investors? Understand why demand for pizza? CTS recycled TP will continue to grow while recycling of other types of plastics, uh, appears to be languishing.

Yeah. It's because we make a premium product.

Dustin Olson: That is New Jersey becoming circular, and they're super excited about it, as are we. The other point on the recycled content is that with respect to the circularity is, you know, brands definitely value that. We get a lot of inbound questions about feedstocks. You know, can we use this feedstock and then make it back into a product that they can buy again? There's a lot of discussions there. At this point, it's not legislated in.

okay, a lot of the recyclers, uh, you know, they're they're struggling and and economic times like this because they sell a product that

1, if you look at New Jersey in particular, we we bought over 10 million pounds of feed, from New Jersey last year. And so I'm, I'm, I think New Jersey is excited about this too, but I'm really excited about what we're going to be able to do in New Jersey. I mean, we're actually going to take waste from that state. Be able to show them how much employee from that state convert it into something, you know, beautiful. And then let them turn it into something that a customer can buy over and over. That is New Jersey, becoming circular and and they're, and they're super excited about it as as are we?

um,

the uh,

Uh, competes with Virgin or sells at a discount diversion and it it's difficult to make money there. I think that you have to have a differentiated product which we do and. So I I feel really good about our technology in the long run for a couple reasons 1. I mean, as as this Dynamic begins to emerge, I think that you're going to start to see downward movement and feed stock pricing. That's good for us. Uh, I think that as we add compounding

The, the other point on, on the recycle content is that uh, with respect to the circularity is, you know, Brands definitely value that. And and so we get a lot of inbound questions about feed stocks, uh, you know, can we use this feed stock and then make it back into a product that they can buy? Again, there's a lot of discussions there, it's just not at this point, it's not legislated in

Jeffrey Campbell: Well, it's not surprising 'cause you're the only ones that can do it. My last question is kind of a one that I get a lot from investors, and I just kind of wanted to give you a chance to put your two cents in. You know, we continue to see PET recyclers pulling back on production and even shuttering facilities in the US and the UK. Can you help investors understand why demand for PCT's recycled PP will continue to grow, while recycling of other types of plastics appears to be languishing?

To our capability. We're going to start to monetize the value of the co-products that come out of the feed and get better value out of that. That's very exciting. From both a margin perspective as well as oh, overall, uh, you know,

System perspective. And then

The more and more that we do to qualify different product applications.

Which I mean we're doing it in space, I mean, we're we're qualifying new things.

All the time.

Yeah. Well it's not surprising because you're the only ones that can do it. But um my last question is kind of a a 1 that I get a lot from investors and I just kind of want to give you a chance to put your 2 cents in you know we continue to see that recyclers pulling back on production and even shattering facilities in the US from

I think it just gives us more optionality on on the uh, on the offtake side. Okay. I mean,

We will our our supply to customers will be limited.

Demand for pizza, CTS recycled TP, will continue to grow, while recycling of other types of plastics appears to be languishing.

Dustin Olson: Yeah, it's because we make a premium product. Okay, a lot of the recyclers, you know, they're struggling in economic times like this because they sell a product that competes with virgin or sells at a discount to virgin, and it's difficult to make money there. I think that you have to have a differentiated product, which we do. I feel really good about our technology in the long run for a couple reasons. One, I mean, as this dynamic begins to emerge, I think that you're gonna start to see downward movement in feedstock pricing. That's good for us. I think that as we add compounding to our capability, we're gonna start to monetize the value of the co-products that come out of the feed and get better value out of that.

Yeah. It's because we make a premium product.

Okay, uh, we we don't have an infinite amount of supply for all the customers that want our material out of irons.

okay, a lot of the recyclers, uh, you know, they're they're struggling and and economic times like this because they sell a product that

And so the more that we can do to create optionality for where we choose to sell our product,

Which will ultimately depend on, where did we get qualified? And who wants it? The most uh, is is, is is going to drive that overall Supply picture. And I and I think that the the technical qualifications we're doing is just is just opening that up to give us a lot of flexibility before we go into the future.

Okay, great. Thank you. I appreciate it.

Thanks chef.

Thank you. 1 moment for our next question.

Dustin Olson: That's very exciting from both a margin perspective as well as overall system perspective. The more and more that we do to qualify different product applications, which I mean, we're doing it in spades. I mean, we're qualifying new things all the time. I think it just gives us more optionality on the, on the offtake side, okay? I mean, our supply to customers will be limited, okay? We don't have an infinite amount of supply for all the customers that want our material out of Ironton. The more that we can do to create optionality for where we choose to sell our product, which will ultimately depend on where did we get qualified and who wants it the most, is gonna drive that overall supply picture.

Our next question is the line of Eric Stine of Greyhound Capital group in lines. Not open.

System perspective. And then

The more and more that we do to qualify different product applications, which I mean we're doing it in space, I mean, we're we're qualifying new things.

All the time.

Hey, this is Luca on for Eric, thanks for getting our questions in here. So first uh, is there a timeline for when you might uh, finalize a site for your Gen 2 facility. I know Thailand was mentioned in the past as a potential suit or since it's a really appealing Market. But could you just talk about some of the factors that are going into this decision? Yeah, I mean, I think the first step is for us to really get a good handle on the open.

I think it just gives us more optionality on the, uh, on the offtake side. Okay. I mean,

We will our our supply to customers will be limited.

Okay, uh, we we don't have an infinite amount of supply for all the customers that want our material out of irons.

And so the more that we can do to create optionality for where we choose to sell our product,

Dustin Olson: I think that the technical qualification that we're doing is just opening that up to give us a lot of flexibility for where we go in the future.

Overall, technology for Gen 2 and then the the the cost position for Gen 2. Um and and I think that we're getting better at that but we still have more work to do. So I don't want to get too far ahead of it because uh there there's work that we need to do to to finish that up. You know, look we're very excited about Augusta. Augusta has been a good partner for us uh in Georgia. That's a really nice site and and we can uh we can build the facility there. We've been very public about that. Gen 2 going there first. Um,

I I look, I think that

Which will ultimately depend on, where did we get qualified? And who wants it? The most uh, is, is, is going to drive that overall Supply picture and I and I think that the, the technical qualification that we're doing is just is just opening that up to give us a lot of flexibility before we go in the future.

Jeffrey Campbell: Okay, great. Thank you. I appreciate it.

Dustin Olson: Thanks, Jeff.

Okay, great. Thank you. I appreciate it.

Site that we've announced in the past.

Thanks chef.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Eric Stine of Craig-Hallum Capital Group. Your line is now open.

Thank you. One moment for our next question.

Our next question comes from the line of Eric Stein of Greyhound Capital group in lines. Not open.

[Analyst] (Craig-Hallum Capital Group): Hey, this is Luke, on for Eric. Thanks for getting our questions in here. First, is there a timeline for when you might finalize the site for your Gen 2 facility? I know Thailand was mentioned in the past as a potential suitor since it's a really appealing market, could you just talk about some of the factors that are going into this decision?

Luke Persons: Hey, this is Luke, on for Eric. Thanks for getting our questions in here. First, is there a timeline for when you might finalize the site for your Gen 2 facility? I know Thailand was mentioned in the past as a potential suitor since it's a really appealing market, could you just talk about some of the factors that are going into this decision?

Dustin Olson: Yeah, I mean, I think the first step is for us to really get a good handle on the overall technology for Gen 2 and then the cost position for Gen 2. I think that we're getting better at that, but we still have more work to do. I don't want to get too far ahead of it because there's work that we need to do to finish that up. You know, look, we're very excited about Augusta. Augusta has been a good partner for us in Georgia. That's a really nice site, and we could build the facility there. We've been very public about that, Gen 2 going there first. Look, I think that.

Hey, this is Luca on for Eric, thanks for getting our questions in here. So first, uh, is there a timeline for when you might uh, finalize a site for your Gen 2 facility. I know Thailand was mentioned in the past as a potential suit or since it's a really appealing Market. But could you just talk about some of the factors that are going into this decision? Yeah, I mean, I think the first step is for us to really get a good handle on the overall technology for Gen 2 and then the the the cost position for Gen 2. Um and and I think that we're getting better at that but we still have more work to do. So I don't want to get too far ahead of it because uh there there's work that we need to do to to finish that up. You know look we're very excited about Augusta Augusta.

Is a good location for a Gen 2. Okay, we're the first 1 goes, uh, that that's open for discussion right now. We we are very excited about the Augusta facility, but but you mentioned Thailand, I honestly, I think that's a great location too. We're we're finding lots and lots of opportunities on the feed stock side to fill that facility. I think the integrated uh Brownfield opportunities there will help us on overall capex efficiency but 1 of the interesting things that will happen and I didn't speak to this on the call. But 1 of the things that will happen is actually the footprint required for a Gen 2, at 500 million. It it's it's not even that different than a footprint for Ironton, it's a little bit bigger. I mean, it it swells a bit but when you start talking about how much capacity can you put on each site? Like the the more efficient you get with building Gen 2 and upsizing that equipment actually, the more capacity you can put on each site. And so when we talked about Augusta hosting

Has been a good partner for us uh in Georgia. That's a really nice site and and we can uh we can build the facility there. We've been very public about that. Gen 2 going there first.

um,

I—I look, I think that

Dustin Olson: I think that every site that we've announced in the past is a good location for a Gen 2. Okay? Where the first one goes, that's open for discussion right now. We are very excited about the Augusta facility, but you mentioned Thailand. Honestly, I think that's a great location, too. We're finding lots and lots of opportunities on the feedstock side to fill that facility. I think the integrated brownfield opportunities there will help us on overall CapEx efficiency. One of the interesting things that will happen, I didn't speak to this on the call, but one of the things that will happen is actually the footprint required for a Gen 2 at $500 million, it's not even that different than a footprint for Ironton. It's a little bit bigger.

I, I think that every site that we've announced in the past,

You know, 8 lines, you know, you know, I I think it'll be able to do 8 lines, potentially 8, 102 lines, we have to work the math but I I think that with Augusta answer Thailand and also with our partners up in Japan with mitsui and Company. I mean, all of those sites are perfect.

For expanding into. And and I think that you'll naturally see us uh, start to do that with the gym twos in the future.

Got it, that's helpful. Thanks and just as a quick follow-up here. So what are your plans for prioritizing? Which customers will get capacity at Ironton since you really only need a small percentage of the pipeline that you're engaged with the fully scale before you booked out?

Dustin Olson: I mean, it swells a bit, when you start talking about how much capacity can you put on each site, like, the more efficient you get with building Gen 2 and upsizing that equipment, actually, the more capacity you can put on each site. When we talked about Augusta hosting, you know, 8 lines, you know, I think it'll be able to do 8 lines, potentially 8 Gen 2 lines. We have to work the math, I think that with Augusta, Antwerp, Thailand, and also with our partners up in Japan, with Mitsui & Co., I mean, all of those sites are perfect for expanding into. I think that you'll naturally see us start to do that with the Gen Twos in the future.

Yeah. I mean, look, I mean, we're we're evaluating that. I mean, quite frankly, we're filling the pipeline first, fill it up and then we'll make that, uh, sell it out. And then we'll make that decision. I think we have a lot of flexibility. What I can tell you is, we're leaving ourselves open, uh, on the contract flexibility, we don't want to get, uh, baked into a long-term contract that could, you know, restrict us in the future. And so, we'll be able to optimize that over time. Typically polypropylene contracts are 1 year at a time and then you renegotiate and um I I think that as we build the flexibility, we're going to have the ability to optimize that over time.

Great. Thank you.

Thanks Luca.

In the call. But 1 of the things that will happen is actually the footprint required for a Gen 2, at 500 million. It it's, it's not even that different than a footprint for Ironton, it's a little bit bigger. I mean, can it swells a bit? But when you start talking about how much capacity can you put on each site? Like the the more efficient you get with building Gen 2 and upsizing that equipment actually, the more capacity you can put on each site. And so when we talked about Augusta posting you know, 8 lines, you know, you know I I think it'll be able to do 8 lines potentially 8, 102 lines, we have to work the math but I I

Thank you. This concludes the question and answer session on like, turn it back to CEO. Dustin Olson for quote marks.

I think that with Augusta, and ants were Thailand, and also with our partners up in Japan with Mitsui and Company. I mean, all of those sites are perfect.

For expanding into. And I think that you'll naturally see us, uh, start to do that with the Gen 2s in the future.

