Largo Inc. (TSX: LGO) (NASDAQ: LGO) reported a robust 68.5% increase in revenue for the second quarter of 2026, reaching $44 million compared to $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% surge in sales to 2,773 tonnes. Adjusted EBITDA improved significantly to $2.7 million from $34,000, while Mining Operations Adjusted EBITDA climbed 64.8% to $4.4 million. Despite a net loss of $22.7 million, which primarily reflected 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.
The company also announced several strategic developments subsequent to the quarter. Notably, it secured a $60.1 million delivery order from the U.S. Defense Logistics Agency Strategic Materials, highlighting its role in supplying critical materials for national defense. Additionally, Largo commenced 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 revenue stream leverages existing infrastructure and diversifies Largo's product portfolio.
During the quarter, vanadium pricing showed strength, with the average U.S. ferrovanadium benchmark price increasing 45.8% year-over-year. This favorable pricing environment contributed to the revenue growth and underscores the robust demand for vanadium in steel, aerospace, and energy storage applications.
Largo's strategic investments extend beyond vanadium. The company holds a 37.4% ownership in Storion Energy, a joint venture with Stryten Energy focused on producing electrolyte for utility-scale vanadium flow batteries, addressing the growing need for long-duration energy storage in the U.S. Additionally, Largo retains 100% interests in the Northern Dancer Tungsten-Molybdenum property in Canada and the Currais Novos Tungsten Tailing Project in Brazil, both of which have preliminary economic assessments completed.
These developments position Largo as a key player in the critical minerals sector, with implications for supply chain security and clean energy transition. The Defense Logistics Agency order not only provides immediate revenue but also signifies trust in Largo's ability to deliver high-quality materials. The copper-PGM production offers a new avenue for growth, capitalizing on existing operations.
Investors and industry observers will be watching Largo's continued execution of its growth strategy, particularly as it navigates market dynamics and expands its product offerings. The company's commitment to operational excellence and sustainability remains central to its mission.
