PureCycle (PCT) Q4 2025 Earnings Call Transcript

Image source: The Motley Fool.

DATE

Feb. 26, 2026 at 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Dustin Olson
• Chief Financial Officer (incoming) — Donald Carpenter
• Chief Financial Officer (retiring) — Jaime Vasquez

TAKEAWAYS

• Revenue -- $2.7 million for the quarter, reflecting the fourth consecutive period of sequential growth.
• Denver feedstock processed -- 14 million pounds, a 44% increase over the previous quarter and a 35% rise over its prior quarterly high.
• Ironton production -- 7.5 million pounds produced, setting both quarterly and new daily output records.
• Feedstock procurement cost -- Reduced by $0.06 per pound over the last twelve months through supplier diversification, now buying from over 15 feed suppliers.
• Inventory build -- Company staged additional inventory ahead of product launches and planned maintenance activities to support continuous customer shipments.
• Operational cash burn -- $24.5 million for the quarter, with ongoing operational and corporate costs trending within the prior guided monthly range of $8 million–$9 million.
• Debt repayment -- $20.3 million of equipment finance debt and $9.8 million of Ironton bond principal retired.
• Project CapEx outlook -- Total project-related spend expected at $19 million–$20 million in Q1 2026 ($7 million–$8 million on Ironton and related projects; $11 million–$13 million on growth projects), and $39 million–$45 million for full-year 2026 ($14 million–$16 million on Ironton; balance on other growth initiatives).
• Warrants -- Series A warrants (15.7 million shares) extended to March 17, 2027, at a $14.38 per share redemption price (about $205 million potential proceeds); public and private warrants (5.7 million shares) extended by three months (~$68 million potential proceeds).
• Customer base -- Active shipments to 11 customers, split roughly evenly between branded and unbranded buyers, with further conversions anticipated in early March.
• Project pipeline -- Pipeline expanded to over 170 active projects, up from about 100 projects a year earlier, driven by success in film applications.
• Commercial demand -- Run-rate demand estimated at 40 million–50 million pounds being shipped or expected soon, with an incremental 20 million–25 million pounds at full ramp, and one near-term opportunity representing 10 million pounds of annual demand.
• Co-product monetization -- Initiated sales of co-product one and two with current pricing at $0.25–$0.30 per pound.
• Ironton maintenance outage -- Planned between mid-April and mid-May 2026 to address standard maintenance and production constraints based on test data.
• APR certification -- Received post-consumer resin certification from the Association of Plastic Recyclers, enabling broad regulatory acceptance.
• Thailand project -- Nine letters of intent secured with regional feedstock suppliers exceeding initial requirements; project application submitted to Thailand BOI seeking significant tax exemptions.
• Antwerp project -- Construction set to begin by January 2027 with mechanical completion targeted for 2028; €40 million EIF grant secured.
• Gen 2 purification design -- Early engineering indicates scalability up to 500 million pounds per line, with greenfield CapEx projected near $1.50 per pound and brownfield expansions near $1.00 per pound of capacity.
• Regulatory mandates -- Laws in New Jersey, California, Oregon, Colorado, Washington, and Europe require 10%–30% recycled content across defined timeframes, directly expanding total addressable market.

Need a quote from a Motley Fool analyst? Email pr@fool.com

RISKS

• Commercial revenue ramp delayed by customer adoption timing, with 2025 described as having "real commercial delays relative to our original projection."
• Significant near-term demand (15 million–30 million pounds) dependent on New Jersey regulatory approval; these applications overall represent about 300 million pounds per year of demand.
• Q4 operational and corporate cash burn remained high at $24.5 million, as incremental costs increased due to the Ironton facility ramp and higher feedstock/reprocessing expenses, partially offset by efficiencies.

SUMMARY

PureCycle Technologies (NASDAQ:PCT) delivered sequential revenue growth and record production at both its Denver and Ironton facilities, while actively expanding its customer pipeline and project portfolio. Management made clear forward progress in key international projects, notably Thailand and Antwerp, with signed feedstock agreements and an application for significant tax relief in Thailand, and a secured €40 million grant in Belgium. Early data from the Gen 2 purification design show the platform's scalability to 500 million pounds per line and potentially lower capital intensity than previously estimated, which could enhance return profiles and cost competitiveness. Regulatory trends and mandates across the U.S. and Europe continue to reinforce long-term demand for food-grade recycled polypropylene, with PureCycle Technologies positioned as the only global provider at commercial scale.

• Donald Carpenter highlighted paths to project financing for Thailand and Antwerp, including collaboration with a large Thai bank and leveraging revenue bonds to fund growth initiatives.
• Dustin Olson explained that branded product pricing and margin profiles remain consistent with prior guidance, and emphasized that multiyear supply agreements with major customers are progressing due to demonstrated reliability.
• Multiple high-value packaging markets were quantified, with demand growth rates given for cold beverages, pet food (4.6%), snacks (6%–7%), dermocosmetics (7%–9%), and household goods (8%–12% in addressable demand under retailer sustainability mandates).
• Ironton phase one on-site compounding is operational, with phase two mechanically expected to complete in March and focused on high-value BOPP film and thermoform markets.
• Antwerp is on schedule for construction and mechanical milestones, with permitting expected in 2026.
• Management stated, "2026 is about converting our technical success into accelerated commercial revenue growth quarter over quarter," and described the staged inventory and active customer onboarding set to support this transition.

INDUSTRY GLOSSARY

• BOPP: Biaxially Oriented Polypropylene; a high-clarity film used in packaging and labeling with demanding requirements for purity and performance.
• APR certification: Certification provided by the Association of Plastic Recyclers, recognized as an industry benchmark for qualifying materials as post-consumer recycled resin.
• EPR: Extended Producer Responsibility; regulatory approach holding producers responsible for the lifecycle of their products, especially post-consumer waste management and recycling targets.
• ISCC Plus: International Sustainability and Carbon Certification; standard for certifying the sustainable content and traceability of recycled materials through mass balance accounting.
• TAM: Total Addressable Market; the aggregate revenue opportunity available for a product or service within a specific market.

Full Conference Call Transcript

Dustin Olson, our Chief Executive Officer; our incoming Chief Financial Officer, Donald Carpenter; and our retiring CFO, Jaime Vasquez, who will also be joining the call. This evening, we will be highlighting our corporate developments for the fourth quarter 2025. The presentation we will be going through on this call can also be found on the investor tab at our website at purecycle.com. Many of the statements made today will be forward-looking and are based on management's beliefs and assumptions and information currently available to management at this time.

The statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those set forth in our safe harbor provisions and forward-looking statements that can be found at the end of our fourth quarter 2025 corporate update press release filed this afternoon, as well as in other reports on file with the SEC that provide further details about the risks related to our business. Additionally, please note that the company's actual results may differ materially from those anticipated and, except as required by law, we undertake no obligation to update any forward-looking statements.

Our remarks today may also include preliminary non-GAAP estimates and are subject to risks and uncertainties, including, among other things, changes in connection with quarter-end and year-end adjustments. Any variation between PureCycle Technologies, Inc.'s actual results and the preliminary financial data set forth herein may be material. You are welcome to follow along with our slide deck; if joining us by phone, you can access it at any time at purecycle.com. We are excited to share updates from the previous quarter with you. I will now turn the call over to Dustin Olson, PureCycle Technologies, Inc.'s Chief Executive Officer. Thank you, Eric. Fourth quarter was another period of progress for PureCycle Technologies, Inc.

We ramped our operations in Denver and Ironton, advanced our customer pipeline, and made meaningful progress on our growth plan in Thailand. As we announced in the press release, effective March 1, Donald Carpenter will be stepping into the CFO role. I want to first thank Jaime for his service the last couple of years, wish him well in his retirement, and now turn it over to him for a couple of words. Jaime?

Jaime Vasquez: Thank you, Dustin. I appreciate the opportunity and the time that PureCycle Technologies, Inc. has provided me. This is a company with a great mission and talented people that should allow the company to accomplish that mission. And with Donald stepping into the CFO role, there will be continuity among the finance and accounting teams. Donald's time at PureCycle Technologies, Inc., combined with his depth of finance knowledge, should allow him, along with the senior management team, to help continue moving the company forward. To you, Dustin, Donald, and the rest of the PureCycle Technologies, Inc. team, I wish you the best as you continue to commercialize and grow PureCycle Technologies, Inc. Back to you, Dustin.

Dustin Olson: Would you like to say a couple words, Donald?

Donald Carpenter: Yeah. Thank you. Thank you, Dustin, and thank you, Jaime. And thanks especially for all of the support and opportunities you gave me to grow into this role over the past two years. I share your thoughts on the PureCycle Technologies, Inc. team, and I am incredibly fortunate to have such an exceptional group supporting me through the transition. I am so excited for the future of this technology and our company. While the role is new, the mission I committed to four years ago remains the same, and I truly believe our company has an amazing solution to help end the threat of plastic waste to our environment. Both safely and responsibly.

With that, Jaime, I wish you the best in retirement. I will turn it back over to you, Dustin.

Dustin Olson: Alright. Thanks a lot, Donald. I wish you both the best, and I am very excited about the path forward. In addition to this announcement, we previously announced we added two distinguished board members to our team, Dr. Siri, who serves as the independent director and chairman of the audit committee at Bangkok Bank, and previously served as Thailand's Minister of Energy and chairman of IRPC, and most recently, Valerie Mars, who retired as Senior Vice President and Head of Corporate Development at Mars Incorporated. We are very fortunate to have both of them. Now to the business highlights in the quarter. Before I get into the details, I want to frame where we are.

We are producing high-quality food-grade recycled polypropylene at scale, something no one else in the world can do. We have qualified our materials in flexible packaging, wrappers, stand-up pouches, closures, thermoform containers, bumpers, and numerous fiber applications. Branded pricing is on track with prior guidance, and our pipeline has grown to over 170 active projects. The market continues to struggle integrating large amounts of post-consumer recycled polypropylene content into consumer products. Recycled content is new, especially in the FDA space, and companies are challenging decades-old processes to make them work for this emerging space. PCT is helping them. As our brand continues to rise and other brands get more familiar with our product, we dramatically reduce the adoption challenges.

When a brand puts our material in a food-grade package on a retail shelf, they are doing something that has never been done before, at PCT scale, at PCT quality, and with PCT flexibility. And while customers are extremely excited about our product and how it simplifies their lives, the adoption process, which includes things like lab, pilot, and industrial-scale qualifications, lots of trials, regulatory reviews, packaging design, line validation, supply chain insurances, internal approvals, it still takes time.

Dustin Olson: But here is what I want you to take away from this call. The underlying demand is very strong and growing. It is clear to me that the recycled content in consumer products is coming. The regulatory environment is naturally moving in PureCycle Technologies, Inc. direction. Probably the most important thing of all, consumers continue to value sustainability, and it is driving their buying behaviors. The question is not whether brands will buy recycled PP at scale, but when. And we are positioned to be the premier global supplier. 2026 is about converting our technical success into accelerated commercial revenue growth quarter over quarter, and I will walk you through exactly where we stand on that.

In the fourth quarter, we successfully added a third shift to Denver, which had previously been a constraint on production. As a result, Denver processed 44% more feed versus third quarter, ramping to 14 million pounds, a 35% increase over its prior quarterly high. We are actively buying from more than 15 different feed suppliers, including most of the largest players in the market, and have reduced procurement costs by $0.06 per pound over the last 12 months. Denver has fundamentally improved our feedstock flexibility and cost structure, and I have never felt better about our ability to reliably and economically supply Ironton as we ramp to full rates.

Ironton also successfully ramped production in the fourth quarter with the production of 7.5 million pounds. We not only hit a quarterly record for production, but also new daily records as well. This does not tell the whole story as we continue to manage production levels ahead of the commercial ramp. We are routinely running Ironton with higher reliability and at higher water marks.

Dustin Olson: In the last few quarters, I have spoken about how we ran successful rate tests above 12,514 pounds per hour. We have a lot of data from those tests, which we have analyzed, and see some very specific improvements that should allow us to push towards nameplate capacity in 2026. The original design for Ironton contemplated an annual maintenance outage. We did not take one last year, but plan on taking one between mid-April and mid-May this year. There are lots of standard maintenance activities that are expected to occur, spanning inspections, cleaning, repairs, improvements. I expect this outage to have really positive outcomes for PureCycle Technologies, Inc.

If you look back at every planned outage we have had at Ironton, the reliability, top-end rate, and quality have always improved on the other side. It is our expectation that the same will be true this year. We always incorporate the lessons learned into our procedures and activities, but outages give you the unique opportunity to make changes that are not possible when the plant is running. Reliability matters to our customers. As we have demonstrated consistent product quality and uptime, we have seen those conversations evolve. Several of our largest pipeline opportunities are now moving toward multiyear supply agreements, which is a direct reflection of the confidence that they have in our operating performance.

Phase one of our on-site compounding started up last quarter. This enables CP2 to be compounded on-site and sold to the market. This project allowed us to reduce carbon footprint and cost to produce and improve our final sales price. We are very excited about this addition. And phase two should be mechanically complete in March, and commissioning will continue in parallel with the planned outage. Phase two coincides with the demand planning for these grades and commercial offtake profiles.