[Analyst] (Craig-Hallum Capital Group): Got it. That's helpful. Thanks. Just as a quick follow-up here: What are your plans for prioritizing which customers will get capacity at Ironton since you really only need a small percentage of the pipeline that you're engaged with to fully scale before you're booked out?

Luke Persons: Got it. That's helpful. Thanks. Just as a quick follow-up here: What are your plans for prioritizing which customers will get capacity at Ironton since you really only need a small percentage of the pipeline that you're engaged with to fully scale before you're booked out?

Yeah, look I I I appreciate everybody. Uh dialing in on a late day today. Um we we've had a, a lot of prepared remarks. I know there's a lot that you're going to have to go through. Uh we are always very available for your questions so sleep on it tonight. Call us back tomorrow and we'll we'll we'll do more. Um, I think you

Got it, that's helpful. Thanks, and just as a quick follow-up here: what are your plans for prioritizing? Which customers will get capacity at Ironton, since you really only need a small percentage of the pipeline that you're engaged with at full scale before you're booked out?

Dustin Olson: Yeah, I mean, look, I mean, we're evaluating that. I mean, quite frankly, we'll fill in the pipeline first, sell it up, and then we'll make that sell it out, and then we'll make that decision. I think we have a lot of flexibility. What I can tell you is we're leaving ourselves open on contract flexibility. We don't want to get baked into a long-term contract that could, you know, restrict us in the future, so we'll be able to optimize that over time. Typically, polypropylene contracts are 1 year at a time, and then you renegotiate. I think that as we build the flexibility, we're going to have the ability to optimize that over time.

You can tell from our comments, how excited we are and how confident we are about 2026. So buckle up, enjoy the ride. 2026, is going to be a great year for pure cycle. Thanks everybody.

Thank you for your participation. In today's conference, this is good program. You may now disconnect

We'll make that decision. I think we have a lot of flexibility. What I can tell you is we're leaving ourselves open on contract flexibility. We don't want to get baked into a long-term contract that could, you know, restrict us in the future. And so, we'll be able to optimize that over time. Typically, polypropylene contracts are one year at a time, and then you renegotiate. And I think that as we build the flexibility, we're going to have the ability to optimize that over time.

[Analyst] (Craig-Hallum Capital Group): Great. Thank you.

Luke Persons: Great. Thank you.

Dustin Olson: Thanks, Luca.

Great. Thank you.

Thanks Luca.

Operator: Thank you. This concludes the question and answer session. I'll now turn it back to CEO Dustin Olson for closing remarks.

Thank you. This concludes the question and answer session on my turn. It's back to CEO Dustin Olson for closing remarks.

Dustin Olson: Look, I appreciate everybody dialing in on a late day today. We've had a lot of prepared remarks. I know there's a lot that you're going to have to go through. We are always very available for your questions. Sleep on it tonight, call us back tomorrow, we'll do more. I think you can tell from our comments how excited we are and how confident we are about 2026. Buckle up, enjoy the ride. 2026 is going to be a great year for PureCycle. Thanks, everybody.

Yeah, look I I I appreciate everybody. Uh, dialing in on a late day today. Um, we we've had a, a lot of prepared remarks. I know there's a lot that you're going to have to go through. Uh, we are always very available for your questions, so sleep on it tonight. Call us back tomorrow and we'll, we'll, we'll do more. Um, I think you can tell from our comments, how excited we are and how confident we are about 2026. So buckle up, enjoy the ride. 2026, is going to be a great year for pure cycle. Thanks everybody.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Good day, and thank you for standing by. Welcome to the PureCycle Technologies Q4 2025 Corporate Update. At this time, all participants are on listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like to hand the conference over to your first speaker today, Eric DeNatale, Director of Investor Relations. Please go ahead.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Thank you for your participation. In today's conference, this is the program. You may now disconnect.

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Eric DeNatale: Thank you, Marvin. Welcome to PureCycle Technologies' Q4 2025 Corporate Update conference call. I am Eric DeNatale, Director of Investor Relations for PureCycle, and joining me on the call today are Dustin Olson, our Chief Executive Officer, our incoming Chief Financial Officer, Donald Carpenter. Our retiring CFO, Jaime Vasquez, will also be joining the call. This evening, we'll be highlighting our corporate developments for the Q4 2025. The presentation we'll be going through on this call can also be found on the investor tab at our website at purecycle.com. Many of the statements made today will be forward-looking and are based on management's beliefs and assumptions and information currently available to management at this time.

Good day, and thank you for standing by. Welcome to the PureCycle Technologies fourth quarter 2025 corporate update. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 again. Please be advised that today's conference is being recorded. I would like to hand the conference over to your first speaker today, Eric DeNatale, Director of Investor Relations. Please go ahead.

Thank you, Marvin. Welcome to PureCycle Technologies' fourth quarter 2025 corporate update conference call. I am Eric DeNatale, Director of Investor Relations for PureCycle, and joining me on the call today are Dustin Olson, our Chief Executive Officer, and our incoming Chief Financial Officer, Donald Carpenter.

Our retiring CFO, Jaime Vasquez, will also be joining the call.

Developments of the fourth quarter 2025.

The presentation we will be going through on this call can also be found on the investor table on our website at purerecycle.com.

Many of the statements made today will be forward-looking and are based on management's beliefs and assumptions, and information currently available to management at this time.

The statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those set forth in our safe harbor provisions and forward-looking statements that can be found at the end of our fourth quarter 2025 corporate update press release filed this afternoon, as well as in other reports on file with the SEC. That provides further details about the risks related to our business. Additionally, please note that the company's actual results may differ materially from those anticipated and, except as required by law, we undertake no obligation to update any forward-looking statements. Our remarks today may also include preliminary non-GAAP estimates and are subject to risks and uncertainties, including, among other things, changes in connection with quarter-end and year-end adjustments.

Any variation between PureCycle's actual results and the preliminary financial data set forth herein may be material. You're welcome to follow along with our slide deck or join us by phone. You can access it at any time at purecycle.com.

Dustin Olson: Thank you, Eric. Q4 was another period of progress for PureCycle. We ramped our operations in Denver and Ironton, advanced our customer pipeline, and made meaningful progress on our growth plan in Thailand. As we announced in the press release, effective March first, Donald Carpenter will be stepping into the CFO role. I want to first thank Jaime for his service the last couple of years, wish him well in his retirement, and now turn it over to him for a couple of words. Jaime?

We are excited to share updates from the previous quarter with you. With that, I will turn it over to Dustin Olson, PureCycle's Chief Executive Officer.

Thank you, Eric.

Fourth quarter was another period of progress for PureCycle. We ramped our operations in Denver and Ironton, advanced our customer pipeline, and made meaningful progress on our growth plan in Thailand.

As we announced in the press release, effective March 1st, Donald Carpenter will be stepping into the CFO role. I want to first thank James for his service the last couple of years, wish him well in his retirement, and now turn it over to him for a couple of words. Jamie

Thank you, Dustin. I appreciate the opportunity and the time that PureCycle has provided me. This is a company with a great mission and talented people that should allow the company to accomplish that mission.

And with Donald stepping into the CFO role, there will be continuity among the Finance and Accounting teams.

Donald's time at PureCycle, combined with his depth of knowledge and finance knowledge, should allow him, along with the senior management team, to help continue moving the company forward.

To you, Dustin, Donald, and the rest of the PureCycle team, I wish you the best as you continue to commercialize and grow PureCycle.

Back to you, Dustin.

Dustin Olson: Donald, would you like to say a couple words? Yes. Thank you. Thank you, Dustin, and thank you, Jamie, and thanks especially for all of the support and opportunities you gave me to grow into this role over the past two years. I share your thoughts on the PureCycle team, and I am incredibly fortunate to have such an exceptional group supporting me through the transition. I am so excited for the future of this technology and our company. While the role is new, the mission I committed to four years ago remains the same, and I truly believe our company has an amazing solution to help end the threat of plastic waste to our environment, both safely and responsibly. With that, Jamie, I wish you the best in retirement, and I'll turn it back over to you, Dustin. All right. Thanks a lot, Donald.

Donna, would you like to say a couple words? Yeah. Thank you. Thank you, Dustin, and thank you, Jaime. And thanks especially for all of the support and opportunities you gave me to grow into this role over the past two years.

I share your thoughts on the curriculum team, and I am incredibly fortunate to have such an exceptional group supporting me through the transition.

I am so excited for the future of this technology and our company.

While the role is new, the mission I committed to four years ago remains the same, and I truly believe our company has an amazing solution to help end the threat of plastic waste to our environment, both safely and responsibly. With that, Jaime, I wish you the best in retirement, and I'll turn it back over to you, Dustin.

Dustin Olson: I wish you both the best, and I'm very excited about the path forward. Additional to this announcement, we previously announced we added two distinguished board members to our team, Dr. Siri, who serves as the Independent Director and Chairman of the Audit Committee at the Bangkok Bank, and previously served as Thailand's Minister of Energy and Chairman of IRPC. Most recently, Valerie Mars, who retired as Senior Vice President and Head of the Corporate Development at Mars Incorporated. We're very fortunate to have both of them. Now to the business highlights in the quarter. Before I get into the details, I want to frame where we are. We are producing high-quality, food-grade recycled polypropylene at scale, something no one else in the world can do. We've qualified our materials in flexible packaging, wrappers, stand-up pouches, closures, thermoform containers, bumpers, and numerous fiber applications.

All right, thanks a lot, D. I wish you both the best and am very excited about the path forward. In addition to this announcement, we previously announced we added two distinguished board members to our team: Dr. Siri, who serves as an independent director and chairman of the audit committee at Bangkok Bank, and previously served as Thailand's Minister of Energy and chairman of IRPC, and, most recently, Valerie Mars, who retired as Senior Vice President and Head of Corporate Development at Mars Incorporated. We're very fortunate to have both of them.

Now to the business highlights in the quarter. Before I get into the details, I want to frame where we are. We are producing high-quality, food-grade recycled polypropylene at scale—something no one else in the world can do. We qualified our materials in flexible packaging, wrappers, stand-up pouches, closures, and thermoform containers.

Bumpers and numerous fiber applications' branded pricing is on track with prior guidance, and our pipeline has grown to over 170 active projects.

The market continues to struggle integrating large amounts of post-consumer recycled polypropylene content into consumer products.

Recently, recycled content is new, especially in the FDA space, and companies are challenging decades-old processes to make them work for this emerging space.

PCT is helping them.

As our brand continues to rise and other brands get more familiar with our product,

We dramatically reduce the adoption challenges.

Dustin Olson: While customers are extremely excited about our product and how it simplifies their lives, the adoption process, which includes things like lab, pilot, industrial scale qualifications, lots of trials, regulatory reviews, packaging design, line validation, supply chain insurance, and internal approvals, it still takes time. Here's what I want you to take away from this call. The underlying demand is very strong and growing. It's clear to me that the recycled content in consumer products is coming. The regulatory environment is naturally moving in PureCycle's direction. Probably the most important thing of all, consumers continue to value sustainability, and it is driving their buying behaviors. The question is not whether brands will buy recycled PP at scale, but when. We are positioned to be the premier global supplier.

When a brand puts our material into food-grade packaging on a retail shelf, they're doing something that's never been done before at PCT scale, at PCT quality, and with PCT flexibility.

The adoption process, which includes things like lab pilot and industrial scale qualifications.

Lots of trials, regulatory reviews, packaging design, line validation, and supply chain. Insurance is internal approvals. It still takes time.

But here's what I want you to take away from this call: the underlying demand is very strong and growing. It's clear to me that the recycled content in consumer products is coming. The regulatory environment is naturally moving in PureCycle's direction, and probably the most important thing of all, consumers continue to value sustainability, and it is driving their buying behaviors.

The question is not whether brands will buy recycled PP at scale, but when, and we are positioned to be the premier global supplier. 2026 is about converting our technical success into accelerated commercial revenue growth quarter over quarter, and I'll walk you through exactly where we stand on that.

In the fourth quarter, we successfully added a third shift to Denver, which had previously been a constraint on production. As a result, Denver processed 44% more feed versus the third quarter, ramping to 14 million pounds.

A 35% increase over its prior quarterly. Hi, we are actively buying from more than 15 different feed suppliers, including most of the large players in the market, and have reduced procurement costs by $0.06 per pound over the last 12 months.

Denver has fundamentally improved. Our feedstock flexibility and cost structure, and I have never felt better about our ability to reliably and economically supply Ironton as we ramp to full rates.

