Earnings release
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PRESS RELEASE 5N Plus Inc. Reports Second Quarter 2026 Financial Results Strong First-Half 2026 Results Reaffirm Full-Year Adjusted EBITDA Guidance • Q2 revenue increased 28% to $122.4 million, bringing YTD revenue to $240.3 million • Q2 Adjusted gross margin1 increased 12% to $37.0 million or 30.3% of sales1, bringing YTD Adjusted gross margin to $78.4 million or 32.6% of sales • Q2 Adjusted EBITDA1 increased 10% to $26.6 million, bringing YTD Adjusted EBITDA to $55.8 million Montréal, Quebec, August 3, 2026 – 5N Plus Inc. (TSX: VNP) (“5N+” or “the Company”), a leading global producer of specialty semiconductors and performance materials, today announced its financial results for the second quarter ended June 30, 2026 (“Q2 2026”). All amounts are expressed in U.S. dollars unless otherwise stated. “Our second-quarter and first-half results demonstrate the strength of demand across our strategic end markets and the resilience of the 5N+ business model, which continue to drive strong revenue and earnings growth despite a more challenging operating environment,” said Richard Perron, President and Chief Executive Officer of 5N+. “The second quarter reflected increased cost pressures as expected , as well as temporary reduced operational efficiencies associated with our ongoing capacity expansion initiatives to support future growth. Despite these headwinds, our teams executed effectively, maintained strong customer deliver ies, and continued to advance our growth initiatives. Supported by a robust demand pipeline and disciplined execution, we are reaffirming our full -year 2026 Adjusted EBITDA guidance and remain focused on executing our long -term growth strategy.” Financial Highlights • Revenue in Q2 2026 increased by 28% to $122.4 million, compared to $95.3 million in Q2 2025, primarily reflecting higher volumes in Specialty Semiconductors and Performance Materials. • Adjusted EBITDA in Q2 2026 increased by 10% to $26.6 million , compared to $24.1 million in Q2 2025, driven by higher volumes under both segments. • Adjusted gross margin in Q2 2026 increased by 12% to $37.0 million, compared to Q2 2025 . Adjusted gross margin as a percentage of sales was 30.3% in Q2 2026, compared to 34.6% in Q2 2025, as higher metal input and chemical costs diluted the favourable impact of higher volumes. • Net earnings were $19.7 million in Q2 2026, compared to $15.2 million in Q2 2025. • Backlog1 stood at $420.0 million, representing 313 days of annualized revenue as at June 30, 2026, 23 days lower than in the previous quarter and 16 days higher than as at June 30, 2025. • Net debt1 was $23.7 million as at June 30, 2026, compared to $50.3 million as at December 31, 2025, while the Company’s net-debt-to-EBITDA ratio1 stood at 0.21x as at June 30, 2026. 1 These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. See Non-IFRS Measures for more information.
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2 Outlook The Company continues to benefit from favourable long-term fundamentals and structural expansion across its key end markets in Specialty Semiconductors and from the resilience of its Performance Materials segment. As the geopolitical and economic backdrop continues to evolve, the Company expect s its operating environment to remain complex and for input and operating costs to increase, as reflected in Q2 2026 results, including a normalization in margin conditions for Performance Materials . To help mitigate these impacts, the Company remains focused on the disciplined execution of its productivity initiatives and capacity expansion plans to increase operational efficiency and gain economies of scale. Based on its strong first-half performance, and anticipated and contracted demand through the second half of the year, the Company is reaffirming its full-year 2026 Adjusted EBITDA guidance of $100 million to $105 million. Supported by its competitive market positioning and expertise, including its Western manufacturing base and focus on value-added products , strong customer relationships and commercial discipline, 5N+ remains well positioned to continue executing its long-term growth strategy as a critical supplier to critical industries. Conference Call 5N+ will h ost a conference call on Tuesday, August 4 , 2026, at 8:00 a.m. (EDT) to discuss its second quarter 2026 financial results. All interested parties are invited to participate in the live broadcast on the Company’s website at www.5nplus.com. To participate in the conference call: • Toronto area: 1 289-819-1299 • Montréal area: 1 514-400-3794 • Toll‐free: 1 800-990-4777 • Access code: 25810 A replay will be available two hours after the event and until August 11, 2026. To access the recording, please dial 1 888-660-6345 and enter access code 25810. About 5N+ 5N+ is a leading global producer of specialty semiconductors and performance materials . The Company’s ultra‐pure materials often form the core element of its customers’ products. These customers rely on 5N+’s products to enable performance and sustainability in their own products. 