Largo Inc. (TSX: LGO) (NASDAQ: LGO) announced its second-quarter 2026 financial results, revealing a 68.5% increase in revenue to $44 million from $26.1 million in the same period last year. The company's vanadium pentoxide production rose 28.5% to 2,900 tonnes, and sales climbed 53.5% to 2,773 tonnes. Adjusted EBITDA improved to $2.7 million from $34,000, while Mining Operations Adjusted EBITDA surged 64.8% to $4.4 million. Despite a net loss of $22.7 million, largely due to noncash items and higher costs, Largo ended the quarter with $5.1 million in cash and $114.2 million in debt.
The company reiterated its 2026 guidance for V2O5 equivalent production of 10,500 to 12,000 tonnes and sales of 7,500 to 9,500 tonnes. Notably, subsequent to the quarter, Largo secured a $60.1 million delivery order from the U.S. Defense Logistics Agency Strategic Materials, underscoring its role in supplying critical materials for national defense. Additionally, Largo began full-scale copper-platinum group metals (PGM) concentrate production at its Maracás Menchen Mine following Brazilian regulatory approval. The company expects to produce approximately 300 to 380 tonnes per month, with an average grade of about 15% copper and 41 grams per tonne of PGMs, creating an additional potential revenue stream using existing infrastructure.
During the quarter, Largo benefited from stronger vanadium pricing, including a 45.8% increase in the average U.S. ferrovanadium benchmark price year-over-year. This positive pricing environment, combined with increased production and sales, contributed to the revenue growth. The company's strategic initiatives, such as the copper-PGM production and the defense order, are expected to diversify its revenue streams and enhance its long-term growth prospects.
Largo is the world's largest primary vanadium producer, supplying high-quality vanadium products to industries including steel, aerospace, defense, chemical, and energy storage. The company operates the Maracás Menchen Mine in Brazil and is committed to operational excellence and sustainability. Largo also holds a 37.4% ownership stake in Storion Energy, a joint venture with Stryten Energy focused on producing electrolytes for vanadium flow batteries, supporting the clean energy storage sector. Additionally, Largo owns the Northern Dancer Tungsten-Molybdenum property in Canada and the Currais Novos Tungsten Tailing Project in Brazil, both with preliminary economic assessments completed in 2011.
The company's common shares trade on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol 'LGO'. For more information, visit Largo's website.
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