Largo Inc. (TSX: LGO) (NASDAQ: LGO) reported a robust second quarter for 2026, with revenue surging 68.5% to $44 million from $26.1 million in the same period last year. The company's vanadium pentoxide production increased 28.5% to 2,900 tonnes, while sales rose 53.5% to 2,773 tonnes. Adjusted EBITDA improved dramatically to $2.7 million from $34,000, and Mining Operations Adjusted EBITDA climbed 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 reaffirmed 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, a significant contract that underscores the company's role in supplying critical materials for 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 and creates an additional revenue source, diversifying Largo's product portfolio beyond vanadium.
The company also benefited from stronger vanadium pricing during the quarter, with the average U.S. ferrovanadium benchmark price increasing 45.8% year-over-year. This pricing strength, combined with higher production and sales volumes, contributed to the revenue growth. Largo's strategic initiatives, including the new copper-PGM production and the defense order, are expected to enhance its financial performance and market position.
As the world's largest primary vanadium producer, Largo supplies critical materials to industries such as steel, aerospace, defense, chemical, and energy storage. The company's vertical integration ensures reliable supply and quality for its customers. Largo is also invested in the clean energy storage sector through its 37.4% ownership of Storion Energy, a joint venture with Stryten Energy focused on producing electrolyte for utility-scale vanadium flow batteries. Additionally, Largo holds interests in tungsten properties in Canada and Brazil, with preliminary economic assessments completed in 2011.
The company's shares trade on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol “LGO”. The recent developments, including the defense order and expanded production capabilities, highlight Largo's growth potential and its importance in the supply chain for critical minerals. For more details, visit the full press release at https://ibn.fm/iui1s.
