11/3/2026

speaker
Conference Call Operator
Operator

Good morning, ladies and gentlemen. Thank you for standing by and welcome to the five-in-plus third quarter 2026 results conference call. At this time, note that all participants are in a lesson-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star, then one on your telephone keypad. And if you require immediate assistance for the operator, please press star zero. Je vais maintenant céder la parole à Stefano Bertolli, directeur de communication et affaires publiques. And I would like to turn the conference over to your speaker today, Stefano Bertolli, director of communications and public affairs. Please go ahead, sir.

speaker
Stefano Bertolli
Director of Communications and Public Affairs

Bonjour à tous et à toutes. Good morning, everyone, and thank you for joining us on our Q3 2026 results conference call and webcast. We will begin with a short presentation, followed by a question period with financial analysts. Joining us this morning are Richard Perron, our President and Chief Executive Officer, and Alban Fournier, our Chief Financial Officer. We issued our financial results yesterday and posted a short presentation on the investor section of our website. We would like to draw your attention to slide two of this presentation. Information presented and remarks made by the speakers today will contain statements about expected future results and events that are forward-looking and therefore subject to risks and uncertainties. A detailed description of the risk factors that may affect Future results is contained in our management discussion and analysis of 2025, dated February 24th, 2026, and available on our website and in our public filings. In the analysis of our quarterly results, you will note that we use and discuss certain non-AEFRS measures, which definitions may differ from those used by other companies. For further information, please refer to our management discussions and analysis. We now turn the conference over to Richard Perron. Mr. Perron, the floor is yours.

speaker
Richard Perron
President and Chief Executive Officer

Thank you, Stefano. Good morning, everyone, and thank you for joining us. Five and Plus delivered excellent results in Q3 2026 with strong revenue and adjusted EBITDA growth. This was supported by higher volumes in both segments, while adjusted gross margins remained robust and increased sequentially despite the rising cost environment. Specialty Semiconductors was the primary driver of growth, reflecting higher volumes in terrestrial renewable energy and space solar power. We also began to see initial opportunities in recycling and refining complex germanium-bearing feeds. Performance materials delivered high revenue year-over-year, primarily on stronger volumes of business-based products, while anticipated margin normalization continued. Both businesses are proactively managing rising input metal and consumable costs through operating efficiencies, and our commercial disciplines, as discussed last quarter. In Q3, our operating performance under specialty semiconductors returned to more optimal levels following inefficiencies experienced last quarter. Alongside the mitigation plans implemented in Q2 to ensure customer deliveries, we have since largely addressed the underlying causes. Most of this work was completed in Q3. Looking ahead, operating demands across our operations remain high as we expand our business lines to meet customer demands. Discipline execution, unlocking further productivity improvements, and delivering operational excellence are essential. I want to thank teams across the business for their responsiveness, ingenuity, and teamwork. Since our last earnings call, we announced two exciting initiatives related to our operations in St. George, Utah, which I would like to highlight. First, we were selected to receive a $7.3 million US government award to establish production of gallium arsenide components for US defense applications. The work includes adding crystal growth and gallium arsenide compounding equipment on site. We will work with an initial customer to complete product qualifications before moving to control production. The project is intended to address a critical gap in the US domestic defense supply chain, which we are uniquely positioned to capture. but the capabilities being developed will also support future production of gallium arsenide substrate and other advanced semiconductor materials for the defense and space applications. This will broaden our addressable market over the longer term. Given the strong demand for the expertise out of our St. George facility, we're also pleased to announce plans to expand our site by approximately 50%. The added manufacturing and product development space will improve site workflows and provide room for new equipment and capacity. Construction began in Q3 with completion expected in the second half of 2027. Equipment preparation will progress alongside construction to accelerate installation and ramp up once the site is ready. With larger operations, we can better support growing demand in defense, space, solar, medical imaging and industrial sensing. Finally, at Azure, In Elban, Germany, I'm also happy to confirm that the planned 25% increase in space solar cell production capacity for 2026, announced last February, is ramping up as planned. With the project pipeline extending well into 2030, the team is developing and evaluating scenarios for the next phase of solar cell expansion. Any additional capacity will be planned methodically and in line with anticipated and or contracted demand. Across our strategic end markets, Underlying and long-term trends remain strong. Our focus is on scaling capacity to strengthen our position in critical supply chains and improving productivity and operating performance to gain economies of scale. Our investments in Utah and in Germany, in addition to those completed in Montreal in recent years, all built on our Western manufacturing-based technical expertise and customer relationships in strategic sectors, from defense to renewable energy and space solar power. They support our long-term growth trajectory and our unique competitive position in the critical mineral transformation value chain. While we remain cautious in what remains a complex environment, we are pleased with our progress so far this year. We have diligently worked through operational challenges as the business has rapidly grown, and we have compelling organic growth plans in the works to capture even more customer demand. I will now turn the call over to Alban to review the financial results in more detail. Alban.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

-

-

Investor presentation