The phase two on-site compounding line will be primarily focused on producing compounds for BOPP film, which is used in flexible packaging, and thermoform applications, which is used in things like coffee lids—two of the highest value, fastest-growing segments in our pipeline. Having this capability on-site complements existing third-party compounding assets, improves turnaround times for customer trials, and gives us direct control over the formulations. We have built and will continue to build inventory ahead of the outage and across the planned application launches, and we expect to ship while Ironton is engaged in turnaround.

On the other side of this outage, Ironton should be well positioned to service the expected ramp to much higher levels of production and sales later in 2026.

Dustin Olson: Turning to the commercial update. Our fourth consecutive quarter of sequential revenue growth. We booked $2.7 million of revenue in Q4. We are actively shipping to 11 customers, roughly half are branded and half are unbranded, with additional conversion expected to begin in early March. While 2025 had real commercial delays relative to our original projection, the technical progress was substantial and the setup for 2026 is strong. On the positive side, 2025 was a year of real technical success. We qualified our material across food-grade applications that no mechanical recycler can touch—flexible film packaging, wrappers, stand-up pouches, closures, thermoform containers, fiber. Qualification delays are frustrating and noisy, but they only impact the short term.

The real long-term value is created through the application technical successes. The other big positive was that branded margins continued to be in line with our previous guidance. While branded sales have a longer sales cycle than non-branded sales, branded sales are the core focus for this company and where we see the most value in the market. Co-product sales have been positive for us. We have begun to monetize both co-product one and co-product two and are seeing prices in the $0.25 to $0.30 per pound range. Fiber technical successes provided a lot of confidence to the market early on, but the adoption was slow due to fragmented demands and extremely long sales cycles.

We have deprioritized it in the near term, and while it does remain a real market for us, we are not going to concentrate our resources there today. The regulatory landscape has been broadly positive. Our material is accepted in Oregon, Colorado, California, Washington, and Europe. New Jersey has been slower. We partnered with the DEP on how our dissolution technology fits within the recycling framework, which has delayed some approvals. The good news is New Jersey has excluded chemical recycling and ISCC Plus mass balance credits, which positions us as the only supplier at scale for food-grade recycled content under the mandate. Large CPGs are lobbying the DEP on our behalf, and our relationship with them is strong.

I personally respect the position that the New Jersey Department of Environmental Protection has taken, and we will continue to partner with them as they integrate the legislation into action. 2025 was a challenging year for many of our customers. Tariff uncertainty, inflation hangovers, commodity spikes, and converter consolidations forced them to redirect their focus on cost savings and reorienting their supply chains domestically, which lengthened approval timelines across the board. We think those headwinds are largely behind them.

Dustin Olson: The key public message from senior brand leadership is clear. 2026 is about reinvigorating organic growth and investing in innovative packaging. That is directly relevant to us. It has been publicly reported that multiple Fortune 100 CPGs announced significant increases in R&D spending with a focus on product superiority, premium positioning, and sustainable packaging formats. After a year of playing defense, these brands are now playing offense. That is directly relevant to us because offensive brands invest in differentiated packaging, and food-grade recycled content is a differentiator. Despite the commercial progress, revenue ramp has been delayed relative to what we projected earlier in 2025.

Last quarter, we mentioned 40 to 50 million pounds of run-rate demand that we are actively shipping or expected to ship in the near future. That number still stands. New Jersey has delayed some of our ramp. We estimate that applications representing 15 to 30 million pounds of near-term demand will require that approval. New Jersey applications overall represent about 300 million pounds per year of demand. While this has been frustrating, the demand is still there, and the fact that key brands and converters have sent letters to New Jersey on our behalf speaks to their desire to move forward once this is resolved.

The good news is we have been able to shift other applications that do not require New Jersey approval, and we have line of sight on applications that can contribute to 2026 revenue. In addition to the 40 to 50 million that we mentioned last quarter, we have added another 20 to 25 million pounds at full ramp. The earliest of these could convert as soon as next month, and one of the most near-term opportunities represents roughly 10 million pounds of annual demand.

The pipeline continues to be strong, growing from roughly 100 projects a year ago to greater than 170 today, and a lot of this recent build is a result of our success in film, where we continue to see large, high-value opportunities. I would like to also highlight that we have been successfully qualifying pouch applications. Stand-up pouches are one of the most exciting trends in innovative packaging right now. They are lighter, more efficient, and actively taking share from rigid containers and cardboard boxes. Brands are investing heavily in flexible packaging formats. Our ability to produce food-grade recycled polypropylene film for pouches puts us right at the center of this trend.

BOPP film and thermoform applications remain the core targets for our compounding operations, and we have focused our commercial teams on brands with the highest growth of them. Here are some examples of the end markets that we are actively engaged in. We spoke about QSR coffee lids last quarter, and the interest continues to be strong in this growing category. We continue to make progress with our first QSR coffee lid project—good product fit, excellent trials, and good relationship building between the end brand and converter. We are also in discussions with four additional brands following our recent quarterly announcement about coffee lid innovation.

But these same customers also manage a growing cold beverage category that is taking market share. Brands are launching more products in this high incremental margin category. Additionally, brands are also transitioning to PP in states that have already passed single-use polystyrene bans. This will give us additional tailwind to our product in the beverage containers. The net result is north of 300 million pounds of additional TAM in North America and is growing in the high single digits each year. Beyond cold beverages, premium pet food is a 130 million-pound polypropylene market for BOPP film packaging, growing 4.6% annually. Snacks are 40 million pounds of BOPP film demand, growing 6% to 7% with protein snacking trends.

Dermocosmetics is a 55 million-pound market growing at 7% to 9% as clinical skin care brands shift to beauty packaging for recyclability. In household goods, things like storage bins, kitchen utensils, laundry baskets constitute a 700 million-pound polypropylene market where Walmart and Target sustainability mandates are creating demand for recycled content from a base of only 3.3% to 5% penetration today. That segment alone has 150 million pounds of addressable demand for recycled polypropylene, growing at 8% to 12% as the mandates ramp. These are not hypothetical markets. These are specific applications where we are engaged with brands in our pipeline. And where growth trajectory works in our favor.

Dustin Olson: Let me take a moment on the regulatory landscape because I think it is important to frame this in concrete terms. Every EPR and PCR mandate that has been passed in New Jersey, California, Washington, Oregon, Colorado, and Europe translates directly into pounds of required recycled content. These are not voluntary targets. They are law. New Jersey requires 10% recycled content today, 20% in 2027, and 30% in 2030. California SB 54 requires 25% source reduction by 2032 with a stair-step approach requiring 10% by 2027 and 20% by 2030. We have received post-consumer resin certification from the Association of Plastic Recyclers (APR), which is the standard that most state regulators reference for recycled content compliance.