5N+ deploys a range of proprietary and proven technologies to develop and manufacture its products. The Company’s products enable various applications in several key industries, including renewable energy, security, space, pharmaceutical, medical imaging and industrial. Headquartered in Montréal, Quebec, 5N+ operates R&D, manufacturing and commercial centers in strategically located facilities around the world including Europe, North America and Asia. Forward‐Looking Statements Certain statements in this press release may be forward‐looking within the meaning of applicable securities laws. Such forward‐looking statements are based on a number of estimates and assumptions that the Company believes are reasonable when made, including that 5N+ will be able to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners, that 5N+ will continue to operate its business in the normal course, that 5N+ will be able to implement its growth strategy, that 5N+ will be able to succes sfully complete the realization of its backlog in a timely manner , that 5N+ will not suffer any supply chain challenges or any material disruption in the supply of raw materials on competitive terms, that 5N+ will be able to generate new sales, produce, deliver, and sell its expected product volumes at the expected prices and control its costs, as well as other factors believed to be appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. These statements are not guarantees of futur e performance and involve assumptions, risks and uncertainties that are difficult to predict and may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed o r implied by such forward‐
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3 looking statements. A description of the risks affecting the Company’s business and activities appears under the heading “Risk and Uncertainties” of 5N+’s 2025 MD&A dated February 24, 2026 available on SEDAR+ at www.sedarplus.ca. Forward‐looking statements can generally be identified by the use of terms such as “may”, “should”, “would”, “believe”, “expect”, the negative of these terms, variations of them or any similar terms. No assurance can be given that any events anticipated by the forward‐looking statements in this press release will transpire or occur, or if any of them do so, what benefits that 5N+ will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N+. The forward‐looking statements contained in this press release is made as of the date hereof and the Company has no obligation to publicly update such forward‐looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing un due reliance on these forward‐ looking statements. Forward-looking statements are presented in this press release for the purpose of assisting investors and others in understanding certain key elements of the Company’s expected financial results, as well as the Company’s objectives, strategic priorities and outlook, and in obtaining a better understanding of the Comp any’s anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
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4 5N PLUS INC. INTERIM CONSOLIDATED STATEMENTS OF EARNINGS For the three and six-month periods ended June 30 (in thousands of United States dollars, except per share information) (unaudited) Three months Six months 2026 2025 2026 2025 $ $ $ $ Revenue 122,358 95,311 240,251 184,199 Cost of sales 89,032 65,888 169,147 127,780 Selling, general and administrative expenses 9,356 7,699 20,677 16,259 Other (income) expenses, net (3,918) 2,251 (5,753) 5,576 94,470 75,838 184,071 149,615 Operating earnings 27,888 19,473 56,180 34,584 Financial expense Interest on long-term debt 1,747 2,002 3,383 4,006 Imputed interest and other interest expense 461 351 939 1,064 Foreign exchange (gain) loss (472) (97) 247 (811) 1,736 2,256 4,569 4,259 Earnings before income taxes 26,152 17,217 51,611 30,325 Income tax expense (recovery) Current 12,098 4,706 18,317 8,077 Deferred (5,617) (2,716) (4,139) (2,552) 6,481 1,990 14,178 5,525 Net earnings 19,671 15,227 37,433 24,800 Basic earnings per share 0.22 0.17 0.42 0.28 Diluted earnings per share 0.22 0.17 0.41 0.28 Net earnings are completely attributable to equity holders of 5N Plus Inc.
