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LA

LITHIUM AMERICAS CORP. (LAC)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 was a construction-heavy, pre-revenue quarter with continued de‑risking at Thacker Pass; EPS of −$0.0567 missed Wall Street consensus of −$0.05 as transaction and advisory fees tied to Orion/FID weighed on results * *.
  • Project execution advanced: detailed engineering ~70% complete, first permanent concrete placed, ~300 craft workers onsite, and ~$425M in long‑lead commitments; Phase 1 mechanical completion target remains late 2027 .
  • Liquidity remained strong at $509.1M cash/restricted cash; the ATM raised ~$63.6M post quarter‑end and first DOE loan draw is now guided to 2H 2025 (from prior Q3 2025) .
  • Near-term stock catalysts: first DOE draw, September first-steel installation, worker ramp to ~1,000 by year-end, and ongoing tariff/supply chain risk mitigation updates .

What Went Well and What Went Wrong

What Went Well

  • Thacker Pass execution milestones: permanent concrete placement began in May; structural excavation, foundation prep, and road construction progressing; first steel installation expected in September .
  • Engineering and procurement de-risking: detailed engineering ~70% complete at 6/30, targeted >90% by year-end; ~$425M in long-term purchase commitments secured .
  • Financing momentum and liquidity: closed Orion investment ($220M initial cash to LAC), JV cash contributions ($191.6M LAC; $100M GM), ATM established and utilized, cash/restricted cash $509.1M at quarter end .

Quote: “We continue to focus on de-risking both the project schedule and capital costs… We continue to target mechanical completion of Phase 1 in late 2027.” — CEO Jonathan Evans .

What Went Wrong

  • Earnings miss and higher losses: Q2 EPS missed consensus (−$0.0567 vs −$0.05) as net loss increased driven by closing costs on Orion and advisory fees tied to FID * *.
  • DOE first draw timing pushed: guidance shifted from Q3 2025 to “second half of 2025,” introducing schedule risk to funding cadence .
  • Tariff/supply chain exposure: management highlighted fluid tariff announcements and potential trade disputes; while ~75% of project cost is labor/services, equipment supply chain remains a watch item .

Financial Results

Quarterly P&L (USD, per quarter)

MetricQ4 2024Q1 2025Q2 2025
Revenues ($USD Millions)n/a*n/a*n/a*
Net Income ($USD Millions)−21.17*−10.70*−12.45*
Diluted EPS - Continuing Ops ($USD)−0.0969*−0.0490*−0.0567*
Total Operating Expenses ($USD Millions)9.92*6.54*7.85*

Notes: Values marked with “*” retrieved from S&P Global.

Six Months Ended June 30 (YoY)

Metric6M 20246M 2025
Operating expenses ($USD Millions)12.2 14.4
Net loss ($USD Millions)12.8 24.8
Loss per share - basic ($USD)0.07 0.11

Estimates vs Actuals

MetricQ1 2025 ConsensusQ1 2025 ActualQ2 2025 ConsensusQ2 2025 Actual
EPS ($USD)−0.04*−0.0490*−0.05*−0.0567*
Revenue ($USD Millions)0.0*n/a*0.0*n/a*

Highlights:

  • Q1: EPS missed consensus (−$0.0490 vs −$0.04) [GetEstimates]* [GetFinancials]*.
  • Q2: EPS missed consensus (−$0.0567 vs −$0.05) [GetEstimates]* [GetFinancials]*.
  • Revenue: consensus assumed $0; company remains pre-revenue [GetEstimates]*.

Notes: Values marked with “*” retrieved from S&P Global.

KPIs and Project Execution

KPIQ4 2024Q1 2025Q2 2025
Capitalized construction in quarter ($USD Millions)n/a78.2 124.8
Cumulative capitalized ($USD Millions)n/an/a574.1
Detailed engineering (% complete)>55% >60% ~70%
Craft workers onsite (count)n/an/a~300
Long-term commitments ($USD Millions)n/an/a~425
Cash & restricted cash ($USD Millions)594.2 446.9 509.1
First DOE loan draw timingQ3 2025 Q3 2025 2H 2025
Workforce Hub first occupancy2H 2025 2H 2025 2H 2025
First steel installationSept 2025 Sept 2025 Sept 2025

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Phase 1 mechanical completionLate 2027Late 2027 (Q4’24/Q1’25) Late 2027 (Q2’25) Maintained
First steel installationSept 2025Sept 2025 (Q4’24/Q1’25) Sept 2025 (Q2’25) Maintained
First DOE loan drawQ3 2025Q3 2025 (Q4’24/Q1’25) 2H 2025 (Q2’25) Lowered/Delayed
Workforce Hub (first occupancy)2H 20252H 2025 (Q4’24/Q1’25) 2H 2025 (Q2’25) Maintained
Engineering completion target>90% by YE 2025>90% YE (Q4’24/Q1’25) >90% YE (Q2’25) Maintained

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document set. The table below uses management disclosures from press releases/8-Ks.

