NanoXplore (TSE:GRA) reported fourth-quarter fiscal 2026 revenue of CAD 33.9 million, up 7% from a year earlier, as recovery in PACCAR and Volvo program volumes and new business offset comparisons affected by unusually high tooling revenue in the prior-year period.
Chief Financial Officer Pedro Azevedo said revenue excluding tooling increased CAD 4.5 million, or 17% year over year, driven by new programs and recovering volumes. Product gross margin, excluding tooling, rose to 23.0% from 20.6% in the comparable quarter. Total adjusted gross margin declined to 22.5% from 24.7%, however, reflecting the mix effect of tooling revenues.
Fiscal-Year Results and Cash Position
For fiscal 2026, NanoXplore recorded revenue of CAD 117.3 million, compared with CAD 129 million in the previous year, while adjusted EBITDA was CAD 1.93 million versus CAD 6.1 million. Azevedo attributed the year-over-year declines primarily to a weaker first quarter and more normalized tooling revenue during fiscal 2026.
The company ended June 30 with CAD 25 million in cash and cash equivalents and CAD 11.5 million in short- and long-term debt. Including unused availability on its revolving credit facility, total liquidity was CAD 30 million.
Quarterly cash flow was positive CAD 650,000, marking the company’s first positive cash-flow quarter excluding periods that benefited from financing activity or elevated tooling repayments, according to Azevedo. Operating cash flow was CAD 3.6 million, aided by EBITDA and lower working capital. The company said working capital remained elevated because of CAD 8 million in tooling invoices and unbillable tooling receivables, which it expects to collect during fiscal 2027.
NanoXplore also received a CAD 720,000 refund in July after receiving approval in June for a claim related to tariffs paid on imported equipment. The amount was recorded as an accrued receivable and a reduction in the carrying value of equipment.
Fiscal 2027 Outlook
Management forecast first-quarter fiscal 2027 revenue of CAD 30.5 million to CAD 31 million, representing growth of about 32% from the prior-year quarter. For the full year, NanoXplore projected revenue of CAD 130 million to CAD 140 million, or growth of 11% to 20%, and said it expects to generate positive free cash flow.
The outlook includes a full-year contribution from Club Car business, continued recovery in the company’s solutions operations, and initial commercialization of graphene powder and masterbatch initiatives. Azevedo said two planned Volvo programs, which had been expected to begin in the second half of fiscal 2027, have been pushed into fiscal 2028 because of industry regulatory changes from the Trump administration.
Management’s preliminary fiscal 2028 revenue outlook is CAD 160 million to CAD 170 million, supported by expected Volvo launches, growth in graphene sales and expansion of the solutions business. Azevedo said the company’s current production capacity is sufficient for the visible needs underlying that outlook, although future growth could require added capacity depending on product mix.
Capital expenditures are expected to decline to less than CAD 1 million per quarter beginning in the first quarter of fiscal 2027, unless new expansion initiatives arise.
Graphene Commercialization Efforts
Chief Executive Officer Rocco Marinaccio said NanoXplore has a CAD 35 million pipeline of graphene-enhanced solutions business expected to launch over the next 18 months. He said management expects higher-loading graphene applications, including powders and masterbatches, to improve the company’s revenue mix and margins over time.
The company highlighted its D Series graphene products, which are produced through its proprietary dry process and are designed for applications requiring high surface area, including electrical conductivity, electromagnetic-interference shielding and UV protection. NanoXplore’s X Series products have higher aspect ratios and are used for characteristics such as lubricity, thermal conductivity and barrier properties.
Marinaccio said the D Series has renewed the company’s interest in cement and concrete applications. NanoXplore is working with one of the world’s five largest cement producers to validate graphene in mainstream cement applications, though he cautioned the effort remains at an early stage and could take several months.
- Drilling fluids: NanoXplore said Chevron Phillips Chemical continues to market TriboGraf under the NanoSlide brand. While the partner lost a prospective major customer for commercial reasons unrelated to product performance, Marinaccio said all customers that completed lab testing have validated performance. Management said the transition from laboratory testing to field trials and full adoption is taking longer than initially expected.
- Insulating foams: The company said it has development programs with major producers representing roughly 80% of North American market share in the category. One customer is nearing approval to replace its existing additive with NanoXplore’s graphene product. Management expects that customer could use 1,000 tons of masterbatch at 30% graphene loading in its first full production year. NanoXplore expects to begin supplying graphene-enhanced masterbatch later in 2026.
- Plastic films: In partnership with Techmer PM, NanoXplore reported that D Series graphene demonstrated more than a 70% improvement in mechanical strength in industrial and consumer films. The company said the technology could allow film producers to reduce thickness by as much as 20% while maintaining performance, and potentially increase recycled content. It is targeting graphene order flow in the second half of fiscal 2027.
- Conductive graphene: NanoXplore launched xGnP D500-HP in May for conductive applications including energy storage, conductive composites and electronics. Marinaccio said the company is already selling conductive graphene to a customer in Asia and is pursuing additional commercial opportunities.
The company also expects Club Car products to transition to graphene-enhanced recycled polymers in early 2027, with graphene and recycled polymer supplied through its Connect subsidiary. Separately, NanoXplore has repositioned its VoltaXplore battery subsidiary away from electric-vehicle markets and toward drones, defense platforms and portable electronics for Canadian and U.S. customers.
“The real value in NanoXplore lies in the high-margin opportunities we expect to begin commercializing in fiscal 2027,” Marinaccio said, while noting that some opportunities, including drilling fluids and cement, remain dependent on customer-driven testing and adoption timelines.
About NanoXplore (TSE:GRA)
NanoXplore Inc is a graphene company, manufacturer, and supplier of high-volume graphene powder for use in industrial markets. The company provides graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. Geographically, it generates a majority of revenue from the United States.