That certification allows our material to be categorized as recycled content across numerous states, effectively clearing the regulatory path for brands to count on PureCycle Technologies, Inc. material toward their mandated targets. The EU’s Packaging and Packaging Waste Regulation requires 10% content by 2032. When you add it all up, there are literally hundreds of millions of mandated volume coming online over the next five to seven years. And for food-grade polypropylene applications, we are the only global solution emerging at scale. The regulatory framework is laying the groundwork for the future. There is a lot of really strong progress in the Rayong, Thailand project.

I was in Thailand for a week in January and had many meetings with government officials, offtake partners, feedstock suppliers, local banks, as well as IRPC and our very strong local team. A few key developments are worth calling out. First, we see a supply of feedstock well in excess of our need. We have already signed nine LOIs with regional feedstock suppliers—six domestic, and three across Southeast Asia—that, even at a minimum annual level, exceed our needs for the first purification line. We are working to expand our feedstock network in Thailand, but we are also finding feed in abundance across Southeast Asia.

Thailand generates approximately 2.5 million tons of plastic waste annually, of which an estimated 400,000 to 450,000 tons is mismanaged, with about 70% of that leaking into the ocean each year, making Thailand the sixth-largest source for ocean plastic globally. We are finding a lot of willingness from the government and the commercial sector to partner with us to solve this challenge. The commercial conversations have also been very favorable.

Our original assumption was that all product would be exported to North America and Europe, and while we still expect to directly export significant quantities, a strong dialogue is evolving with domestic packaging companies, including a major film producer that sees our material as a way to grow their export business, as well as Fortune 100 CPGs with manufacturing operations in Thailand. We see key markets in automotive, flexible and rigid packaging, appliances, the fast-growing hygiene market, and expect to sign multiple LOIs with domestic customers during 2026. We had multiple meetings with the Board of Investment (BOI) and submitted our application to them.

If successful, we would reap many benefits including an eight-year 100% tax holiday followed by five years at 50%. This equates to roughly $100 million of avoided cash taxes. We also had many good meetings with local banks and our other banking partners in Thailand, which Donald will touch on later. The relationship with IRPC is solid, and they have helped us build a remarkably strong domestic team in Thailand. We hosted a community forum with over 250 residents to explain the project, which was very well received. We have been purchasing equipment and expect to break ground in 2026, with project completion still expected in 2027. Our Antwerp, Belgium project also continues to move forward per plan.

We expect permits in 2026 with construction still scheduled to begin by January 2027 and mechanical completion by 2028. Global brand discussions are accelerating as the Thailand and Antwerp projects advance. Many of the Fortune 100 CPGs we are working with have operations across all three of these regions. We mentioned last quarter that we expected to complete our initial engineering workflow for Gen 2 purification design in 2026. While there is still work to be done here, the initial findings are very encouraging. First, we see no technological constraints on building the higher end of this capacity scale than what we discussed previously, or closer to the 500 million pounds of capacity that we mentioned in the range.

This is important because costs do not scale linearly, and, in fact, the initial design analysis suggests that the incremental cost difference between 500 million and 300 million pounds is relatively minimal. As a result, the initial look indicates greenfield costs on the Gen 2 lines approaching $1.50 per pound of capacity, and for brownfield sites should approach $1.00 per pound for expansions. This is a really big deal. This cuts down the capital intensity of our business, meaningfully improves future IRRs, and puts us back in the ballpark for what it costs to build virgin polypropylene lines. It is also a lower CapEx intensity than what we estimated in the business plan last summer associated with our capital raise.

Scale also benefits us on the production cost side, and, while it is too early to give definitive numbers, we see a clear line of sight to Gen 2 cash costs to be below virgin on-purpose PP production lines. While the majority of our focus today is on selling out and ramping Ironton and executing our Thailand expansion, this news on Gen 2 is incredibly important to the long-term value of PureCycle Technologies, Inc.

We have known for years that our process consumes significantly less energy than virgin production, but now we are seeing the cost efficiency translate into a permanent cost and return advantage in the market, a market that I remind you represents $200 billion per year of annual demand, and a market that is expected to continue to outgrow GDP for the foreseeable future. Look. I know the commercial ramp has been slower than we projected, but I would ask you to look at our history. Every time that we said we would solve a technical problem, we have. Every time that we have taken a planned outage, the plant came back better.

The challenges that we face today are principally about commercial adoption timing—not commercial demand, not technology, not operations, not feedstock—and now we have the product, the production, and the pipeline. The conversion is happening. It is a matter of when, not if. When I take a step back, every year during my tenure has had its own theme. 2023 was about completing Ironton, 2024 was about making the plant work, 2025 was about technically qualifying our product, especially in the high-value parts of the market. And 2026 will be about the commercial ramp and selling out the plant. Our future is bright, we have a strong foundation supported by tech and teams that know how to build.

The market opportunity continues to grow in front of us, and the company is ready to execute. With that, I will now turn it over to our new CFO, Donald Carpenter, for the financial presentation.

Operator: Thank you, Dustin.

Donald Carpenter: Our revenue goal is unchanged: reach Ironton breakeven, then corporate breakeven. Revenue ramp has been delayed by customer adoption timing, but we built and staged inventory for product launches later in the year. Core operations costs across Ironton, Denver, and corporate remain largely in line with prior guidance. I will put more specifics around that on the next slide. On warrants, we have two series of warrants that were extended: the Series A, which represents 15.7 million potential shares, and the public and private warrants, that represent 5.7 million potential shares.

We have obtained agreement with the Series A warrant holders to extend through March 17, 2027, at a reduced redemption price of $14.38 per share, representing approximately $205 million of potential proceeds. The public and private warrants have been extended for three months, with further details in the 8-K filed today. These represent approximately $68 million of potential proceeds. On capital structure, during Q4, we repaid $20.3 million of high-cost equipment finance debt and retired $9.8 million of principal on the Ironton bonds. We continue to spend on projects across Ironton, Thailand, Antwerp, and our Gen 2 development. On operations, we previously said ongoing operational and corporate cash burn were in the range of $8–9 million per month.

This was prior to significant feedstock and reprocessing costs. Now that we are incurring more of these costs as Ironton ramps, we are still trending within that range with $24.5 million of operational and corporate costs for the quarter. The incremental production-related costs have been offset by managing discretionary spend and capitalizing on efficiencies elsewhere in the organization. Revenue timing reflects the customer adoption delays I mentioned. We currently expect improvement as Q2 product launches begin converting our staged inventory. The debt service line includes the nonrecurring equipment lease payoff and bond retirement I referenced on the prior slide.