Dustin Olson: Ironton also successfully ramped production in Q4 with a production of 7.5 million pounds. We not only hit a quarterly record for production, but also new daily records as well. This doesn't tell the whole story as we continue to manage production levels ahead of the commercial ramp. We are routinely running Ironton with higher reliability and at higher water marks. In the last few quarters, I've spoken about how we ran successful rate tests above 12,500 and 14,000 pounds per hour. We have a lot of data from those tests, which we've analyzed and see some very specific improvements that should allow us to push towards nameplate capacity in 2026. The original design for Ironton contemplated an annual maintenance outage. We didn't take one last year, but plan on taking one between mid-April and mid-May this year.

Iron also successfully ran production in the fourth quarter with the production of 7.5 million pounds. We not only hit a quarterly record for production but also new daily records as well.

This doesn't tell the whole story. As we continue to manage production levels ahead of the commercial ramp, we are routinely running irons, and with higher reliability, and at higher water marks.

In the last few quarters, I've spoken about how we ran successful rate tests at both 12,500 and 14,000 pounds per hour.

We have a lot of data from those tests, which we've analyzed and see some very specific improvements that should allow us to push towards nameplate capacity in '26.

The original design for Ironton contemplated an annual maintenance outage.

Dustin Olson: There are lots of standard maintenance activities that are expected to occur, spanning inspections, cleaning, repairs, and improvements. I expect this outage to have really positive outcomes for PureCycle. If you look back at every planned outage we've had at Ironton, the reliability, top-end rate, and quality has always improved on the other side. It is our expectation that the same will be true this one. We always incorporate the lessons learned into our procedures and activities, outages give you the unique opportunity to make changes that are not possible when the plant is running. Reliability matters to our customers. As we've demonstrated consistent product quality and uptime, we've seen those conversations evolve. Several of our largest pipeline opportunities are now moving toward multi-year supply agreements, which is a direct reflection of the confidence that they have in our operating performance.

If you look back at every planned outage we've had at Ironton, the reliability, top-end rate, and quality have always improved on the other side.

It is our expectation that the same will be true. This one—

We always incorporate the lessons learned into our procedures and activities, but outages give you the unique opportunity to make changes that are not possible when the plant is running.

Reliability matters to our customers. As we've demonstrated consistent product quality and uptime, we've seen those conversations evolve. Several of our largest pipeline opportunities are now moving toward multi-year supply agreements.

Which is a direct reflection of the confidence that they have in our operating performance.

Dustin Olson: phase one of our on-site compounding started up last quarter. This enables CP2 to be compounded on-site and sold to the market. This project allowed us to reduce carbon footprint, the cost to produce, and improve our final sales price. We're very excited about this addition. phase two should be mechanically complete in March, and commissioning will continue in parallel with the planned outage. phase two coincides with the demand planning for these grades in commercial offtake profiles. The phase two on-site compounding line will be primarily focused on producing compounds for BOPP film, which is used in flexible packaging, and thermoformed applications, which is used in things like coffee lids, two of the highest value, fastest-growing segments in our pipeline. Having this capability on-site complements existing third-party compounding assets, improves turnaround times for customer trials, and gives us direct control over the formulations.

Phase 1 of our on-site compounding started up last quarter.

This enables CP2 to be compounded on-site.

And sold to the market. This project allowed us to reduce carbon footprint and cost to produce, and improve our final sales price.

We're very excited about this edition.

And Phase 2 should be mechanically complete in March, and commissioning will continue in parallel with the planned outage.

Phase 2.

Coincides with the demand planning for these grades and commercial off-site profiles.

The Phase 2 on-site compounding line will be primarily focused on producing compounds for BOPP film, which is used in flexible packaging.

And thermoform applications, which is used in things like coffee lists to the highest value. Fastest growing segments in our pipeline.

Having this capability onsite complements existing third-party compounding assets, improves turnaround times for customer trials, and gives us direct control over the formulations.

Dustin Olson: We have built and will continue to build inventory ahead of the outage and across the planned application launches, and we expect to ship while Ironton is engaged in the turnaround. On the other side of this outage, Ironton should be well-positioned to service the expected ramp to much higher levels of production and sales later in 2026. Turning to the commercial update. We booked $2.7 million in revenue in Q4, our fourth consecutive quarter of sequential revenue growth. We are actively shipping to 11 customers, roughly half of the branded and half are unbranded, with additional conversion expected to begin in early March. While 2025 had real commercial delays relative to our original projections, the technical progress was substantial and the setup for 2026 is strong. On the positive side, 2025 was a year of real technical success.

We have built, and we'll continue to build, inventory ahead of the outage and across the planned application launches, and we expect to ship while Arrington is engaged in the turnaround.

On the other side of this outage, Iron Team should be well positioned to service the expected ramp to much higher levels of production and sales later in '26.

Central Revenue growth.

We are actively shipping to 11 customers, roughly half of them branded and half unbranded, with additional conversion expected to begin in early March.

While 2025 had real commercial delays relative to our original projections, the technical progress was substantial, and the setup for '26 is strong.

Dustin Olson: We qualified our material across food-grade applications that no mechanical recycler can touch. Flexible film packaging, wrappers, stand-up pouches, closures, thermoform containers, and fiber. Qualification delays are frustrating and noisy, but they only impact the short term. The real long-term value is created through the application's technical successes. The other big positive was that branded margins continued to be in line with our previous guidance. While branded sales have a longer sales cycle than non-branded sales, branded sales are the core focus for this company and where we see the most value in the market. Co-product sales have been positive for us, and we've begun to monetize both co-product 1 and co-product 2, and are seeing prices in the $0.25 to $0.30 per pound range.

On the positive side, 2025 was a year of real technical success. We qualified our material across food-grade applications that no mechanical recycler can touch—flexible film, packaging, wrappers, stand-up pouches, closures. Thirty-four containers fiber. Qualification delays are frustrating and noisy.

But they only impact the short term; the real long-term value is created through the application of technical successes.

The other big positive was that branded margins continue to be in line with our previous guidance, while branded sales have a longer sales cycle than non-branded sales. Branded sales are the core focus for this company and where we see the most value in the market.

Co-product sales have been positive for us, and we've begun to monitor and monetize both co-product 1 and co-product 2, and are seeing prices in the $0.25 to $0.30 per pound range.

Dustin Olson: Fiber technical successes provided a lot of confidence to the market early on, but the adoption was slow due to fragmented demands and extremely long sales cycles. We've deprioritized it in the near term, and while it does remain a real market for us, we're not going to concentrate our resources there today. The regulatory landscape has been broadly positive. Our material is accepted in Oregon, Colorado, California, Washington, and Europe. New Jersey has been slower. We partnered with the DEP on how our dissolution technology fits within the recycling framework, which has delayed some approvals. The good news is, New Jersey has excluded chemical recycling and ISCC plus mass balance credits, which positions us as the only supplier at scale for food-grade recycled content under the mandates.

Fiber technical successes provided a lot of confidence to the market early on, but the adoption was slow to fragmented due to fragmented demands, and extremely long sales cycles.

We've de-prioritized it in the near term, and while it does remain a real market for us, we're not going to concentrate our resources there today.

Dustin Olson: Large CPGs are lobbying the DEP on our behalf, and our relationship with them is strong. I personally respect the position the New Jersey Department of Environmental Protection has taken and will continue to partner with them as they integrate the legislation into action. 2025 was a challenging year for many of our customers. Tariff uncertainty, inflation hangovers, commodity spikes, and converter consolidations forced them to redirect their focus on cost savings and reorienting their supply chains domestically, which lengthened approval timelines across the board. We think those headwinds are largely behind them. The key public message from senior brand leadership is clear:... 2026 is about reinvigorating organic growth and investing in innovative packaging. That's directly relevant to us. It's been publicly reported that multiple Fortune One Hundred CPGs announced significant increases in R&D spending, with a focus on product superiority, premium positioning, and sustainable packaging formats.

Large CPGs are lobbying the DEP on our behalf, and our relationship with them is strong. I personally respect the position the New Jersey Department of Environmental Protection has taken and will continue to partner with them and, say, integrate the legislation into action.

2025 was a challenging year for many of our customers: tariff uncertainty, inflation, hangovers, commodity spikes, and converter consolidations forced them to redirect their focus on cost savings and reorienting their supply chains domestically.

Which lengthened approval timelines across the board.

We think those headwinds are largely behind them. The key public message from senior brand leadership is clear: 2026 is about reinvigorating organic growth and investing in innovative packaging.

That's directly relevant to us.

It's been publicly reported that multiple Fortune 100 CPGs announced significant increases in R&D spending with a focus on product superiority, premium positioning, and sustainable packaging formats. After a year of playing defense, these brands are now playing offense. That's directly relevant to us because offensive brands invest in differentiated packaging.

And food-grade recycled content is a differentiator.

Dustin Olson: While this has been frustrating, the demand is still there, and the fact that key brands and converters have sent letters to New Jersey on our behalf speaks to their desire to move forward once this is resolved. The good news is we've been able to shift to other applications that don't require New Jersey approval, and we have line of sight on applications that can contribute to 2026 revenue. In addition to the $40 to 50 million that we mentioned last quarter, we've added another 20 to 25 lbs at full ramp. The earliest of these could convert as soon as next month, and one of the most near-term opportunities represents roughly 10 million lbs of annual demand.

New Jersey applications overall represent about 300 million pounds per year of demand.

While this has been frustrating, the demand is still there, and the fact that key brands and converters have sent letters to New Jersey on our behalf.

Speaks to their desire to move forward. Once this is resolved.

The good news is, we've been able to shift to other applications that don't require New Jersey approval. And we have line of sight on applications that can contribute to 2026 revenue.

In addition to the $40 to $50 million that we mentioned last quarter, we've added another 20 to 25 pounds at full round, full ramp.

the earliest that these could be converted.

The earliest of these could convert as soon as next month, and one of the most near-term opportunities represents roughly 10 million pounds of annual demand.

Dustin Olson: The pipeline continues to be strong, growing from roughly 100 projects a year ago to greater than 170 today. A lot of this recent build is a result of our success in film, where we continue to see large, high-value opportunities. I'd like to also highlight that we've been successfully qualifying pouch applications. Stand-up pouches are one of the most exciting trends in innovative packaging right now. They're lighter, more efficient, and actively taking share from rigid containers and cardboard boxes. Brands are investing heavily in flexible packaging formats, our ability to produce food-grade recycled polypropylene film for pouches puts us right at the center of this trend.

Our success in film where this continue where we continue to see large high-value opportunities. I'd like to also highlight that we've been successfully qualifying pouch applications stand-up pouches are 1 of the most exciting Trends and Innovative packaging. Right now they're lighter more efficient and actively taking shape from rigid. Container taking, share, from rigid containers, and cardboard boxes.

Brands are investing heavily in flexible packaging formats, and our ability to produce food-grade, recyclable film for pouches puts us in the right position.

Right at the center of its trend.

Dustin Olson: BOPP film and thermoform applications remain the core targets for our compounding operations. We focus our commercial teams on brands with the highest growth potential. Here are some examples of the end markets that we're actively engaged. We spoke about QSR coffee lids last quarter. The interest continues to be strong and is growing. We've continued to make progress with our first QSR coffee lid project. Good product fit, excellent trials, and good relationship building between the end brand and converter. We're also in discussions with 4 additional brands following our recent quarterly announcement about coffee lid innovation. These same customers also manage a growing cold beverage category that is taking market share. Brands are launching more products in this high incremental margin category. Additionally, brands are also transitioning to PP in 12 states that have already passed single-use polystyrene bans.

The op films.

And thermoform applications remain the core targets for our compounding operations.

And we focused our commercial teams on brands with the highest growth potential.

Here are some examples of the end markets that were actively engaged. We spoke about QSR coffee lids last quarter, and the interest continues to be strong and is growing. We continue to make progress with our first QSR coffee lid project—good product fit, excellent trials, and good relationship building between the end brand and converter.

We're also in discussions with four additional brands, following our recent quarterly announcement about coffee lid innovation.

But these same customers also manage a growing cold beverage category that is taking market share. Brands are launching more products in this high, incremental margin category.

Dustin Olson: This will give us additional tailwind to our product in the beverage containers. The net result of the 300 is north of 300 million pounds of additional TAM in North America and is growing in the high, high single digits each year. Beyond cold beverages, premium pet food is a 130 million pound polypropylene market for BOPP film packaging, growing 4.6% annually as pet owners trade up to higher quality brands. Jerky and meat sticks represent 40 million pounds of BOPP film demand, growing 6% to 7% with protein snacking trends. Dermacosmetics, think CeraVe and SkinCeuticals, is a 55 million-pound market, growing at 79% as clinical skincare brands shift to PP packaging for recyclability.

