Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Revenue rose 28% YoY in Q2 2025 to USD 95.3 million, led by semiconductor and bismuth sales.
  • Adjusted EBITDA grew 79% YoY to USD 24.1 million in Q2FY25.
  • Annual Adjusted EBITDA guidance increased to a range of USD 65 million to USD 70 million.

5N Plus Inc. (TSX:VNP) reported record financial results for the second quarter ended June 30, 2025, with significant YoY growth across revenue, margin, and profitability metrics. The company also raised its full-year Adjusted EBITDA guidance, citing favorable momentum in both its Specialty Semiconductors and Performance Materials segments.

Second quarter revenue reached USD 95.3 million, up 28% from USD 74.6 million in the prior-year quarter, driven by higher sales volumes in the terrestrial renewable energy and space solar power sectors and improved pricing in bismuth-based product lines. This brought first-half 2025 revenue to USD 184.2 million, a ten-year high.

Adjusted EBITDA for Q2 2025 was USD 24.1 million, a 79% increase over USD 13.5 million in Q2 2024. This was largely attributed to improved volume and pricing dynamics across both core business segments. Adjusted gross margin rose 41% YoY to a record USD 33.0 million, representing 34.6% of sales, compared to 31.3% in the same period last year.

Net earnings in the second quarter were USD 15.2 million, up from USD 4.8 million a year earlier, reflecting margin expansion and higher operating leverage. The company also reported a backlog of USD 310.0 million as of June 30, 2025, equivalent to 297 days of annualized revenue and up 29 days from the previous quarter. Net debt declined to USD 74.3 million, with the net-debt-to-EBITDA ratio improving to 1.09x from 1.45x at year-end 2024.

The company raised its 2025 Adjusted EBITDA guidance to a range of USD 65 million to USD 70 million, up from its previous forecast of USD 55 million to USD 60 million. The revision reflects stronger-than-expected performance in the first half and anticipated demand acceleration in the semiconductor segment, particularly in renewable energy and space applications.

In the outlook section, 5N Plus noted that volumes in Performance Materials are expected to taper slightly in the second half, consistent with past seasonal trends, but margins are expected to remain elevated. The company also stated that it remains cautious amid global economic and geopolitical uncertainty but continues to benefit from its positioning as a strategic supplier outside of China.

Management reiterated its commitment to operational discipline and strategic growth, particularly as customers prioritize sourcing from reliable, high-quality suppliers amid ongoing supply chain disruptions. The company emphasized its expanding production capacity and global footprint as key differentiators in serving high-growth, advanced materials markets.