Looking ahead, for Q1 2026, we expect total project-related spend of $19–20 million, with $7–8 million for Ironton and related projects, primarily related to the on-site compounding project. The remaining $11–13 million is spread across our growth projects. For full year 2026, total project-related spend is expected to be $39–45 million, with $14–16 million for Ironton, which includes costs of our planned shutdown in Q2 and completion of our on-site compounding project. The balance is spread across our growth projects, a majority of which remains discretionary. Q1 2026 debt service is expected to be approximately $11.1 million, which includes our semiannual convertible bond interest payment and some equipment leasing payments.

Regarding financing, we are excited about our prospects for project finance given the progress we are making with both Ironton production and our future commercial ramp. Our first area of focus is on securing local financing for our Thailand project. The project data room is open with a large Thai bank. Critical site agreements with IRPC are in place, the EPCM contractor is advancing through final design and cost estimates. In parallel, we are advancing discussions for our Antwerp project and finding a lot of synergies between the two efforts. Antwerp continues to be a strong project, as evidenced by our recent success securing the €40 million EIF grant.

Additionally, we have approximately $75 million of revenue bonds that we will look for opportunities to monetize. The warrant extensions preserve approximately $273 million of potential proceeds and together with the revenue bonds and project financing I have described, give us multiple paths to fund the business through the ramp. With that, I will turn it to the operator for Q&A.

Operator: Thank you. At this time, we will conduct a question-and-answer session. A reminder: to ask a question, you will need to press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. Our first question comes from the line of Hassan Ahmed of Olympic Global Advisors. Your line is now open.

Hassan Ahmed: Afternoon, Dustin. I know you gave a lot of details; there clearly are a lot of moving parts around the commercial progress and ramp. You know, just wanted to dig a bit deeper into that. Maybe we can start off with a basic sort of question. The 40 to 50 million-pound ramp that you are talking about for Q2/Q3, and then, thereafter, an incremental 20 to 25 million. How much of that is, for lack of a better way of putting it, forecasted versus contracted? Any further details around your conviction level and the shape of that ramp would be appreciated.

Dustin Olson: Yeah. Hassan, well, it is nice to talk to you again. Thanks for the question. Look, at the end of the day, we have very strong conviction on our commercial ramp. These things that we are doing right now are very hard. It has eluded recyclers for decades. We have a new technology with a new product, and, quite frankly, it just takes time to educate the market on our solution. And every time we have a technical success, it opens up the aperture for us to do more and more. Now, we have talked about the difficulty with predicting the specific timing. We know it is coming, and we know it will be asymptotic.

But it is not fully in our control. And you see things like the number of customers we are shipping to increasing. We see the revenue continuing to increase. We see the size of trial volumes continuing to increase. At the end of the day, this thing that we are building is really a relationship between us and the customer. We had to get the certifications. We have to show the LCA. We have to do the trials. We have to prove that Ironton can be reliable enough to give them the security and supply that they need. We have got line of sight in these applications. The volumes that you talked about are very good.

We are in active discussions for both single-year as well as multiyear contracts for those 40 to 50 as well as 20 to 30. We continue to see the technical successes mount with film, pouches, wrappers, etcetera. This thing that we did with Toppan, Hassan, is really important. If you do any research on CPGs, you will find that there is a major consumer trend to move out of boxes and move into pouches. And we are going to be—I believe we are going to be—the only recycled company that can serve that market. The market was challenging last year. Okay? I mean, 2025, I think it is always easy to look in hindsight.

I think when you look back at 2025 objectively, you see massive distractions for everybody, for every company. The hangover on inflation, the tariffs, Make America Healthy Again, focus on protein—I mean, all these things were real, and it just diverted the focus of the CPGs to something different. Instead of coming up with a cool new design for packaging, they were worried about reshoring, let us say, production in the U.S. versus China. I think that 2025 was a bit of a wake-up and a reset. But now what you hear is the CPGs are dialing in to growth in 2026. They are talking about how they can differentiate. There are only a few things you can do.

You can change the formulation of what they are selling—that takes a lot of effort, a lot of work. But you can also change the packaging, and you can market better. You can put more effort there, and that is what we are seeing. I think from a practical perspective, Hassan, last quarter, we showed this packing tape. It is a huge technical success. After the call, we got multiple inbounds from other tape producers that are interested in that product. We showed the coffee lid innovation, and now we have four new coffee companies in the pipeline.

We talked about Toppan this time, and we are going to get a lot of inbounds from the stand-up pouches because everybody wants them. And no one has been able to solve the film wrapper issue. It is a single-use plastic with no recycled supply and no recyclability—until PureCycle Technologies, Inc. So we have products on the shelves right now. We are continuing to grow the pipeline. The applications are getting better. And our team is doing a really good job of getting customers excited about our product. So you asked—I think the core question was, how much conviction do we have about our commercial ramp? And it is very high. Okay?

We are very, very excited about the next few quarters and where PureCycle Technologies, Inc. is going to go because this work that we are doing right now, quite frankly, sets the foundation for every new commercial activity that we do going forward, both in Thailand and Antwerp and our Gen 2 facilities down the road. That is a great question, Hassan. Thank you.

Hassan Ahmed: Understood. Very helpful. And just to wrap up on the commercialization side, and then I have a follow-up—the New Jersey opportunity looks quite large. I was just wondering if you could give more details around the timelines associated with that. This could be a pretty large opportunity for you, and it seems fairly imminent.

Dustin Olson: Yeah. I think you have to take a step back. First of all, I think New Jersey is doing a really good job. They are being extremely thoughtful, digging into the details of the space. If you think about it, and you reset five years ago, the terminology used five years ago is completely different than the terminology used today. And for a regulator gathering information, it is a lot of work to tease out all of the nuances associated with how to regulate a certain thing. What we know for a fact is that chemical recycling in the majority of these regions is out. They do not like the idea of plastic-to-fuel.

They do not like the idea of ISCC Plus credits. And they love the idea of plastic-to-plastic solutions. And when you are interpreting the law written by regulators and trying to put it into practice, it takes a lot of education by us to the New Jersey Department of Environmental Protection, as an example, and we have been doing it. The process is painstakingly slow, and we understand that. But we are making really good progress. I think we have a very good relationship with New Jersey. We have active dialogues with them. We meet face to face. And I think it is really about progressing the education for this topic broadly.

In many ways, PureCycle Technologies, Inc. and New Jersey are kind of at the point of the spear. We are leading the industry in terms of where we are going on recycled content, on our ability to do things. And New Jersey came out early and led in many ways the recycled content legislation. And so I think that as these things get clarified and move forward, I think that is going to provide a lot of clarity for our customers but, quite frankly, a lot of clarity for other regulators as well. Since then, other regulators have come in and, like I mentioned, the APR certification is a really big deal.