Additionally, brands are also transitioning to PP in 12 states that have already passed single-use polystyrene bans.

This will give us additional tailwind to our product in the beverage containers. The net result of the 300 is north of 300 million pounds of additional ton in North America and is growing in the high, high single digits each year.

Beyond cold beverages, premium pet food is a 130 million pound polypropylene market for BOPP film packaging.

Dustin Olson: In household goods, things like storage bins, kitchen utensils, laundry baskets, is a 700-pound polypropylene market, where Walmart and Target sustainability mandates are creating demand for recycled content from a base of only 3.3% to 5% penetration today. That segment alone has 150 million pounds of addressable pounds for recycled polypropylene, growing at 8% to 12%, as the mandates ramp. These aren't hypothetical markets. These are specific applications where we are engaged with brands in our pipeline and where growth trajectory works in our favor. Let me take a moment on the regulatory landscape because I think it's important to frame this in concrete terms. Every EPR and PCR mandate that's been passed in New Jersey, California, Washington, Oregon, Colorado, and Europe translates directly into pounds of required recycled content. These aren't voluntary targets, they're law.

Growing 4.6% annually, as pet owners trade up to higher-quality brands, jerky and meat sticks represent 40 million pounds of BOPP film demand, growing 6 to 7%, with protein stacking trends. Dermocosmetics—think serve V and skin. Cuticles is a 55 million pound market, growing at 7–9%, as clinical skin care brands shift to beauty packaging for recyclability.

And household goods—things like storage bins, kitchen utensils, laundry baskets—it's a 700-pound polypropylene market where Walmart and Target's sustainability mandates are creating demand for recycled content.

From a base of only 3.3% to 5% penetration today, that segment alone has 150 million pounds of addressable pounds for recycled polypropylene, growing at 8% to 12%.

As the mandates ramp.

These aren't hypothetical markets.

These are specific applications where we are engaged with brands in our pipeline and where the growth trajectory works in our favor.

Let me take a moment on the regulatory landscape, because I think it's important to frame this in concrete terms.

Every EPR and PCR mandate that's been passed in New Jersey, California, Washington, Oregon, Colorado, and Europe translates directly into pounds of required recycled content.

Dustin Olson: New Jersey requires 10% recycled content today, 20% in 2027, and 30% in 2030. California SB 54 requires 25% source reduction by 2032, with a stairstep approach requiring 10% by 2027, 20% by 2030. We have received post-consumer resin certification from the Association of Plastic Recyclers, or APR, which is the standard that most state regulators reference for recycled content compliance. That certification allows our material to be categorized as recycled content across numerous states, effectively clearing the regulatory path for brands to count on PureCycle material toward their targeted mandated targets. The EU's packaging and packaging waste regulation requires 10% recyclable content by 2032.

These aren't voluntary targets; they're law.

New Jersey requires 10% recycled content today, 27% and 20%, and 27%, and 30%. In 2030, California SB54 requires 25%, source reduction by 2032 with a stair-step approach, requiring 10% by 2027, 20% by 2030.

We have received post-consumer resin certification from the Association of Plastic Recyclers, or APR, which is the standard that most state regulators reference for recycled content compliance. That certification allows our material to be categorized as recycled content across numerous states, effectively clearing the regulatory path for brands to count on PureCycle material toward their

Targeted man, mandated targets.

The eu's packaging and packaging waste regulation.

Dustin Olson: When you add it all up, there are literally hundreds of millions of mandated volume coming online over the next five to seven years, and for food-grade polypropylene applications, we're the only global solution emerging at scale. The regulatory framework laying the groundwork for the future. There's a lot of really strong progress in Rayong Thailand project. I was in Thailand for a week in January and had many meetings with government officials, commercial offtake partners, feedstock suppliers, local banks, as well as IRPC and our very strong local team. A few key developments are worth calling out. First, we see a supply of feedstock well in excess of our needs. We have already signed nine LOIs with regional feedstock suppliers, six domestic and three across Southeast Asia. That, even at a minimum annual level, exceed our needs for the first purification line.

Requires 10% resupply content by 2032.

When you add it all up, there are literally hundreds of millions of mandated volume coming online over the next 5 to 7 years, and for food-grade polypropylene applications, the only global solution emerging at scale.

The regulatory framework laying the groundwork for the future.

There's a lot of really strong progress—progress in the Rayon, Thailand project.

Commercial off-take partners, feedstock suppliers, local banks, as well as IRPC, are—and are very strong—local teams.

A few key developments are worth calling out first.

Dustin Olson: We are working to expand our feedstock network in Thailand, but we're also finding feed and abundance across Southeast Asia. Thailand generates approximately 2.5 million tons of plastic waste annually, of which an estimated 400 to 450,000 tons is mismanaged, with about 70% of that leaking into the ocean each year, making Thailand the sixth largest source for ocean plastic globally. We're finding a lot of willingness from the government and the commercial sector to partner with us to solve this challenge. The commercial conversations have also been very favorable.

We see a supply of feedstock well in excess of our needs. We have already signed 9 LOIs with regional feedstock suppliers—6 domestic and 3 across Southeast Asia—that, even at minimum annual levels, exceed our needs for the first purification line.

We are working to expand our feedstock network in Thailand, but we're also finding feed and abundance across Southeast Asia.

Thailand generates approximately 2.5 million tons of plastic waste annually.

Of which an estimated 4,400 to 450,000 tons are mismanaged.

With about 70% of that leaking into the ocean each year.

making Thailand the sixth-largest source of ocean plastic.

Sergeant is the 6th largest source for ocean plastic globally.

We're finding a lot of willingness from the government and the commercial sector to partner with us to solve this challenge.

Dustin Olson: Our original assumption was that all product would be exported to North America and Europe, while we still expect to directly export significant quantities, a strong dialogue is evolving with domestic packaging companies, including a major film producer that sees our material as a way to grow their export business, as well as Fortune 100 CPGs with manufacturing operations in Thailand. We see key markets in automotive, flexible and rigid packaging, appliances, and fast-growing hygiene market, expect to sign multiple LOIs with domestic customers during 2026. We had multiple meetings with the Board of Investment, or BOI, submitted our application to them. If successful, we would reap many benefits, including an 8-year, 100% tax holiday, followed by 5 years of tax holiday at 50%. This equates to roughly $100 million of avoided cash taxes.

The commercial conversations have also been very favorable. Our original assumption was that all product would be exported to North America and Europe. And while we still expect to directly export significant quantities—a strong amount—a strong dialogue is evolving with domestic packaging companies, including a major film producer.

producer that sees our material as a way to grow their export business,

as well as Fortune 100 CPGs with manufacturing operations in Thailand.

We see key markets in automotive, flexible and rigid packaging, appliances, and fast-growing hygiene markets, and expect to sign multiple LOIs with domestic customers during 2026.

We had multiple meetings with the Board of Investment, or BOI, and submitted our application.

Successful. We would reap many benefits, including an eight-year, 100% tax holiday, followed by five years of tax holiday at 50%.

Dustin Olson: We also had many good meetings with local banks and our other banking partners in Thailand, which Donald will touch on later. The relationship with IRPC is solid, and they have helped us build a remarkably strong domestic team in Thailand. We hosted a community forum with over 250 residents to explain the project, which was very well received. We have been purchasing equipment, and expect to break ground in the second half of 2026, with project completion still expected in 2027. Our Antwerp, Belgium, project also continues to move forward per plan. We expect permits in the second half of 2026, with construction still scheduled to begin by Q1 2027 and mechanical completion by the end of 2028. Global brand discussions are accelerating as the Thailand and Antwerp projects advance.

This equates to roughly $100 million of avoided cash taxes.

We also had many good meetings with local banks and our other banking partners in Thailand, which Donald will touch on later.

The relationship with IRPC is solid.

And they have helped us build a remarkably strong domestic team in Thailand. We hosted a community forum with over 250 residents to explain the project.

Which was very well received. We have been purchasing equipment.

And expect the groundbreaking in the second half of 2026, with project completion still expected in 2027.

Our Aunts were Belgian project. Also continues to move forward for plants. We expect permits in the second half of '26.

With construction still scheduled to begin by Q1 2027, and mechanical completion by the end of 2028.

Dustin Olson: Many of the Fortune 100 CPGs we're working with have operations across all three of these regions. We mentioned last quarter that we expected to complete our initial engineering work for Gen 2 purification design in the first part of 2026. While there is still work to be done here, the initial findings are very encouraging. First, we see no technological constraints on building the higher end of this capacity scale than what we discussed previously, or closer to the 500 million pounds of capacity that we mentioned in the range. This is important because costs do not scale linearly, and in fact, the initial design analysis suggests that the incremental cost difference between the 500 and 300 million pounds is relatively minimal.

Global brand discussions are accelerating as the Thailand and Antwerp projects advanced. Many of the Fortune 100 CPGs we’re working with have operations across all three of these regions.

We mentioned last quarter that we expected to complete our initial engineering work for Gen 2 purification design in the first part of 2026.

Or closer to the 500 million pounds of capacity that we mentioned in the range.

This is important because costs do not scale linearly.

And, in fact, the initial design analysis suggests that the incremental cost difference between the £500 million and £300 million is relatively minimal.

Dustin Olson: The initial look indicates greenfield costs on the Gen 2 lines approaching $1.50 per pound of capacity, and for brownfield sites should approach $1 per pound for expansions. This is a really big deal. This cuts down the capital intensity of our business, meaningfully improves future IRRs, and puts us back in the ballpark for what it costs to build virgin polypropylene lines. It is also a lower CapEx intensity than what we estimated in the business plan last summer associated with our capital raise. Scale also benefits us on the production cost side, and while it's too early to give definitive numbers, we see a clear line of sight to Gen 2 cash costs to be below virgin on-purpose PP production lines.

As a result, the initial look indicates greenfield costs on the Gen 2 lines approaching 1.50 cents per pound of capacity. And for brownfield sites, it should approach $1 per pound for expansions. This is a really big deal.

Scale.

Dustin Olson: While the majority of our focus today is on selling out and ramping Ironton and executing our Thailand expansion, this news on Gen 2 is incredibly important to the long-term value of PureCycle. We've known for years that our process consumes significantly less energy than virgin production, but now we are seeing the cost efficiency translate into a permanent cost and return advantage in the market. A market that I remind you, represents 200 billion pounds per year of annual demand, a market that is expected to continue to outgrow GDP for the foreseeable future. Look, I know the commercial ramp has been slower than we projected. I'd ask you to look at our history. Every time that we've said we'd solve a technical problem, we have.

Also benefits us on the production cost side. And while it's too early to give definite, definitive numbers, we see a clear line of sight to Gen 2 cash costs to be below virgin on-purpose PPE production lines.

While the majority of our focus today is on selling out and ramping Ironton.

Long-term value of pure cycle.

A market that, I remind you, represents £200 billion per year of annual demand.

And a market that is expected to continue to outgrow GDP for the foreseeable future.

Look, I know the commercial ramp has been slower than we projected.

But I asked you to look at our history.

Dustin Olson: Every time that we've taken a planned outage, the plant came back better. The challenges that we face today are principally out of commercial adoption timing, not commercial demand, not technology, not operations, not feedstock. Now we have the product, the production, and the pipeline. The conversion is happening, it's a matter of when, not if. When I take a step back, every year during my tenure has had its own theme. 2023 was about completing Ironton. 2024 was about making the plant work. 2025 was about technically qualifying our product, especially in the high-value parts of the market. In 2026, will be about the commercial ramp and selling out the plant. Our future is bright. We have a strong foundation, supported by tech and teams that know how to build.

Every time that we've said we've solved that—every time that we said we'd solve a technical problem, we have.

Every time that we've taken a planned outage, the plant came back better. The challenges that we face today are principally out of commercial—adoption timing. Not commercial demand. Demand. Not technology, not operations, not feedstock.

The conversion is happening. It's a matter of when, not if. When I take a step back, every year during my tenure has had its own theme.

2023 was about completing Ironton.

2024 was about making the plant work. 2025 was about technically qualifying our product, especially in the high-value parts of the market.

In 2026, it will be about the commercial ramp in selling out the plant.

