PureCycle Technologies (NASDAQ:PCT) used its fourth quarter 2025 corporate update to highlight continued operational ramp-up at its Denver feedstock preparation facility and its Ironton, Ohio purification plant, alongside what management described as a growing commercial pipeline and advancing plans for international expansion.
Leadership and governance updates
Chief executive officer Dustin Olson announced that Donald Carpenter will become chief financial officer effective March 1, succeeding retiring CFO Jaime Vasquez. Vasquez said the transition should provide continuity within the finance and accounting teams, while Carpenter said he was focused on supporting the company’s mission and long-term growth.
Operations: Denver throughput, Ironton production records, and planned outage
Olson said the company made operational progress during the quarter, including the successful addition of a third shift at Denver. He stated Denver processed 44% more feedstock versus the third quarter, ramping to 14 million pounds processed, which he said was 35% above its prior quarterly high. Olson added that PureCycle is buying from more than 15 feed suppliers and has reduced procurement costs by $0.06 per pound over the last 12 months.
At Ironton, Olson reported fourth-quarter production of 7.5 million pounds, calling it a quarterly record and noting new daily records. He said the plant has been run with “higher reliability and at higher watermarks,” while also managing production levels ahead of the commercial ramp. Olson reiterated that the company has run successful rate tests at 12,500 and 14,000 pounds per hour and said the data from those tests pointed to specific improvements aimed at pushing toward nameplate capacity in 2026.
Management said Ironton is expected to take a planned annual maintenance outage between mid-April and mid-May. Olson said planned outages have historically improved reliability, top-end rate, and quality, and he expects a similar result this time.
On-site compounding: phase one online, phase two targeted for March
Olson said phase one of PureCycle’s on-site compounding at Ironton started up last quarter, enabling CP2 to be compounded on-site for sale. He said the project reduced carbon footprint, lowered cost to produce, and improved the final sales price.
Phase two is expected to be mechanically complete in March, with commissioning planned to continue in parallel with the planned outage. Olson said phase two will primarily focus on compounds for biaxially oriented polypropylene (BOPP) film used in flexible packaging and thermoformed applications (including items such as coffee lids). He described those as “two of the highest value, fastest-growing segments” in the pipeline and said the on-site capability complements third-party compounders, improves turnaround times for customer trials, and gives PureCycle more control over formulations.
Olson added that the company is building inventory ahead of the outage and expects to continue shipping during the turnaround.
Commercial progress, customer adoption timing, and regulatory developments
PureCycle reported $2.7 million in revenue for the fourth quarter, which Olson said marked the fourth consecutive quarter of sequential revenue growth. He said the company is actively shipping to 11 customers, roughly half branded and half unbranded, with additional conversions expected to begin in early March.
Olson acknowledged that 2025 included “real commercial delays” versus original projections, but he emphasized technical progress, including qualification of material in food-grade applications such as flexible film packaging, wrappers, stand-up pouches, closures, thermoform containers, bumpers, and fiber applications. He said the pipeline grew to more than 170 active projects.
On co-products, Olson said the company has begun monetizing co-product 1 and co-product 2 and is seeing prices in the range of $0.25–$0.03 per pound (as stated on the call). He also said the company has deprioritized fiber in the near term due to fragmented demand and long sales cycles.
Regulatory approvals were a recurring theme. Olson said PureCycle material is accepted in Oregon, Colorado, California, Washington, and Europe, while New Jersey has been slower. He said the company has been partnering with the New Jersey Department of Environmental Protection on how its dissolution technology fits within the recycling framework, which has delayed approvals. However, Olson argued that New Jersey has excluded chemical recycling and ISCC PLUS mass balance credits, which he said positions PureCycle as the only supplier at scale for food-grade recycled content under the mandates. He added that large consumer packaged goods (CPG) companies have been lobbying on PureCycle’s behalf.
Olson said the company’s previously discussed 40 million to 50 million pounds of run-rate demand that it is actively shipping or expects to ship in the near future “still stands,” but he estimated that 15 million to 30 million pounds of near-term demand will require New Jersey approval. He said New Jersey applications overall represent about 300 million pounds per year of demand. Olson added that PureCycle has shifted to applications not requiring New Jersey approval and said it has added another 20–25 pounds (as stated on the call) of demand at full ramp, with the earliest conversions possibly as soon as the next month and one near-term opportunity representing roughly 10 million pounds of annual demand.
Thailand and Antwerp expansion plans; Gen 2 design work and financing
On the Rayong, Thailand project, Olson said PureCycle sees feedstock supply “well in excess” of its needs and has signed nine LOIs with regional feedstock suppliers. He also described evolving commercial discussions that include potential domestic offtake, beyond original expectations that production would be exported to North America and Europe. Olson said the company submitted an application to Thailand’s Board of Investment (BOI) and, if successful, expects benefits including an eight-year 100% tax holiday followed by five years at 50%, which he said equates to roughly $100 million of avoided cash taxes. PureCycle expects to break ground in the second half of 2026, with completion still expected in 2027.
For Antwerp, Belgium, Olson said the project remains on track, with permits expected in the second half of 2026, construction scheduled to begin by the first quarter of 2027, and mechanical completion expected by the end of 2028.
Olson also discussed Gen 2 purification design work. He said early findings suggest no technological constraints to scaling toward the higher end of capacity ranges previously discussed, and he pointed to initial analysis indicating greenfield costs approaching $1.50 per pound of capacity and brownfield expansions approaching $1 per pound. He said the company sees a “line of sight” to Gen 2 cash costs below virgin polypropylene production, though he said it was too early to provide definitive numbers.
Carpenter said the company’s revenue goal remains unchanged: reaching Ironton breakeven and then corporate breakeven. He said core operating costs across Ironton, Denver, and corporate were largely in line with prior guidance, and reiterated prior commentary that operational and corporate cash burn had been in the $8 million to $9 million per month range, with quarterly operational and corporate costs of $24.5 million.
On capital structure, Carpenter said the company repaid $20.3 million of high-cost equipment finance debt and retired $9.8 million of principal on the Ironton bonds during the quarter. He also outlined expected project-related spend of $19 million to $20 million in the first quarter of 2026 and $39 million to $45 million for full-year 2026, including costs associated with the planned shutdown and completion of on-site compounding. He said the company is focused on local financing for Thailand, noting the project data room is open with a large Thai bank and that critical site agreements with IRPC are in place. He also cited progress on Antwerp, including a previously announced EUR 40 million EIF grant, and said PureCycle has approximately $75 million of revenue bonds it will look for opportunities to monetize.
Carpenter added that two series of warrants were extended, including Series A warrants representing 15.7 million potential shares extended through March 17, 2027 at a reduced redemption price of $14.38 per share, and public and private warrants representing 5.7 million potential shares extended for three months, with details in a filed 8-K. He said the extensions preserve approximately $273 million of potential proceeds.
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.
