PureCycle Technologies NASDAQ: PCT reported what management called its “strongest” business momentum to date entering 2026, pointing to production gains at its Ironton, Ohio facility, sequential revenue growth, and increased branded customer conversions during its first quarter 2026 corporate update call.
Operational progress at Ironton and turnaround execution
CEO Dustin Olson said Ironton produced 8.4 million pounds of PureFive resin in the first quarter, up 12% from the fourth quarter, while the company processed about 10 million pounds of feedstock input. Olson described both figures as evidence of continued scaling.
Olson also highlighted a planned Ironton turnaround that was completed ahead of schedule and tracking about 15% below budget. He said the outage was the first time the company had completed a turnaround early, and noted the facility had not undergone a full shutdown in two years. During the outage, PureCycle executed more than 170 projects aimed at capacity, reliability, and quality, and Olson said the plant was in “much better condition” than during the prior full shutdown.
Among the projects, Olson pointed to the replacement of a “critical seal system,” which he said is expected to “materially improve reliability going forward.” He also said the company upgraded an undersized pump, addressed heat integration constraints, cleaned heat exchangers, and implemented seal improvements that required an outage to complete. Looking ahead, Olson said the company expects to increase rates coming out of the outage, while emphasizing the need to test stability as changes are introduced. He referenced prior rate tests that “touched 12,000 lbs an hour” and “14,000 lbs an hour,” which he characterized as roughly 75% and 90%-95% capacity, respectively.
In addition, PureCycle said its on-site compounding unit reached mechanical completion in April and is now being commissioned. Olson called compounding strategically important for serving customers in film and thermoform applications with “application-ready” product while reducing reliance on third parties. He said the “unit economics for compounded product are more attractive than the base resin,” and third-party compounding volumes ramped to about 1.7 million pounds in the quarter with “significant month-over-month growth.”
Commercial traction and expanding pipeline
PureCycle reported $4.1 million in revenue for the quarter, which Olson said marked the fifth consecutive quarter of sequential growth and came in above budget. He said branded mix increased “meaningfully” and that branded pricing was “robust and above internal targets.” The company converted eight new customers across multiple product categories in the quarter, according to Olson.
Olson said the company expects shipments in the current quarter to Procter & Gamble and discussed progress with Plastic Ingenuity for coffee lids. He described coffee lids as “commercial with multiple customers” and said the product can be offered with 25% to 100% PureFive Ultra resin depending on customer needs. Olson also said PureCycle completed its “first international sale” in the first quarter, describing an initial purchase of more than 300,000 pounds of PureFive Choice resin that will be used to produce over 3 million items, with discussions ongoing around additional applications.
PureCycle’s pipeline grew to about 180 active opportunities, up from more than 170 at year-end and roughly 100 a year ago, Olson said. During the Q&A, Olson described activity across film, thermoform and injection applications, saying the company is “trialing with virtually all the film producers in the U.S.” and noted progress on cavitated film and sealant film. He also discussed “impact grades” for applications such as butter tubs, cream cheese, and yogurt, describing the value of being a “drop-in replacement for virgin.”
On the timing of commercial ramp, Olson said “Q1 and Q2 look largely the same,” with “Q3 and Q4” expected to ramp in volume and revenue, though he cautioned that timing depends on customers’ processes and qualification timelines.
Procter & Gamble qualifications and quality milestones
Olson described PureCycle’s relationship with Procter & Gamble as “strong” with accelerating activity, and said the company achieved final approval for commercialization of two applications. According to Olson, Tide Caps for select bottles will begin shipping in the second quarter, while Vicks ZzzQuil caps are expected to follow in the second half of 2026. He added that PureCycle is also in qualification with three additional applications.
Olson said Procter & Gamble’s qualification process “took longer than anticipated” due to the company’s “exacting” standards, but argued that meeting those standards provides broad validation and could speed up future approvals across the brand portfolio.
PureCycle also said it achieved the highest purity grade through CosPaTox testing, which Olson described as a voluntary standardized safety evaluation for post-consumer recycled (PCR) content in cosmetic products and detergent packaging. Olson said the milestone was the result of collaboration with Procter & Gamble using samples from Ironton, and that PureCycle is the “first recycler” to achieve the top grade—meaning the resin is “pure enough for leave-on cosmetics,” in his words.