Dustin Olson: The market opportunity continues to grow in front of us, and the company is ready to lead. With that, I'll turn it over now to our new CFO, Donald Carpenter, for the financial presentation. Thank you, Dustin. Our revenue goal is unchanged. Reach Ironton breakeven, then corporate breakeven. Revenue ramp has been delayed by customer adoption timing, but we've built and staged inventory for product launches later in the year. Core operations costs across Ironton, Denver, and corporate remain largely in line with prior guidance. I'll put more specifics around that on the next slide. On warrants, we have two series of warrants that were extended. The Series A, which represents 15.7 million of potential shares, and the public and private warrants that represent 5.7 million potential shares.

Our future is bright. We have a strong foundation supported by tech and teams that know how to build.

The market opportunity continues to grow in front of us, and the company is ready to lead.

With that, I'll turn it over now to our new CFO, Donald Carpenter, for the financial presentation.

Thank you, Dustin.

Our revenue goal is unchanged: reach arms and break even. Then corporate break-even revenue ramp has been delayed by customer adoption timing, but we built and staged inventory for product launches later in the year.

Core operations costs across Ironton, Denver, and Corporate remain largely in line with prior guidance. I'll put more specifics around that on the next slide.

Dustin Olson: We have obtained agreement with the Series A warrant holders to extend through 17 March 2027, at a reduced redemption price of $14.38 per share, representing approximately $205 million of potential proceeds. The public and private warrants have been extended for 3 months, with further details in the 8-K filed today. These represent approximately $68 million of potential proceeds. On capital structure, during Q4, we repaid $20.3 million of high-cost equipment finance debt and retired $9.8 million of principal on the Ironton bonds. We continue to spend on projects across Ironton, Thailand, Antwerp, and our Gen 2 development. On operations, we previously said ongoing operational and corporate cash burn were in the range of $8 to 9 million per month, and this was prior to significant feedstock and pre-processing costs.

On warrants, we have two series of warrants that were extended: the Series A, which represents 15.7 million of potential shares, and the public and private warrants, which represent 5.7 million potential shares. We have obtained agreement with the Series A warrant holders to extend through March 17, 2027, at a reduced redemption price of $14.38 per share, representing approximately $205 million of potential proceeds. The public and private warrants have been extended for 3 months, with further details in the—

8K file today.

These represent approximately $68 million of potential proceeds.

On capital structure, during Q4 we repaid $20.3 million of high-cost equipment finance debt, and retired $9.8 million of principal on the Irons and bonds.

We continue to spend on projects across Ironton, Thailand, and TWRP, and our Gen 2 development.

On operations, and as previously said, ongoing operational and corporate cash burns are in the range of $8 to $9 million per month. And this was prior to significant feedstock and tree processing costs,

Now that we're incurring more of these costs as iron and ramps, we're still trending within that range, with $24.5 million of operational and corporate costs for the quarter.

The incremental production-related costs have been offset by managing discretionary spend and capitalizing on efficiencies elsewhere in the organization.

Revenue timing reflects the customer adoption delays. I mentioned we currently expect improvement as Q2 product launches begin, converting our staged inventory.

The Debt Service line includes the non-recurring equipment lease payoff and bond retirement I referenced on the prior slide.

Looking ahead to 2026, we expect total project-related spend of $19 to $20 million, with $7 to $8 million for Ironton and related projects, primarily related to the on-site compounding project.

Dustin Olson: For full year 2026, total project-related spend is expected to be $39 million to $45 million, with $14 million to $16 million for Ironton, which includes costs of our planned shutdown in Q2 and completion of our on-site compounding project. The balance is spread across our growth projects, a majority of which remains discretionary. Q1 2026 debt service is expected to be approximately $11.1 million, which includes our semi-annual convertible bond interest payment and some equipment leasing payments. Regarding financing, we are excited about our prospects for project finance, given the progress we're making with both Ironton production and our future commercial ramp. Our first area of focus is on securing local financing for our Thailand project. The project data room is open with a large Thai bank. Critical side agreements with IRPC are in place. The EPCM contractor is advancing through final design and cost estimates.

The remaining $11 to $13 million is spread across our growth projects.

For the full year 2026, total project-related spend is expected to be $39 to $45 million, with $14 to $16 million for Ironton, which includes costs of our plant shutdown in Q2 and completion of our on-site compounding project. The balance is our growth projects, a majority of which remains discretionary.

Q1 2026 debt service is expected to be approximately $11.1 million, which includes our semiannual convertible bond interest payment and some equipment leasing payments.

Dustin Olson: In parallel, we are advancing discussions for our Antwerp project and finding a lot of synergies between the two efforts. Antwerp continues to be a strong project, as evidenced by our recent success securing the EUR 40 million EIF grant. Additionally, we have approximately $75 million of revenue bonds that we will look for opportunities to monetize. The warrant extensions preserve approximately $273 million of potential proceeds, and together with the revenue bonds and project financing I've described, give us multiple paths to fund the business through the ramp. With that, I'll turn it to the operators for Q&A. Thank you. At this time, we'll conduct a question and answer session. As a reminder, to ask a question, you'll need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

Financing for our Thailand project—the project data room is open with a large Thai bank, critical site agreements with IRPC are in place. The EPCM contractor is advancing through final design and cost estimates in parallel. We are advancing discussions for our Antor project and finding a lot of synergies between the two efforts, and work continues to be a strong project as evidenced by our recent success securing the €40 million EIF grants.

Additionally, we have approximately $75 million of revenue bonds that we will look for opportunities to monetize.

The WAR extensions preserve approximately $273 million of potential proceeds and, together with the revenue bonds and project financing I described, give us multiple paths to fund the business through the ramp.

With that, I'll turn it to the operators for Q&A.

Dustin Olson: Please stand by while we compile the Q&A roster. Our first question comes from the line of Hassan Ahmed of Alembic Global Advisors. Your line is now open.

Thank you. At this time, we'll conduct the question-and-answer session. As a reminder, to ask a question, you'll need to press *101 on your telephone and wait for your name to be announced. To withdraw your question, please press *1. Again, please stand by while we compile the Q&A roster.

Our first question comes from the line of Olympic Global Advisor. Your line is open.

Hassan Ahmed: Afternoon, Dustin. you know, I know you guys gave a lot of details in there. Clearly, a lot of moving parts around the commercial progress and ramp. you know, just wanted to dig a bit deeper into that. you know, maybe we can start off with a basic, sort of question, that the $40 to 50 million ramp that you're talking about for Q2/Q3, and then, you know, thereon after, sort of, you know, an incremental $20 to 25 million ramp. How much of that is, you know, for lack of a better way of putting it, forecasted versus contracted? you know, I just, you know, any further details around your conviction level and the shape of that ramp would be appreciated.

Dustin Olson: Yeah, Hassan, well, it's nice to talk to you again. Thanks for the question. Look, at the end of the day, we have very strong conviction on our commercial ramp. These things that we're doing right now are very hard. It's eluded recyclers for decades. We have a new technology with a new product, quite frankly, it just takes time to educate the market on our capabilities. Every time we have a technical success, it opens up the aperture for us to do more and more. Now, we've talked about the difficulty with predicting the specific timing. We know it's coming, we know it'll be asymptotic. It's not fully in our control. We see things like the number of customers shipping to, it increases. We see the revenue continuing to increase.

Afternoon, afternoon. Um, you know, I know you guys gave a lot of details in there. Clearly, there are a lot of moving parts around, um, the commercial progress and ramp. Um, you know, just wanted to dig a bit deeper into that. Um, you know, maybe we can start off with a basic, uh, sort of question that the $40 to $50 million ramp, uh, that you're talking about for Q2, Q3. Um, and then, you know, thereafter, um, sort of, uh, you know, an incremental $20 to $25 million ramp. How much of that is, you know, for lack of a better way of putting it, forecasted versus contracted? Um, you know, I just, you know, any further details around your conviction level and the shape of that ramp would be appreciated.

Yeah, that's fine. Well, it's nice to talk to you again. Thanks for the question. I—I look, at the end of the day, we have very strong conviction on our commercial ramp. Uh, these things that we're doing right now are very hard. Um, it's eluded recyclers for decades.

Um, we have a new technology with a new product, and quite frankly, it just takes time to educate the market on capabilities. And every time we have a technical success, it opens up the aperture for us to do more and more.

No, we—we've talked about the difficulty with predicting the specific timing. Uh, we know it's coming and we know it'll be as input, but, uh, it's not fully in our control.

Dustin Olson: We see the size of trial volumes continuing to increase. At the end of the day, you know, this thing that we're building is really a relationship between us and the customer, and, you know, we had to get the certifications, we have to show the LCA, we've got to do the trials. We've got to prove that Ironton can be reliable enough to give them the security and supply that they need. We've got line of sight in these applications. The volumes that you talked about are very good. We are in active discussions for both single year as well as multi-year contracts for those 40 to 50, as well as 20 to 30. We continue to see the technical successes mount with the film, pouches, wrappers, et cetera.

We see things like the number of customers shipping to it increases. We see the revenue continuing to increase. Uh, we see the size of trial volumes continuing to increase. At the end of the day, you know, this thing that we're building is really a relationship between us and the customer. And, you know, we had to get the certifications, we have to show the LCA, we've got to do the trials. Uh, we've got to prove that Ironton can be reliable enough to give them the security of supply that they need.

We've got line of sight in these applications. The the volumes that you talked about are are very good. We are an active discussions uh for uh both single year as well as multi-year contracts for those 40 to 50, as well as 20 to 30.

Dustin Olson: This thing that we did with TOPPAN, Hassan, is really important. I mean, if you do any research on CPGs, you'll find that there's a major consumer trend to move out of boxes and move into pouches, and I believe we're gonna be the only recycled company that can serve that market. The market was challenging last year, okay? I mean, like, in 2025, I think it's always easy to look in hindsight. I think that we would all agree to that. I think when you look back at 2025 objectively, you see massive distractions for everybody, for every company. The hangover on inflation, the tariffs, you know, Make America Healthy Again, focus on protein.

I believe we're going to be the only recycling company that can serve that market.

The market was challenging last year, okay? I mean, like,

You know 2025 I think I think it it's always easy to look in in hindsight. I think that we would all agree to that. I think when you look back at 2025 objectively you see massive distractions for everybody for every company.

Dustin Olson: I mean, all these things were real, and it just diverted the focus of the CPGs to something different. Instead of coming up with a cool new design for packaging, they were worried about reshoring, let's say, production in the US versus China. You know, I think that 2025 was a bit of a wake-up and a reset, but now what you hear is the CPGs are, like, dialing into growth in 2026. They're talking about how can they differentiate? There's only a few things you can do. I mean, you can change the formulation of what they're selling. That takes a lot of effort, a lot of work, but you can also change the packaging, and you can market better, and you can put more effort there, and that's what we're seeing.

And, you know, I—I think that

2025 was a bit of a wake-up and a reset, but now what you hear is CPGs are, like, dialing in to growth in '26.

Of what they're selling. That takes a lot of effort, a lot of work, but you can also change the packaging, and you can mark it better, and you can put more effort there, and that's what we're seeing.

Dustin Olson: I think from a practical perspective, Hassan, like, last quarter, we showed this packing tape, okay? It's a huge technical success. After the call, we got multiple inbounds from other tape producers that are interested in that product. We showed the coffee lid innovation, and now we have four new coffee lid companies in the pipeline. We talked about Toppan this time, and I suspect we're gonna get a lot of inbounds for the stand-up pouches because everybody wants them. No one's been able to solve the film wrapper issue. It's a single-use plastic with no recycled supply and no recyclability until PureCycle. We have products on the shelves right now. We're continuing to grow the pipeline. The applications are getting better, and our team is just doing a really good job of getting customers excited about our products.

I think, from a practical perspective, it's on.

like,

Last quarter, we showed this packing tape.

Okay, and it's a huge technical success. After the call, we got multiple inbounds from other tape producers that are interested in that product.

We showed the Coffee Lid innovation.

And now we have four new coffee lid companies in the pipeline.

Uh, we talked about Tappan this time, and I suspect we're going to get a lot of inbounds for the stand-up pouches because everybody wants them.

And no one's been able to solve.

Rapper.

It's a single-use plastic with no recycle supply and no recyclability until PureCycle.

So we have products on the shelves. Right now, we're continuing to grow the pipeline. The applications are getting better. And our team is just doing a really good job of getting customers excited about our products. So, you asked—I think the core question was, how much conviction?

