Largo Inc. (TSX: LGO) (NASDAQ: LGO) announced second-quarter 2026 financial results, showing a 68.5% year-over-year revenue increase to $44 million, up from $26.1 million in the prior-year quarter. The company attributed the growth to a 28.5% rise in vanadium pentoxide production to 2,900 tonnes and a 53.5% increase in sales to 2,773 tonnes. Adjusted EBITDA improved to $2.7 million from $34,000, while Mining Operations Adjusted EBITDA rose 64.8% to $4.4 million. Despite these gains, the company recorded a net loss of $22.7 million, primarily 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. Subsequent to the quarter, Largo secured a $60.1 million delivery order from the U.S. Defense Logistics Agency Strategic Materials, underscoring the strategic importance of vanadium in defense applications. Additionally, Largo began full-scale copper-platinum group metals (PGM) concentrate production at its Maracás Menchen Mine in Brazil, following regulatory approval. The company expects to produce approximately 300 to 380 tonnes per month of copper-PGM concentrate, with an average grade of about 15% copper and 41 grams per tonne of PGMs. This new production stream leverages existing infrastructure, creating an additional revenue source.
Vanadium pricing showed strength during the quarter, with the average U.S. ferrovanadium benchmark price increasing 45.8% year-over-year. This pricing environment, combined with higher production and the new copper-PGM revenue stream, positions Largo to benefit from growing demand for critical materials in steel, aerospace, defense, chemical, and energy storage sectors. Largo's strategic investment in Storion Energy, a joint venture with Stryten Energy, also aligns with the company's focus on long-duration energy storage solutions, particularly vanadium flow batteries.
Largo's Maracás Menchen Mine is a world-class asset, and the company is the world's largest primary vanadium producer. The new copper-PGM concentrate production adds diversification to its revenue base, mitigating risks associated with vanadium price volatility. The U.S. defense order further highlights the critical role vanadium plays in national security, reinforcing the strategic importance of domestic supply chains.
For the mining industry, Largo's results signal robust demand for vanadium and the potential for by-product revenue streams from existing operations. The company's ability to expand production and secure government contracts demonstrates its operational resilience and market position. As global infrastructure and energy transition projects accelerate, the demand for vanadium is expected to remain strong, benefiting producers like Largo.
Largo's common shares trade on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol “LGO.” For more information, visit the company's website at https://www.largoinc.com/.