TopicQ4 2024 (Prior Q-2)Q1 2025 (Prior Q-1)Q2 2025 (Current)Trend
Project schedule & milestonesTarget late 2027 mech. completion; preparing for first concrete; >55% engineering Concrete placed May; >60% engineering; steel fabrication started ~70% engineering; permanent concrete progressing; Sept steel installation Positive execution momentum
Financing & liquidityDOE loan closed ($2.26B); JV closed; Orion announced; cash $594.2M Orion closed; JV cash contributed; first DOE draw guided Q3’25; cash $446.9M ATM established and utilized; cash $509.1M; DOE draw shifted to 2H’25 Funding strong; timing risk on DOE
Supply chain/tariffsn/aTariff risk flagged; ~75% costs in labor/services Ongoing mitigation; working to limit tariff/trade dispute effects Ongoing monitoring/mitigation
Workforce ramp & housingWFH major earthworks; first modules installing; 2H’25 occupancy First modular units installed; 2H’25 occupancy Placement well advanced; 2H’25 occupancy; ramp to ~1,000 workers YE Capacity building toward peak
Legal/regulatoryn/an/aAll legal/regulatory actions resolved or dismissed; no material impact Reduced execution risk
ESG/Sustainabilityn/an/a2024 ESG-S report published Enhanced disclosure

Management Commentary

  • “Thacker Pass is undergoing noticeable growth every week, and we now have over 300 workers on site… first shipment of steel arrived… expect to begin first steel installation in September.” — Jonathan Evans, President & CEO .
  • “We continue to focus on de-risking both the project schedule and capital costs… limiting the effect of any potential tariff or trade disputes on our construction supply chain.” — Jonathan Evans .
  • “The Company has resolved or secured judicial dismissal of all legal and regulatory actions… [that] did not materially impact the Company’s financial position or construction schedule.” .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available in the document set; the company furnished results via 8‑K and press releases without a transcripted Q&A . Guidance clarifications (e.g., DOE draw timing to 2H 2025) are drawn from the press release .

Estimates Context

  • EPS missed in both Q1 and Q2 versus S&P Global consensus: Q1 (−$0.0490 vs −$0.04) and Q2 (−$0.0567 vs −$0.05); revenue expectations remained at $0 with the company pre-revenue [GetEstimates]* [GetFinancials]*.
  • Potential estimate revisions: near-term EPS models likely reflect continued construction‑related advisory and financing costs; medium‑term models may tighten around worker ramp, September steel install, and >90% engineering by YE 2025 .

Notes: Values marked with “*” retrieved from S&P Global.

Key Takeaways for Investors

  • Execution remains on track with tangible milestones (concrete placed, steel installation imminent, engineering ~70%) supporting the late‑2027 Phase 1 completion target .
  • Liquidity and funding runway are robust (cash/restricted cash $509.1M; ATM proceeds ~$63.6M post‑quarter; DOE loan first draw targeted 2H 2025), though the push from Q3 to 2H introduces timing risk to disbursements .
  • The EPS miss is driven by transaction/advisory costs tied to Orion/FID rather than operational underperformance; expect near-term EPS to remain negative during build‑out * *.
  • Supply chain/tariff backdrop remains fluid; management’s mitigation efforts and long‑lead commitments (~$425M) help de‑risk execution, but monitoring is warranted .
  • Worker ramp (to ~1,000 by YE 2025; ~1,800 at peak) and WFH occupancy in 2H 2025 are critical for achieving peak construction in 2026 — key operational markers to track .
  • Upcoming catalysts: September first-steel installation, initial DOE draw, engineering >90% by YE, continued legal/regulatory clean‑up and ESG‑S reporting cadence .
  • Medium-term thesis: with funding pillars (DOE/GM/Orion/ATM) in place and execution momentum, LAC’s path to Phase 1 production (40kt/y lithium carbonate) is clearer; valuation sensitivity will hinge on schedule fidelity, capex discipline, and macro lithium pricing into 2027 .