Do we have an update about our commercial ramp? And it's, it's, it's very high.

Okay, we are very, very excited about the next few quarters. And where PureCycle is going to go, because this work that we're doing right now quite frankly sets the foundation for every new commercial activity that we do going forward, both in Thailand and Ansor, and our Gen 2 facilities down the road.

Dustin Olson: Yeah, I think you have to take a step back. First of all, I think New Jersey is doing a really good job. They're being extremely thoughtful. They're digging into the details of the space. If you think about it, and you reset 5 years ago, the terminology used 5 years ago is completely different than the terminology used today. For a regulator, gathering information, it's a lot of work to tease out all of the nuances associated with how to regulate a certain thing. What we know for a fact is that chemical recycling in the majority of these regions is out. They don't like the idea of plastic to fuel. They don't like the idea of ISCC plus credits, and they love the idea of plastic to plastic solutions.

Um, they're being extremely thoughtful; they're digging into the details of the space. If—if you think about it,

And you reset five years ago. The terminology used five years ago was completely different than the terminology used today.

And for a regulator gathering information, it's a lot of work to tease out all of the nuances associated with how to regulate a certain thing. What we know for a fact is that

Dustin Olson: You know, when you're interpreting the law written by regulators and trying to put it into practice, it takes a lot of education by us to the New Jersey Department of Environmental Protection as an example, and we've been doing it. The process is painstakingly slow. We understand that. We're making really good progress. I think we have a very good relationship with New Jersey. We have active dialogues with them. We meet face-to-face. I think it's really about progressing the education for this topic broadly. You know, in many ways, PureCycle and New Jersey are kind of at the point of the spear. We are leading the industry in terms of where we're going on recycled content, on our ability to do things.

Chemical recycling. In the majority of these, uh, regions is out. They don't like the idea of plastic to fuel. They don't like the idea of ifcc plus credits and they love the idea of plastic that Plastic Solutions. And, you know, when you're interpreting the law written by regulators and trying to put it into practice, it takes a lot of Education by us to the New Jersey Department of Environmental Protection as an example, and we've been doing it

The process is painstakingly slow.

And we understand that, but we're making really good progress. I think we have a very good relationship with New Jersey. We have active dialogues with them. We meet face to face, um, and, and I think it's really a, it's really about progressing the education for this topic. Broadly, you know, in many ways, PureCycle and New Jersey are kind of at the point of the spear,

Dustin Olson: New Jersey, you know, came out early and led in many ways, the recycled content rate, you know, legislation. I think that as these things get clarified and move forward, I think that it's going to provide a lot of clarity for our customers, but quite frankly, a lot of clarity for other regulators as well. Since then, though other regulators have come in, and like I mentioned, the APR certification's a really big deal. That means that we are considered recycled content in many other regions, and at the end of the day, we think that New Jersey will get to the same place. When that happens, you're right, there's a lot of demand that's out there ready to go.

Uh, we are leading the industry in terms of where we're going on recycler content, on our abilities to do things, and New Jersey, you know, came out early and

Bled in many ways, um, the recycled content, right? You know, legislation—

And so I think that as these things get clarified and move forward, I think that it's going to provide a lot of clarity for our customers, but quite frankly, a lot of clarity for other regulators as well. Since then, no other regulators have come in and, like I mentioned, the APR certification is a really big deal. That means that

We are considered recycled content in many other regions.

Dustin Olson: We'll get to New Jersey. We'll start working with those customers to get our product qualified in and ramping up into 2026.

And at the end of the day, we think that, uh, New Jersey will get to the same place, and when that happens, you're right, there's a lot of demand that's out there, ready to go.

Hassan Ahmed: Very helpful, Dustin. Just as a follow-up, you know, the Gen 2 design work, obviously seems very impressive. Just trying to get a better sense of what sort of key assumptions are behind achieving sub virgin, sort of cash costs, you know, maybe in terms of assumptions around energy, scale, yields, et cetera?

And we'll get to New Jersey, and then we'll start working with those customers to get our product qualified and ramping up into 2026.

Dustin Olson: Yeah, no, that's good. First of all, you know, we have the pleasure of operating a new technology at commercial scale in Ironton successfully. I've mentioned this on a couple of calls, that the technology in many ways is doing more with certain steps than what we expected. We've been able to take those learnings and leverage it into our Durham research facility, and really get down to the fundamentals of the technology and understand how we can scale it. In some ways, Hassan, there are pieces of equipment in the Gen 2 design that you only need to make a little bit bigger, and then in other parts of the process, you need to add parallel trains. The long result of this study indicates that, you know, our technology is very scalable.

Very helpful, good and just as a follow-up, um, you know, the, the Gen 2 design work. Um, obviously seems very impressive, um, just trying to get a better sense of what sort of key assumptions are behind achieving. Subversion, uh, sort of cash costs, you know, maybe in terms of assumptions around energy scale yields, Etc. Yeah, no that's good. So so first of all,

you know, we have

The technology, in many ways, is doing more with certain steps than what we expected.

And we've been able to take those learnings and leverage them into our Durham research facility, uh, and really get down to the fundamentals of the technology and understand how we can scale it. And in some ways, Hassan, there are pieces of equipment in the Gen 2 design.

That you only need to make a little bit bigger.

Dustin Olson: When you do that, then you're gonna end up scaling costs, reducing the CapEx per pound, and also, I'll speak to this in a second, the operational cost per pound also drops pretty dramatically. On the op costs, you know, and maybe the assumptions on yields, I'll remind you that our technology is a plastic to plastic solution. We have 100% or nearly 100% yield recovery on polypropylene. Our goal is to remove everything that's not polypropylene out of the streams and create co-product 1 and co-product 2. Our yield is very high, and our yield doesn't change as you scale. That's an enormous benefit that we have over other technologies. The same is true for operating costs.

And then another part of the process, you need to add parallel trains. But the, the long result of this study indicates that, you know, our technology is very scalable.

And when you do that, then you're going to end up scaling costs, reducing the capex per pound, and also—and I'll speak to this in a second—the operational costs per pound also drop pretty dramatically.

Um on the on the op cost, you know and and and maybe the assumptions on yields I'll remind you that our our technology is a plastic to plastic solution.

And so we have 100%, or nearly 100%, yield recovery on polypropylene.

Our goal is to remove everything that's not polypropylene out of the screens and create co-product 1 and co-product 2, and so our yield is very high.

And our yield doesn't change as you scale. That's an enormous benefit that we have over other technologies.

Dustin Olson: The reality is that many of the steps of our process require the same amount of people, only incrementally more energy and incrementally more steam to operate. Therefore, when you look at the overall dollars per pound that it's gonna cost to run this facility, the operating costs just get divided by a much bigger number, and that number is gonna drop significantly. What we're talking about feed plus a $0.35 per pound number for Ironton and feed plus a much lower number on our Gen 2 facility.

The same is true for operating costs. Then, the reality is that

Many of the steps of our process require the same number of people.

Um, only incrementally more energy and incrementally more steam.

To operate. And therefore when you when you look at the overall dollars per pound that it's going to cost to run this facility. The the the the operating costs just get divided by a much bigger number and and that number is going to drop significantly.

So what we're talking about, Feed plus,

Dustin Olson: Now, we're not releasing yet what we think that number will be, but if you, if you're talking about feed at $0.05 to $0.10 per pound, and then yield adjusted to $0.15 per pound, and you know, you start adding, you know, smaller numbers than 35 on top of that, you very quickly get to numbers that are below the virgin costs to produce polypropylene. Think about that, Hassan. I mean, you know, down the road, polypropylene is a growing market. It's a great polymer, and people are gonna use more and more of this as we go into the future. As that happens and people need to build new polypropylene facilities, what are they gonna build?

A a 35 Cent per pound number for Ironton and feed clubs are much lower number on our Gen 2 facility now we haven't, we're not releasing yet. What we think that number will be, but if you if you're talking about feed,

At 5 to 10 cents per pound, and then yield-adjusted to 15 cents per pound. And, you know, you start adding, you know, smaller numbers than 35 on top of that. Uh, you very quickly get to numbers that are below the virgin costs to produce, probably, probably. And think about that as a song. I mean,

You know, down the road, people—polypropylene is a growing market.

It's a great polymer, and people are going to use more and more of this as we go into the future, and so—

Dustin Olson: Are they going to build a traditional virgin polypropylene facility, or are they going to lean into a technology that's been proven at Ironton, and they can scale to big numbers that could potentially give them bigger margins than what they would have on the virgin side? We're very excited about where this takes PureCycle.

As that happens, and people need to build new polypropylene facilities, what are they going to build?

Are they going to build a traditional virgin polypropylene facility, or are they going to lean into a technology that is improving at Ironton? And can they scale the big numbers that could potentially give them bigger margins than what they would have on the virgin side? We're very excited about where the stakes are.

Hassan Ahmed: Super helpful, Dustin. Thank you so much for all the details.

Dustin Olson: Thank you, Hassan.

Operator: Thank you. One moment for our next question. Our next question comes to the line of Andres Sheppard of Cantor Fitzgerald, your line is now open.

Super helpful. Dustin, thank you so much for all the details. Thank you so much.

Thank you. One moment for our next question.

Our next question comes from the line of Andre Shepard of Cantor Fitzgerald. Your line is now open,

Hey guys. Uh, this is Nandon for Andre's. Congrats on the quarter and thanks for taking our questions, and Donald, congrats on the promotion to CFO. It sounds like you're making good progress on the Thailand debt financing with the data room now open. So I was wondering if you could give us an update on the latest developments there, and how do you see that project progressing?

Dustin Olson: Thanks, thank you for the kind words. I'm really excited about the opportunity. I'm also really excited about this particular project. We've made a ton of progress so far. We've put together a comprehensive data room. Our team and the banks team have been working collaboratively. We're meeting frequently. We're working through this project together. There's a significant amount of documentation that goes into a project financing of this scale. The critical agreements with our IRPC are in place. I'm really pleased with the progress on the site design and initial cost estimates thus far. Both teams are really excited and working hard on this. It serves a really critical need for Thailand. It's a strategic growth location for PureCycle.

Yeah, thanks. Uh, thank you for the kind words. I'm—I'm really excited about the opportunity, and I'm also really excited about this particular project.

We've made a ton of progress so far. We've put together a comprehensive data room, and our team and the bank's team have been working collaboratively. We're meeting frequently, and we're working through this project together.

Dustin Olson: I've been involved in several project financings over my career, and I'm really proud of the first what we've put forward with the bank. Just to follow on that, I mean, Donald brings up a lot of really good project finance experience, and I think that's gonna really set us up nicely for both Thailand and Antwerp and everything that we do in the future. I'd like to get back to a point that he made about Thailand. I mean, think about this, PureCycle could come into Thailand. When PureCycle comes into Thailand, we will fundamentally change their performance on plastic waste.

I mean, I mean, think about this.

Dustin Olson: That is such a compelling story, not only for us, because it's a great market and it's a great location, and we've got this great tax holiday and all these things we've talked about, but it's exciting for Thailand, too. Because, you know, Thailand, think about Thailand's core industry, it's tourism. Think about how negatively tourism can be impacted by plastic waste. I mean, in a way, there are a lot of existential benefits to Thailand by adopting a technology like ours, and we couldn't be more excited to get going there and get this project up and running. It's a great question, Anand.

But it's exciting for Thailand, too.

Because you know Thailand, think about Thailand's core industry—it's tourism.

Think about how negatively tourism can be impacted by plastic waste. I mean, in a way, there are a lot of

Thailand, by adopting a technology like ours. And we couldn't be more excited to get going there and get this project up and running. It's a great question, or not.

[Analyst] (Cantor Fitzgerald): Gotcha. Thanks for all that color. Maybe as a follow-up, you know, on the call and on the presentation, there was lots of great macro commentary on the TAM, whether it's cold beverages or cosmetics. I was wondering which verticals you see as the most promising with respect to your customer pipeline, whether it's automotive or snack bar wrappers, and what should investors be focusing on here?

Gotcha. Thanks for all that color, and maybe as a follow-up, you know, on the call and on the presentation there was lots of great macro commentary on the 10th, beverages or cosmetics, and so I was wondering which verticals you see as the most promising with respect to your customer pipeline, whether it's automotive, or snack bar wrappers, and what should investors be focusing on here.

