Luke Persons

Luke Persons, on behalf of Eric Stine, asked about the timeline for finalizing the Gen 2 facility site, including factors influencing the decision like Thailand's potential. He also inquired about PureCycle's plans for prioritizing customers for Ironton's capacity, given that a small percentage of the pipeline can fully book it.

Answer

CEO Dustin Olson stated that finalizing the Gen 2 site depends on fully understanding the technology and cost position, reiterating excitement for Augusta, Georgia, but also acknowledging Thailand's strong potential. He noted that Gen 2's efficient footprint allows for more capacity per site. For customer prioritization, Olson explained the focus is on filling and selling out the pipeline, maintaining contract flexibility (typically one-year terms) to optimize sales over time to customers who value the material most.

Luke Persons, on for Eric Stine, asked about the company's approach to customer diversification at Ironton and the challenges anticipated in scaling up to a 300M+ pound Gen 2 facility.

Answer

CEO Dustin Olson explained that customers moving fastest are securing 2026 capacity, but the company is pursuing high-margin opportunities across all segments, including automotive and FDA applications. Regarding scaling, Olson expressed high confidence, noting that the company's position is fundamentally different from when Ironton was built. He cited extensive operational data and deep R&D from the Durham facility as key enablers for scaling the technology effectively and cost-efficiently.

Luke Persons, on for Eric Stine, inquired about the potential for further operational benefits from the Carbonic acquisition and the progress in realizing synergies. He also asked how well-equipped the company is to make its European export strategy a substantial revenue stream and whether the recent dock damage would materially impede this progress.

Answer

President and CEO Bryon McGregor explained that the Carbonic facility is not yet at its full 70,000-ton capacity, currently selling about 50,000 metric tons, indicating room for growth with minimal capital expenditure. Regarding exports, McGregor stated that while they have developed workarounds for the damaged dock, a full repair is imperative. He noted that European sales are already exceeding original expectations and are expected to continue improving due to the unique, high-quality products from the Pekin campus.

Luke Persons from Craig-Hallum Capital Group asked about the idled Magic Valley facility, questioning if the unfavorable corn cost conditions were regional or specific to Alto's logistics and what market improvements would be necessary to consider a restart.

Answer

CEO Bryon McGregor explained the challenges are plant-specific, driven by high logistical costs for corn delivery with no rail competition. Both McGregor and CFO Rob Olander noted that market fundamentals, particularly the compression of high-protein prices due to increased soy crush, have changed the plant's economics. They indicated a restart is not imminent and would require a sustained market shift and potentially a significant capital investment to change the feedstock from corn.

Luke Persons, on for Eric Stine, inquired about the Iowa facility restart, asking if current market demand could lead to bringing more production lines online for 2026. He also asked if the previously mentioned target of an 8% supply chain cost reduction in 2025 is still realistic given recent tariff and IRA uncertainty.

Answer

President and CEO William Siwek confirmed ongoing discussions with their customer to potentially utilize the Iowa facility's full five-line capacity, but noted that any expansion is contingent on demand, IRA outcomes, and the tariff situation. On supply chain costs, Siwek affirmed they are on track to meet or exceed the reduction targets for the bill of materials, stating the market has been cooperative and any tariff impact would be minimal.