That means that we are considered content in many other regions. And, at the end of the day, we think that New Jersey will get to the same place. And when that happens, you are right. There is a lot of demand that is out there ready to go. And we will get to New Jersey, and then we will start working with those customers to get our product qualified in and ramping up into 2026.

Hassan Ahmed: Very helpful, Dustin. And just as a follow-up, the Gen 2 design work obviously seems very impressive. Just trying to get a better sense of what sort of key assumptions are behind achieving sub-virgin cash costs—you know, maybe in terms of assumptions around energy, scale, yields, etcetera.

Dustin Olson: Yeah. No, that is good. So, first of all, we have the pleasure of operating a new technology at commercial scale in Ironton successfully. And I have mentioned this on a couple of calls—that the technology in many ways is doing more with certain steps than what we expected, and we have been able to take those learnings and leverage them into our Durham research facility and really get down to the fundamentals of the technology and understand how we can scale it. In some ways, Hassan, there are pieces of equipment in the Gen 2 design that you only need to make a little bit bigger.

And then in another part of the process, you need to add parallel trains. But the long result of this study indicates that our technology is very scalable. And when you do that, then you are going to end up scaling costs, reducing the CapEx per pound, and, also—and I will speak to this in a second—the operational cost per pound also drops pretty dramatically. On the op cost and the assumptions on yields, I will remind you that our technology is a plastic-to-plastic solution. And so we have 100% or nearly 100% yield recovery on polypropylene. Our goal is to remove everything that is not polypropylene out of the streams and create coproduct one and coproduct two.

And so our yield is very high, and our yield does not change as you scale. That is an enormous benefit that we have over other technologies. The same is true for operating costs. The reality is that many of the steps of our process require the same amount of people, only incrementally more energy and incrementally more steam to operate. And, therefore, when you look at the overall dollars per pound that it is going to cost to run this facility, the operating costs just get divided by a much bigger number, and that number is going to drop significantly.

So when we are talking about feed plus a $0.35 per pound number for Ironton, and feed plus a much lower number on our Gen 2 facility—now, we are not releasing yet what we think that number will be—but if you are talking about feed at $0.05 to $0.10 per pound and then yield-adjusted to $0.15 per pound, and you start adding smaller numbers than $0.35 on top of that, you very quickly get to numbers that are below the virgin cost, probably. And think about that, Hassan. Down the road, polypropylene is a growing market. It is a great polymer. People are going to use more and more of this as we go into the future.

And so as that happens and people need to build new polypropylene facilities, what are they going to build? Are they going to build a traditional virgin polypropylene facility? Or are they going to lean into a technology that is proven at Ironton, and they can scale to big numbers that could potentially give them bigger margins than what they would have on the virgin side? We are very excited about where this takes PureCycle Technologies, Inc.

Hassan Ahmed: Super helpful, Dustin. Thank you so much for all the details.

Donald Carpenter: Thank you so much.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Andres Sheppard of Cantor Fitzgerald. Your line is now open.

Andres Sheppard: Hey, guys, this is Ananda on for Andres. Congrats on the quarter, and thanks for taking our questions. And Donald, congrats on the promotion to CFO. It sounds like you are making good progress on the Thailand debt financing with the data room now open. So I was wondering if you could give us an update on the latest developments there, and then how do you see that project progressing?

Donald Carpenter: Yeah. Thanks. Thank you for the kind words. I am really excited about the opportunity, and I am also really excited about this particular project. We have made a ton of progress so far. We have put together a comprehensive data room, and our team and the bank's team have been working collaboratively. We are meeting frequently, and we are working through this project together. There is a significant amount of documentation that goes into a project financing of this scale. And the critical agreements with IRPC are in place, and I am really pleased with the progress on the site design and initial cost estimates thus far. Both teams are really excited and working hard on this.

It serves a really critical need for Thailand, and it is a strategic growth location for PureCycle Technologies, Inc. I have been involved in several project financings over my career, I am really proud of the first foot we put forward with the bank.

Dustin Olson: And just to follow on that. I mean, Donald brings a lot of really good project finance experience, and I think that is going to really set us up nicely for both Thailand and Antwerp and everything that we do in the future. But I would like to get back to a point that he made about Thailand. Think about this. PureCycle Technologies, Inc. could come into Thailand. When PureCycle Technologies, Inc. comes into Thailand, we will fundamentally change their performance on plastic waste.

That is such a compelling story—not only for us because it is a great market, it is a great location, and we have this great tax holiday, all these things we talked about—but it is exciting for Thailand too. Because Thailand—think about Thailand's core industry. It is tourism. Think about how negatively tourism can be impacted by plastic waste. In a way, there are a lot of existential benefits to Thailand by adopting a technology like ours, and we could not be more excited to get going there and get this project up and running.

Andres Sheppard: Gotcha. Thanks for all that color. And maybe as a follow-up, on the call and in the presentation, there was lots of great macro commentary on the TAM, whether it is cold beverages or cosmetics. And so I was wondering which verticals you see as the most promising with respect to your customer pipeline, whether it is automotive or snack bar wrappers? And what should investors be focusing on here?

Dustin Olson: Yeah. I think this is going to develop over time. I think short term, we will be heavily focused on closures and injection-molded projects. These are very much in our wheelhouse. We have a lot of experience, and those run really well. I think that what you will see as we commission the phase two of compounding at Ironton and get that compounding facility up and running, you are going to see a tremendous amount of benefit arise from that project into the thermoforming and film activities. Film and thermoforming have been very elusive for recyclers. This is very difficult to do, and it is difficult to get the quality needed to make those projects.

And I think that while short term, we will be focused on something a little different, I think that we are really going to grow into this concept of thermoforming and film, and I think that is going to be an extremely strong market for us, because not many people can participate in it, and it is one of the large, growing segments on the macro side.

Andres Sheppard: Got it. Thank you, guys, for the color. I will pass it on.

Dustin Olson: Thanks, Ananda. Have a good night.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Gerry Sweeney of Roth Capital. Your line is now open.

Gerry Sweeney: Good afternoon, thanks for taking my call.

Dustin Olson: Thanks, Gerry. Good to see you again.

Gerry Sweeney: Yep. Listen, when we look at everything, it sounds like—and I caught some of this on the call—when you are engaged with brands, and you sell them to brand, it sounded as though they are looking for a couple of things. Obviously, one was reliability, which I picked up. I think I picked up on your prepared remarks. And two, you have brand testing of the product. It feels as though the brands are getting more and more confident. One, they can see what is happening at Ironton. Reliability is increasing. And two, going through the brand testing. So is this sort of path forward? Is this an accurate assessment as to what is happening today?