Dustin Olson: I look, I think this is gonna develop over time. I think short term, we'll be heavily focused on closures and injection molded projects. These are very much in our wheelhouse. We've got a lot of experience, and those run really well. I think that what you'll see as we commission the phase two of compounding at Ironton and get that compounding facility up and running, you're gonna see a tremendous amount of benefit arise from that project into the thermoforming and film activities. Film and thermoforming have been very elusive for recyclers. It's just very difficult to do, and it's difficult to get the quality needed to make those projects.

Yeah, look, I think this is going to develop over time. I think short term we'll be heavily focused on closures and injection molded projects. Uh, these are very much in our wheelhouse. We've got a lot of experience in those, run really well. I think that what you'll see as we commission the Phase 2 of compounding at Ironton and, uh, get that compounding facility up and—

Dustin Olson: I think that while short term, we'll be focused on something a little different. I think that we're really gonna grow into this concept of thermoforming and film, and I think that's gonna be an extremely strong market for us because not many people can participate in it, and it's one of the largest growing segments on the macro side.

Running, you're going to see a tremendous amount of benefit arise from that project into the thermoforming and film activities. Film and thermoforming have been very elusive for recyclers. It's just very difficult to do, and it's difficult to get to the quality needed to make those projects. And I think that while short term we'll be focused on something a little different, I think that we're really going to grow into this concept of thermoforming and film. And I think that's going to be an extremely strong market for us because not many people can participate in it, and it's one of the largest growing segments on the macro side.

[Analyst] (Cantor Fitzgerald): Got it. Thank you, guys, for the color. I'll pass it on.

Got it. Thank you, guys, for the color. I'll pass it on.

Dustin Olson: Thanks, Anand. Have a good night.

Thanks, and have a good night.

Operator: Thank you. One moment for our next question. Our next question comes to the line of Gerry Sweeney of ROTH Capital. Your line is now open.

Thank you. One moment for our next question.

Gerry Sweeney: Good afternoon, guys. Thanks for taking my call.

Our next question, Crystal Lyne of Cherry Sweeney of Ross Capital, your line is now open. Uh, good afternoon, guys. Thanks for taking my call.

Dustin Olson: Thanks, Gerry. Good to see you again.

Gerry Sweeney: Yep. Listen, when we look at everything, it sounds like, and I caught some of this on the call. When you're engaged with brands and you sell to brands, it sounded as though they're looking for a couple things. Obviously, one was reliability, which I picked up. I think I picked up on your prepared remarks. Two, you have brand testing of the product. You know, it feels as though the brands are getting more and more confident. One, they can see what's happening at Ironton, reliability is increasing, and two, going through the brand testing. Is this sort of path forward, is this an accurate assessment as to what's happening today?

Thank you, Jerry. Good to see you again.

Yep. Um, listen, I—I, when we look at everything, it sounds like, and I caught some of this from the call, when you're engaged with brands and you sell them brands—

It sounds as though, um, they're looking for a couple of things. Obviously, one was reliability, which I picked up—I think I picked up on your prepared remarks—and two, you have brand, uh, testing of the product, you know?

Dustin Olson: Yeah, I think so. I mean, I think both of the things that you just mentioned there are very true. Ironton operating better and better every day has given confidence to brands. There's no doubt about that. I mean, we routinely have tours out to the plant, and people always leave very impressed. I think on the testing side, I think the more experience that we get testing and qualifying different products... I mean, it's very simple. It's like we have things in our hand that we can show people, okay?

It feels as though the brands are getting more and more confident. One, they can see what's happening in Ireland, and reliability is increasing. And two, going through the brand testing. So is this sort of path forward— is this an accurate assessment as to what's happening today? Yeah, I think so. I mean, I think both of the things that you just mentioned there are very true. Ironton operating.

Dustin Olson: When we make film and we print on film, we can hand people a piece of film and say, "See what we can make?" Then people can immediately connect to it, and I think that reduces the hurdle for getting started with the different applications. I think both of those are very true, but I don't wanna understate just the methodical nature of brands going through this process. I mean, we can't control it, but we've gotten very good at answering their questions because a lot of the questions are repeat over and over and over. They're very methodical. I mean, a brand has built an entire lifetime building that reputation.

Um, so I I I think both of those are very true but I I don't want to under understate, just the methodical nature of Brands going through this process. I mean, we can't control it um but but but we've gotten very good at answering their questions because a lot of the questions are repeat over and over and over.

Um, but they're very methodical. I mean, a brand has built an entire lifetime.

Dustin Olson: In order to make a change, that brand has got to feel really good about who they're partnering with. That's why we focus so much our comments around the trust built between supplier and customer. I mean, there's relationship building, there's product quality building, there's all these components. Like, there's 20 different steps or more that you have to go through to get to a yes on a customer like this. It just takes time. Look, from an outside looking in? Also from the inside looking in, it's very frustrating. It takes time. But if you lift your head up and you see the progress that you've made, you realize that you're really starting to make some pretty big strides with big brands that are excited about where you are.

Building that reputation. And so, in order to make a change that brand has got to feel really good about who they're partnering with. That's why that's why we focus. So much our comments around the trust built between supplier and customer. I mean there, there's, there's relationship building, there's product quality buildings. There's, there's all these components like there's, there's 20 different steps or more, that, that you have to go through to get to a yes on a customer like this and and it just takes time. And and, and look from an outside looking in.

And also, from the inside looking in, it's very frustrating. It takes time.

Dustin Olson: I think these are foundation-laying type things that are going to be very good for us for a long, long time.

Gerry Sweeney: Pardon me. In that respect, does this process really help you kind of, for lack of a better term, crack the code, speed up additional opportunities going forward?

If you lift your head up and you see the progress that you've made, you realize that you're really starting to make some pretty big strides with big brands that are excited about where you are. And, and I, and I, and I think these are foundation-laying type things that are going to be very good for us for a long, long time.

Um, pardon me. Uh, in that respect, um,

Dustin Olson: The answer to that is 100% yes. It doesn't eliminate the need for every single brand to go through some qualification process on their side.

Does this process really help you kind of, for lack of a better term, crack the code and speed up additional opportunities going forward?

Uh, the answer to that is 100%. Yes.

Gerry Sweeney: Sure.

Dustin Olson: I mean, the reality is that when we get into a lot of the techy stuff like, contaminant removals and contaminant value, you know, validations and things like that, we perform very, very well, and we're stacking a database that we can show customers a trend line that says, "Wow, you really pass all of these different things in a good way." That kind of data is based on history, and it gives brands immediate confidence in what you're doing. They still want to test it on their machines, and they still want to make sure it looks right on their material, they're going to do some of their own testing.

Dustin Olson: Every time we do something, we prove that we can do it, and then the brand gets comfortable with it, and the next brand coming in has a bit of a shorter ramp to get started with it.

But it doesn't eliminate the need for every single brand to go through some qualification process on there. Sure sure. I mean, the the reality is that when we get into a lot of the techy stuff, like a contaminant removals and contaminant value, you know, validations and things like that, we perform very, very well and we're stacking a database that we can show customers a trend line. That says, wow, you really pass all of these different things in a good way, that that kind of data is based on history and it gives Brands immediate confidence in what you're doing. But, but then they still want to test it on their machines. And they, they still want to make sure it looks right on their on their material. And so they're going to do, they're going to do some of their own testing, um, but but every time we do something, we proved that we can do it and then the brand gets comfortable with it, and the next brand coming,

It has a bit of a shorter ramp to get started with it.

Gerry Sweeney: One more quick question. The Ironton, I'm not going to call it an outage. I'm going to call it a turnaround. Sounds like you have a lot of confidence in uptick in utilization post-turnaround. I mean, are there a line of sights to a couple of things that you can fix, implement, that gives you confidence on that uptick?

1 more quick.

Uh, the iron tan. I'm not going to call it an outage. I'm going to call it.

so,

sounds like yeah, you have

Dustin Olson: I mean, look, this is a very traditional turnaround. You know, when we first built this company, we had an expectation to do 1 per year for 30 days a year. Actually, last year, we didn't have to do 1, which I think bodes well for the future in terms of how often will we need to do this. Look, I think we're going to do a whole lot of stuff that's very normal, very easy, and then we're going to do a few things that are very exciting, okay? You know, there's anytime you run a facility for a couple of years in a row, and we've been running very steady. You know, we obviously have our ups and downs. Reliability continues to improve, like, by and large, this plant is up and running, full time.

Dropped it in, in uptick in utilization, uh, post-turnaround. And are there line of sights to a couple things that you can fix, implement that gives you confidence on that, uh, uptick?

Yeah, I mean, look, this is a very traditional turnaround. Um, you know, when we first built this company, we had an expectation—we’d do one for a year, for 30 days, and years. Actually, last year, we didn’t have to do that, which I think bodes well for the future in terms of how often will we need to do this?

Dustin Olson: When you do that, there's just certain pieces of equipment that you can't get to because it's running, you have to take it out as you do it. There's a lot of simple things like instrumentation replacements and instrumentation upgrades. I think the most important thing about this outage really is the data that we collected when we did our two test runs. We did a test run at 12.5, we did a test run at 14, both of those gave us insight into constraints that we see in the facility. I, you know, we're going to attack those items. We're going to get the plant back up and running, we're going to push the plant to higher water marks.

Um look I I think we're going to do a whole lot of stuff. That's very normal, very easy. Uh and then we're going to do a few things that are very exciting. Okay. Um, you know, there, there there's anytime you run a facility for a couple of years in a row, and we've been running very steady. You know, we we obviously have our ups and downs, reliability continues to improve, but like by and large is plants up and running, uh, full time and and when you do that, there's just certain pieces of equipment that you can't get to.

Uh, because it's running, you have to take it out as you do it. So there's a lot of simple things like instrumentation, replacements, and instrumentation upgrades, but I think the most important thing about this outage really is the data that we collected. When we did our two test drives, we did a test run at 125, we did a test run at 14, and both of those.

Gave us insight into constraints that we see in the facility.

And I, you know, we're going to attack those items. We're going to get the plant back up and running, and we're going to, we're going to push the plant to higher watermarks. And as we do that, we'll learn more, we'll do more, we'll grow more, and we'll continue building that into our operations at Ironton.

I I'm I'm really excited about the, the turnaround. As you call it, we call it that as well. I'm excited about it because every time you get to open the equipment, look inside, learn more about what your technology is doing. It's, uh, it just makes you better as a core team. And, and I'm very confident that uh, we're going to come out of this outage and and the uh with with with a much with a much better facility than we've got right now.

Gerry Sweeney: Gotcha. I appreciate it. I'm losing you.

Gotcha. I appreciate it. I'm losing you.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Jeffrey Campbell, Seaport Research Partners. Your line is now open.

Thank you. One moment for our next question.

Our next question comes from Jeffrey Campbell with C. Port Research Partners. Your line is now open.

Jeffrey Campbell: Good afternoon. Thanks for the wealth of details on the call today. Much appreciated. Dustin, I don't want to gild the lily, but my understanding is that there is no other PP recycling method, including chemical recycling, that is qualified for BOPP applications to cycles level. Just to confirm, when you're talking about thermoforming and the compounding capabilities that you're going to develop this year as a long-term driver, this is related to PCT's BOPP technical capabilities, correct?

Uh, good afternoon, and uh, thanks for the wealth of details. And the call today is much appreciated. That's— I don't want to gild the lily, but my understanding is that there is no other DP recycling method, including chemical recycling, that is qualified for BOPP applications to recycles level. So just to confirm, when you're talking about thermoforming and the compounding capabilities,

You're going to develop this year as a long-term driver. Uh, this is related to PCT’s BOPP technical capabilities, correct?

FCC plus credits. Those things are in a different category, because most customers prefer plastic-to-plastic, not a mass balance solutions or plastic-to-fuel solutions.

When it comes to our ability to do bopb, I—I—I think we stand alone in the market right now.

Okay, um, whenever you make BOPP, the simplest way to think about it is: imagine taking a, uh, a piece of plastic and stretching it really, really, really thin. So it can turn into one of the seven layers on a chip bag or, uh, you know, one of the layers that covers up meat packing or something like that. It's really thin.

If you have any contaminants in that pellet,

Dustin Olson: Yeah, I mean, what we're finding is that because our purification technology purifies at the molecular fundamental level, we're able to remove solids, ash, colors, and other contaminants to a level that just works on BOPP. This isn't theoretical anymore. You know, a couple of quarters ago, we talked about Brückner on a small pilot line. Well, since we had the Brückner success, we've been doing it on an industrial scale. We've got, I think, two or three industrial line size success trials that have worked really well. These are on big machines. I mean, these are like 6.3 meter machines that are making film with our product, and that is cool. It's super exciting, and I think it's gonna be the future for us.