Macro and regulatory tailwinds highlighted
Management pointed to what Olson characterized as a more favorable macro environment versus 2025. He said disruptions to global petrochemical supply chains improved co-product pricing, reinforced the value of a domestic supply source, and increased urgency among brands and converters seeking compliant alternatives. Olson said virgin polypropylene prices rose roughly $0.25 to $0.35 per pound in the U.S. and $0.35 to $0.55 per pound in Asia and Europe, while PureCycle’s feedstock—domestic waste polypropylene sourced from “more than 15 U.S. suppliers”—is “independent of these disruptions.” He also said HDPE prices “have roughly doubled,” which he said would improve co-product pricing dynamics.
On regulation, Olson said California finalized SB 54 regulations earlier in the month, with a 10% source reduction requirement by 2027 that is “only seven months away,” followed by increases in later years. He said PureFive resin qualifies as recycled content under SB 54 due to the company’s APR certification, and management said it is seeing increased urgency among brands and converters. Olson also discussed New Jersey’s move to 20% minimum recycled content in 2027 and the end of a temporary food contact exemption in January 2027, noting that both California and New Jersey have excluded mass balance from recycled content definitions. Olson said volume contingent on New Jersey approval has increased to 25 million to 50 million pounds and that two large brands have progressed “as far as they can” in qualification without regulatory clearance.
Asked about New Jersey timing, Olson said discussions remain active and “going in the right direction,” but did not provide a specific date, adding that the company believes the matter “will close soon.” He also cited other states with existing or developing legislation, including Washington, Oregon, Massachusetts, Colorado, and New York.
Financial results, liquidity, and financing plans
CFO Donald Carpenter said the company is introducing operational KPIs alongside financial results, including measures for feedstock processed, purified production, and “other production” that includes co-products. Carpenter said year-over-year production grew about 95% while monthly operation spending grew 6%, which he said reflects emerging operating leverage as higher throughput runs through a largely fixed cost base.
PureCycle reported a net loss of $33.4 million for the first quarter, compared to net income of $8.8 million in the year-ago quarter. Carpenter said the prior-year period included a $56.7 million favorable change in the fair value of warrants. Adjusted EBITDA was negative $30.9 million, compared to negative $25.5 million in the first quarter of 2025, driven primarily by about $3 million of higher project development costs running through the income statement. Carpenter said adjusted EBITDA included about $7 million of project development costs expensed through the P&L, including professional services, project team labor, and facility costs tied to Thailand, Belgium, Augusta, and preparation development activities.
Liquidity at quarter end was about $131 million, including $90 million in cash and equivalents, about $31 million in marketable securities, and $10 million in restricted cash, compared to about $182 million at the end of the fourth quarter. Total operation spending was about $8.8 million per month in the quarter, within the company’s $8 million to $9 million expectation. Carpenter said the quarterly total of $27.4 million included a $1.3 million annual incentive compensation payout, and he noted second-quarter items including Ironton turnaround spend and a scheduled SOPA bond debt service payment of about $9 million on June 1, with flexibility to monetize SOPA bond holdings to offset outflow.
Project spend totaled about $14 million in the quarter, below the company’s $19 million to $20 million expectation due to timing, according to Carpenter. Full-year project spend expectations of $39 million to $45 million were unchanged, and Carpenter said most remaining project spend is discretionary.
On capital access, Carpenter said PureCycle extended its public and private warrants to March 17, 2027 and lowered the redemption trigger price to $14.38 per share, aligning them with Series A warrants and representing about $273 million in total potential proceeds through that date. He also pointed to an undrawn $200 million revolving credit facility available through September 2027 and about $75 million in revenue bonds available to monetize. Carpenter added that equipment financing payments are expected to step down in the second half of 2026 as leases mature.
For growth projects, Olson said the Thailand facility remains on track for mechanical completion by the end of 2027, commissioning in the first quarter of 2028, and production in the second through fourth quarters of 2028, with construction expected to break ground in the second half of 2026 and total investment expected at around $250 million. Carpenter said discussions with a local Thai bank are progressing, supported by a “comprehensive data room,” with weekly dialogues and review feedback. Olson said the Belgian facility timeline remains unchanged, and he noted the company finalized documentation in April for a EUR 40 million European Innovation Fund grant tied to the project.
About PureCycle Technologies NASDAQ: PCT
PureCycle Technologies, Inc operates as a recycling technology company focused on restoring waste polypropylene to a “virgin-like” state through a proprietary purification process licensed from Procter & Gamble. The company develops, owns and operates recycling facilities that convert used polypropylene feedstock—such as packaging and industrial plastics—into ultra‐pure recycled resin. This resin, known as Qualified Recycled Polymer (QRP), is designed to meet stringent quality specifications for applications in packaging, consumer goods and industrial products.
Headquartered in Orlando, Florida, PureCycle was established with technology development efforts dating back to licensing agreements in the mid-2010s and later spun off as a publicly traded entity in 2021.
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