Dustin Olson: Yeah. I think so. I think both of the things that you just mentioned there are very true. Ironton operating better and better every day has given confidence to brands. There is no doubt about that. I mean, we routinely have tours out to the plant, and people always leave very impressed. I think on the testing side, I think the more experience that we get testing and qualifying the products—I mean, it is very simple. It is like we have things in our hand that we can show people.

When we make film and we print on film, we can hand people a piece of film and say, “See what we can make?” And then people can immediately connect to it. And I think that reduces the hurdle for getting started with the different applications. So I think both of those are very true, but I do not want to understate the methodical nature of brands going through this process. I mean, we cannot control it, but we have gotten very good at answering their questions, because a lot of the questions are repeat over and over. But they are very methodical. I mean, a brand has built an entire lifetime building that reputation.

And so in order to make a change, that brand has to feel really good about who they are partnering with. That is why we focus so much of our comments around the trust built between supplier and customer. There is relationship building, there is product quality building, there are all these components—there are 20 different steps or more that you have to go through to get to a “yes” on a customer like this. And it just takes time. And look, from the outside looking in, and also from the inside looking in, it is very frustrating. It takes time.

But if you lift your head up, and you see the progress that you have made, you realize that you are really starting to make some pretty big strides with big brands that are excited about where you are, and I think these are foundation-laying type things that are going to be very good for us for a long, long time.

Gerry Sweeney: In that respect, does this process really help you kind of, for lack of a better term, crack the code, speed up additional opportunities going forward?

Dustin Olson: The answer to that is 100% yes. But as it eliminates the need for every single brand to go through some qualification process on their side. I mean, the reality is that when we get into a lot of the techie stuff like contaminant removals and contaminant value validations and things like that, we perform very, very well, and we are stacking a database that we can show customers a trend line that says, “Wow, you really pass all of these different things in a good way.” That kind of data is based on history, and it gives brands immediate confidence in what you are doing.

But then they still want to test it on their machines, and they still want to make sure it looks right on their material. And so they are going to do some of their own testing. But every time we do something, we prove that we can do it, and then a brand gets comfortable with it, and the next brand coming in has a bit of a shorter ramp to get started.

Gerry Sweeney: One more quick question. The Ironton—I will not call it an outage, I am going to call it a turnaround. So it sounds like you have a lot of confidence in uptick in utilization post-turnaround. Are there line of sights to a couple of things that you can fix, implement, that give you confidence on that uptick?

Dustin Olson: Yeah. I mean, look, this is a very traditional turnaround. When we first built this company, we had an expectation to do one per year for 30 days a year. Actually, last year, we did not have to do that, which I think bodes well for the future in terms of how often we will need to do this. Look, I think we are going to do a whole lot of stuff that is very normal, very easy, and then we are going to do a few things that are very exciting. Anytime you run a facility for a couple of years in a row—and we have been running very steady—you know, we obviously have our ups and downs.

Reliability continues to improve. But, by and large, this plant is up and running full time. And when you do that, there are just certain pieces of equipment that you cannot get to because it is running; you have to take it out as you do it. So there are a lot of simple things like instrumentation replacements and instrumentation upgrades, but I think the most important thing about this outage really is the data that we collected when we did our two test streams. We did a test run at 12.5. We did a test run at 14. And both of those gave us insight into constraints that we see in the facility.

And we are going to attack those items. We are going to get the plant back up and running, and we are going to push the plant to higher watermarks. And as we do that, we will learn more. We will do more. We will grow more, and we will continue building that into our operations at Ironton. I am really excited about the turnaround, as you call it—we call it that as well.

I am excited about it because every time you get to open the equipment, look inside, learn more about what your technology is doing, it just makes you better as a core team, and I am very confident that we are going to come out of this outage with a much better facility than we have right now.

Gerry Sweeney: Gotcha. I appreciate it. I am losing you a—

Operator: Thank you. One moment for our next question. Our next question comes from the line of Jeffrey Campbell of Seaport Research Partners. Your line is now open.

Jeffrey Campbell: Good afternoon, and thanks for the wealth of details in the call today. Much appreciated. Listen, I do not want to gild the lily, but my understanding is that there is no other PP recycling method, including chemical recycling, that is qualified for BOPP applications to PureCycle Technologies, Inc.’s level. So just to confirm, when you are talking about thermoforming and the compounding capabilities that you are going to develop this year as a long-term driver, this is related to PCT’s BOPP technical capabilities, correct?

Dustin Olson: Yeah. I think that is a good way to speak to it. I do not want to overspeak for other technologies. I mean, there are a lot of nuances when something like chemical recycling is mentioned. There is straight-up incineration. There is pyrolysis. There are ISCC Plus credits. Those things are in a different category because most customers prefer plastic-to-plastic, not mass balance solutions or plastic-to-fuel solutions. When it comes to our ability to do BOPP, I think we stand alone in the market right now.

Whenever you make BOPP, the simplest way to think about it is: imagine taking a piece of plastic and stretching it really, really, really thin so it can turn into one of the seven layers on a chip bag or one of the layers that covers up meat packing or something like that. It is really thin. If you have any contaminants in that pellet, whenever you start to stretch it, it adds blemishes. It can add little pimples that will look like stretch marks. It will add problems in the operations where it could break when they are running it. All these things are real concerns for BOPP producers.

And as a result of that, what we are finding is that because our purification technology purifies at the molecular, fundamental level, we are able to remove solids, ash, colors, and other contaminants to a level that just works on BOPP. And this is not theoretical anymore. A couple of quarters ago, we talked about Brückner on a small pilot line. Well, since we had the Brückner success, we have been doing it on the industrial scale. So we have two or three industrial line-size successful trials that have worked really well. These are all big machines—like 6.3-meter machines that are making film with our product. And that is cool.

It is super exciting, and I think it is going to be the future for us.

Jeffrey Campbell: Great. Now, when you think about the percentage of recycling the states are increasingly requiring, are they specifically requiring certain plastic types, or are these sort of broad statements of the amount of recycled content they want to have to survive the—

Dustin Olson: Yeah. That is a good clarification question, Jeff. The answer is kind of both. If you look at that slide, we mentioned the percentage, but there is a small note below it that says those percentages apply to lots of different things. In some cases, they apply to specific categories of plastic like PP or PE or PET. In other cases, it applies to specific types of applications like rigid or bottle or something like that. And so you really have to dive into the details. I will tell you that we have done a lot of research on the regulatory front. I think we are getting smarter here.