Whenever you start to stretch it, it adds blemishes; it can add, like, little pimples that will look like stretch marks. It'll add problems in the operation to where it could break when they're running it. All these things are real concerns for VOP producers. And as a result of that, um,

Yeah, I mean, what we're finding is that because our purification technology

Purifies at the molecular fundamental level. We're able to remove solids, ash, colors, and other contaminants to a level that just works on BOPP, and this isn't theoretical anymore. You know, a couple of quarters ago, we talked about Bruckner on a small pilot line. Well, since we had the Bruckner success, we've been doing it on the industrial scale. So we've got, I think, two or three, maybe three or four industrial line-size success trials that have worked really well. And these, these are on big machines. I mean, these are like 6.3-meter machines that are making film with our product and—

And that is cool. It's super exciting, and I think it's going to be the future for us.

Jeffrey Campbell: Great. When you think about the percentage of recycling that states are increasingly requiring, are they specifically requiring certain plastic types, or are these sort of broad statements of the amount of recycled content they want to have and survive that?

Uh, when you speak about the percentage of recycling that states are increasingly requiring, are they specifically—

Dustin Olson: Yeah, that's a good clarification question, Jeff. The answer is kind of both. I mean, if you look at that slide, we mentioned the percentage, but there's a small note below it that says those percentages apply to lots of different things. In some cases, they apply to specific categories of plastic, like PP or PE or PET. In other cases, it applies to specific types of applications, like rigids or bottles or something like that. You really have to dive into the details. I will tell you that we've done a lot of research on the regulatory front. I think we're getting smarter here. It's a very dynamic market that's very nuanced, but we're learning more and more about it every year.

Requiring certain plastic types, or the sort of broad statements of the amount of recycled content they want—however it's arrived at—yeah, that's a good clarification question, Jeff. Um, the answer is kind of both. I mean, if you look at that slide, we mentioned the percentage, but there's a small note below it that says those percentages apply to lots of different things. In some cases, they apply to specific categories of plastic, like—

PP, or 'pee,' or PET. Uh, in other cases, it, it, it applies to specific types of applications, like rigid or bottles, or something like that.

Dustin Olson: I think that the general trend is 2 things: one, broadly speaking, regulations fall into 2 buckets. One is recycled content, and the other is EPR. 2, it's coming, okay? Like, the regulations are real, and they're coming, and in many ways, they're coming faster in the US. I mean, everybody talks about Europe, and the PPWR is really coming in Europe for 2030, and our Antwerp facility is gonna be online just in time for that, which is gonna be great for brands over there. Actually, states are leading quite a lot, and we're starting to get a lot of inbounds from customers on how to handle different regulations that are coming. The SB 54 in California is a very real thing, and a lot of times California regulates, and the country moves that direction.

Um, and so you really have to dive into the details. I will tell you that we've done a lot of research on the regulatory front. I think we're getting smarter here. It's a very—it's a very dynamic market that's very nuanced, but we're learning more and more about it every year. And I think that the general trend is two things. One,

Broadly speaking, regulations fall into two buckets. One is recycled content, and the other is EPR.

Uh, and 2, it's coming.

Okay, like the regulations are real and they're coming, and in many ways, they're coming faster in the US. I mean, everybody talks about Europe, and the PWR is really coming in Europe for 2030. And our answer for facilities is going to be online just in time for that, which is going to be great for brands over there.

Dustin Olson: We saw that with fuel standards, you know, a decade and a half ago, and, you know, we could see that happening here as well. I think that we're well suited for the future.

Um, but actually, states are leading quite a lot, and we're starting to get a lot of inbounds from customers on how to handle different regulations that are coming. The SB54 in California is a very real thing. A lot of times, California regulates and the country moves that direction. Uh, we saw that with fuel standards, you know, a decade and a decade and a half ago. And, you know, we could see that happening here as well. And I think that we're well suited for the, um,

For the future.

Jeffrey Campbell: The reason I asked the question is because I wondered, aside from different categories of plastic and so forth, is there any notion of circularity versus the reality of mechanical recycling, that it gets recycled five or 10 times, and then it becomes a card patch? Are you hearing any discussions of that when you're working with the regulators?

The reason I asked the question is because I wondered if, aside from

Different categories of plastic and so forth. Is there any notion of circularity versus—

The reality of mechanical recycling is that it gets recycled five or ten times, then it becomes a park bench. So, are you hearing any discussions of that when you're working with the regulators? I would say that the concept of circularity is there in principle. I would say it's not legislated to this point just yet. Um, definitely people are looking for circularity.

A couple of things to point out on that, though.

Can buy over and over. That is New Jersey becoming circular, and they're super excited about it, as are we.

um,

the uh,

The, the other point on, on the recycle content is that uh, with respect to the circularity is, you know, Brands definitely value that. And and so we get a lot of inbound questions about feed stocks, uh, you know, can we use this feed stock and then make it back into a product that they can buy? Again, there's a lot of discussions there, it's just not at this point, it's not legislated in

Jeffrey Campbell: Yeah, well, it's not surprising 'cause you're the only ones that can do it. My last question is kind of a one that I get a lot from investors, and I just kind of wanted to give you a chance to put your two cents in. You know, we continue to see PET recyclers pulling back on production and even shuttering facilities in the US and the EU. Can you help investors understand why demand for PET recycled PP will continue to grow, while recycling of other types of plastics appears to be languishing?

Yeah. Well, it's not surprising because you're the only ones that can do it. But, um, my last question is kind of one that I get a lot from investors, and I just kind of wanted to give you a chance to put your two cents in. You know, we continue to see recyclers pulling back on production and even shuttering facilities in the US from the—

Can you help investors understand why demand for pizza CTS recycled TP will continue to grow while recycling of other types of plastics appears to be languishing?

Yeah, it's because we make a premium product.

Okay, a lot of the recyclers, uh, you know, they're struggling in economic times like this because they sell a product that

Uh, competes with Virgin or sells at a discount diversion, and it's difficult to make money there. I think that you have to have a differentiated product, which we do, and so I feel really good about our technology in the long run for a couple reasons. One, I mean, as this dynamic begins to emerge, I think that you're going to start to see downward movement in feedstock pricing. That's good for us. Uh, I think that as we add compounding,

Dustin Olson: That's very exciting from both a margin perspective as well as overall, you know, system perspective. The more and more that we do to qualify different product applications, which, I mean, we're doing it in spades. I mean, we're qualifying new things all the time. I think it just gives us more optionality on the offtake side, okay? Our supply to customers will be limited, okay? We don't have an infinite amount of supply for all the customers that want our material out of Ironton. The more that we can do to create optionality for where we choose to sell our product, which will ultimately depend on where did we get qualified and who wants it the most, is gonna drive that overall supply picture.

To our capability. We're going to start to monetize the value of the co-products that come out of the feed and get better value out of that. That's very exciting from both a margin perspective as well as, oh, overall, uh, you know,

System perspective. And then

The more and more that we do to qualify different product applications—which, I mean, we're doing it in space—I mean, we're qualifying new things.

All the time.

I think it just gives us more optionality on the, uh, on the offtake side. Okay. I mean,

We will, our supply to customers will be limited.

Okay, uh, we don't have an infinite amount of supply for all the customers that want our material out of Irons.

And so, the more that we can do to create optionality for where we choose to sell our product,

Dustin Olson: I think that the technical qualification that we're doing is just opening that up to give us a lot of flexibility for where we go in the future.

Which will ultimately depend on, where did we get qualified? And who wants it? The most uh, is, is, is going to drive that overall Supply picture and I and I think that the the technical qualifications we're doing is just is just opening that up to give us a lot of flexibility before we go in the future.

Jeffrey Campbell: Okay, great. Thank you. I appreciate it.

Dustin Olson: Thanks, Sean.

Okay, great. Thank you. I appreciate it.

Operator: Thank you. One moment for our next question. Our next question is the line of Eric Stine of Craig-Hallum Capital Group. Your line is now open.

Thank you.

Thank you. One moment for our next question.

Our next question comes from the line of Eric Stein of Greyhound Capital Group. The line is now open.

[Analyst] (Craig-Hallum Capital Group): Hey, this is Luke, on for Eric. Thanks for getting our questions in here. First, is there a timeline for when you might finalize the site for your Gen 2 facility? I know Thailand was mentioned in the past as a potential suitor since it's a really appealing market. Could you just talk about some of the factors that are going into this decision?

Dustin Olson: Yeah, I mean, I think the first step is for us to really get a good handle on the overall technology for Gen 2 and then the cost position for Gen 2. I think that we're getting better at that, but we still have more work to do. I don't wanna get too far ahead of it because there's work that we need to do to finish that up. You know, look, we're very excited about Augusta. Augusta has been a good partner for us in Georgia. That's a really nice site, and we can build the facility there. We've been very public about that, Gen 2 going there first. Look, I think that...

um,

I, I look, I think that

Dustin Olson: I think that every site that we've announced in the past is a good location for a Gen 2, okay? Where the first one goes, that's open for discussion right now. We are very excited about the Augusta facility. You mentioned Thailand. Honestly, I think that's a great location, too. We're finding lots and lots of opportunities on the feedstock side to fill that facility. I think the integrated Brownfield opportunities there will help us on overall CapEx efficiency. One of the interesting things that will happen, I didn't speak to this on the call, but one of the things that will happen is actually the footprint required for a Gen 2 at 500 million, it's not even that different than a footprint for Ironton. It's a little bit bigger.

I—I think that every site that we've announced in the past,

Like the the more efficient you get with building Gen 2 and upsizing that equipment actually, the more capacity you can put on each side. And so when we talked about Augusta hosting, you know, 8 lines, you know, you know, I I think it'll be able to do 8 lines, potentially 8, 102 lines, we have to work the math but I I think that with Augusta answer Thailand and also with our partners up in Japan with mitsui and Company. I mean, all of those sites are perfect.

For expanding into. And I think that you'll naturally see, uh, uh, start to do that with the Gen 2s in the future.

[Analyst] (Craig-Hallum Capital Group): Got it. That's helpful. Thanks. Just as a quick follow-up here, what are your plans for prioritizing which customers will get capacity at Ironton, since you really only need a small percentage of the pipeline that you're engaged with to fully scale before you're booked out?

Dustin Olson: Yeah, I mean, look, I mean, we're evaluating that. I mean, quite frankly, we'll fill in the pipeline first, sell it up, and then we'll make that sell it out, and then we'll make that decision. I think we have a lot of flexibility. What I can tell you is we're leaving ourselves open on contract flexibility. We don't want to get baked into a long-term contract that could, you know, restrict us in the future, and so we'll be able to optimize that over time. Typically, polypropylene contracts are one year at a time, and then you renegotiate. I think that as we build the flexibility, we're gonna have the ability to optimize that over time.

Yeah. I mean, look, I mean, we're evaluating that. I mean, quite frankly, we're filling the pipeline first—fill it up, and then we'll make that, uh, sell it out, and then we'll make that decision. I think we're going to have a lot of flexibility. What I can tell you is we're leaving ourselves open, uh, on the contract flexibility. We don't want to get, uh, baked into a long-term contract that could, you know, restrict us in the future. And so, we'll be able to optimize that over time. Typically, polypropylene contracts are one year at a time, and then you renegotiate, and, um, I—I think that as we build the flexibility, we're going to have the ability to optimize that over time.

[Analyst] (Craig-Hallum Capital Group): Great. Thank you.

Dustin Olson: Thanks, Luca.

Great. Thank you.

Thanks Luca.

Operator: Thank you. This concludes the question and answer session. I'll now turn it back to CEO, Dustin Olson, for closing remarks.

Thank you. This concludes the question and answer session. I will now turn it back to CEO Dustin Olson for closing remarks.

Dustin Olson: Look, I appreciate everybody dialing in on a late day today. We've had a lot of prepared remarks. I know there's a lot that you're gonna have to go through. We are always very available for your questions, so sleep on it tonight, call us back tomorrow, and we'll do more. I think you can tell from our comments how excited we are and how confident we are about 2026. Buckle up, enjoy the ride. 2026 is gonna be a great year for PureCycle. Thanks, everybody.

Operator: Thank you for your participation in today's conference. This will conclude the program. You may now disconnect.

Thank you for your participation. In today's conference, this is the program. You may now disconnect.

Q4 2025 PureCycle Technologies Inc Earnings Call

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