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5 5N PLUS INC. INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of United States dollars) (unaudited) June 30 2026 December 31 2025 $ $ Assets Current Cash 55,388 59,573 Accounts receivable 61,501 50,470 Inventories 196,276 163,727 Income tax receivable 3,523 1,874 Derivative financial assets 5,954 19,593 Other current assets 9,087 6,938 Total current assets 331,729 302,175 Property, plant and equipment 108,336 99,634 Right-of-use assets 26,580 28,275 Intangible assets 21,612 23,117 Goodwill 11,697 12,062 Deferred tax assets 10,571 6,795 Other assets 3,237 3,072 Total non-current assets 182,033 172,955 Total assets 513,762 475,130 Liabilities Current Trade and accrued liabilities 95,973 79,096 Income tax payable 26,828 13,966 Current portion of deferred revenue 19,219 12,834 Current portion of lease liabilities 2,121 2,170 Current portion of long-term debt 1,258 1,233 Total current liabilities 145,399 109,299 Long-term debt 77,785 108,604 Deferred tax liabilities 4,743 5,173 Employee benefit plan obligations 12,096 12,745 Lease liabilities 26,288 27,983 Deferred revenue 10,349 11,545 Other liabilities 786 817 Total non-current liabilities 132,047 166,867 Total liabilities 277,446 276,166 Equity 236,316 198,964 Total liabilities and equity 513,762 475,130
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6 Non‐IFRS Measures Backlog represents the expected orders the Company has received, but has not yet executed, and that are expected to translate into sales within the next twelve months, expressed in dollars and estimated in number of days not to exceed 365 days. Bookings represent orders received during the period considered, expressed in number of days, and calculated by adding revenue to the increase or decrease in backlog for the period considered, divided by annualized year revenue. 5N+ uses backlog to provide an indicat ion of expected future revenue in days, and bookings to determine its ability to sustain and increase its revenue. EBITDA means net earnings (loss) before interest expenses, income tax expense (recovery), depreciation and amortization. 5N+ uses EBITDA because it believes it is a meaningful measure of the operating performance of its ongoing business, without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies. EBITDA is reconciled to the most comparable IFRS measure: EBITDA margin is defined as EBITDA divided by revenue. Adjusted EBITDA means operating earnings (loss) as defined before the effect of impairment of inventories, share-based compensation expense (recovery), ERP implementation costs, loss (gain) on disposal of property, plant and equipment, loss (gain) on remea surement of financial instrument, impairment (reversal of impairment) of non -current assets, litigation and restructuring costs (income), and depreciation and amortization. 5N+ uses Adjusted EBITDA because it believes it is a meaningful measure of the oper ating performance of its ongoing business without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA margin are reconciled to the most comparable IFRS measure: (in thousands of U.S. dollars) Q2 2026 Q2 2025 YTD 2026 YTD 2025 $ $ $ $ Revenue 122,358 95,311 240,251 184,199 Operating expenses (94,470) (75,838) (184,071) (149,615) Operating earnings 27,888 19,473 56,180 34,584 Share-based compensation (recovery) expense (6,034) (807) (9,704) 586 ERP implementation costs 217 156 406 316 Loss on remeasurement of financial instrument - 1,000 - 1,000 Depreciation and amortization 4,496 4,324 8,904 8,452 Adjusted EBITDA 26,567 24,146 55,786 44,938 Adjusted EBITDA margin 21.7% 25.3% 23.2% 24.4% (in thousands of U.S. dollars) Q2 2026 Q2 2025 YTD 2026 YTD 2025 $ $ $ $ Net earnings 19,671 15,227 37,433 24,800 Interest on long-term debt, imputed interest and other interest expense 2,208 2,353 4,322 5,070 Income tax expense 6,481 1,990 14,178 5,525 Depreciation and amortization 4,496 4,324 8,904 8,452 EBITDA 32,856 23,894 64,837 43,847
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7 Adjusted gross margin is a measure used to monitor the sales contribution after paying cost of sales, excluding depreciation and inventory impairment charges. 5N+ also expressed this measure in percentage of revenue by dividing the adjusted gross margin value by the total revenue. Adjusted gross margin is reconciled to the most comparable IFRS measure: Net debt is calculated as total debt less cash. Any introduced IFRS 16 reporting measures in reference to lease liabilities are excluded from the calculation. 5N+ uses this measure as an indicator of its overall financial position. The net debt to EBITDA ratio is defined as net debt divided by the trailing 12 months EBITDA. Total debt and Net debt are reconciled to the most comparable IFRS measure: – 30 – Contact: Alban Fournier Chief Financial Officer 5N Plus Inc. 514-856‐0644 invest@5nplus.com (in thousands of U.S. dollars) Q2 2026 Q2 2025 YTD 2026 YTD 2025 $ $ $ $ Total revenue 122,358 95,311 240,251 184,199 Cost of sales (89,032) (65,888) (169,147) (127,780) Gross margin 33,326 29,423 71,104 56,419 Depreciation included in cost of sales 3,711 3,551 7,334 6,954 Adjusted gross margin 37,037 32,974 78,438 63,373 Adjusted gross margin percentage 30.3% 34.6% 32.6% 34.4% (in thousands of U.S. dollars) As at June 30, 2026 As at December 31, 2025 $ $ Bank indebtedness - - Long-term debt including current portion 79,043 109,837 Lease liabilities including current portion 28,409 30,153 Subtotal Debt 107,452 139,990 Lease liabilities including current portion (28,409) (30,153) Total Debt 79,043 109,837 Cash (55,388) (59,573) Net Debt 23,655 50,264