CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47) announced preliminary gas income for the three-month period ending September 30, 2026, is expected to increase 21% to $0.55 million, compared with $0.46 million for the prior three-month period ending June 30, 2026. Gas income relates to revenues across the company’s hydrogen production and regional supply hubs for all industrial gases. The preliminary figures are unaudited and subject to change upon the filing of interim financial statements and MD&A on SEDAR+.
The sequential growth matters because it signals that Charbone’s vertically integrated industrial gases model is gaining commercial traction in the U.S. and Canadian markets. In Q3 2026, the company anticipates sales growth across multiple industrial gases, including clean ultra-high purity (UHP) hydrogen produced at its Sorel-Tracy Phase 1A plant, as well as UHP helium and UHP oxygen sourced through partners. Demand remained strong throughout the quarter and is expected to result in increased recurring revenues and new customers.
For the nine-month period ending September 30, 2026, gas income is expected to total $1.2 million, compared with $nil for the same period in 2025. Operating expenses in Q3 2026 are expected to remain comparable to Q2 2026, as the company continues to internalize key steps, including cylinder filling at Sorel-Tracy, which are expected to support margin improvement.
Corporate growth metrics as of September 30, 2026, compared with Q1 2026, show active customers rising to 28 from 3, trailers for all gases increasing to 11 from 2, multi-year supply agreements reaching 4 from 2, customer deliveries at approximately 12 per month from approximately 2, regional supply hubs expanding to 4 (Quebec, Ontario, Nova Scotia and New York State) from 2, and employees growing to 15 from 9. The expansion of the Industrial Gas Platform, including distribution equipment, is intended to support growing demand and expected future sales growth from new and existing customers.
Operational highlights include Sorel-Tracy Phase 1A, where UHP hydrogen production capacity is operational 24/7, with on-site quality control chromatographs operational and a dedicated lab technician hired; moisture is consistently maintained below 2 ppm. At Sorel-Tracy Phase 1B, electrolyzer installation is underway, civil work is complete, and equipment connections are advancing, with Phase 1B remaining on track for a Fall 2026 launch. At Wolf River, Wisconsin, the generator is being repaired in Lévis, Quebec, with reinstallation targeted for December 2026, and a reservoir refill plan has been submitted to the U.S. Federal Energy Regulatory Commission (FERC) and stakeholders. Cylinder filling has been brought in-house at Sorel-Tracy, supporting margin improvement and enhanced control over product quality and delivery timelines, while construction of the unit’s dedicated building is advancing.
“We have delivered the strongest quarter to date with an incredible team, which underscores our unwavering focus on long-term value creation and growth,” said Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE.
The company anticipates releasing full financial and operational results for the third quarter ending September 30, 2026, on Thursday, November 26, 2026, after markets close at the latest. CHARBONE will also host a webinar on Tuesday, December 1, 2026, at 11:00 AM ET, with registration available at https://info.rbmilestone.com/charbone-q3-2026. Management will present an overview of Q3 2026 results, recent operational achievements, and upcoming milestones, with allotted time for Q&A. For more information, visit www.charbone.com.
The preliminary results and operational milestones matter for investors and industrial gas customers because they indicate progress in building a decentralized supply network for UHP gases used in semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies. The original release is available on www.newmediawire.com.
