Largo Inc. (TSX: LGO) (NASDAQ: LGO) announced second-quarter 2026 revenue of $44 million, a 68.5% increase from $26.1 million in the same period last year. The growth was driven by a 28.5% rise in vanadium pentoxide production to 2,900 tonnes and a 53.5% increase in sales to 2,773 tonnes. The company also benefited from stronger vanadium pricing, with the average U.S. ferrovanadium benchmark price up 45.8% year-over-year.
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, Largo reported a net loss of $22.7 million, primarily due to noncash items and higher costs. The company ended the quarter with $5.1 million in cash and $114.2 million in debt. Largo 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, highlighting the strategic importance of its vanadium production for national security. The company also received Brazilian regulatory approval to begin full-scale copper-platinum group metals (PGM) concentrate production at its Maracás Menchen Mine. Largo 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 revenue stream leverages existing infrastructure and diversifies the company’s product portfolio.
The expansion into copper and PGM production comes at a time when global demand for critical minerals is rising, driven by applications in defense, clean energy, and advanced manufacturing. Vanadium is essential for steel production and energy storage, while copper and PGMs are vital for electronics, automotive catalysts, and renewable energy technologies. Largo’s ability to supply these materials from its Brazilian operations positions it as a key player in the critical minerals supply chain.
The U.S. Defense Logistics Agency order underscores the geopolitical importance of securing domestic supply chains for strategic materials. Vanadium is used in aerospace alloys, armor plating, and other defense applications. Largo’s role as the world’s largest primary vanadium producer makes it a pivotal supplier for such contracts.
Financially, the company’s debt level remains a concern, but the new revenue streams and strong pricing environment could help improve its balance sheet over time. The reiteration of production guidance suggests management confidence in operational stability.
Largo’s strategic investments in energy storage, including its 37.4% ownership of Storion Energy, a joint venture with Stryten Energy, further align with the global push for long-duration battery solutions. This positions the company to benefit from the energy transition, alongside its traditional industrial markets.
The company’s common shares trade on both the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol “LGO.” For more information, visit Largo’s website. The full press release is available at this link.
Largo’s Q2 results and subsequent developments reflect a company capitalizing on favorable market conditions and strategic opportunities. The combination of increased production, higher prices, and new revenue streams from copper-PGM concentrate could significantly enhance its financial performance in the coming quarters.