It is a very dynamic market that is very nuanced, but we are learning more and more about it every year. And I think that the general trend is two things. One, broadly speaking, regulations fall into two buckets. One is recycled content, the other is EPR. And two, it is coming. The regulations are real and they are coming, and in many ways, they are coming faster in the U.S. I mean, everybody talks about Europe, and the PPWR is really coming in Europe for the 2030s. Our Antwerp facility is going to be online just in time for that, which is going to be great for brands over there.

But, actually, states are leading quite a lot, and we are starting to get a lot of inbounds from customers on how to handle different regulations that are coming. The SB 54 in California is a very real thing. And a lot of times, California regulates and the country moves that direction. We saw that with fuel standards a decade, decade and a half ago, and we could see that happening here as well. And I think that we are well suited for the future.

Jeffrey Campbell: The reason I asked the question is because I wonder, aside from different categories of plastic and so forth, is there any notion of circularity versus the reality of mechanical recycling—that it gets recycled five or ten times, then it becomes a hard patch? So are you hearing any discussions of that when you are working with the regulators?

Dustin Olson: I would say that the concept of circularity is there in principle. I would say it is not legislated at this point just yet. Definitely, people are looking for circularity. A couple of things to point out on that, though. One, if you look at New Jersey in particular, we bought over 10 million pounds of feed from New Jersey last year. And so I think New Jersey is excited about this too, but I am really excited about what we are going to be able to do in New Jersey.

We are actually going to take waste from that state, be able to show them how much we are pulling from that state, convert it into something beautiful, and then let them turn it into something that a customer can buy over and over. That is New Jersey becoming circular. And they are super excited about it, as are we. The other point on the recycled content with respect to the circularity is brands definitely value that. And so we get a lot of inbound questions about feedstocks. Can we use this feedstock and then make it back into a product that they can buy again? There are a lot of discussions there.

It is just not—at this point, it is not legislating it.

Jeffrey Campbell: Yeah. Well, it is not surprising because you are the only ones that can do it. But my last question is kind of a one that I get a lot from investors, and I just kind of wanted to give you a chance to put your two cents in. You know, we continue to see PET recyclers pulling back on production and even shuttering facilities in the U.S. and the EU. Can you help investors understand why demand for PCT’s recycled PP will continue to grow while recycling of other types of plastics appears to be languishing?

Dustin Olson: Yeah. It is because we make a premium product. A lot of the recyclers are struggling in economic times like this because they sell a product that competes with virgin or sells at a discount to virgin. And it is difficult to make money there. I think that you have to have a differentiated product, which we do. And so I feel really good about our technology in the long run for a couple reasons. One, as this dynamic begins to emerge, I think that you are going to start to see downward movement in feedstock pricing. That is good for us.

I think that as we add compounding to our capability, we are going to start to monetize the value of the co-products that come out of feed and get better value out of that. That is very exciting from both a margin perspective as well as overall system perspective. And then the more and more that we do to qualify different product applications—which, I mean, we are doing it at pace; we are qualifying new things all the time—I think it just gives us more optionality on the offtake side. We will be limited in our supply to customers. We do not have an infinite amount of supply for all the customers that want our material out of Ironton.

And so the more that we can do to create optionality for where we choose to sell our product—which will ultimately depend on where did we get qualified and who wants it the most—is going to drive that overall supply picture. And I think that the technical qualification that we are doing is just opening that up to give us a lot of flexibility, flexibility before we go in the future.

Jeffrey Campbell: Okay. Great. Thank you. I appreciate it. Thanks, Dustin.

Operator: Thank you. One moment for our next question. Next question comes from the line of Eric Stine of Greyhound Capital Group. Your line is now open.

Luke Persons: Hey. This is Luke on for Eric. Thanks for getting our questions in here. So first, is there a timeline for when you might finalize the site for your Gen 2 facility? I know Thailand was mentioned in the past as a potential suitor since it is a really appealing market, but could you just talk about some of the factors that are going into this decision?

Dustin Olson: Yeah. I think the first step is for us to really get a good handle on the overall technology for Gen 2 and then the cost position for Gen 2. And I think that we are getting better at that, but we still have more work to do. So I do not want to get too far ahead of it because there is work that we need to do to finish that up. Look, we are very excited about Augusta. Augusta has been a good partner for us in Georgia. That is a really nice site, and we can build the facility there. We have been very public about that—Gen 2 going there first. I look.

I think that every site that we have announced in the past is a good location for a Gen 2. Where the first one goes—that is open for discussion. Right now, we are very excited about the Augusta facility. But you mentioned Thailand. Honestly, I think that is a great location too. We are finding lots and lots of opportunities on the feedstock side to fill that facility. I think the integrated brownfield opportunities there will help us on overall CapEx efficiency.

But one of the interesting things that will happen—I did not speak to this in the call—but one of the things that will happen is actually the footprint required for a Gen 2 at 500 million; it is not even that different than a footprint for Ironton. It is a little bit bigger. It swells a bit. But when you start talking about how much capacity you can put on each site, the more efficient you get with building Gen 2 and upsizing that equipment, actually, the more capacity you can put on each site. And so when we talked about Augusta hosting eight lines, I think it will be able to do eight lines—potentially eight Gen 2 lines.

We have to work the math, but I think that with Augusta, and for Thailand, and also with our partners up in Japan with Mitsui & Co., all of those sites are perfect for expanding into. And I think that you will naturally see us start to do that with the Gen 2s in the future.

Luke Persons: Got it. That is helpful. Thanks. And just as a quick follow-up here—what are your plans for prioritizing which customers will get capacity at Ironton since you really only need a small percentage of the pipeline that you are engaged with to fully scale before you are booked out?

Dustin Olson: Yeah. I mean, look, we are evaluating that. Quite frankly, we are filling the pipeline first, sell it up, and then we will make that—sell it out, and then we will make that decision. I think we have a lot of flexibility. What I can tell you is we are leaving ourselves open on contracts. We do not want to get baked into a long-term contract that could restrict us in the future. And so we will be able to optimize that over time. Typically, polypropylene contracts are one year at a time, and then you renegotiate. And I think that as we build the flexibility, we are going to have the ability to optimize that over time.

Luke Persons: Great. Thank you.

Dustin Olson: Thanks, Luke.

Operator: Thank you. This concludes the question-and-answer session. I would like to turn it back to the CEO, Dustin Olson, for closing remarks.

Dustin Olson: Yes. I appreciate everybody dialing in on a late day today. We have had a lot of prepared remarks. I know there is a lot that you are going to have to go through. We are always very available for your questions, so sleep on it tonight. Call us back tomorrow, and we will do more. I think you can tell from our comments how excited we are and how confident we are about 2026. So buckle up. Enjoy the ride. 2026 is going to be a great year for PureCycle Technologies, Inc. Thanks, everybody.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.